Winning the fight against financial illiteracy

OUR South African wallets are a beleaguered lot. This month, electricity prices are going up. Well, it seems all prices keep going up, thanks to our enemy, inflation.

- ANDILE JONAS

So, in the ultimate showdown — between feeling overwhelmed about what we don’t understand about money, and empowering ourselves, how do you win? Let's talk strategy.

Round 1: Outsmart the silent pickpocket, inflation

■ When people say cash is king, they forget growth is better. Only through exposure to assets that will help your money grow faster than inflation, can you hope to beat it. That's why your long-term money can't hibernate in a bank or money market account.

■ Compounding is your BFE. Compounding sounds like a big word, but it means you earn interest on your money, and then you start earning interest on the interest. Unbelievable, but that’s when your money gets wings. And the earlier you start, the more your money can work for you.