Investing for the future versus the culture of now

By Londiwe Mbatha, wealth administrator at EasyEquities

Working for a company that helps people to manage their money, it’s ironic that I never got investing… until recently, that is. My breakthrough came when I attended an investment seminar and my eyes were opened! I saw how important such forums are for people like me who have not even started thinking for future generations in terms of wealth creation.

Let me get right to it. My name is Londiwe Mbatha. I am 40-something years old (a lady doesn’t reveal her exact age, hahaha). I work for Purple Group – an amazing company that blows our minds on daily basis – as a wealth administrator in the EasyEquities Wealth department. Purple Group consistently achieves innovative milestones in the financial services industry, which is known for being cutthroat and full of all kinds of challenges.

One of the factors that affect our communities as black, middle-class people is a lack of knowledge on how to start your investment journey and what options are available in the market that suit our pockets. We also struggle to figure out what would be beneficial not just for us, but also for those we leave behind – and generations to come! There is a general lack of information “out there” to guide us and propel us to start a journey, from being mere consumers to becoming effective investors who are all about wealth creation. We often fail to take advantage of the resources that are available, such as financial advisors, educational articles and forums such as the one I mentioned earlier in this blog.

We do not know the laws that govern financial services and how we can participate in growing our knowledge and contributing to the economy of the country.

Another reason why most of us are not investing is because of the vast number of scams that bring a lot of negative perceptions around the stock market. We are aware that people do not want to lose their hard-earned pension and retirement funds to such scams. Now, even above-board companies and organisations are regarded with scepticism, which puts people off from investing. We would rather retire with what we have and live of it until it either runs or we pass on, whichever comes first. 

I did not know about living annuities until last year when I started working at EasyEquities. Neither was I aware of how they could benefit me in the long run.

Basically, a living annuity provides you with a regular income from your retirement fund once you retire.

In the investor seminar I attended, the biggest eye opener for me was how different generations had access to resources and how they tended to utilise them. I got the shock of my life when one of the presenters said that our generation is no longer acquiring assets. She mentioned that we are getting information from all kinds of sources, but it is not appealing enough for us to start creating wealth, which means we are just consuming and not gathering for the future.

Another setback is the lack of information. This is especially pertinent in rural areas, where there is not much information available, for example, on the instant purchasing of an ETF or units trusts. Rural communities tend to be more focused on funeral plans and stokvels that end when the main contributor passes on. That is not sustainable for wealth creation.

Affordability also comes into play. Many of us have been misinformed on how the stock market works. We think it’s difficult and we would lose more than we would gain. 

The questions that arose for me at the seminar were, firstly, how do we create value through investing and creating wealth for the masses? Secondly, how do we grow our economy, especially now with all the issues besetting our nation? Drastic changes are needed. We need more emphasis on removing the stigma around the stock market to allow more people to invest and diversify their portfolios, not just put all their eggs in one basket.

The EasyEquities platform for me is the best tool. It is user-friendly and addresses most of my concerns. However, the lack of interest among South Africans when it comes to investing is worrying. The more I listened to the panellists, the more I got to fully understand everything that was not taught to us – even at school, where I think wealth creation should be the biggest part of the curriculum! The education system should ensure that people learn about creating wealth (investing and related facets) and not just depending on a pension at the end of their careers.

We should be teaching our children to save even just a tenth of their pocket money every month for the next 20 years. Just like we teach them respect and morals, we also have the responsibility to change their trajectory and teach them to invest and create wealth.

There are many people who are state pensioners or living off government grants due to illness. These citizens cannot work but can easily start their investment journey with the EasyEquities platform, which offers low fees. And they can start from as little as R50 per month.

The same goes for adopted parents and guardians who get child support grants. If you start investing for your child while they are young, in 21 years’ time they may have something better to build from. That is how we change the future and deal with societal ills – by sacrificing now and, as a result, reaping the benefits later when our kids and their kids are building on the foundation we built.

Lastly, I pray that one day we will slowly start to learn to focus on building and not tearing down by first getting acquainted with the culture of investing and exploring products that are available in the market. We have the information at our fingertips and it’s time for us to start implementing and growing from just being consumers.

Furthermore, let’s leave a legacy worth mentioning when we are gone. Let’s fight against poverty and a wasteful mentality. It is worth mentioning that we can start small and in due course the harvest will come. Even though we may not be here to experience it, our children and generations to come will benefit. If we can focus on changing our mindset, theirs will be an easy task of generating new ideas around investments. We have to start somewhere.

It is often said that a journey of a thousand miles starts with just one step. I hope this article ignites a spark that starts our investment journey and serves as a first step towards wealth creation for all of us.

It starts with me making better money choices for the future.

Londiwe is offering new EasyEquities clients their first R50 for free to invest however they wish! Simply click this link to get started!