‘ Don ’ t underestimate the power of compounding . It ’ s the secret sauce that makes the time value of money so magical .’ SUZE ORMAN
TIME ' S POTENTIAL
Defining investment terms As we mentioned , the more risk you take the longer your investment term should be . Hence by investing for a specific term you control your risk and give yourself a higher probability of achieving your investment goal . The below terms are an indication of when an investment will be
required . For example , in an emergency , your emergency fund investment should be available within 3 days , or if you are saving up for a vehicle in 4 years , then medium-term investing would be relevant for you .
• Emergency : 0 to 3 days
• Short-term : 0 to 2 years
• Medium-term : 2 to 5 years
• Long-term : 5 + years
‘ Don ’ t underestimate the power of compounding . It ’ s the secret sauce that makes the time value of money so magical .’ SUZE ORMAN
Inflation : The sneaky thief Ah , inflation ! It ’ s the thief that erodes the purchasing power of money over time . Picture yourself walking into a Pick ’ n Pay with R100 in your pocket . You find your favourite
SA Real Estate Investor Magazine AUG / SEPT 2023 62