Time, value of money, budgeting, and priorities

Small changes to your budget and approach to long-term investing can significantly improve the circumstances under which you retire.

One thing that is surprising to advisors is the number of people who still think investing is exclusively for the wealthy. Understandably, disposable income is not always available at a beginner career level. However, even a small monthly contribution towards an investment can grow significantly over a 20- to 30-year period.

When starting your career, time is on your side when it comes to implementing an investment strategy. Time in the market is your friend. For example, suppose you start investing R1 500 per month from the age of 22 and stop contributing at age 67 when you retire. After 45 years of saving (assuming a 9% return in an equity-oriented portfolio), you would have accumulated R11 107 318. Many young people fail to see the bigger picture and don’t believe that a R1 500 monthly debit order can make a material difference.

It’s the start of a new year and the perfect time to ensure that your long-term savings goals are on track. A financial advisor can help you in this process by drawing up a budget and separating the necessities from the luxuries in terms of your expenditure. Treat savings and investments as a priority. You will thank yourself down the road.


Financial success starts with good saving habits. Our Financial Experts have been unpacking and providing practical advice on the best ways to preserve YOUR financial freedom. Contact our Financial Advisors to ensure that you are receiving Shariah-Compliant Finance advice.

Anglowealth is an Authorized Financial Service Provider (FSP Number: 46755)

Source: (Moneyweb, 2022)


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