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In our last episode, we focused on saving for those shorter-term goals, but today we’re diving into those medium to longer-term ones—like funding your child’s university education in 10 years, leaving a financial legacy, or maybe even starting your own business. So, how do you begin?

We kick off by emphasizing the importance of setting clear and realistic financial goals. We provide a real-world example of how to calculate future education costs, demonstrating how inflation can dramatically increase the amount you need to save over time.

One of the key lessons in this episode is understanding the difference between interest and growth. While interest is a guaranteed return you get from a bank, growth comes from investing in assets that increase in value over time. We talk about how unit trusts and ETFs are great tools for growing your capital.

We also spend a good portion of the episode discussing tax-free savings accounts (TFSAs). Since their introduction in 2015, TFSAs have been an excellent tax-efficient way to save and invest. We highlight how they can be a smart choice for long-term goals like saving for your child’s education or even adding to your retirement pot. It’s important to view them as long-term investment vehicles, not just regular savings accounts.

We also explore the idea of investing offshore, showing how you can access global markets through local funds that invest abroad. For those looking to diversify and build assets outside of South Africa, local companies offering offshore investment products are a good place to start.

Lastly, we caution against using endowment products for education savings. These often come with high fees and tax complexities that aren’t always in the investor's best interest. Instead, we advocate for simple, low-cost options like TFSAs and unit trusts.