While the budget has been largely viewed as prudent, there were few surprises and little in the form of good news for individuals in Minister Godongwana’s speech. 

Although there were no major tax proposals and no major tax rate hikes announced, bracket creep and increases in sin taxes mean that individual taxpayers will still bear the brunt of a R15 billion Budget shortfall.

Read on for a brief overview of the most pertinent announcements – and some tips on budgeting and investing in uncertain times.

Some investment gurus, including Warren Buffet, belittle the concept of diversification, claiming that it is merely “protection against ignorance.”

But others go to the opposite extreme, describing diversification as “the only free lunch” in the investing world.

Read on to find out which camp to believe. (Spoiler alert: the devil is in the details.)

Every investor should have a financial plan to guide them on their savings journey. But they should also remember that no matter how good a plan might be, there is always the risk that something will go wrong.

In this article, we look at the importance of building room for error into your financial plan, and some practical ways of doing so. Taking some insights from author Morgan Housel, we discuss why the most important part of any financial plan is planning for that plan not going according to plan.

Investors initially responded positively to the details in the government’s Budget, particularly the decision to tap into the central bank reserves to alleviate budgetary pressure. But sentiment soon turned negative, sending the rand to R19.24 a dollar after it firmed to R18.83 in the immediate wake of the Budget speech. 

With South African elections taking place in late May and half of the countries in the world set to hold elections this year, financial markets are likely to remain volatile in the months ahead. The best way to navigate these uncertain and unpredictable times is to proceed with caution and, importantly, avoid making any emotionally driven investment decisions.