Financial Freedom: Cut Back and Invest

crop young woman cutting paper sheet on wooden table

Many are getting deeper into debt, and as debts climb it becomes even more difficult to start saving.

I want to ask you to consider re-examining your priorities. 

It is so easy to spend money. But what if you could cut back on your spending and invest more? Would it make a big difference? It sure can!

Imagine if you cut down on the money you spent on takeouts and entertainment… How much could you save?

If you buy a burger meal or happy meal once a week at R70, and you choose rather to make a sandwich, you will end up saving around R50 on each meal, or R200 every month. Not only will it be healthier, but you will free up some extra cash flow!

What if you cut down on your cellphone calls and data usage, by just 20%? If your cell phone and data costs you R500 p.m., then you will free up R100 p.m. in extra cash.

What if you decided to downgrade your car? Not only would your monthly installment reduce, but so would your insurance premium.

I am sure that you get the drift. What if you could free up R500, R1,000, or even R2,000 p.m.? 

Imagine if you then invested this money. This could make a huge difference to your financial future.

Instead of spending all your money on “stuff” and “things”, you can turn your income into assets by investing. This in turn can set you up to be financially independent over time.  

The average Balanced Fund has generated around 10-13% p.a. over the long term. Yes, over the short-term returns can be volatile, but over any rolling 5 to 7-year period or longer, these funds usually generate real growth. 

If you could free up some money in your budget, and if you invested these funds receiving 10% p.a. return per year, your investment would grow as follows…

Monthly investment10 years20 years30 years40 years
R500 p.m.R105 187R378 014R1085 660R2 921 110
R1000 p.m.R210 374R756 029R2 171 321R5 842 221
R2000 p.m.R420 748R1 512 058R4 342 642R11 684 442

If you increased your investment contribution by inflation each year, you would have the opportunity to generate even more growth.

By cutting back on your expenses and investing a little more, you can generate explosive growth over time. By investing you can build towards a brighter tomorrow.

Whenever you earn money, you can choose to spend it or invest it. If you invest it instead of spending, you will build up wealth over time. 

Even a small investment over the long term can have a huge impact on your wealth.

Happy investing! You can build towards financial freedom by cutting down on your expenses and investing a little more.

Get Our FREE eBooks to Help Achieve God's Purpose for YOU!+ 21 Practical Steps to break the Debt Cycle (BONUS)

Enter your name and email address to get INSTANT access to these life-changing eBooks via email!

Similar Posts

Leave a Reply