The Company We Keep: Ronald Maako

The Company We Keep is a column on the CN&CO blog that profiles some of the most interesting people in our networks. Here we share the details of the lives of people we know, showcasing the extraordinary diversity of our society and proving that people truly are at the heart of everything we do.

Ronald Maako is a brand manager at EasyEquities. He sent us this blog as a reminder to save for the future. It’s never too late to start!

Lessons from my parents: crafting a path to financial freedom

By Ronald Maako

My parents performed financial miracles. Two unskilled labourers who managed to raise four kids, put us through decent schools, and were pillars in our community, always ready with a helping hand. Looking back, I still marvel at how they made ends meet on a combined income of less than R8,000!

From them, we learned invaluable lessons: saving diligently, living below our means and the power of a strong work ethic. However, something became clear – hard work alone wouldn’t guarantee a comfortable retirement. Witnessing their limited options after a lifetime of dedication has driven me to take a closer look at my own retirement planning. I need to accelerate my retirement savings and maximise my tax-free savings account contribution.

Now, as an adult with a family, I understand how daunting it is to balance family responsibilities, rising living costs. The ever-present “black tax” makes saving and investing feel like climbing Mount Everest in flip-flops.

Let’s face it, the financial world can be a confusing beast at times. The market’s unpredictability adds another layer of stress – Trying to understand investments sometimes feels a lot like trying to sketch a monster based on a scared kid’s description.

But here’s the good news: financial education is the key to unlocking your future self. It takes dedication, yes, but the payoff is incredible. Not everyone has the time or inclination to become a stock market wizard, but that doesn’t mean building wealth is out of reach.

Here’s the thing: whether you actively pursue financial goals or not, time marches on.

According to Ramsey Solutions, becoming a millionaire typically takes 27 years, with the average millionaire hitting that mark at age 49. Some studies, like those by Thomas Corley, suggest it can take even longer. Corley found that while the average self-made millionaire takes 32 years to reach that status, 52% need 38 years, and 21% require 42 years. But here’s the magic – once you reach a certain point, your wealth starts snowballing thanks to the power of compounding (think Warren Buffet!).

To get started, embrace self-discipline in three key areas:

1. Consistent Investing: Put your money to work for you! EasyEquities offers a variety of investment options, including our Retirement Annuity specifically designed for that long-term peace of mind.
2. Boost Your Income: Explore ways to increase your earning potential, whether through upskilling, side hustles, or negotiating a raise.
3. Live Below Your Means: Resist lifestyle inflation! Avoid impulse purchases and focus on needs over wants.

Remember, you have time on your side!

I have 30 good years ahead of me to make financial magic happen. You have time, too. Don’t let fear of the unknown hold you back.