Financial expert says R1,000 a month can build wealth
Sean Kelly of Parity Wealth Managers says R1,000 a month invested over 20 years at an average annual return of 8% could grow to close to R600,000. He told beginners not to expect quick returns.
Kelly gave the example in an interview with 702/CapeTalk. In his example, total contributions over the 20 years come to R240,000. He said compound growth can make a substantial difference over time.
Kelly said investors do not need to be wealthy to start. He said: "R1,000 a month is actually a fantastic starting point". He said the biggest mistake some investors make is expecting to get rich quickly.
He said a long-term aim of earning 3% to 5% a year above inflation over five to 10 years could be a reasonable starting point. The annual contribution allowance for a tax-free savings account is R46,000.
Kelly also spoke about pressure on household budgets. He said there was little room for further relief in the Medium-Term Budget Policy Statement. He said rising fuel costs and medical aid increases add to the strain.
Key facts
- Who
- Sean Kelly (Director at Parity Wealth Managers, financial expert); Africa Melane (702/CapeTalk presenter who interviewed Kelly); Parity Wealth Managers (Kelly's employer)
- What
- In an interview with 702/CapeTalk, financial expert Sean Kelly explained how beginners can start investing, using an example of R1,000 monthly contributions growing to close to R600,000 over 20 years, and advised against expecting quick returns.
- When
- 23 October 2026
- Where
- South Africa
- Status
- Reported