No amount is too small — let’s talk platforms, tax-free growth, local asset exposure & doing your due diligence.

You often hear people say, “I’ll start investing when I have more money.” But that mindset is arguably the single biggest invisible barrier to building lasting wealth. The truth is: even R100 is better than nothing — not because R100 is a huge sum, but because the habit, the time, and the compounding that follow matter far more than the size of your first deposit.

The journey to financial security is about consistent, small steps. This week, we dismantle the barrier to starting. We’ll unpack why starting small is the most powerful move you can make, how to fully utilise South Africa’s incredible Tax-Free Investment (TFSA) framework, how to diversify your portfolio with local assets, and the essential due diligence needed to protect your capital.

Let's dig in and make sure your money starts working for you today.

The single most valuable asset an investor has is time. When you delay investing, you are losing the one-time opportunity for your money to start compounding today. Compounding means you earn returns not just on your initial investment, but also on all the returns you earned previously—it's returns on your returns. The earlier you start, the more fuel compounding has.

Starting with R100 (or any consistent, small amount) achieves three transformative goals:

• It Builds the Habit: The routine of putting money aside regularly starts wiring the discipline of saving and investing. Over time, that habit becomes automatic.
• It Gives Time to Your Money: Even small amounts, compounded over many years, can yield significant growth.
• It Reduces Decision Paralysis: Starting small allows you to learn about platforms, fees, and products without the stress of risking a large sum. You learn while you grow.

A Compounding Illustration: Start Now, Win Later

Imagine two friends, S’bu and Thandi, both aiming to invest for retirement with an average net annual return of 8%.

S’bu starts today, contributing R200 per month for 40 years.

Total Invested (Capital): R96,000

Approximate Ending Value: ≈ R690,000

Thandi waits 10 years, then starts contributing R400 per month for the remaining 30 years.

Total Invested (Capital): R144,000

Approximate Ending Value: ≈ R550,000

The Result: S’bu invested less capital overall (R96,000 vs. R144,000), yet his portfolio is R140,000 larger simply because his R200 started compounding 10 years earlier.

The Lesson: Don’t wait for the perfect moment. Begin with what you have, even R100, and let time do the heavy lifting.

The Tax-Free Investment Account (TFSA) should be the foundation of every South African investor's portfolio. Why? Because any interest, dividends, or capital gains earned inside that account are exempt from tax forever. You keep 100% of your growth.

Key Rules and Limits

A TFSA must be a specifically designated product registered with SARS. You must be careful to stick to these limits:

Annual Contribution Limit: R36,000 per tax year.

Lifetime (Cumulative) Limit: R500,000 per person.

The Penalty: If you exceed these limits across all your accounts, SARS levies a hefty 40% penalty tax on the excess contribution.

The Withdrawal Trap: If you take money out, those withdrawn amounts do not “free up” contribution room. They permanently reduce your R500,000 lifetime limit. TFSAs are for long-term growth.

Finding the Right Platform: Watch the Minimums

When you start small, look for platforms with R0 or very low minimums and low fees. Note that some providers (like those listed below) require contributions higher than R100. Always check the current minimums before investing.

Here are examples of providers offering TFSA options:

• SatrixNOW / EasyEquities:

Minimum Investment: R0 (or often no minimum for ETFs).

Focus: Low-Cost Passive ETFs (Exchange Traded Funds).

Feature: Excellent for index tracking and beginners; the best starting point for an investment of R100 or less.

• Allan Gray:

Minimum Investment: Varies, typically R500/month or R5,000 lump sum.

Focus: Actively Managed Unit Trusts.

Feature: Reputable, diversified funds within the tax-free wrapper, suitable once you can commit to a higher contribution.

• Sygnia:

Minimum Investment: Varies, typically R500/month or R5,000 lump sum.

Focus: Passive & Multi-Manager Funds.

Feature: Known for low platform fees and strong index tracking options, suitable once you can commit to a higher contribution.

Tip: For someone starting with R100, focus on platforms with R0 or very low minimums like EasyEquities/SatrixNOW. Other reputable providers are available once you are ready to increase your monthly commitment to R500 or more.

Intelligent investing requires diversification—don't put all your eggs in one basket. Diversification helps manage risk because different assets perform well at different times.

Once your TFSA is established, one simple way to diversify is through exposure to local assets like commodities.

Local Commodity Exposure

Commodities are raw materials (metals, energy, agriculture). Exposure to them can act as a hedge against inflation and benefit from specific supply/demand shocks—which is highly relevant in resource-rich South Africa.

The easiest ways to gain exposure are:

Commodity ETFs / ETPs: You can buy an ETF on the JSE that tracks the price of a local commodity like gold or platinum.

Commodity Equities / Stocks: Buying shares in large JSE-listed mining houses or agriculture firms gives you indirect exposure to commodity prices.

Commodity exposure should typically be a small, strategic allocation (e.g., 5-10%) within a well-diversified portfolio.

Even R100 invested badly can become a drag. Your choice of platform and your diligence in product selection are critical.

The Essential Due Diligence Checklist

Before you commit your money to any product, ask yourself these crucial questions:

• Underlying Assets / Structure: What exactly am I buying? Does the ETF hold physical assets, or shares? Understand the source of the risk.
• Fees & Expense Ratios (TER): Check both the ongoing fund management fee (TER) and the transaction fees. Lower fees are always better.
• Provider's Credibility / Regulatory Status: Is the platform regulated by the Financial Sector Conduct Authority (FSCA) in South Africa? Never invest with an unregulated entity.
• Liquidity: Can you easily buy and sell the product without affecting its price?
• Historical Performance: Past returns don't guarantee the future, but they help you gauge the product's volatility and consistency.

In short: Do your homework before you commit.

The message is simple, powerful, and true: Start with what you have — even R100 is better than nothing.

This week, commit to planting your first financial seed. Use the knowledge about TFSAs and due diligence. Don't let fear or procrastination steal the most valuable asset you have: time.

We are committed to helping you on your journey to financial freedom.