Don’t Sit On Cash: Inflation vs Saving
Inflation 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 change; 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 plainly; 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 seriously; 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 interest; earning returns, then earning returns on your returns, until time starts doing the heavy lifting.
The most powerful takeaway isn’t a specific product; 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 agrees; 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 growth; 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 discipline; not to spend the extra, but to build something with it.