Inflation is the silent wealth-killer. As prices rise over time, each rand buys less than it did before. To preserve and grow your purchasing power, your investments need to do more than simply increase in value — they need to grow faster than inflation.
A simple example. If you need R10,000 per month in today's money, and inflation averages 5% per year, you'll need approximately R26,500 per month in 20 years' time to maintain the same standard of living. If your savings fail to keep pace with inflation, you may find that your money has grown on paper while your purchasing power has actually declined.
The good news is that investing provides a way to combat inflation. Over long periods, growth assets such as equities have historically delivered returns above inflation, helping investors preserve and increase their real wealth. While markets can be volatile in the short term, diversified portfolios with meaningful exposure to growth assets have generally been one of the most effective defences against rising prices.
That's why Prospr encourages investors to get their money invested as soon as possible. When setting up your account, the Contribution Instruction tab allows you to select a default portfolio. Any contributions received by Prospr can then be invested automatically into that portfolio from day one, ensuring that your money starts working immediately rather than sitting in cash while you decide how you would like to invest more actively in the future.
The lesson is simple: inflation never takes a day off, so delaying investment decisions can be costly. By investing early, staying invested and maintaining exposure to assets with long-term growth potential, you give yourself the best chance of preserving your purchasing power and building real wealth over time. In investing, time and compounding remain two of the most powerful tools available.