Savings month: Here's how to build your financial future brick by brick

The Citizen

06-07-2025

It takes time to build wealth, but you have to start somewhere and seeing it as a process of building it brick by brick might help.
July is Savings month and the perfect time to design strategies to save and build your financial future. Although saving money might seem like a daunting task, especially if you want to achieve long-term goals such as buying a home, funding your children's education, or retiring comfortably.
However, Thomas Berry, head of sales at PSG Wealth, warns, much like building a house, financial success is not built overnight and similar to the discipline you apply in your everyday life, it is a steady process of laying down one brick at a time.
'Each contribution you make towards your retirement annuity, tax-free savings account or voluntary investment, to name a few, becomes a foundational brick, helping you build a secure and resilient financial future.'
Berry says the best way is to start with a solid plan. 'Just as you would not build a house without a detailed plan, you should not begin saving without clear goals. Start by defining what you want to save for, such as retirement, education, a home or holiday.
'This clarity gives your savings purpose, making it easier to stay motivated and disciplined. Set short, medium and long-term goals, each with realistic timelines and targeted amounts which you can track over time.'
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Start by laying the foundation
Berry says the next step is to lay the foundation and pay yourself first. 'The most effective strategy to begin saving is to pay yourself first. Before you spend money on anything else, allocate a portion of your income directly to your savings plan. This strategy prioritises your future financial well-being and turns saving into a habit that compounds over time.
'To successfully lay the foundation, automating your monthly contributions through debit orders ensures you pay yourself first, much like laying bricks one after another. As you build on your contributions, you lay the foundation for your financial freedom.'
He points out that it is also important to build with the right materials in the form of available investment products, such as:
Retirement annuity: Contributions are tax deductible up to 27.5% of the highest of taxable income or remuneration, limited to R350 000 per tax year. You can retire from the fund after reaching the age of 55 or due to ill health if approved by the trustees. Funds are also accessible if you emigrate.
Contributions are tax deductible up to 27.5% of the highest of taxable income or remuneration, limited to R350 000 per tax year. You can retire from the fund after reaching the age of 55 or due to ill health if approved by the trustees. Funds are also accessible if you emigrate. Tax-free savings account: You can make flexible contributions in the form of a lump sum, debit order or ad-hoc contributions up to a maximum of R36 000 per year and R500 000 over your entire lifetime. All growth, dividends and interest you earn is tax-free but if you contribute more than the limits, it is taxed at 40%.
You can make flexible contributions in the form of a lump sum, debit order or ad-hoc contributions up to a maximum of R36 000 per year and R500 000 over your entire lifetime. All growth, dividends and interest you earn is tax-free but if you contribute more than the limits, it is taxed at 40%. Voluntary investment: This is a flexible, personal investment portfolio where you can access your investment at any time. Tax may be payable on your income and dividend distributions as well as tax on capital gains when you sell or switch units within the investment. Also note that tax reporting is done yearly and you will receive tax certificates to assist you in completing your tax return.
Berry says although you are not limited to these options, these investment products are some of the building blocks you can use as part of a well-constructed financial plan.
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Brick by brick – choose the right materials
'Much like choosing the right materials when building a house, selecting the appropriate investment vehicles is key to ensure your financial success.
He emphasises that it is also important to use the right tools to build your financial future in the form of selecting the right portfolio. 'When building a house, you would not try to make your own bricks, pour your own concrete, or handle the witing and plumbing unless you are an experienced and professional builder.
'In the same way there are experienced portfolio managers and investment teams who manage what are known as collective investment schemes. These are investment instruments that give investors access to professionally managed and diversified portfolios of assets including equities, bonds, property and cash.
'Given their years of experience, the managers of these portfolios or collective investment schemes give you access to investment opportunities and expertise that might be difficult to access on your own.'
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Brick by brick – choose the right builders
Berry says just as you trust engineers and builders to get the structure of your house right, collective investments schemes let you rely on expert fund managers to navigate the markets effectively on your behalf.
'As with building a house, the design, materials and construction of your investments will depend on your budget, plans and appetite for risk. Portfolios will vary based on your investment goals, time horizon and risk tolerance. Working with a financial adviser will help you ensure that you are using the right tools to build a portfolio that reflects your unique plan.'
He also points out the value of consistency, building you financial future brick by brick. 'The key to successful saving is consistency. Even when progress feels slow, every lump sum and debit order counts. The concept of compound growth in investments is a powerful force that allows investments to grow exponentially over time.
'Ultimately, saving is not about one grand gesture but rather a series of small, intentional actions. With planning, discipline and the right strategies, you can construct a solid financial foundation that supports your goals and financial freedom to withstand the test of time.'