7 RED FLAGS YOU’RE HEADED FOR FINANCIAL TROUBLE - And How to Turn It Around Before It’s Too Late

Today, I want us to unpack 7 clear signs that you're on a slippery slope to financial ruin - and what to do before things spiral.

Hey, friend

Let’s talk - like real talk.

Some things in life hit us like a mjengo stone to the toe. You didn’t see it coming, you weren’t ready, and boom - disaster. But here’s the truth: many of the big financial messes we fall into don’t just "happen." The warning signs were there. Blinking red. Waving wildly. But we either ignored them or thought we could wing it.

Let’s not do that anymore.

🚩 1. You’re Living Paycheck to Paycheck (or Worse - Above Your Means)

If your salary lands today and is gone tomorrow, we need to talk.
Living paycheck to paycheck might feel normal (because, truth be told, many Kenyans are in the same boat), but it’s a financial time bomb. One missed salary - job loss, emergency, illness - and everything crashes.

Worse still is living above your means. Taking home 50K and spending like you earn 100K? That's not sustainable. It’s a straight highway to broke-ville.

What to do:

• Increase your income: Negotiate better pay, get a side hustle, try small business ideas (think mitumba, online gigs, rentals, printing jobs…).
• Cut your expenses: Review your lifestyle - rent, car, weekend plans. Can you downgrade temporarily so you can upgrade your future?

👉🏾 Try this rule: Live on 50% of your income, spend 30% on wants, and save/invest at least 20%. Better yet, flip it. Live on 50%, save/invest the rest.

🚩 2. You’re Borrowing to Pay Other Loans

Taking a loan to pay another loan? Hii ni alarm bell kubwa.
If you’re deep in bad debt and jumping from one mobile loan to the next, that’s not a hustle - it’s a hole.

Let’s break it down:

• Good Debt: grows you - think of a loan to expand a business, build a rental unit, or learn a skill.
• Bad Debt: drains you - money borrowed for consumer stuff: airtime, Uber, nyama choma, school fees you didn’t plan for

What to do:
Create a debt repayment strategy that works for you:

• Avalanche method – Pay off the high-interest loans first. (Start with those predatory mobile loans!)
• Snowball method – Start with the smallest loan and build momentum.
• Debt Consolidation – Get a soft loan (from a Sacco or friend) to clear all those small pesky ones, then focus on repaying just one.

🚩 3. Your Bills Are Always Late

Landlord calls. School calls. KPLC threatens. Again.
If every month is a struggle to keep up with basic bills, that’s not just stress - it’s a red flag. You may think, “Why are they rushing me?” But deep down, you know - money isn’t adding up.

What to do:

• Make a budget - and stick to it. Prioritize essentials.
• Set up standing orders for recurring bills like rent, loans, or school fees. Automate it and remove the temptation to spend first and “figure it out later”.
• Track your money. Where is it going? Find the leaks.

🚩 4. You Don’t Have an Emergency Fund

This one? It’s serious.
If your answer to emergencies is "tutangoja mshahara" or “nani ako na Fuliza?” - you're walking on a tightrope with no safety net. One emergency (a hospital bill, job loss, car breakdown) and boom - financial chaos.

What to do:

• Start small. Even KES 200 a day can build something meaningful.
• Use a money market fund for easy access and decent returns.
• Make this fund non-negotiable. It’s not luxury - it’s protection.

🚩 5. You Get Anxiety Just Thinking About Money

If the topic of money makes you sweat, feel guilty, or want to change the subject - something’s off. You’re not alone. Many of us avoid facing our finances because we’re scared of what we’ll find.
But here’s the thing: ignoring it doesn’t make it better. It just makes it worse.

What to do:

• Identify the root problem: Is it debt? Lack of income? Overspending?
• Use a budgeting tool or even a notebook to track and face your reality.
• Talk to someone - a financial coach or mentor. You’d be surprised how freeing it feels to face the truth and start fixing it.

🚩 6. Your Finances Are Hurting Your Relationships

Money fights in your marriage. Ghosting friends because of unpaid debts. Arguing with family over contributions. If your finances are ruining your peace and personal relationships, the issue has already gone beyond money - it’s affecting your life.

What to do:

• Acknowledge the impact. Don’t downplay it.
• Come up with a plan (budgeting, debt repayment, income strategy).
• Involve your partner or family where necessary. Be open and honest.

So… Did You Tick 4 or More?

If yes, don’t panic. But also… don’t ignore it.
You’ve just gotten your wake-up call. The goal is not to look rich. It’s to actually be rich - and peaceful, and in control.

Here's What You Can Do Starting Now:

1. Create a simple budget.
Know where your money is going. Tell it what to do before it disappears.

2. Cut the fluff.
Cancel what you can’t afford. Simplify your lifestyle until you can upgrade for real.

3. Find ways to earn more.
Explore side hustles, monetize your skills, join financial support groups.

4. Get help if you need it.
You don’t have to figure it out alone. Speak to a financial coach - we offer this as a paid service.

5. Use our free tools.
We’ve put together resources to help you:

• 📘 Kingdom Finance eBook
• 🧾 Budgeting templates
• 📊 Investment tips
• 💬 Community support

Final Word

The world is full of broke people trying to impress other broke people.

Don’t be one of them. Don’t live a lie. The goal is not to post wealth, it’s to build it - slowly, wisely, and faithfully.

You’ve got this. Let’s fix it together. One step at a time.

Now go out there, take control of your finances, and build a future you’re proud of.

We’re here to walk with you - step by step. At Set Free Capital , we’re a team of financial planners, advisors and counselors. We’re here to help you align your money life with purpose, peace, and progress.

So here's your call to action:

• We have free resources for members
• We have budgeting tools , classes, and templates
• We host training sessions and community events.
• Membership is only KES 1,500 and unlocks so much value

Let this year be different. Let it be the year you finally take charge of your finances - not alone, but with a community that cares.

Want to Go Further, Faster? Join the Kingdom Finance Family!

If you’re ready to take your savings and investment journey to the next level, we’ve got something just for you.

For a one-time membership fee of only Ksh 1,500 , you get lifetime access to a treasure chest of resources - some completely FREE - including our powerful Kingdom Finance eBook that breaks down everything you need to know about building wealth God's way.

But that’s not all...

You also become part of our vibrant online community - a safe, encouraging space where we:

• Share real-time investment tips
• Alert you to new and rising opportunities
• Celebrate wins together
• Grow our financial knowledge side-by-side
• And yes... hold each other accountable like a true success squad

This isn’t just a membership it’s about fulfilling the call of God to finance His work.

“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.”

Mophat Mwangi, Financial Analyst