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According to the latest 10X Retirement Reality Report, 70% of surveyed South Africans believe that they cannot afford to save. For many, this belief may stem from the idea that they need a large lump sum to start saving or investing. But what if you could begin with just R200 a month? The Japanese concept of Kaizen - which advocates for continuous, incremental improvement - can also be applied to the way you manage your finances. Instead of waiting for a lump sum to become available one day, rather start small today, stay consistent, and watch your wealth grow.
So, what can you do with R200 this month?
Invest in yourself
Investing in yourself can be one of the most lucrative financial moves you make. Allocating R200 per month towards online courses, books, or professional training programs can build your skills, which in turn can lead to career advancements or additional income streams from side hustles, for example.
Whether it’s learning a new language, gaining technical expertise, or refining a soft skill, personal development should always be thought of as a valuable long-term investment.
Invest in the stock market
Contrary to what you might believe, you don’t need thousands of rands to enter the stock market. There are some investing platforms that allow South Africans to start investing with minimal capital, making it possible to buy fractional shares (i.e. a part of a share instead of a full share) in top-performing companies.
By consistently investing R200 per month, you can build a diversified investment portfolio over time. The power of compound growth means that even small investments can snowball into significant wealth. The key is consistency and patience, letting time and market growth work in your favour.
Start a side hustle
If you’ve ever thought about starting a side hustle, R200 a month can serve as the seed capital you need to get started. Whether it's buying initial supplies, saving towards setting up a website, or marketing a service, these small steps can lead to a profitable venture over time. What’s more, starting small reduces financial risk and allows you to test the waters without major upfront investments.
Plan for Januworry
The festive season and back-to-school period can be particularly financially straining. As a result, many people enter the new year burdened with debt due to holiday spending and back-to-school-related costs. According to the Back-to-school Survey carried out by 1Life Insurance, 88% of parents will have to cut back on essential monthly expenses like food and transport to cover back-to-school expenses! Set aside R200 each month starting now, and you can alleviate Januworry and start the new year on a strong financial footing.
Accelerate debt repayments
Reducing your debt is one of the most effective ways to improve your financial health. Allocating R200 per month toward your existing debt (over and above your minimum repayments) can significantly reduce interest paid and shorten repayment periods. Having less debt frees up more money in the long run, which can then be redirected toward savings and investments. Over time, even small extra payments can make a big difference.
Build an emergency fund
Financial advisers often recommend having three to six months’ worth of expenses saved for emergencies, but for many, this goal can feel unattainable. Apply the Kaizen principle: instead of focusing on a daunting lump sum, start small by saving R200 per month. To make the process sustainable, consider increasing contributions by 5–10% each month, if you can.
To maximise returns, invest these savings in a Tax-Free Savings Account (TFSA), allowing your emergency fund to grow tax-free. Over time, these small contributions will accumulate into a safety net for emergencies.
Additionally, whenever possible, supplement your emergency fund with extra income such as bonuses, tax refunds, or spare cash at the end of the month.
An emergency fund also ensures that you don't have to dip into your other savings and investments every time you have an unexpected expense.
Spend a little on personal enjoyment
While financial responsibility is crucial, it’s also important to enjoy life and the money you work so hard to earn. Setting aside R200 a month for personal wishes such as hobbies, entertainment or a small treat ensures a balanced and fulfilling lifestyle.
Start small, start today
The Kaizen approach teaches us that small, consistent actions lead to meaningful long-term improvements. By committing just R200 per month to a financial goal of your choice, you can build a brighter future without feeling overwhelmed. Whether you choose to grow an emergency fund, invest in yourself, enter the stock market, or start a side hustle, the key lies in discipline and consistency. Over time, these small contributions will compound into improved financial security and personal empowerment.