Start young, retire rich: Why early investing is your best friend

Feel free to reach out to PSG Wealth Adviser  Lourens van Wyk  directly.

Wrong. Future You is quietly screaming, “Please don’t wait!” Because when it comes to investing, time is the magic ingredient – and the earlier you start, the greater your potential for a richer future. And yes, you can still enjoy the occasional cappuccino.

The power of time (and a little bit of money)

Let’s say two friends, Sam and Jill, decide to invest.

• Sam starts investing R1 000 a month at age 25 and continues for 10 years – then stops, but leaves the money invested.
• Jill waits until age 35, then also starts investing R1 000 every month until retirement at 60.

Who do you think ends up with more?

Surprise! Sam wins.

Even though Jill invested for 25 years and Sam only for 10, Sam’s early start gave his investments more time to grow through the magic of compound interest.

(Compound interest is when your money earns interest, and that interest earns interest, and then even that interest earns interest… creating a snowball effect over time.)

But I’m broke, you say?

Sure, most of us in our 20s don’t feel like we have spare cash lying around. Considering rent, student loans, takeaways, that gym membership we never use…

But investing doesn’t require you to be rich. Even small amounts make a difference over time. R500 a month might sound like pocket change now, but with time and patience, it can grow into a substantial sum.

In fact, investing when you’re young is like planting a fruit tree. Plant it early, and you’ll be relaxing in the shade with fresh fruit for years to come. Wait too long, and well… you'll be the neighbour begging for fruit.

Inflation is that sneaky thief in the night

Let’s talk about inflation – the thing that makes your favourite chocolate bar more expensive every year (and smaller, for some reason).

If you just save money in a regular bank account, inflation will slowly eat away its value. R100 today might buy you five loaves of bread, but in 20 years, it might only buy two and a half.

Investing helps your money grow faster than inflation. It’s your best shot at staying ahead of rising prices.

Investing vs. saving: Not the same thing

Saving is great for short-term goals – like buying a car, going on holiday, or finally replacing that phone with the cracked screen.

But investing is for long-term goals – like retirement, buying a house, or achieving financial freedom before your knees start complaining.

Think of it this way:

• Saving is like a bicycle – reliable and steady.
• Investing is like a train – slow to start, but once it gets going, it builds serious momentum.

You don’t need to be a genius

A lot of people avoid investing because it sounds intimidating. Stock markets, unit trusts, exchange-traded funds (ETFs) – it’s a jungle out there!

But you don’t need a finance degree. You can start small with easy-to-understand products, like:

• Retirement annuities
• Tax-free investment accounts
• Unit trusts managed by professionals

At PSG Wealth Cecilia Square, we can help guide you without costing you a fortune.

Final thoughts: Be kind to future you

Start investing early, even if it’s just a little. Be consistent. Increase your contribution when you get that raise or finally cancel your unused gym membership.

Your future self will thank you – not only in words, but through a comfortable lifestyle, the freedom to travel, and the ability to spoil your grandkids without hesitation.

Because the truth is: you can always make more money, but you can never make more time.

So, invest now, and let time do the heavy lifting.