For more than 40 years, I’ve worked with individuals, families, and businesses who all share the same frustration:
“Why is my wallet empty?”
“Where did the money go?”
“Why is there so much month left at the end of the money?”
And here’s the truth I’ve learned over four decades:
The solution to building wealth doesn’t lie in how much you earn — it lies in what you do with your money.
Recently, I had the privilege of addressing JONK, a group of students and young working individuals at NG Kerk Alberton-Suid, where I shared the principles that shaped my own financial journey. These are the same principles that I was taught in my 20s.
If you’re in your 20s and want to start building wealth early, these seven steps will put you miles ahead of most people your age.
Step 1 to Building Wealth in your 20s: Pay Yourself First
When I was a young audit clerk, my boss, Mr Sherman, asked me a question that changed my life: “Who worked for the money?” I proudly answered, “I did.” At the time, I had a wife and baby at home with lots of expenses that took priority. I did not believe that it was possible to start saving and investing. From that day, he deducted 10% of my salary and placed it in an investment account, a forced-savings exercise that became the foundation of my financial future.
If you want to start building wealth in your 20s, this is the first and most important step.
Before you pay creditors, restaurants, bottle stores, or online shopping carts, pay yourself first.
Even if it’s a small amount, the habit is what builds wealth.
Step 2 to Building Wealth in Your 20s: Scrutinise Your Expenses
Not everything you spend money on is essential.
Ask yourself:
• What expense is essential?
• What is just a nice-to-have?
• What can I cut without affecting my life?
Most young adults don’t have an income problem; they have a spending problem.
If you want to start building wealth in your 20s, you must understand where your money is going.
Step 3 to Building Wealth in your 20s:
Invest Your Money Where Your Money Makes More Money
Saving is good. Investing is better. Your money should work as hard as you do.
Whether it’s a tax-free savings account, retirement annuity, or long-term investment, the goal is simple: Let your money grow.
The earlier you begin building wealth in your 20s, the more time compound interest has to work its magic.
Step 4 to Building Wealth in your 20s: Protect Your Capital
Never invest in something you don’t understand. I often tell people: “I don’t have knowledge about Bitcoin, so I prefer to stay away from Bitcoin.” Ponzi schemes, high-risk ventures, and “too good to be true” opportunities are everywhere, especially for young adults.
I have invested in a pet shop a couple of years ago. I loved animals and spent a fortune at pet shops. Everything seemed so lucrative. But running a pet shop is a completely different world. It cost me money, time, and focus and taught me a valuable lesson:
Only invest where you have knowledge, or where you have a trusted team of experts guiding you.
Step 5 to Building Wealth in your 20s: Use People With Expertise
Expertise means more than knowledge. It means proven, trustworthy expertise.
In the financial world, everyone has an opinion. But not everyone is qualified.
Before you trust someone with your money:
• Check their credentials
• Ask for references
• Speak to people who use their services
• Look for a track record, not a flashy advert
For 40 years, G&S Insurance Consultants has built a reputation based on trust and long-term relationships. That trust is something we protect fiercely. When you choose someone to help you invest, ensure that they have the same passion for protecting their legacy.
Step 6 to Building Wealth in your 20s:
Find Your Gearing Options
Wealth grows faster when you learn how to gear your income streams.
Gearing is about using other people’s money to help you grow your existing money. It can help you create lifelong income streams if you do it correctly. And yes, it could become extremely risky if you do not have the right advisors on your side. It’s not always simple or obvious, which is why we’re planning a series of events to unpack gearing strategies and share real-life examples. If you are keen to learn more, please contact us at marketing@gsinsurance.co.za
Expert guidance is essential, and we would love to share our techniques with you.
Step 7 to Building Wealth in your 20s:
Keep On Learning
You are never too young or too old to learn about money.
Listen to investment podcasts while you jog. Attend seminars. Read trustworthy authors’ work. Learn from people who have walked the road before you. Financial literacy is not a once-off lesson, but a lifelong journey.
If you want to start building wealth in your 20s, commit to learning something new about money every month.
Final Thoughts on Building Wealth in Your 20s
Building wealth in your 20s is not about luck, high income, or complicated strategies. It’s about discipline, consistency, good habits, trusted guidance and starting early.
If you begin applying these seven steps today, you’ll be far ahead of most people your age and well on your way to financial freedom.
Are you curious to find out more about how our team of Advisors can help you build your Wealth? Whether you are in your 20s, 30s, 40s, or older, we do have tailored advice no matter where you find yourself in life. Contact us today.
About Me — Gawie van der Walt
With more than 40 years of experience as a financial advisor, I’ve dedicated my career to helping individuals, families, and businesses build secure financial futures. As the owner of G&S Insurance Consultants, I’ve worked across every major area of financial planning, including investment planning, estate planning, business life insurance, retirement planning, business insurance, family provision, medical aid, short‑term insurance, and the establishment of emergency funds. Beyond my professional life, I’m a proud father of four and grandfather of eight, and in 2025, I even claimed the title of Run‑the‑Berg Champion in my age category, proof that discipline and endurance matter both in finance and in life.
Disclaimer: This content is intended for information and educational purposes only and does not constitute financial advice. G&S Insurance Consultants is an Authorised Financial Services Provider (FSP 14200).