- INVESTING ISN’T ONLY FOR THE WEALTHY
Growing up in a modest home in Soweto, Thato Dikgale (30) heard the same phrase whenever the topic of money was brought up: “Investing is for the wealthy.” Now working as a Divisional Manager at an investment consulting firm, she’s realised that isn’t true. “It’s ingrained in people that investing and building are things only the rich can do – which is by no means the case,” she says. “Investing can be as simple – and as passive – as having a debit order of only R100 a month going off your account. Nowadays, tools such as the Satrix, which track indices and is far cheaper than standard unit trusts, make it simple for millennials to enter the world of the stock exchange and start building their wealth too.”
Diatile Mehlomakulu (26), a Trade Finance Transactor at a bank, agrees. “Growing up, I heard many adults complaining about how hard it is to save and how much discipline it requires. I think that as a society, we’ve been programmed to believe that real saving means putting thousands away every month. However, the truth is that every rand – no matter how insignificant it seems – goes a long way. Platforms like the SATRIX and other exchange- traded funds are good examples of this.”
- SAVE – BUT SPEND TOO
While millennials are savvy about saving from an early age, they still put aside enough of their money to enjoy. “I completely agree that it’s important to start saving for retirement as soon as possible, but there’s also no need to feel guilty about occasionally using your hard-earned cash to buy things that make you happy,” says Tumi Phorosi (26), a Marketing Consultant at Old Mutual Corporate. Financial experts agree. “It’s important not to create too much anxiety about saving, and allow room for risk-taking,” says Bandile Mabuse, a Financial Planner at FNB Wealth. “If you have a business idea you believe in and the right support system behind you, using those emergency funds or savings for a business venture is bound to pay off, provided you put in the time, planning and dedication.”
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