{"id":361456,"date":"2019-12-14T07:00:59","date_gmt":"2019-12-14T05:00:59","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=361456"},"modified":"2019-12-11T11:25:16","modified_gmt":"2019-12-11T09:25:16","slug":"the-story-of-3-investors-who-invested-r500-each-month-until-they-were-65","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/361456\/the-story-of-3-investors-who-invested-r500-each-month-until-they-were-65\/","title":{"rendered":"The story of 3 investors who invested R500 each month until they were 65"},"content":{"rendered":"<p>Did you know that when investing, your money is working for you through a simple concept called compounding growth?<\/p>\n<p>Compounding simply means making money on your original investment as well as on the gains made in following years: i.e. growth on growth over time, notes <a href=\"https:\/\/www.oldmutual.co.za\/personal\/investments-and-savings\/unit-trusts\/learn\/invest-in-your-life\/make-money-on-money\" target=\"_blank\" rel=\"noopener noreferrer\">Old Mutual<\/a>.<\/p>\n<p>&#8220;In short, as your money makes money, so it should make more, a relatively simple concept that, over time, is hugely beneficial.&#8221;<\/p>\n<p>If you leave your investment for a long period of time, the investment not only grows each year, but grows exponentially. This interest is called compound interest, and is the key to long-term growth and wealth.<br \/>\nSaving without interest<\/p>\n<p>If you saved R1,000 every year for 10 years, and kept your savings under your mattress, your money wouldn&#8217;t earn any interest. After 10 years it would be worth:<\/p>\n<ul>\n<li>R1 000 x 10 years = R10 000<\/li>\n<\/ul>\n<p>If you had saved it in an investment that earned 10% interest per year, it would be worth more than R17,500, this is because the interest is compounded, causing the investment to grow much faster.<\/p>\n<p><strong>The power of compound interest<\/strong><\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/OldMutual.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-361460\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/OldMutual.png\" alt=\"\" width=\"779\" height=\"507\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/OldMutual.png 779w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/OldMutual-300x195.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2019\/12\/OldMutual-768x500.png 768w\" sizes=\"auto, (max-width: 779px) 100vw, 779px\" \/><\/a><\/p>\n<p>The graph shows three investors who each invested R500 a month until they were 65, but started at different times.<\/p>\n<p>&#8220;Notice the difference in contributions as the late investor must contribute far more for the same growth,&#8221; Old Mutual said.<\/p>\n<p>To ensure a fair comparison the financial services company assumed that their investments all grew at the same rate of 8% a year.<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/banking\/356009\/the-most-critical-ingredient-to-financial-success\/\" target=\"_blank\" rel=\"noopener noreferrer\">The most critical ingredient to financial success<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Did you know that when investing, your money is working for you through a simple concept called compounding growth?<\/p>\n","protected":false},"author":10,"featured_media":114836,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[26,1110],"class_list":["post-361456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-headline","tag-old-mutual"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/361456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=361456"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/361456\/revisions"}],"predecessor-version":[{"id":361464,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/361456\/revisions\/361464"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/114836"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=361456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=361456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=361456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}