How to Build an Investment Strategy

No Matter What You Earn

Dané Potgieter

Starting your investment journey can feel like trying to solve a Rubik’s cube - blindfolded – especially when your bank balance is still recovering from your varsity days and then from the side someone says, “You should be investing”.

The first question most people ask is: With what money?

Here is the good news: you do not need to be wealthy to start investing – you just need a plan. Whether you are earning R2,000 or R20,000 a month, building an investment strategy is possible.

1. Know where your money goes:

Before you invest, you need to understand your financial habits. Start by tracking your income and expenses. Whether you use a budgeting app or an old-school spreadsheet, this step is crucial. You might spot small amounts – like that daily cappuccino or unused gym membership – that can be redirected towards savings or investments.

A simple rule of thumb to guide your spending: The 50/30/20 rule:

50% for needs (like rent and food).

30% for wants.

20% for savings and investing.

Here is the truth: You can’t invest what you do not have.

Budgeting is your first building block.

2. Build a Safety Net:

Before putting money into savings and investments, build an emergency fund. Life happens – your car breaks down, an unexpected doctor visit pops up, or you face a sudden job loss. Aim to save one to three months’ worth of essential living expenses in a separate accessible account. Use a money market or similar account for this, as you want this fund to earn interest and work for you.

While this is not technically an investment, it protects your investments – so you don’t have to cash out when life throws a curveball.

3. Start Small – but start Now:

One of the biggest myths about investing is that you need thousands of rands to begin. In reality, you can start with as little as R250 to R500 a month. Think of it like planting a tree: the sooner you plant it, the more time it has to grow.

Consider investments like:

Tax Free Savings Accounts.
Retirement Annuities.
Exchange Traded Funds.

These options do not require large capital upfront and allow your money to grow gradually. The secret weapon? Compound interest – money that earns more money over time.

4. Match your strategy to your goals:

Ask yourself: What am I investing for?

Is it a car in 3 years? A deposit on a house in 5 years? Early retirement in 20 years?

Your goals shape your strategy – and your timeline affects how much risk you can afford to take.

Short term goals (1-3 years) – stick to safer, more liquid investments like money market accounts or conservative funds and income funds.

Long term goals (5+ years) – You can take on more risk with growth-focused investments that offer higher potential returns.

A clear goal gives your investment a purpose – and keeps you motivated to stay the course.

5. Be consistent, Not Perfect:

You do not need to time the market or know everything. The most powerful tool you have is consistency. Set up a monthly debit order to invest automatically. This way, investing becomes a habit – not a chore. Over time, those small, steady contributions can build significant wealth.

6. Keep learning:

Financial literacy isn’t a one-time lesson – it is a lifelong skill. Follow trusted financial voices, read blogs, and ask questions. The more you learn, the more confident you will feel making money decisions.

Conclusion:

Your income level does not define your ability to invest – your strategy does. Start with what you have, build smart habits, and stay consistent. Every rand you invest today is a gift to your future self. If you are not sure where to begin – ask.

Reach out to a certified financial planner®. They can help you clarify your goals, avoid common mistakes, and adjust your strategy as life changes. Think of them as your personal coach – but for your money.

The Magic of Compound Interest - Ascor® Independent Wealth Managers

https://ascor.co.za/time-is-money-why-starting-early-matters-in-retirement-planning/

https://ascor.co.za/when-to-start-planning-for-retirement_yesterday/

https://ascor.co.za/how-costs-can-erode-wealth-creation-in-retirement/

https://ascor.co.za/women-and-finance-how-well-do-you-know-yourself-financially/

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How to Build an Investment Strategy

No Matter What You Earn

Dané Potgieter

Starting your investment journey can feel like trying to solve a Rubik’s cube - blindfolded – especially when your bank balance is still recovering from your varsity days and then from the side someone says, “You should be investing”.

The first question most people ask is: With what money?

Here is the good news: you do not need to be wealthy to start investing – you just need a plan. Whether you are earning R2,000 or R20,000 a month, building an investment strategy is possible.

1. Know where your money goes:

A simple rule of thumb to guide your spending: The 50/30/20 rule:

50% for needs (like rent and food).

30% for wants.

20% for savings and investing.

Here is the truth: You can’t invest what you do not have.

Budgeting is your first building block.

2. Build a Safety Net:

While this is not technically an investment, it protects your investments – so you don’t have to cash out when life throws a curveball.

3. Start Small – but start Now:

One of the biggest myths about investing is that you need thousands of rands to begin. In reality, you can start with as little as R250 to R500 a month. Think of it like planting a tree: the sooner you plant it, the more time it has to grow.

Consider investments like:

Tax Free Savings Accounts.

Retirement Annuities.

Exchange Traded Funds.

These options do not require large capital upfront and allow your money to grow gradually. The secret weapon? Compound interest – money that earns more money over time.

4. Match your strategy to your goals:

Ask yourself: What am I investing for?

Is it a car in 3 years? A deposit on a house in 5 years? Early retirement in 20 years?

Your goals shape your strategy – and your timeline affects how much risk you can afford to take.

Short term goals (1-3 years) – stick to safer, more liquid investments like money market accounts or conservative funds and income funds.

Long term goals (5+ years) – You can take on more risk with growth-focused investments that offer higher potential returns.

A clear goal gives your investment a purpose – and keeps you motivated to stay the course.

5. Be consistent, Not Perfect:

You do not need to time the market or know everything. The most powerful tool you have is consistency. Set up a monthly debit order to invest automatically. This way, investing becomes a habit – not a chore. Over time, those small, steady contributions can build significant wealth.

6. Keep learning:

Financial literacy isn’t a one-time lesson – it is a lifelong skill. Follow trusted financial voices, read blogs, and ask questions. The more you learn, the more confident you will feel making money decisions.

Conclusion:

Your income level does not define your ability to invest – your strategy does. Start with what you have, build smart habits, and stay consistent. Every rand you invest today is a gift to your future self. If you are not sure where to begin – ask.

Reach out to a certified financial planner®. They can help you clarify your goals, avoid common mistakes, and adjust your strategy as life changes. Think of them as your personal coach – but for your money.

Read more about Ascor® Financial Planning Services

Related Topics

The Magic of Compound Interest - Ascor® Independent Wealth Managers

https://ascor.co.za/time-is-money-why-starting-early-matters-in-retirement-planning/

https://ascor.co.za/when-to-start-planning-for-retirement_yesterday/

https://ascor.co.za/how-costs-can-erode-wealth-creation-in-retirement/

https://ascor.co.za/women-and-finance-how-well-do-you-know-yourself-financially/