Savings: what the numbers tell us

With so many saving and investment options out there, how can you be sure that your money is working optimally for you? Yes, you want an investment vehicle that is easy to use and understand, that’s cheap and interactive – like EasyEquities! But at the end of the day it’s also about making the best returns possible.

Here are a few examples of how your money will grow over a few specific time periods. We’ve assumed a monthly contribution of R200 and a return of 20%pa.

So what is the message behind the numbers? Well there are a few:

1. It’s never too late to start
2. R200 a month might seem like a small contribution now, but give it time to mature
3. Time is your friend, so try and keep your fingers out of the cookie jar
4. Try your very best to stick to your savings resolutions

The example below represents the ideal situation, starting at age 15 and saving until we are 60. That’s a total of 45 years investing R200 per month. Over that time period, at a return of 20% per annum, we will see total gains of more than R91-million!

These numbers are proof that if you start early and save for a long time, you can benefit enormously from the power of compound interest. If you haven’t started your investment portfolio yet, what are you waiting for? EasyEquities even offers a tax-free investment option that will ensure you don’t pay tax on your total gains.

Visit www.easyequities.co.za to start working on your millions.