The latest budget speech has sent a clear message: South Africans need to be more strategic with their finances. With a proposed 0.5% VAT increase and adjustments to tax brackets, it’s more important than ever to ensure your money is working for you. Rising living costs, increased taxation and economic uncertainty mean that financial planning is no longer optional—it’s a necessity.
Whether you’re building wealth, protecting your savings from inflation, or simply stretching your pay check further, making informed financial decisions now can secure your future.
The good news? There are smart, practical steps you can take today to stay ahead of these economic changes. Studies show that people who set up automatic transfers to their savings and investment accounts are far more likely to reach their financial goals. Treat your savings like a recurring bill—one that pays you in future security.
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Whether you want to save more, reduce expenses, or maximise investments, these five smart money moves shared by investment platform Fynbos Money will help you adapt to the shifting financial landscape and keep your finances on track.
1. Reassess Your Monthly Budget
The VAT increase means everyday goods and services will cost more. Now is the perfect time to take a hard look at your monthly expenses and identify areas where you can cut back. A simple way to start is by tracking your spending for a month and categorising your expenses. Focus on reducing discretionary spending, like eating out or streaming services and redirect that money towards savings or investments.
2. Take Advantage of Tax-Free Savings Accounts (TFSAs)
TFSAs offer a rare opportunity to grow your money without paying tax on interest, dividends, or capital gains. Introduced in 2015, they allow South Africans to invest up to R36,000 per tax year and R500,000 over their lifetime, maximising that compounding growth over time. If you haven’t started one yet, it’s never too late to take advantage of this valuable investment vehicle. “Every single South African should have an emergency savings fund and a TFSA. These two accounts form the bedrock of any good long-term investment strategy,” says Fynbos Money CEO Adrian Hope-Bailie.
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3. Pay Off High-Interest Debt Immediately
With potential economic pressure from tax adjustments, carrying high-interest debt will only make financial challenges worse. Putting money aside to save or invest while you’re paying interest on short-term debt is like trying to fill a bucket full of holes from a dripping tap. Before you start saving, pay off those debts as fast as you can so you can switch focus to building up your long-term investments.
4. Boost Your Emergency Fund
Many people think of emergency funds as money that just sits there, but in reality, having cash reserves is like an insurance policy for your wealth (as long as they are earning a return that’s beating inflation). Everyone has unexpected incidents happen to them, be it your garage door that stops working, a car accident, or even losing your job. Having emergency funds prevents you from going into debt or being forced to sell your investments when something unexpectedly goes wrong. Think of your emergency fund as a special part of your long-term investment portfolio that is easy to access when you need it and protected from volatility.
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5. Review Your Retirement Contributions
Changes in tax brackets can impact your take-home pay, making it a good time to reassess your retirement contributions. If your employer offers a pension or provident fund, maximise your contributions to take advantage of tax benefits and long-term security. If not, consider a Retirement Annuity (RA) for tax deductions and future stability. Always compare fee structures and prioritise transparent, flat-fee options with no commission to keep more of your money where it belongs – in your pocket.
