How small early decisions can shape long-term wealth

How a 10-year delay could cost you more than six times as much money

What if I told you that R60 000 invested in your twenties could ultimately become R3.3 million? Most people would assume there must be a catch, but there isn’t. In fact, one of the most powerful forces in investing is available to every investor, regardless of income, experience or knowledge: Time.

Most people think wealth is built by finding the perfect investment, but it’s actually built through a series of small decisions that barely feel important at the time. The R500 monthly investment you start in your twenties, the retirement benefit you choose not to cash out when changing jobs, or the contribution increase you make after your next salary review.

Looking forward, these decisions feel insignificant. Looking back, they can be worth hundreds of thousands, sometimes millions, of rand. The irony is that by the time we truly understand how powerful these decisions were, the opportunity to make them has often passed.

What if R60 000 could become R3.3 million?

Consider two investors. Both invest in shares that deliver a return of 12% per year.

Investor A starts investing at age 20 and contributes just R500 per month for 10 years before stopping completely at age 30. Over those 10 years, Investor A contributes a total of R60 000. Then they do absolutely nothing. No further contributions. No catch-up savings. Nothing. By retirement, that investment has grown to approximately R3.3 million.

Now consider Investor B. Investor B waits until age 30 before getting started. Most people assume they can simply save a little more each month to catch up. Not quite. To achieve the same outcome by retirement, Investor B would need to contribute almost R1 100 per month for 30 years.

In total, Investor B contributes just under R400 000. That's more than 6.5 times the amount Investor A contributed. Think about that for a moment. The investor who waited had to invest for three times longer and contribute more than six times as much money simply to catch up.

The difference wasn't skill orluck. The difference was time.

This is not meant to discourage anyone who has not yet started investing. It is never too late to begin. Whether you are in your twenties, thirties, forties or fifties, the sooner you start, the more time can work for you - and the less you may need to contribute later.

The best financial decision I never made

In my mid-twenties, I changed jobs and had a decision to make. I could either cash out a retirement benefit worth approximately R30 000 or leave it invested.

At the time, R30 000 felt like real money. I could have used it to travel, buy furniture or simply make life a little easier. Instead, I preserved it.

Today, in my early forties, that R30 000 has grown to just under R110 000. Assuming a long-term return of approximately 10% per year, broadly in line with what a Balanced Fund in South Africa may achieve over the long run, that investment is projected to be worth almost R1.1 million by age 65.

One decision. One moment in time. Potentially worth more than a million rand. Not because I found a miracle investment. Not because I timed the market. Simply because I gave my money time, which is incredibly valuable.

The biggest cost most investors never calculate

When investors think about costs, they often focus on fees, or market volatility, or choosing the wrong fund. But for many people, the biggest cost isn't any of those things -it's waiting.

Waiting until next year. Waiting for a promotion. Waiting until life settles down. Waiting until there's more spare cash. Unfortunately, time is the one thing investors can never get back.

And as the examples above show, catching up later can require dramatically more money and effort.

A question for your future self

If your future self could sit down with you today, they probably wouldn't ask whether you bought fewer coffees or drove a different car. They would likely ask something much simpler: "Did you start as early as you could?"

Because when it comes to investing, the biggest regret is rarely starting too early. It's usually wishing we had started sooner.

Perhaps the most valuable question any investor can ask isn't whether they're invested in the perfect fund. It's whether there's a decision they've been meaning to make that future them wishes they had already made.