🇿🇦 The SA Index Card
In 2013, University of Chicago professor Harold Pollack wrote all the personal finance advice you'll ever need on a single index card. Here it is — adapted for South Africans.
1 Save at least 15% of your income
US original: Save 20% of your money
SA version: Aim for 15–20%. South Africans save less than 1% on average — anything above zero puts you ahead.
Start with an emergency fund: 3 months of expenses in a TFSA or high-interest savings account (TymeBank, African Bank, Capitec). Then automate a monthly debit order on payday — you won't miss what you never see.
👉 Open a TFSA with EasyEquities, Sygnia, or your bank. R36,000/year tax-free.
2 Pay your credit card in full every month
US original: Pay your credit card balance in full every month
SA version: SA credit card rates are brutal — often 20%+. Carrying a balance is financial quicksand.
If you have credit card debt, paying it off is your #1 investment — it's a guaranteed, tax-free return equal to the interest rate. No ETF can beat that. If you can't control spending on a card, cut it up.
👉 If you're in debt: ask your bank about debt consolidation at a lower rate. Nedbank, FNB, and Standard Bank all offer this.
3 Contribute to your retirement fund and RA
US original: Max your 401(k) or equivalent employee contribution
SA version: Join your employer's pension or provident fund. Open a low-cost Retirement Annuity (RA). You can contribute up to 27.5% of taxable income (capped at R350,000/year) and get a tax deduction.
Most employer funds match a portion of your contribution — that's free money. An RA with Sygnia, 10X, or EasyEquities charges ~0.5% in fees vs. 2-3% at traditional insurers. Over 30 years, that difference is hundreds of thousands of rands.
👉 Open a low-cost RA with Sygnia or 10X today. Even R300/month adds up over decades.
4 Buy low-cost, diversified index funds
US original: Buy inexpensive, well-diversified mutual funds such as Vanguard Target 20xx funds
SA version: Buy Satrix, Sygnia, or 10X ETFs. Avoid expensive actively-managed unit trusts. The Satrix Top 40 ETF gives you SA's 40 biggest companies for a 0.1% fee.
SA has some of the world's highest investment fees — some unit trusts charge 3%+ per year. Over 20 years, a 2% fee difference eats nearly 40% of your returns. Look at the EAC (Effective Annual Cost) on any product before buying.
👉 Open a free EasyEquities account. Buy the Satrix S&P 500 ETF (global exposure) and Satrix Top 40 ETF (local). As little as R10 to start.
5 Never buy individual stocks
US original: Never buy or sell an individual security
SA version: Unless you do this professionally, you're gambling. The person on the other side of every trade is a full-time professional with better data.
The JSE has ~400 listed companies. An index fund buys them all. Stock-picking adds stress, fees, and underperformance for 90% of people. If you enjoy it as a hobby, limit it to 5% of your portfolio.
👉 Convert any individual shares you own into ETFs over time. Start with new money going into index funds.
6 Max your Tax-Free Savings Account
US original: Maximize tax-advantaged savings vehicles like Roth, SEP, and 529 accounts
SA version: Your TFSA is the best deal SARS offers. R36,000/year, R500,000 lifetime. All growth — interest, dividends, capital gains — is 100% tax-free. No tax when you withdraw.
Use your TFSA for high-growth assets (ETFs, not cash). The longer your money grows, the more tax you avoid. A 25-year-old maxing their TFSA in ETFs could have R5 million+ tax-free at retirement.
👉 Check your annual TFSA contributions on your SARS eFiling. Don't exceed R36k/year — penalties apply.
7 Pay attention to fees — avoid actively managed funds
US original: Pay attention to fees. Avoid actively managed funds.
SA version: SA's financial industry is fee-heavy. Always check TER (Total Expense Ratio) and EAC. Anything above 1.5% total is too expensive. Platforms like Sygnia and 10X charge ~0.4%.
A "financial advisor" at your bank is often a salesperson earning commission. They'll put you in expensive funds because they get paid to. Ask: "Are you a fiduciary? Do you earn commission on this product?" If they hesitate, walk away.
👉 Check your current investment statements for fees. If you see charges above 1.5%, switch to a low-cost platform.
8 Make sure your financial advisor is a fiduciary
US original: Make your financial advisor commit to the fiduciary standard
SA version: In SA, look for a CFP® (Certified Financial Planner). They're registered with the Financial Planning Institute and must act in your best interest. FSCA registration is the minimum.
Many "advisors" in SA are really insurance salespeople. They earn commission pushing endowment policies, whole-life insurance, and high-fee retirement products. A true fee-based CFP® charges by the hour or a flat fee — not commission.
👉 Search for a CFP® at fpi.co.za. Ask: "Do you earn commission?" before signing anything.
9 Buy term life insurance — not whole life
US original: (Book version) Buy term life insurance, not whole life
SA version: Term life is cheap. R1 million cover costs ~R150/month for a healthy 35-year-old. Whole-life and endowment policies sold by commission agents can cost 10x more and deliver terrible returns.
Insurance is protection, not an investment. Buy enough term cover to replace your income for your dependants (10x annual salary is a good rule of thumb). Invest the money you save separately in low-cost ETFs.
👉 Compare quotes on hippo.co.za or get term life through your employer group scheme. Avoid policies bundled with "investment" components.
10 Support social safety nets — we're all in this together
US original: Promote social insurance programs to help people when things go wrong
SA version: UIF, SASSA grants, and public healthcare exist because no one is immune to bad luck. A society where your neighbour can fall through the cracks is a society where you can too.
Beyond policy: support your community. Join a stokvel if it helps you save. Help a younger family member open a TFSA. Share this page with someone who needs it. Financial literacy is contagious — in the best way.
👉 Share this page: https://mymoneyscore.co.za/guide. A financially healthy community benefits everyone.
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