Start Taking Responsibility for Your Financial Health

Let’s talk about the “wonderful news” that VAT isn’t going up in South Africa. Before we celebrate, let’s remember: it’s not a victory. It’s actually a travesty that it was ever increased in the first place.

I say this as someone who is not mathematically inclined. A 0.5% increase may seem small, but it has a massive ripple effect on the cost of living. Don’t make me explain the maths – I’d fail, but we should be putting pressure on government for more than just a pause.

I remember when VAT was a simple 10%. I worked in retail, so if something cost R75, you just added R7.50. Easy maths. But it crept up, and some dimwit politician once said VAT hadn’t kept up with inflation. What they don’t get is: VAT automatically includes inflation. As the cost of living rises, the government’s earnings from VAT rise without needing an increase.

The point is, South Africans need to take responsibility for their money.

✓ Budget by the 50-30-20 Rule
50% for needs (housing, food, medical aid), 30% for wants (travel, fashion, entertainment), and 20% for savings (debt repayment, investments, and retirement).

✓ Build an Emergency Fund
Aim for at least 3–6 months of your income saved. After being diagnosed with cancer and retrenched at the same time, I learned the hard way. Even with the second-cheapest medical aid, my bills exceeded my annual salary. Stage 1 cancer, but stage 4 expenses!

✓ Follow the 1% Spending Rule
If something costs more than 1% of your annual income, wait three days before buying. Trust me, that impulse will fade—and if it doesn’t, then at least you’ve thought it through.

This lesson applies to everything from skincare to furniture. I’ve wasted money on things I never needed—free gifts, sale items, you name it. I once told my husband I was saving money by spending it. What nonsense.

✓ You’ll Never Have Too Much Money Saved
This became glaringly obvious during my cancer journey. When I talk to people- mostly women, they often say, “I can’t tell anyone I have cancer. I’ll lose my clients.” Especially if they’re solopreneurs. No one is financially prepared for illness.

So what do we do?

BTW: The little I know about money is dangerous, so best you consult a financial planner for sound financial advice, but I think it is time to start taking responsibility for our own finances.