The Apple Test: A Simple Way to See the Power of Investing

We all love the latest tech. But have you ever considered the financial impact of buying the new iPhone versus investing that money in the company itself? This simple exercise, which we call "The Apple Test," reveals the incredible power of investing over consumption.

Imagine you bought a brand new iPhone for R20,000 ten years ago. Today, that phone is worth almost nothing. Now, imagine you had invested that same R20,000 into Apple's stock instead. That investment, thanks to the magic of compound interest and the company's growth, would be worth far more today.

This isn't just about Apple. It's about a fundamental shift in perspective:

• Consumption: When you consume, the value of what you bought decreases over time.
• Investing: When you invest, your money has the potential to grow exponentially over time.

The test reveals a powerful lesson: every time you consider a large purchase, take a moment to ask yourself, "What would happen if I invested this money instead?" This simple question can be a game-changer for your financial future.