From paycheck to portfolio - a 2026 guide for first-time investors

Eight out of ten South Africans now hold some form of savings or investment. Yet, for first-time earners, cash in the bank is no longer enough. With inflation biting, interest rates still high, and housing costs rising, many are asking: “How do I invest wisely, simply, and for real long-term growth?”.

This shift is already underway, according to recent data. South Africa’s collective investment industry - one of the easiest entry points for beginners - recently reached R4.16 trillion in assets under management, with strong inflows continuing through 2025 despite market volatility.

“There’s no perfect moment to start investing,” says Pedri Reyneke, CEO of Multilink Financial Services. “Clarity and consistency matter more than timing the market. Even R500 a month, invested in a low-cost, diversified product, can grow into a meaningful sum over ten years. We’ve seen clients in their mid-20s start small, stay disciplined, and build six-figure portfolios by their early 30s. The key is simple: get started, keep fees low, and let compounding work quietly in the background.”

Start smart: practical steps for beginners

The first step is deciding what you’re investing for and when you’ll need the money. Short-term goals - such as saving for a home deposit - require low-risk, liquid options. Long-term goals like wealth building, retirement, or financial independence allow higher-growth investments that can withstand market fluctuations.

Before investing, build an emergency fund covering three to six months of expenses. This buffer protects you from panic withdrawals during market dips and keeps your investment strategy on track.

Simplicity and long-term thinking are essential for beginners. Products like ETFs and multi-asset funds offer diversified exposure without the complexity of picking individual shares, and South Africa’s ETF sector grew 36.2% in 2024, reflecting rising demand from retail investors for low-cost, diversified options.

Reyneke warns: “Fees and fine print are the silent killers of long-term returns. A product that looks affordable upfront can end up costly once hidden charges or poor diversification are factored in. Markets will rise and fall, but disciplined investing over years generally outperforms knee-jerk reactions. When you give your money time to grow, 2026 could be the year your wealth-building journey truly takes shape.”

Professional guidance pays off

For those unsure where to start, working with a qualified adviser can accelerate progress. Advisers help align investment decisions with income, risk tolerance, and future goals, reducing the chance of rookie mistakes such as overexposure to volatile products or paying unnecessary fees. Cost-effective platforms have made professional guidance more accessible than ever, with many advisers now specialising in first-time earners - helping you turn that first step into a lasting financial habit.

Why 2026 matters

South Africa’s investment ecosystem is expanding rapidly, with more funds, platforms, and investor-friendly products available than ever before. Strong inflows indicate growing confidence, and young professionals are moving decisively beyond cash savings into genuine wealth-building vehicles.

“Your first investment doesn’t have to be big,” concludes Reyneke. “It just needs to be the first step. Start small, stay consistent, and let 2026 be the year your financial future truly begins.”