As any Kampala netizen—or rather, any Ugandan right now—knows, money moves are the priority. “Twagala ssente” is the way to go, that’s for sure. After all, we all have something to pay for. But as I was thinking and scratching my head for ways to earn an income, I wondered—what if I’m already rich but unable to spend my wealth? Funny enough, this is actually quite plausible.
There are millionaires who can’t even pay their bills—not because they are poor, but because their wealth is tied up in assets rather than cash. So today, for the daily hustler reading this, let’s talk about asset wealth vs. cash wealth and figure out which one is worth chasing.
What Does It Mean to Be Asset-Rich vs. Cash-Rich?
We all have different standards for what we consider wealth. For some, it’s having a fat bank account; for others, it’s owning property and valuables. Some define wealth as a happy life, while others simply need emotional stability to feel rich. However, for the purpose of this article, we are focusing on the first two.
Asset-Rich: This means you own valuables—real estate, land, businesses, stocks, and even luxury items like art or vintage cars. Your net worth might look impressive on paper with the millions of valuations from said assets, but regarding paying for everyday expenses, your hands are tied. Why? Well, you can’t exactly swipe a piece of land at a supermarket checkout, you need cash for that.
Cash-Rich: Here, you have liquid money in the bank or in easily accessible investments. You can pay bills, seize opportunities, or book a spontaneous vacation without stress. However, if you’re only holding cash and not investing in assets, you could be missing out on potential wealth growth.
It might sound ironic, but it’s true: You can easily find a broke millionaire. I, for instance, did some calculations, and it turns out I am sitting on some millions worth of assets (it’s little I know, but hey, we all start somewhere!). Imagine owning a mansion in Kololo, a fleet of luxury cars, and acres of land in Mukono—but not having enough cash to fix a leaking roof or pay school fees. This is the classic “asset rich cash poor” scenario, you are rich and able on paper, but in reality, the picture is a little different.
Assets build wealth over time, but they’re not always useful for daily survival. If most of your wealth is locked in non-liquid investments, you might find yourself struggling when unexpected expenses arise—ever heard of someone being forced to sell their land to cover medical bills? Or any other of “I am selling this, I need money urgently” kind of sale-off? That’s the downside of being too asset-heavy with little cash flow.
So, which is better of the two: Asset Wealth or Cash Wealth?
The short answer? You need both.
Being asset-rich is great for long-term wealth, but without cash flow, you might struggle with daily financial obligations. On the other hand, having too much cash without investing in assets means your money isn’t growing, just there until you spend it. Inflation will eat away at its value over time.
The Pros & Cons of Being Asset-Rich
So, let’s say you are asset rich, what are some advantages and drawbacks of this kind of wealth?
Long-term wealth accumulation – Your property or stocks can appreciate over time.
Can generate passive income – Rental properties, business ownership, and dividends can bring in money without active effort.
Lack of liquidity – You can’t instantly convert your land or house into cash when you need it urgently.
Maintenance costs – Properties require upkeep, taxes, and management fees.
Pros & Cons of Being Cash-Rich.
Immediate financial security – You have money for emergencies and everyday expenses.
Flexibility – You can quickly seize business opportunities or take advantage of market dips.
Inflation risk – If you’re not investing, your cash loses value over time.
Lack of asset appreciation – Unlike property or stocks, cash doesn’t grow unless invested.
So, what’s the play here? How do you avoid being a millionaire who can’t pay their bills or someone with a fat bank balance that never grows?
(1). Diversify Your Wealth
Don’t put all your money in one place. Have some in assets (real estate, stocks, businesses) and some in liquid savings for emergencies and investments…and of course, some other to eat.
(2). Build Cash Flow Streams
Even if you’re asset-rich, find ways to make those assets work for you. Rent out a property, invest in dividend-paying stocks, or start a business that generates steady income and thus boosts your cash wealth as well.
(3). Keep an Emergency Fund
Even if you own land worth billions, having at least 3-6 months’ worth of expenses in a savings account can prevent you from selling your assets at a loss when you need quick cash.
(4). Invest Wisely
Don’t hoard cash, and don’t tie up all your wealth in hard-to-sell assets. Find a middle ground by investing in income-generating assets while maintaining enough liquidity to survive.
Being rich isn’t just about how much you own—it’s about how accessible your wealth is when you need it. The smartest financial move is to have a balanced portfolio—a mix of assets that grow over time and then some cash that keeps you financially secure in the short term.
So, when you see someone rolling in a Range Rover Sport but struggling to afford the fuel, just know—it’s not about how much you own, but how well you manage your money. Are you truly rich, or just asset rich but cash-strapped? The goal is to be both.
As for me, well, lemme go hustle…
