WHY INVEST AND NOT JUST SAVE?
If you want to go on holiday or buy a new fridge, you’ll put money away in a bank or money market account, where it will hopefully keep pace with inflation in the short term, and where you can access it easily. But if your aim is to build wealth or financial freedom, your money needs to work harder than it does in a savings account.
At FNB, for instance, a minimum opening deposit of R5 000 gets you 5,4% interest, with access to your money at any time. At Capitec, any amount up to R25 000 in a flexible savings account gets 5,35%.
But the current rate of inflation (year on year as of April 2016) is 6,2%. That figure is going up,…