For the longest of time, investing has been portrayed as something highly complicated, with lots of quickly changing numbers running down a screen and men in suits making split-second decisions based on those numbers. But, Money Magnets, let us tell you: That is only one side of investing. The money game offers so many more options and it is YOUR game to play, too!
Growing your wealth doesn’t have to be intimidating or complex. With smart investment strategies like Exchange-Traded Funds (ETFs), a long-term mindset, and regular contributions, you can turn your rands into a financial powerhouse. Whether you’re eyeing a new home or a comfy retirement, let’s step into the vibrant world of investing – it’s fun, it’s doable, and it’s all about making your money work for you! Don’t worry – it is not as scary as you might think.
Why Investing Feels Daunting
Thanks to numerous crashes and a lack of public financial education, investing in the stock market doesn’t have the best of reputations. Only 23% of women in South Africa invest compared to 40% of men, often because it seems risky. Market volatility can cause fear of uncertainty and the fear of losing it all. Complex terminology will do the rest to paralyse potential investors into inertia.
But here’s the deal: Investing is just planting your money where it can grow, like a seed in fertile soil. And with the right approach, it’s way easier than you think!
The trick? Start small, stay consistent, and think long-term. Want to make your money work harder than you do? Let’s break it down with five smart investment strategies.
Strategy #1: ETFs – Your Money’s Bestie
ETF stands for Exchange-Traded Fund and they are like the ultimate financial wingwoman – low-cost, diverse, and drama-free. Instead of buying shares from a single company, which is like putting all your eggs in one basket, with an ETF, you buy a bundle of shares from different companies. This form of investment greatly diversifies your portfolio and thus lowers your risk of loss. They’re ideal for Money Magnets because they spread risk and grow steadily..
How to do it: Open an account with a platform like EasyEquities (you can start with as little as R100!). If you use this link, you even get R50 to start (T&Cs apply). Choose a few broad ETFs, each investing in at least 100 companies in different sectors like global giant companies, tech or medicine and markets such as developed and developing markets. Then lean back and watch your money grow.
Pro tip: Automate it like your Netflix payment by setting up a monthly debit order – even R300 a month can grow lekker over time. Your money will flow into your ETF without you thinking twice – effortless investing!
Strategy #2: Play the Long Game for Big Wins
Investing isn’t about instant millions (no Camps Bay mansion tomorrow, sorry!). It’s about letting your money grow steadily over the years, like a baobab tree reaching for the sky. Women in South Africa are naturals at planning – from weekend getaways to year-end functions – so this strategy is your jam. The longer you invest, the more compound interest works its magic.
How it works: Invest R1,000 a month in an ETF with a 10% average annual return. After 10 years, your pot grows to R205,194. In 20 years? A juicy R759,267! And in 30 years? Hold onto your panties – it’s a massive R2,279,693! That’s your money hustling harder than a Jozi taxi driver while you sip a glass of wine and conquer your goals.
Fun twist: Name your investment something exciting – “My Paris Holiday Fund” or “Retirement Glow-Up.” It keeps you locked in for the long haul.
Strategy #3: Keep It Regular – Consistency Is Your Power Move
You don’t need a fat bank account to invest. Small, regular contributions stack up like beads in a handcrafted necklace. Money Magnets know how to make things work with what they’ve got – think of investing as your monthly stokvel for future riches.
How to do it: Commit to investing R200 or R500 a month into your ETF. Got a raise or side-hustle cash? Add 50% of that extra money to your monthly investments. Consistent steps build big results.
Hack it: Try the “round-up” trick – some apps such as upnup or Stash round up your purchases (R36.50 to R40) and invest the difference. That’s your money working for you behind the scenes – pure magic!
Strategy #4: Diversify Like a Market Maven
In South Africa, we value community – everyone brings something unique. ETFs are like that: They spread your money across many companies, so if one dips, others keep shining. This lowers risk and keeps your investment steady, even when markets get bumpy (looking at you, 2025 economy!).
How to do it: Pick ETFs covering different markets, like local and international, as well as different industries. Your money’s not tied to one single company, so you’re spreading your risk.
Pro tip: Review your ETF mix yearly (like a financial spring clean). Rebalance to stay aligned with your goals. Our 9-week Master Class covers everything from the basics to diversification, giving you the confidence to build a portfolio that grows – the knowledge you gain will pay dividends for life. Sign up for our community and the course here.
Strategy #5: Stay Curious, Stay Empowered
Smart investing is a journey, and every South African woman can master it. The more you learn, the bolder you’ll feel. Follow financial gurus like Money with Carla or us for Mzansi-specific tips. Join online groups or attend free webinars to keep the inspiration flowing.
Try this: Set a “learning goal” – read one investing article a week or watch one video on YouTube. Knowledge is your superpower!
Fun twist: Host a “Money & Mocktails” night with your friends to swap investing ideas. Make it a vibe – learn, laugh, and grow your wealth together. You can also join one of our Money Magnet Meet-ups that we host on the last Thursday of the month in Cape Town. More details can be found here.
What If Investing Feels Impossible?
Life in South Africa isn’t cheap – rent, groceries, and data bundles add up fast. But even small steps count, and you’ve got this.
Start small: Invest R50 a month into an ETF. That’s one takeaway coffee skipped for your future.
Team up: Start an investment club with friends and talk about money – it’s fun and keeps you motivated.
Budget smart: Try the 50/30/20 rule – 50% for needs, 30% for wants, 20% for savings and investing. Even 5% is a win! Not sure where to start? Our FREE short course gets you started in no time. Check it out here.
The Bottom Line
Smart investment strategies are your ticket to financial independence, Money Magnets! With ETFs, a long-term mindset, and regular contributions, you are well on your way to building a legacy of wealth and joie de vivre. Start where you are, invest what you can, and watch your rands grow into something epic.
