A little (small) change can make a big difference

If you earn an income you should be saving, no matter how little. Saving is a habit, and the formula is to spend less than you earn.

When I was in Grade 9, I recall watching my mother trade shares through one of the bank platforms. I was intrigued as she explained to me how it worked.

Since I was privileged enough to receive pocket money, I decided that I would invest R100 a month in shares on the platform, just like my mother. My dream of being a teenage investing prodigy perished quickly when mum told me that each buy and sell instruction cost R100.

A lot has changed in the decade since.

Fees charged by financial services providers have come down dramatically.

The minimum contribution for savings accounts has decreased.

Various platforms give you the opportunity to invest seamlessly and cost effectively.

But if R100 or even R10 is too big of a commitment look at how our parents saved before banking accounts were widely available. Sometimes you have to look backwards to move forwards. It might be time to get out the piggy bank and start depositing change daily, or even weekly.

The petrol attendant gets at least R5 every time I stop to fill up. The car guard gets at least R2 when we park at a mall. If we stop for something to eat the waiter gets a tip of at least 10% ... most of us are used to giving away small amounts often.

I am not suggesting you stop giving to others. I am making the point that if you are comfortable tipping a waiter, a petrol attendant or a car guard, surely you should be comfortable putting away something for your own future.

Start saving now. The hard decisions you make today will make your future so much easier. And start developing the habit to spend less than you earn.

Khwezi Jackson is investment consultant at 10X Investments

Don’t stop giving to others, just put something away