[ADVISOR VIEW] Jonathan Braans of NFBwealth shares small changes to your budget and approach to long-term investing that can significantly improve the circumstances under which you retire. Moneyweb investing
As an advisor, one thing that surprises me is the number of people who still think investing is exclusively for the wealthy. I have been in numerous client engagements with young people who are either just starting their careers or only two to three years in. Understandably, disposable income is not always available at this career level. However, even a small monthly contribution towards an investment can grow significantly over a 20- to 30-year period.
Statistics like this are not surprising for many people. Most people understand the effects of compounding but underestimate its impact and how it can change your financial situation over the long term. 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.
Therefore, I decided to do a little exercise with him: suppose you smoke a box of cigarettes per day. That will cost you roughly R1 500 per month. For someone who starts smoking at age 18, passes away at 80, and never stops smoking during their life – that is a lot of money spent on cigarettes. Now, instead of buying cigarettes, you invest R1 500 per month for 62 years . Based on a 9% annual return, the investment would grow to R51 721 924.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stor-Age: a ‘ridiculously’ cheap small capStor-Age’s UK tilt is no lack-of-faith showing in SA, it says. Its share price? Now that’s another matter. GTalevi spoke to the CEO.
Read more »
Stor-Age: a ‘ridiculously’ cheap small capStor-Age’s UK tilt is no lack-of-faith showing in SA, it says. Its share price? Now that’s another matter. GTalevi spoke to the CEO.
Read more »
Stor-Age: a ‘ridiculously’ cheap small capStor-Age’s UK tilt is no lack-of-faith showing in SA, it says. Its share price? Now that’s another matter. GTalevi spoke to the CEO.
Read more »
SEOUL FOOD : Allium: A small kitchen of many layersIn the middle of Cape Town Sepial Shim serves sublime cuisine that has somehow yoked the tastes of West and East.
Read more »
Two-time champ McGlynn looking for Midmar hat-trickMcGlynn will be up against a men’s field that includes 19-year-old Connor Buck, who finished third in 2021, and Tuks swimmer Reino von Wielligh, seeded third for this race.
Read more »
Staunching the flow of illegal immigrants will help defuse the xenophobia time bombThe bottom line is that South Africans have a right to be concerned about illegal and undocumented immigrants placing extra pressure on already limited government and social sources – and specifically jobs.
Read more »