Making Sense | Don’t Sit On Cash: Inflation vs Saving

Making Sense | Don’t Sit On Cash: Inflation vs Saving Vusi.Bafetane Fri, 01/23/2026 - 14:44 Don’t Sit On Cash: Inflation vs SavingInflation is one of those words that can sound like it belongs to economists, not ordinary people. But Gareth Edwards’ frustration in this episode is exactly the point: if inflation is 3.6%, what does that actually mean for your life?Francis Herd explains it in the most concrete way possible: think of a basic “basket” of goods. If that basket cost R100 a year ago, a 3.6% inflation rate means it now costs R103.60. Your money didn’t but what it can buy did. That’s the quiet reality of inflation: it erodes buying power.Then comes the question that makes this episode useful: if inflation keeps eating value, how do you stop your savings from going backwards? Francis puts it p if inflation is 3.6%, your savings must earn more than 3.6% over the year, otherwise you’re not really saving. You’re losing ground.That’s why they take aim at the most common trap: cash sitting idle. Gareth jokes about money under a mattress, but Francis treats it ser not only does it lose value over time, it’s also physically at risk. From there, they move into real options: comparing savings account rates, understanding that some accounts can still beat inflation, and recognising when “safe” saving can still be too slow.Then the episode goes bigger: equities and ETFs; words that sound intimidating until Francis reframes them as accessible tools. He points to the difference between tracking a market versus trying to pick individual winners, and he keeps coming back to the engine behind long-term growth: compound in earning returns, then earning returns on your returns, until time starts doing the heavy lifting.The most powerful takeaway isn’t a specific p it’s a mindset shift. Gareth says what a lot of people feel: he wishes he could go back in time and start earlier. Francis and underlines the message for younger viewers: you don’t need “wads of money” to begin. The advantage comes from starting early, staying consistent, and using structures that protect and accelerate including South Africa’s tax-free savings incentive.In the end, the episode lands on a simple truth: inflation has cons, but it also creates a moment to rethink habits. If inflation is low, and you’ve got even a little breathing room, the challenge is disc not to spend the extra, but to build something with it.

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