Two clients, same goal, huge difference

Have you ever thought about how small changes can make a huge difference in your life? Small changes feel as if it doesn’t have a profound impact on your life at the start, but over a long period of time these small changes have a way of making a huge difference over an extended period of time. The problem is that we become despondent, and we give up because we don’t see the results we were hoping for right now.

The same goes for investing. A lot of us start with an investment, and then after a year or so we give up because we don’t see the growth we were hoping for. This is a behavioral trap we fall into because we don’t see the big picture.

Would you rather save R 1581 or R 13 168 to achieve the same goal? This may seem like a very odd question, obviously you would want to save R 1581. The big kicker is, you will need to start sooner.



Let’s say Ben and Andy both have the same goal of reaching R 10 million at the age of 60. Ben started investing at the young age of 20. Andy started investing at age 40. Both investors invest in the exact same fund and both of them receive 10% growth on their investments. Ben will only need to invest R 1581 p/m, whereas Andy will need to invest R 13 168 p/m.

Start small, start early,and let the miracle of compounding do it’s thing.