Have idle cash? Get your money a side hustle

What is your cash doing right now? Is it working for you or idle? Everyone today is looking for ways to earn a little extra without adding another job to their already busy schedules.

But what if your money could take on a side hustle for you? What if the cash sitting idly in your bank account could quietly generate income in the background, without you lifting a finger?

This isn’t a financial fantasy. It’s the reality offered by money market funds. Money market funds (MMFs) are a popular investment tool that allows you to earn interest on your cash while keeping it accessible.

Unlike traditional savings accounts that often offer low returns, MMFs pool money from many investors and lend it to governments, banks, or large corporations for short periods.

Because these loans are short-term and typically involve trustworthy borrowers, the risks remain low, making MMFs a safe and practical way to grow your funds gradually.

Take the example of Sarah, a small business owner in Nairobi. Her business experiences fluctuations in cash flow. Some months bring in large payments, others are lean.

Instead of letting the excess money sit dormant in her account, Sarah places it in a money market fund. This way, the funds earn daily interest, which compounds over time, effectively giving her business a modest yet reliable income stream.

When an unexpected expense arises, she can quickly withdraw the funds without penalties, smoothing out the ups and downs of her financial calendar.

Then there’s Michael, a young professional who recently started setting aside money for emergencies. He wanted something better than a basic savings account but didn’t want to lock his money away for months or years.

MMFs provide the perfect solution. Michael deposits a portion of his monthly salary into the fund, knowing he can access it within a few days if needed.

Meanwhile, the money earns a better return than his regular bank account, inching him closer to his financial goals.

The real appeal of money market funds lies in this balance between safety, liquidity and growth. They aren’t about making you rich overnight or chasing high-risk bets.

Instead, they’re about giving your money a reliable side hustle, steadily building up returns while remaining flexible enough to meet your needs.

For many, this approach is a smarter alternative to letting money lose value over time in low-interest accounts. Some may worry that money market funds are only for investors with large capital, but that’s a common misconception.

In Kenya, several funds allow you to start with as little as Sh500 or 1,000, making it accessible for everyday savers and small business owners alike. The convenience, combined with the higher returns and low risk, makes MMFs an attractive option for anyone looking to optimise their cash management.

Of course, money market funds aren’t a silver bullet. They complement, rather than replace, other financial tools and savings strategies.

But for those looking to make the most of their idle cash, they offer a straightforward and effective way to keep money working even when you’re not.

So, if your money is just sitting in a savings account gathering dust, consider giving it a side hustle. Money market funds might not promise the excitement of high-risk investments, but they offer steady, dependable growth with the flexibility you need. And sometimes, that’s exactly what your finances need to thrive.

-The writer is a manager at Enwealth Capital Ltd