I’m an emotional being, but a very reasonable one!
A colleague shared this eye opening piece of work and in my quest to demystify investments I thought it was worth sharing. As a parent I relate and I hope you do too. Let’s rise up and raise trust fund babies, it doesn’t take the lotto to achieve such. All it takes is dedication, commitment and very small sacrifices. Peter Armitage cleverly educates us on the power of compound interest in a practical and realist manner. Enjoy the read and ACT on this!
I am sitting in the patio at Sabi River Bungalows watching you cycle around on the grass with the sun shining on your long blonde hair. You are an angel. You may only be seven, yet you probably teach (or remind) us more than we teach you. You know how to laugh loudly, show unbridled excitement and enthusiasm and to fill every hour with energy. The palette is so pure.
But my profession makes me worry about you. Maybe I read too much research, watch too much Bloomberg TV and do too many spreadsheets. You see, Sarah, the world is moving and developing so fast that it is a treacherous place in many ways.
Yesterday you screamed “I am scared” when I looked up after falling into the water on the last rapid and you went 50m by yourself in the little dingy, bouncing up and down while the Sabi River swirled around you. I could offer no help, but you made it by yourself to calmer waters – brave, seven and scared.
This is similar to the journey you will face over the next few decades as the world changes around you. I will try and be there to help, guide, cajole and suggest. But ultimately and eventually you are on your own.
Technology is moving so fast that I will eventually be unable to help, Chinese children are studying so hard they might take your job in the global marketplace. By the time you are 50 the world will be so different, in ways I cannot predict: Will electricity have run out? Will pollution rob you of fresh air to breath? Will you have the money to live the life I want you to have?
I am a geek Sarah, so I have just done a spreadsheet. I am smoking while writing you this letter and worked out that if I put my cigarette spend into a unit trust every month (R400), by the time you are 21 it will be worth R172,000. That could buy you your first car! So I should probably do that, it only seems fair to you – a healthier dad and your first set of wheels.
You see I think constantly about preparing you and providing for you and this is where I get a little confused. I work extremely hard, bashing away relentlessly on this laptop, often justifying it by the fact that I am “providing for your future”. But all you want right now is my time, not my money and I am seldom good at balancing [that].
So how do I balance preparing you for the future, providing for your future and giving you what you need right now? You need money right now, but you don’t realise that, you are far more interested in time and experience. It cost money to go river rafting yesterday, but for you it was the time and experience that was of value and that will steady you for the future; the money was just the enabler.
One of the things that I am obliged to do for you is to apply the economic principles that are integral to what I do every day – help people maintain and grow wealth.
The creation of wealth has two primary facets: time and money. You have a great deal of that most valuable asset – time. A small amount of money invested at a reasonable rate of return grows tremendously with time. The power of compounding is something that I can put to work for you right now.
I did some basic calculations (which will bore you to tears at your tender age) and the result is astounding.
If I invest R5 000 a month for you until you are 21, it will be worth R2.1 million when I give you the key to the door (worth just under R1 million in today’s money). This calculation assumes a 12% return per annum. If we are both lucky enough for you not to need that money when you are 21, and we continue the equation, by the time you are 30 that will be worth R8.3 million (or R2 million in today’s money). Likewise at age 50, it’s R95 million (or R7.3 million). The numbers are amazing.
So that is one pretty smart way of providing for you, getting money to work for you with the help of time, rather than using my time to try and create money. Actions taken today have remarkable financial implications when extrapolated over a long time period.
Bearing in mind the thoughts that I have had while in the bush for a week I jotted down some commitments that I will make to you today:
1. I will try and give up smoking and invest that money for you, your brother and your sister.
2. I will give you the time you need from a dad.
3. I will love you unconditionally every step of the way, pick you up when you fall and never judge you.
4. I will try and develop the characteristics you need to deal with this uncertain future. I want you to be agile, flexible, determined and brave. You must be able to deal with and react positively to change.
5. I will work hard for you, but get money working for you as well to take advantage of the time you have on your side.
6. I will invest R5 000 a month for you and when you are 21, encourage you to leave that money to grow.
So those are my thoughts you precious little thing. I cannot live your life or even anticipate what life will be like long after I have gone. But if you are armed with the character that you already exhibit and some financial freedom, this will help you live the life that I want for you.
Peter Armitage is CEO of Anchor Capital. Follow him on Twitter @Peterarmitage and me @DixxMadika. This letter was republished with permission. Remember it’s never too late.
The world really needs to stop looking at single mothers like failures in life. It’s hard being a stand-alone parent, even harder when the world judges you for it. Most stand alone mothers aren’t so by choice, they’re often forced by circumstances beyond their power and control. Sometimes it’s choice at peace and happiness over being in a socially acceptable family unit.
The church itself is not overly supportive of single parenting, I understand they can’t condone it, but they shouldn’t shun it either. Biblically and culturally kids are meant to be born in wedlock, I support and fully agree with that belief/value and way of life. However our reality is different. I mean, what then needs to happen to single mothers in the church? While the world judge us for being ‘unwed’ mothers, mafakas are going around making babies and leaving a trail of fatherless kids behind while the world applauds them for being “players” !! (That’s a topic for another day). It’s unfortunate that when you tell people about your child, many times they don’t bother asking where the father is, they assume he went with the wind like most of them. It’s not always the case, perhaps you’re single by relationship status but raising a child together. (I could go in detail about this but I’d be deviating from the topic at hand.) Being Black is hard is South Africa, it’s especially hard being a young, Black, unmarried mother!
So many boxes “they” try to fit me in, that time I’m water, can’t be contained in a box! I need secure a container, like water I take form in whatever you put me in, whether it’s a cup, vase or glass, I take that form, shape and I do just fine. I’m that flexible. I’ve learned this from the greatest rapper alive, applied to every aspect of my life. It works!! Another thing that makes stand alone parenting hard is when you come from a socially acceptable family unit of mom and dad and then growing up to “deny” your own child the pleasure of having mom and dad. Your reasons and choices make sense to you today if they’re honest and true they’ll still make sense in eighteen years time when your child asks where the other parentl is.
Like homosexuality and many other things that are deemed ‘unacceptable’ culturally and religiously, single parenting is not going any where! The sooner the world makes peace with it the better for all!
My ever so precious 2 cents worth of opinion!!
Let me tell you a little bit about what I do. I’m a Financial Planner. This is that job I’d been praying about but didn’t know existed. Well after six years in banking, I took a breather and worked for government, well a SETA. I was there for almost two years doing non-banking related things. It was during this time that I figured out what it is I’m meant to do with my life. I started making the right calls, praying the right ways and slowly moved in the right direction. One odd day I received call for an interview and jumped at the chance. A few weeks later, I handed in my resignation letter and made my way into my dream job.
You see that’s different about this job is that it’s in line with what I’ve want to do with my life. I’d rather sell risk and investment products than sell credit. I wish I knew what I know now earlier. The beauty though is that it is never late to rectify your financial mistakes. It doesn’t matter how old you are but finances can be fixed, attitudes can be changed and financial education is available. This last thing anybody wants is to feature on InDebt TV show.
I want to see people be financially free, not in a political and radical sense, I’d like to live in a world where people aren’t committing suicide because of debt, a world where families are left in dire straits because the bread winner has passed on, a world where families aren’t fighting because a member died without a will. A world where people are investing in their future and in their children’s future. I want to demystify investments, I grew up believing that investors are rich people and that you need a lump sum to invest. Little did I know, as clichéd as it sounds, every penny counts. Some people are lucky to be permanent salary earners, to feed their families and educate their kids, it’s sad that people are sorely relying on the current salaries for survival. Do you ever think of the possibilities, what if you lose you job, what if you are disabled and aren’t able to earn an salary to support yourself and the ones you love. There are many circumstances that could lead to loss of income. Are you ready? Are you prepared? Well if not I’m here for you. Well, have a look at the below, be honest and drop me a mail.
IS YOUR FINANCIAL PLANNING IN ORDER?
Kindly visit or call our Qualified Financial Planner to arrange a Free consultation to discuss your needs such as;
INVESTMENTS: (Education, Motor Car, Holiday or Lobola )
LIFE COVER: (Death, Disability, Critical Illness or Loss of Income)
RETIREMENT: (Living Too Long & Tax Saving)
FUNERAL PLAN: (Up To R50000.00. cover for spouse, children & parents as well as extended family)
WILLS: (Ensure that your estate will be spread accordingly)
LUMP SUM INVESTMENT: (Saving for growth or income).
For more info: Call Madika Mashiloane: Tel-011 354 9500.
Who Needs Financial Planning?
The truth is that practically everyone can benefit from some kind of financial planning. Establishing financial goals and creating a plan to achieve them can be a challenging task. However the financial planning process may be easier than you think. If you have long-term financial goals such as preparing for retirement or funding your children’s education, financial planning will help you get there faster, because it keeps, motivated and focused on your financial goals. With an overwhelming number of options for saving and investing, managing your finances can become difficult. Financial planning provides direction and meaning to your wealth planning decisions. It gives you an understanding of how each financial decision you make affects all other areas of your finances.
“Cardbury and Beacon stopped making Rum & raisins choc cause I was becoming a chocoholic alcoholic.”
“I’m melodramatic and overly sensitive. Allow, this is my phone!”
“Maybe is should tempt fate and dye my hair blonde to see if things can’t get any worse”
“If shit were sugar the sewer would be a jam factory”
People always pray for perfect things instead of praying to God to perfect them
Now that I’m 30 a few things have to change by fire by force. Those things are:
1. My outlook on life-unleash the beast Dixx. *Switches the “go-getyo-life-girl-button.”* Don’t be scurrrrd!
2. Gym-my return to the gym is long overdue. Operation thuba mkhaba in full force! I still can’t be looking like a gave birth yesterday when my daughter is in Grade R already!
3. Improve my speech. At 30 there isn’t a single language I speak fluently. My Sesotho is half baked. My English is half baked, my Zulu is an insult to Zulus…I’ll leave it here for now. But I really need to improve.
4. Break ties with people that drain me. It’s okay, they’re not bad people and I’m not a bad person. Perhaps “we” no longer fit in in each others lives. That’s cool it means there’s been growth and progress and we shouldn’t get emotional about letting go. It’s natural.
5. Get financial freedom and create wealth. Opportunities are plenty, go-getyo-life-girl. Be debt free!
6. Act as I think. I think I can do well, I think I can make history in my industry, I think I can conquer the world. I know for a fact that all these are possible. Perhaps my fear is that I’m powerful and great beyond measure. Let go of that and take steps towards greatness!
7. Love again. Like I’ve never been hurt. Let go of all my crushes, including you Nyambose lol!!
8. Let go of my insecurities, the world should take me as I am. Provided I present myself to the world as I am. So Dixx it is 24/7/365
9. Make a meaningful contribution to my church and community. Doing good feels good. I want to do more of things that make me feel good.
10. Appreciate my family more. This past two years have been a rollercoaster ride of one negative emotion after another and in all that my family has been there and assuring me that all will be fine. Things are not perfect but they’re definately better and for that I’m eternaly grateful!
Because I’m God’s work in progress this list is incomplete!
*Heres to 30 and beyond*
Please visit http://www.justcurious.co.za/2014/01/the-jc-awards-experience/ on my experience at the JC Awards
A Poem by Robin Sharma
#1 bestselling author of The Leader Who Had No Title
Today, I declare I am strong and brave, not timid nor weak
“Today I declare that my past will no longer limit my future and just because I couldn’t achieve something yesterday doesn’t mean I won’t do it this day.
Today I declare that I’ll honor my talents, express my gifts and reveal my creativity to everyone around me.
Today, I declare I’ll be loyal to my values, respectful of my mission and fiercely focused on my dreams.
Today, I declare that I am a maker versus a consumer, a giver versus a taker and a visionary versus a victim.
Today, I declare that I will always be part of the solution and never part of the problem.
Today, I declare that when I fall, I will certainly rise and when I’m in doubt, I will persist.
Today, I declare that I will cherish my health, feed my mind and nourish my soul.
Today, I declare that I am surrounding myself with people who are smarter, faster, stronger and better than me so I am uplifted by their models and inspired by their examples.
Today, I declare that I set the standard in my work, am becoming the icon of my industry and a legend at my craft.
Today, I declare that I adore my family, am grateful for my friends and am an encourager to all those who are blessed to cross my path.
Today, I declare that this New Year is MY year. My time to grow, excel, laugh, love, win, believe, persevere and serve, knowing that I am truly the leader of my fate, the owner of my results and the hero of my destiny.”
This is the Gospel according to Dixx.