What Do You Know About Bonds? (Besides James 😄) 💸

#WealthWednesday #FinanceInsight

TLDR: Bonds are basically loans you give to the government or companies—with a promise to be paid back with interest. Government bonds are like lending to the nation (sound familiar?). They’re steady, low-risk, and can serve your financial goals well—if used with wisdom.

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Biblical Inspiration
“The Lord will open the heavens, the storehouse of His bounty… You will lend to many nations but will borrow from none.” – Deuteronomy 28:12 (NIV)

This verse isn’t just about national economics—it’s about stewardship. Lending, even on a small personal scale (like through bonds), can be part of living wisely and generously. It’s one way to make what you’ve been given fruitful for the long term.

Let’s Break It Down

• Bonds are IOUs. You give money to a government or company, and they promise to pay you back later—with interest.

• Government bonds are common in Kenya and pretty safe. They’re backed by the government.

• You can invest directly through the Central Bank or indirectly via a bank, fund, or broker.

• The interest is fixed. That means you know what you’re getting every 6 months (or so).

• At maturity, your money (the principal) comes back to you.

Think of it like this: you lend your cousin money and he pays you back little by little—except this cousin is the government and he has a money printing machine.

Creative Ways to Use Bonds

✅ Layer Them: Buy different bonds with staggered interest schedules to get monthly income.
✅ Purpose-Driven Interest: Use the payouts to fund your giving, school fees, or saving goals.
✅ Long-Term Lock: Want to park money away so you’re not tempted to spend? A bond could be your self-control buddy.
✅ Peace-of-Mind Portfolio: Add a bond to your investments for low-risk income. Great if you're building a more stable base.

Quick Stewardship Check:

Have you thought about…

☐ Investing to lend, not just spend?
☐ Using interest for impact or income?
☐ Aligning your investment choices with your purpose?

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Action Step:
Take 15 minutes this week to learn about a current government bond offer or fund that invests in bonds. Ask:

• Could this serve one of my money goals?

• Would this bring balance to my current investments or savings?

• Do I want income, stability, or a long-term parking space for some cash?

Talk to a trusted pro if you need help navigating this.

💬 And what about you?
Have you ever invested in bonds—directly or through a fund? How did it go? Or is this something you're still figuring out? Let me know in the comments or contact me on my website.