Why You Should Automate Savings and Pay Yourself First

Why Automating Savings and Paying Yourself First Makes Sense for Unit Trust Investments.

Have you ever looked at your unit trust statement and wondered, "Should I add more money this month, especially with the market being a bit volatile?" 

The answer might surprise you. Here's why consistently adding money to your already-invested unit trusts, regardless of market conditions, can be a powerful strategy for building long-term wealth.

The Magic of Averaging:

This strategy is called Rand-Cost Averaging (RCA). By investing a fixed amount at regular intervals (monthly, quarterly, etc.), you purchase units at various price points. When the market dips, you snag more units at a lower price. Conversely, during market highs, you buy fewer units. Over time, this evens out the average cost per unit, reducing the impact of market volatility.

Think of it like this: Imagine buying groceries every week. Sometimes, your favorite cereal might be on sale, and other times, the price goes up. But by consistently buying the same amount each week, you pay an average price over time, regardless of weekly fluctuations.

Automating Your Success:

The key to successful rand-cost averaging is consistency. EasyEquities makes this a breeze with its automated investing features. Set up a debit order to automatically transfer a fixed amount from your bank account directly into your unit trusts every month. This "pay yourself first" approach ensures you prioritize your investments before other expenses, building wealth on autopilot.

But how does this translate to gains?

Let's look at an example. Imagine you invest R1,000 every month into a unit trust. Over a year, the market experiences ups and downs, with the unit price fluctuating between R10 and R15. By consistently investing, you'll have accumulated units at various price points. While it's impossible to predict the future, by continuing to invest, you're positioned to benefit when the market inevitably recovers.

The Power of Compound Interest:

RCA isn't just about averaging costs; it's about harnessing the power of compound interest. As your unit trusts grow, your future investments earn returns on top of those returns, accelerating your wealth creation over time.


Investing is a marathon, not a sprint. Don't get discouraged by short-term market fluctuations. By focusing on consistency and a long-term perspective, RCA can be a powerful tool to build wealth and achieve your financial goals.

Ready to get started? EasyEquities offers a wide range of unit trusts to suit your investment goals. Explore your options and set up your automated investing plan.

Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.

Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by an employee of EasyEquities an authorised FSP (FSP no 22588) as general market commentary and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information (i) contained within this research and (ii) received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.

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