Money, Freedom, and Legacy: Lessons I’m Learning from The Psychology of Money

“Doing well with money has little to do with how smart you are and a lot to do with how you behave.” – Morgan Housel

🌱 Where My Money Journey Began

My journey with money started long before I read Housel or Kiyosaki. In fact, it began in my childhood home. My mother was an astute businesswoman. She had a sharp eye for opportunity, understood the importance of saving, and always looked for ways to grow resources. My father, on the other hand, was generous to a fault. We often joked that while my mother made the money, my father redistributed it the next morning to those in need. Both modeled important lessons: prudence and generosity.

As a young adults, my wife and I began small. We were never ashamed to invest in modest plots of land, upgrading gradually as we sold one and bought another. We applied the same approach with property – upgrading and selling – until we were able to put up a development that is both our home and a source of income. That mindset – that you can start small, build steadily, and grow over time -has remained a guiding principle.

But here’s the truth: while I wasn’t naïve about money, I realize now that I missed structured financial literacy along the way. I relied on instinct, on lessons picked up from my parents, on trial and error. I wish I had read Morgan Housel’s The Psychology of Money, Darren Hardy’s The Compound Effect, or Robert Kiyosaki’s Rich Dad Poor Dad earlier. Their insights would have saved me both mistakes and missed opportunities—and would also have equipped me to mentor my children far better in financial literacy.

🎯 Why I Share This Message

There are two audiences I am particularly keen to reach.

1. Young People in Their Early 20s

If I could revise Christian Union discipleship curricula or FOCUS Kenya staff orientation programs, or church youth ministry curricula, I would add modules on financial literacy. Too often, we talk about stewardship without linking it to wealth creation. We preach about giving but rarely about growing.

Yet this is the season when the compounding effect works most powerfully. Even small, consistent habits—saving a few hundred shillings each month, keeping a simple spending record, or setting aside a percentage from a campus job or allowance—can, over time, produce extraordinary outcomes.

Darren Hardy in The Compound Effect reminds us that small daily choices multiply into life-changing results. Students and young people facing financial hardship may feel they have little to save, but the very act of practicing consistency is the foundation of wealth literacy. As Morgan Housel shows in The Psychology of Money, it is not brilliance but behavior—patience, humility, and discipline—that builds long-term resilience.

As Martin Luther once observed, there are three conversions: of the heart, the mind, and the purse—and of these, the purse is often the hardest. Yet if young believers embraced early the biblical call to multiply what God entrusts, as in the Parable of the Talents, we would raise a generation of Kingdom-minded wealth creators and philanthropists. This would ease the persistent funding challenges that Christian organizations face. Having walked with movements like FOCUS Kenya and Hesabika Trust, I know firsthand how difficult it is to sustain their work—difficulties that stem not only from external pressures but also from our own financial illiteracy, both in growing money and in stewarding it faithfully.

2. Those in Transition

This year’s USAID cuts left many navigating sudden uncertainty. In May 2025, during the Navigating Uncertainty Webinar Series, I saw how shaken people were by job loss and financial disruption. But I also saw resilience. Many left with practical lessons: pay yourself first, track spending ruthlessly, separate income from employment, and live for yourself, not appearances.

Robert Kiyosaki’s Cashflow Quadrant offers perspective on transition. Most of those affected sit in the E (Employee) and S (Self-Employed) quadrants—trading time for money with limited freedom or scalability. Long-term wealth, however, is built in the B (Business Owner) and I (Investor) quadrants, where systems and capital work for you. The key is a mindset shift—from seeking only security to gradually creating parallel streams through businesses or investments. Real resilience comes not from clinging to E or S, but positioning toward B and I for compounding growth and financial freedom.

👉 For those in transition, this is not just a disruption – it is an opportunity to reimagine where you sit on the quadrant. Hardship can be the nudge that moves you from the left side (security) to the right side (freedom).

💡 Lessons I’m Applying

1️⃣  Compounding Works—If You Let It

Hardy’s penny story is unforgettable: a single coin doubling daily becomes over $10.7 million in 31 days. Housel makes the same point: most of Buffett’s fortune came late in life, because he gave compounding time.

My application: I now practice compounding not only in finances but in habits. Writing daily reflections, journaling, or walking consistently may not show results tomorrow, but over years they transform health, clarity, and legacy. With money, I’ve stopped chasing quick wins. Instead, I choose patience and consistency.

2️⃣ Enough Is Enough

One of Housel’s stark warnings is about moving goalposts. Greed ruins even billionaires.

My application: I’ve defined what “enough” looks like for me. Enough income to support my family. Enough margin to give generously. Enough security to write, mentor, and consult without fear. This protects me from the endless cycle of “just one more.”

3️⃣ Assets vs. “Floss-ets”

Waithaka Gatumia, CEO of Centomy Ltd. sharpened our thinking about assets at the Navigating Webinar Series: Assets must put money in your pocket. Many things we call assets—like cars or gadgets—are liabilities disguised as status.

My application: I once took a bridging loan from a commercial bank while waiting to sell property. When I studied the amortization, I realized how much interest I was paying upfront. That experience changed my approach. Now, I evaluate every purchase: Does this generate income or drain it? I’ve shifted loans to SACCOs, invested more carefully, and reduced non-performing “floss-ets.”

4️⃣ Behavior Matters More Than Brilliance

Markets, like life, punish arrogance and reward discipline.

My application: I track my expenses monthly, not just yearly. It took me years to appreciate this discipline. Now I categorize and compare, month to month on an Excel spreadsheet. It’s not glamorous, but it has given me control. This is what Housel means when he says behavior—not IQ—drives financial success.

5️⃣ Freedom Is the Ultimate Goal

Housel’s most liberating idea is that money’s greatest dividend is control over your time.

My application: I know this is a luxury for a semi-retiree, but after years of working internationally, I now prioritize work that aligns with my values- more time with family and friends, ministry and voluntary work, writing, mentoring, policy/governance advisory. Money is no longer only about security but about freedom: the freedom to spend mornings in meditation and journaling, to walk and listen to audiobooks, to pour into the next generation.

🔑 A Personal Shift

What has struck me most in applying these lessons is how they have shifted my mindset:

• From status to stewardship.
• From comparison to contentment.
• From short-term wins to long-term resilience.

It is not that I no longer make mistakes—far from it. But I now have a framework. I weigh decisions not only by returns but by alignment: Does this choice serve purpose and freedom? Does it honor stewardship? Will it stand the test of time?

✨ Why This Matters

I share this message not just as personal reflection but as a call to action.

• To the young professional: Start early. Learn compounding. Define “enough.” Build invisible wealth.
• To the person in transition: Don’t panic. Pay yourself first. Reframe assets. See this season as discomfort that can drive growth.
• To the faith leader or mentor: Teach stewardship not just as giving, but as wealth creation and multiplication for Kingdom impact.

📖 Conclusion

Morgan Housel, Robert Kiyosaki, and Darren Hardy converge on a simple truth: financial wisdom is not about intelligence or luck alone, but about mindset, patience, and behavior.

My journey—from childhood lessons in generosity and business, through career pivots and financial mistakes, to today’s commitment to financial literacy—has taught me that wealth is not what you show, but what you sustain.

The challenge now is to pass these lessons on to students, professionals, churches, and peers navigating uncertainty. Because when we learn to master money, not as a master but as a servant, we gain not only freedom but the ability to invest in others and leave a legacy.