The Swan Effect - Creating and Sustaining Your Financial Wellbeing

S4 E8 Legacy Through Generosity

Arthi Rabikrisson and Malika Petersen Season 4 Episode 8

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Ever wondered why superheroes team up instead of fighting alone? There's profound wisdom in this approach – especially when it comes to building wealth. In this thought-provoking Episode 8, Arthi and Malika explore how purposeful generosity creates a lasting legacy through the uniquely South African lens of Ubuntu – the philosophy that "I am because we are."

Listen in as the co-hosts navigate the topic covering different angles of interest that include: 

  • Ubuntu operates like the Avengers – each person contributing their power to form a stronger collective
  • Traditional stockvels (savings clubs) demonstrate financial Ubuntu in action.
  • Modern stokvels have evolved from basic needs to property investment and business funding.
  • Generosity without boundaries can become depleting rather than empowering.
  • The "sandwich generation" supports children, parents, and extended family simultaneously.
  • True generosity builds capacity and independence rather than dependency.
  • Structure your giving through formal mechanisms like stockfels or family trusts.
  • Make generosity educational by passing on financial knowledge alongside support.
  • Ensure sustainability by protecting your own financial foundation first.
  • Create a vision for what your generosity will build over the next 20 years.

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This #podcastepisode is proudly sponsored by Old Mutual Wealth


Arthi Rabikrisson:

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Arthi Rabikrisson:

Hi there, I'm Arthi Rabikrisson.

Malika Petersen:

Malika Petersen. Welcome to the Swan Effect Podcast

Malika Petersen:

We're your go-to podcast to simplify the complexities of money management investing and wealth management, so that you can gain confidence in your relationship with money and become financially literate, independent and free.

Arthi Rabikrisson:

That first step towards freedom is knowledge, and you can start with gaining that right now by listening to this upcoming episode. Welcome back to the Swan Effect podcast everyone. I'm Arati and you know what spring is officially here in South Africa, which means warmer weather. It's so lovely, and so lovely to see everything sprouting our plants, our flowers, which actually just reminds us everyone that organic growth happens across the season and actually how no tree, no plant can survive in isolation. So today we're diving deep into something that is at the heart of wealth, legacy and community, and that is how generosity can build generational wealth. Now, we're not talking about the kind of generosity as in you just give and give and give until you have nothing left. No, we're talking about generosity with purpose, with structure and vision, and actually being able to what I'm terming our episode today to be creating legacy through generosity. Hi Malika, how are you doing on this beautiful spring day?

Malika Petersen:

Hi Arthi, hi listeners, I am so thrilled that spring is here, y ou'll never believe it. I've had quite enough of those cold days. To be honest with you, I agree, I mean, South Africa has quite a tragic history that has led to an economic gap, with only a select few who have been able to The exciting part of that, you know, we always try to find the positives or the opportunities in every situation, is that this has led to a unique and exciting approach to how people are creating wealth. real generational wealth. yes, absolutely. I'm also very excited about our episode today. Right, because this really is at the heart of why we do this podcast. It's the thing that drives us. And because you and I are both proudly South African, in this episode, we explore this through our own cultural lenses. It's all about Ubuntu, stock files, investment clubs, and the unique financial challenges in our community.

Arthi Rabikrisson:

Oh yes, love it, love it, love it. Okay, Malika, let's start with Ubuntu. You know, the famous saying is "I am because we are. But I think you know, ubuntu isn't just a philosophy, it's economics too.

Malika Petersen:

It's like the superhero code, no hero saves the world alone, exactly, yeah, and I think you know growing up on the Cape Flats, I remember neighbors showing up with food when someone was sick, or aunties just pooling their money together to make sure that a child has school uniform, if they need it, or books or whatever they may need for school. And that's really the essence of Ubuntu in action, right, it's that kind of generosity that sustains an entire community. Now, if we think of the Avengers, Captain America's leadership, Black Panther's resources, you know, Iron Man's technology, they only win when they combine these powers, and that's really what it is, right. It's this idea that my strength is tied to yours and together we really do build something greater.

Arthi Rabikrisson:

Yes, right, like you said, Ubuntu, is like the Avengers assembling, each person contributing even more towards their power. So, like you said in your examples, one person might bring resources, another might bring skills, and another brings time, and then together you form this league that's just stronger than any individual. Ok, still talking superhero, right. Contrast that with the villains. Ok. So, like a Loki, for example, he always chased glory for himself, he used to hoard power, always wanted it for himself. Did it really make him stronger?

Arthi Rabikrisson:

no, not really in small spikes, yes, but yeah, it actually just kept isolating him and that's where, you know, if you think back to the movies and things like that, you'd actually see him just kind of craving simple things like a father's love or a mother and brother's love as well, but he kept being so isolated. So, you know, I think heroes grow through generosity and actually villains well, they'll just shrink through selfishness. So you know, everyone, just kind of thinking about that, I'm going to offer you a reflective prompt, okay. So maybe listeners just ask yourself where in my financial life am I acting like a hero? You know, sharing in a way that multiplies? Am I doing that? And then, where am I actually isolating myself, thinking that you know what, I can go it alone.

Malika Petersen:

Yeah, I think that's a really great reflective question. Right, I made a note of that too. I think that prompt is also reminding me that Ubuntu doesn't mean that you deplete yourself, and I think that's a very important point that we want to bring across to our listeners. Right, a superhero with no energy, no armor or no powers can't help anybody else. Right and true, ubuntu is really about balance. It's kind of generosity that empowers without exhausting you.

Arthi Rabikrisson:

That is such a beautiful reminder, Malika, and what was coming to my mind is that you know, one way we can actually empower ourselves is actually taking that initiative and that action. And if you think about it now, okay, let's come back to the financial pieces. One of the A Stokvel is basically a savings club where everyone contributes and then the payout of that rotates, whether it's monthly, every quarter, or whatever is decided by the group. I think we've actually spoken quite at length about this back in season two. Actually, Malika, if you remember.

Malika Petersen:

Yes, no, absolutely. We are proudly South Africans and traditionally, originally, they covered groceries and funerals, right? those things about South Africa that, for me, we are just like the Springboks. But today stokvel s has evolved into this you know this group of people that are buying properties together, investing in the stock market together, some of them even starting businesses. I mean, I heard of one amazing group of women in Soweto who pooled their stokvel money. They bought a block of flats and now they all kind of earn rental income together, so they created that additional stream of revenue. And that's really about Ubuntu becoming a legacy.

Arthi Rabikrisson:

Oh, I love that. I love that story. That is wealth being created through collective generosity. Actually, you know, everyone gives in and then, look, everyone is gaining. In that example Again, everyone. We are assembling the superhero squad, where every member has a role and then together you're building something bigger than yourself.

Malika Petersen:

I love that yeah, this reminds me very much of the justice league right. Each hero kind of brings their unique resource right, but together they protect entire cities. So a stock file is kind of the justice league of finance. Each member's contribution strengthens the entire group, which is absolutely awesome.

Arthi Rabikrisson:

I love that. The Justice League of Finance I'm not going to forget that one and I think that's where generosity actually means discipline, because you're giving in consistently but actually with that compounding effect in a way, it's coming back to you in this multiplied form.

Malika Petersen:

Yeah, and it really doesn't have to stop with Stokvels right, I mean, you can start an investment club with your friends or your colleagues. I mean, imagine a scenario where five families decide to put 500 rand a month each into a joint education fund for all of their kids. Right by the time those kids are in matric, that fund could cover university fees and that kind of generosity, you know, turns into intergenerational wealth. It creates the kind of wealth that can last for generations. So, everyone, here's another reflective question for you Just think of yourself. What would it look like if I created a savings league with my family or friend? Right? Could we start small 200 Rand a month each and turn generosity into a fund that grows over time?

Arthi Rabikrisson:

You know I'm going to answer for the listeners. I mean, I think that's very doable and, yes, I guess I'm also. What's coming to my mind is it can be a lesser amount or a bigger amount, but I think the idea that you're pointing out Malika is there should be like this consistent minimum number. So, whatever that minimum is that you're putting in, just be consistent with it and save it away. Okay, but now, as we're talking about it, malika, I've also come. Okay, I'm going to put a few thorns into this rosy scenario. Okay, because generosity can also have a shadow side, when it isn't purposeful, and it's kind of making me think of like a kryptonite weakening us, like how it used to do for Superman, you know, instead of empowering us.

Malika Petersen:

Yeah, I think exactly, and I think this is a very big point for us, right Arthi? Because we again, because of South Africa's history, we are in a situation where sometimes we feel a need to take care of multiple generations or multiple groups of our families right.

Malika Petersen:

Yes, but think about constantly bailing out a cousin or an aunt or a friend who refuses to budget right, or saying yes to every request for money just purely out of guilt. That's not Ubuntu. That's not a sense of growing, that's a sense of depletion, it's a sense of breaking down, and a superhero who keeps giving away their armor will be left defenseless. It's like Spider-Man bailing everyone out without teaching them to stand on their own right. He'd eventually burn out. And in real life, we know this as black tax in South Africa and, unfortunately, when we do not put boundaries in place and we're constantly bailing our relatives out who don't change their habits, that could lead us to greed.

Arthi Rabikrisson:

The question, then, that's coming into my mind, and probably even to our listeners listening in, is when we give, is your giving actually creating independence or is it actually doing the opposite, creating a dependency? Okay, and I think what we're saying everybody is that real generosity builds capacity. So, for example, instead of paying their cousin's bills, their aunt's bills, every month, what if you actually help them create a budget? Or instead, you know, invite them into a stokve l instead, so that they are still consistently paying in, but, yes, it'll help them to cover their debts when it's their turn to get their kitty, and to me, that's their ability to be able to give in multiples, I feel.

Malika Petersen:

Yeah, and I think it's important to know that if we're not teaching good money management and good financial behavior, then we're just, you know, running around trying to plug holes in everybody's ship, while our own ship would eventually sink, right? , right? Oh, yes, yes, and I mean, you know, do you know? Villains show us the dangers of purposeless giving too. Let's take Lex Luthor as an example. He gives in the form of influence and bribes, but it's always self-serving and that leaves the structure behind right.

Arthi Rabikrisson:

Heroes give to empower, whereas villains give us, you know, give to control oh yeah, I mean malika, that's a great gem, another gem to kind of reflect on everybody. So think about am I empowering myself and others as well in their own wealth building journey, or actually am I feeding some control need element? I actually think that's quite a hard question. It's a bit of a harsh question to ask yourself, but you know, sometimes everyone we do need to put up a bit, of a bit of a mirror to then be able to recognize and say, oh, that's actually an unhealthy pattern. Yeah.

Malika Petersen:

And the reality is that unhealthy patterns can lead to terms we have coined, such as sandwich generation, right in South Africa. Oh yeah, quite a big deal. Many of us are caring for our children, supporting our parents and sometimes even cousins, siblings and extended family all at once.

Arthi Rabikrisson:

Yeah, as you said, we call it the black tax here in South Africa. I mean, I know this is probably a phenomenon the sandwich generation is a phenomenon that's happening globally as well. But just coming back to this black tax, you know it's where. You know, as you alluded to, it's that kind of first generation earners that really feel that responsibility for lifting the entire family up. And you know I can't tell you how often I hear this, malika, you know, I mean, apart from just my own and your own family stories.

Arthi Rabikrisson:

But, like with so many people that I cross paths with from a coaching or a training perspective, they are always sharing the sense of responsibility that they have. And of course you know they want to do it out of love. Of course that's what it is Generosity is rooted in love. But then, on the other hand, as we've been saying, this can also completely drain your ability to build wealth, particularly if you don't have any boundaries. So it really does feel like Batman having to carry the weight of Gotham's problems on his shoulders. That's kind of what it feels like, I think.

Malika Petersen:

Absolutely. Or like Wonder Woman, trying to save everyone single-handedly I mean eventually, even she dies, right? Oh, absolutely.

Arthi Rabikrisson:

So I think that's where we have to flip the narrative, okay. So, instead of thinking of Black tax as this burden, let's rather think of it everyone as it's "generational empowerment. What do you think of that? And also, I mean, I don't know about you. I knew you would agree with me on this Malika, to be honest, but I absolutely hate that we're still using colors as a way to describe things like this Malika. I mean black tax. I mean, honestly, when it comes to race, it's 2025, everybody. We Honestly, when it comes to race, it's 2025, everybody. We've moved beyond that. So it's generational empowerment that we're talking about today, not that.

Malika Petersen:

No, indeed,Ar Ati thi I mean, I agree a thousand percent to that, and I love the idea of generational empowerment. Imagine using your contributions to fund a family business that gives jobs to siblings or cousins or aunts, you know, or covering a sibling's tuition so that they no longer have to depend on you in the future. I know of a young woman who paid for her brother's coding course instead of sending him monthly allowances, and basically within a year he had secured a stable job and no longer needed the handouts. Now that's real, true property empowerment is when you equip instead of just rescuing.

Arthi Rabikrisson:

Yeah, I think our superheroes really do model this very well, Like T'Challa and Black Panther, you know, instead of just protecting Wakanda, he would use the wealth to empower others through so many outreach centers. I mean, again, legacy generosity. So I think, listeners again, you know, consider your own context and ask yourself this question. You know, am I helping my family survive month to month or am I actually creating pathways for them to thrive without me?

Malika Petersen:

Yeah, I would really hope it moves towards the latter, if it isn't already there. But I know that these are not easy economic times and many people are in survival mode, right, and hopefully you know what we've reflected on. You know some of the reflective prompts in today's episode help channel your thinking just a little bit differently, because I think even the smallest habit change today can snowball into something much bigger and better and brighter for your families and the generations to come.

Arthi Rabikrisson:

Oh yeah, I mean, that definitely sounds like a call to action. Malika, which you know I love, I love taking action, that's very much me. So we've spoken at length about generosity, but now how do we make generosity a true superpower?

Malika Petersen:

Okay. So there's a few kind of steps. Everyone and I will outline these for you now. So step number one structure it, whether that's through a stokvel, a family, trust, education, saving spots. Structure your generation and that will keep it. So your generosity, and that'll keep it sustainable.

Arthi Rabikrisson:

That's a great step one, Okay, so after step one, everyone, step two would be let's make it educational. So, just like Batman is training Robin, we need to pass on these skills and this knowledge. So every rand you give should actually teach something too. And I mean, I'm doing this with my kids. I know you're doing this with your kids as well Malika, nieces, nephews, all of that. If you are paying, for example, for a niece's school books, also, then teach her. You know how does saving actually work? And not only is she seeing this happening in action, but now she's gaining the knowledge to kind of say, ooh, cool, I want to do this too. And in that way she starts to practice, and with practice it becomes the habit, and that's the snowball you were talking about, Malika, and eventually she becomes her own superhero who pays it forward to the next generation.

Malika Petersen:

Absolutely. I love it when my niece calls me and tells me she's gotten money and she uses the three little pots. Oh, that's brilliant. Yeah, I love that. Okay, now step number three right. Step number three is make it sustainable. You have to protect your own financial foundation. You can't pour from an empty cup, guys. You know again I think you used the term earlier it's 2025. We need to really understand this point. You cannotour p from an empty cup. Even Iron man needs to recharge his arc reactor. Protect your finances first. Very important.

Arthi Rabikrisson:

Yeah, I mean absolutely. I mean we talk about like financial moats and emergency funds and all of these key things.

Arthi Rabikrisson:

But you know, we have to put these things in place. I love that, making it sustainable. That's the third step. Okay, so the fourth step everybody and this is playing around a little bit with that goal setting that you spoke about, malika, but it's about make it visionary. So, everyone, look forward, you know, fast forward to 20 years. Let's say and say and ask yourself what is my generosity going to look like in 20 years time? Could it be a scholarship fund? Could it be a beautiful family business where there's so many of your family members, plus friends, plus others, that are creating employment, not only for family but for others as well? Is it maybe a trust for future generations to benefit from? There's so many, so many options where your vision could go and everybody, when you think about that, that's when you start to take those steps and build these habits and take up steps one, two and three, as we've been outlining it in today's episode, because, everybody, this is how legacies are born. You have to take that first step.

Malika Petersen:

Yeah, and I think heroes do this all the time. Right, I mean, Tony Stark didn't just stop villains, he funded science initiatives that outlived him. Contrast that with the Joker, who hoarded chaos and left nothing but destruction. One created a legacy and something that's going to grow way into the future. The other just left emptiness.

Arthi Rabikrisson:

Oh man, everyone just imagine this. Imagine if your legacy of giving today actually became the seed of generational wealth tomorrow. And I'm sure you're picturing your family when you're thinking about this question, huh.

Malika Petersen:

Yeah, I'm imagining it. I mean, boy, you look absolutely fabulous and heartwarming and emotional too, right, and I think it's a lot because I think it's close to home. For both me and you, this has been quite a conversation, knowing our own very humble backgrounds and where we are today. I mean, I always think of it if my ancestors could see me. Now I'm exceeding them all the streams, and I know that you feel the same right, and this is really thanks to the generosity of others and us, you know, paying it forward today in so many ways, including this podcast. It's part of the reason we do what we do With that,Arthi Ati it's time for parting shots. Can you believe that? What's your parting shot, ,Ar A thi

Arthi Rabikrisson:

Okay. So I think generosity can either drain us, like kryptonite, where we're giving and giving and depleting, as you said earlier, or it can empower us like vibranium I mean just strong and strength and able to withstand anything. And I think the difference between whether it can drain or empower us is purpose. And I think if you have purpose as a compass everyone and again, what is that purpose? I'll link it back to step four, that vision. Okay, If you know what it is you want to be channeling towards in like 20 years time, then you know what every decision that you make from today going forward will take you a step by step in that right direction. And how about you, Malika? What's your parting shot for today? Yeah, look.

Malika Petersen:

I think Ubuntu teaches us that wealth is communal right, and financial examples of that are stokvel s and that shows us really the power of assembling and what it means to assemble right. And I feel that boundaries remind us even superheroes need protection. So when we move from helping people just survive to the point of helping them to thrive, generosity kind of becomes the cape that lets them soar.

Arthi Rabikrisson:

And in the words of Captain Buzz Lightyear to infinity and beyond.

Malika Petersen:

Until next time, everyone, be generous, be wise and be your own financial superhero.

Arthi Rabikrisson:

Ciao everyone, Ciao for now.

Malika Petersen:

Thanks for joining us. We hope you found these ideas and guidance useful.

Arthi Rabikrisson:

We're both seasoned in the investments industry. Malika is at the coalface of how, where and why people invest the way they do.

Malika Petersen:

I certainly am, and you,Arthi Ai You've witnessed different types of investor behaviors around money too, and now work as a global award-winning coach to free us from the mindsets that stop us from becoming financially free.

Arthi Rabikrisson:

Do subscribe, share and write a review or send us comments. We would love to hear from you. Catch you on the next episode of the Swan Effect podcast. Bye for now, ciao.

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