Page 24 - Waterfall City MayJune Issue 2026

Waterfall City Finance

annual growth rate on these funds
you invest is 10%, then the potential
outcome over time could be as follows:

Term Amount
After 5 years R40,107
After 10 years R115,782
After 15 years R251,798

These calculations don’t factor in the
use of investing funds in tax-efficient
products, which could result in even
greater savings.

This simple shift illustrates the power of
delayed gratification and compounding,
which allows your money to generate
returns on both your contributions and
the growth they achieve over time.

The principle of delayed gratification
touches several key elements of sound creation. So change the narrative – and really understand what you are
financial planning: delaying gratification is not about spending your hard-earned money on.
deprivation. It’s about making This gives you a better view of how your
Time value of money intentional choices that support your spending decisions will serve you – now
A rand today is worth a lot more than a future financial security. as well as in the future.
rand tomorrow, because of its earning
potential. The earlier you start, the more “A DREAM written down with a date Imagine the peace of mind that will
your money works for you through becomes a GOAL. A goal broken down come from knowing you’ve built an
compounding growth. into steps becomes a PLAN. A plan investment portfolio while others
backed by ACTION becomes REALITY.” have been chasing fleeting trends. It’s
Inflation adjustment the difference between temporary
Many investors underestimate Forging a different path satisfaction and long-term financial
the erosive impact of inflation. By It is important to take a step back freedom. Your future self will thank you.
increasing your contributions annually
in line with inflation, your investment
maintains its real purchasing power
over time.

Behavioural finance
Remaining disciplined with your
finances is not always easy. However,
small but sustainable behavioural
shifts often have a greater impact
on financial outcomes than major,
inconsistent actions. The discipline
to consistently save and invest even
modest amounts compounds into
meaningful wealth over time.

Goal-based planning
Redirecting spending into a structured
investment plan aligns financial
behaviour with long-term goals,
whether it’s financial independence
at retirement, or generational wealth

22 Waterfall City May/June 2026