Greetings, and welcome to the 37th edition of the Wallet Wellness Newsletter - your midweek source of practical financial tips to elevate your money management skills!

We hope you got a chance to read last week’s edition, where we discussed costly mistakes to avoid making during the first week of receiving a salary. This week, we shift gears to ways of overcoming the fear of investing.

As always, be sure to check out the Concept Corner below for a deep dive into the money concept of the week.

Let’s dive in!

MONEY254 TIP OF THE WEEK

How to Overcome the Fear of Investing

You’ve probably heard stories of people who lost everything in fake land deals, collapsed Saccos, or too good to be true projects. 

For some, these stories can cause fear and prevent them from seeking opportunities to invest. For others, they believe that investments are only for the rich, those who can throw around thousands and millions without blinking.

The truth is that fear is the biggest barrier between you and financial growth. But just like learning to drive, you don’t overcome fear by standing on the sidelines. You overcome it by starting small, learning as you go, and staying consistent.

Here’s how to move past the fear:

1. Start Small — Build Confidence, Not Stress

You don’t need to start with Ksh100,000. Even Ksh500 in a Money Market Fund (MMF) is a step. The idea is to build trust in yourself. Once you see your money earning interest, even if it’s just Ksh100 in a month, it shifts your mindset from investment is risky to investment actually works.

Practical example: Try opening an account with an MMF, and you will see daily or monthly returns and gain confidence before moving to bigger steps like Treasury Bills or Sacco investments.

2. Learn Before You Leap

Most fear comes from not knowing. If you don’t understand something, it feels unsafe. That’s why many people freeze when they hear terms like “bonds” or “NSE.”

Start simple:

• Ask your Sacco to explain how dividends are calculated.

• Visit the CBK website to learn how Treasury Bills work (you can start from as little as Ksh50,000).

• Read financial blogs or attend free webinars from regulated firms.

Knowledge turns fear into confidence. When you know how something works, you stop seeing it as a gamble and start seeing it as a tool.

3. Stick to Regulated and Proven Options

One reason Kenyans fear investing is because of scams that offer unrealistic returns in a short period. Instead, focus on what’s regulated and tested, such as Money Market Funds (regulated by CMA) and Treasury Bills and Bonds (regulated by CBK)

This way, even if returns are modest, your capital is safe. Fear reduces when you know you’re on legit ground.

4. Anchor on Your “Why”

Fear is strongest when you don’t have a clear reason to invest. Why put your money at risk if you don’t know the goal?

Ask yourself: Is it for retirement, to educate your kids without relying on HELB or loans, or to stop living paycheck to paycheck? When your reason is clear, it becomes stronger than the fear. 

Final Thought
Fear of investing is normal — but the cost of doing nothing is worse. Inflation is eating away at your savings every day. That Ksh100,000 in your account today will buy less and less each year.

The way forward is not to avoid investing, but to start small, smart, and safe. Begin with what you have. Learn as you go. Stick to regulated options. And always anchor on your why.

CONCEPT CORNER

Capital Appreciation

Capital appreciation is the increase in the value of an asset over time. It is the difference between an asset's purchase price and its current market price. For example, if you buy a piece of land in Kitengela for Ksh2 million and sell it five years later for Ksh3.5 million, the Ksh 1.5 million increase is the capital appreciation. Read more. 

Money Tips & Career Advice

MONEY254 #MONEYTOK

How Much Would You Spend Buying Just 1 Share From Every Company on the NSE?

Did you know you can now invest in the Nairobi Securities Exchange with as little as one share? In August 2025, NSE scrapped the old 100-share minimum, opening the door for more Kenyans to start small.

With just about Ksh10,000, you could own one share in every listed company, compared to previously when the initial amount needed was more than Ksh1 million.

In this video, we break down what it costs by sector, banking, manufacturing, energy, insurance, and agriculture, and show how much your money would have grown since January.

@money254hq

𝐇𝐨𝐰 𝐌𝐮𝐜𝐡 𝐖𝐨𝐮𝐥𝐝 𝐘𝐨𝐮 𝐒𝐩𝐞𝐧𝐝 𝐁𝐮𝐲𝐢𝐧𝐠 𝐉𝐮𝐬𝐭 𝟏 𝐒𝐡𝐚𝐫𝐞 𝐅𝐫𝐨𝐦 𝐄𝐯𝐞𝐫𝐲 𝐂𝐨𝐦𝐩𝐚𝐧𝐲 𝐨𝐧 𝐭𝐡𝐞 𝐍𝐒𝐄? Did you know you can now invest in the Nairobi Securities Exch... See more

That's it for this edition of Wallet Wellness. We hope these financial tips have added some energy to your hustle. Stay tuned for more practical insights in our next edition of "Wallet Wellness" next week, and watch out for Money Weekly in your inbox this Friday.

Also, don’t forget to download the Money254 App on the Google Play Store, and remember that we can help you compare over 300 loans, savings accounts, current accounts, and more if you’re thinking about your next product.

Cheers to your wallet's well-being!

Money254 editorial team.