I have had the pleasure and the privilege of interacting with many of you about your investments, and some of these conversations have left me feeling more than a little concerned about the financial future of this country. It seems that while we all talk about wanting financial freedom very few of us walk the talk.
For those of you in your 20s or 30s who think that retirement is too far way to think about today: The future of this country belongs to you, but failure to prepare for it is preparing for financial captivity. It's time to start thinking about tomorrow today.
Recently I spoke to a young lady who told me she lives today like there is no tomorrow #YOLO (You only live once).
The reality is that you are not getting any younger. Every day we are alive is a day closer to retirement. You alone are responsible for the type of retirement you will have.
Just as I speak to the young minds and young hearts of our country I also speak to the older generation, many of whom are five to ten years away from retirement. Some of these conversations have left me heartbroken. How can one possibly plan to retire comfortably, to plan for a future few decades without a salary, with only R150,000 in the bank?
The advantage we have as young people is that we still have time on our side. My older clients can do little to change their predicament, but you, the future generation, still have your own fate in your hands. Trust me when I say that the financial decisions you make today will have an everlasting impact on your future. So choose wisely what you do with your money.
Fellow millennial, let us stop postponing the day we will start saving for retirement. The phrase I keep hearing is: I am too young to think about retirement.
Another one is: I will start saving for retirement when I have enough money. ‘Enough money’? What does that mean? I am yet to meet a person who says, I have enough money. You will never have enough money. It's human nature to improve our lifestyle as our funds increase.
I recently spoke to a client who got into debt because he was expecting a salary increase. Sadly he didn't get the increase and now has to pay back the debt.
I believe that investing is 100% habit. Once the habit of saving is in motion, you don't even miss the funds you put away. The first three months might be tough, but you will soon adjust.
So what now? Where to from here? There has never been a better day to start investing than today. Don't leave it for tomorrow because tomorrow there will always be another tomorrow. Before you know it, you will wake up at age 65 with nothing but a state pension to depend on. So do what's right for future you today.
