The effects of politics on your money


President Cyril Ramaphosa unveiled his much awaited cabinet team. To be honest, like most people, I was expecting a newer team. Honestly not sure about everyone one of those appointments. It's fundamentally JZ's former "wounded" soldiers. Any who, it is what it is, and we all are just going to have to remain positive about our country. We need to support where we need to support and criticize where we need to. Basically, just become a bit more proactive as citizen so that we don't end up in a rut, again.

We all know that as women in the workplace we generally get the short end of the stick. When it comes to moving up the corporate ladder and getting equal pay for equal work we are considered last. Gender equality is about shifting power, and it takes time. When I saw Bathabile Dlamini in this crucial position, I felt betrayed by the president. Bathabile doesn't get it. She doesn't get our fight as women. And that's why she's NOT the right person for the job. 

Anyways, regardless of whom you wand or don't want, politics are here to stay. And since this is a personal finance blog, I'm going to focus on personal finance and politics. I mention politics, because political issues and governmental actions have a direct impact on our lives and personal finances. Separating politics from our lives and our personal finances is just impossible. Changes in political leadership generally result in some changes in the policies that affect our money and finances.

With Nhlanhla Nene being at the helm of the finance ministry again, it is vital for us to understand how government policies work. These are policies that will influence how we earn, save, spend, and give money. The economic decisions president Ramapohsa makes today will affect our personal money decisions and lifestyles for years to come.

Recently it was announced that VAT is increasing by 15%. Whatever the reason we all know that percentage is high and most SAns are going to continue to battle. I think with Nhlanhla there might be a shift toward higher taxes. He did in 2015. Like in 2015, he had to either increase taxes, or drastically cut state expenditure. I don't see the later happening. These are two essential components of wealth redistribution by government. 

South Africa has been slowly moving toward a more socialist economic system for years. This is one of the things that make me feel uncomfortable and probably the reason why I work so hard to secure my future, financially. I feel like our government has added a huge weight of debt around the neck of every woman man and especially every child. The generation that is not even born yet will be paying for our mistakes. 

Currently, we have more people on social grants than we do have on jobs. According to Moneyweb, there are 17.6 million people receiving grants, against the 16.2 million people with jobs in the country. The pressure on public finances leaves question marks over the long-term sustainability of social grants and pension systems. As a result, households are faced with having to assume more responsibility for the future burden of social grants, pensions and health care. And government might be adding more debt and there might be greater levels of government involvement in our daily lives.

Wealth redistribution is not a new trend. Many countries have attempted to limit and redistribute the wealth of the privileged few who live in luxury to help masses who live in poverty. But we all know this hasn't very worked well. In fact, it hasn't worked at all. Our current stats on the issue are proof that wealth redistribution doesn't work to the benefit of the less fortunate. The rich keep getting richer politicians are amassing wealth like nobody's business and the poor are getting poorer. Wealth inequality has always been around in almost in every society throughout the history.

So, if your goal in life is financial independence, it is important that you understand the full implications of this developing trend. This is why financial planning is so important for all of us for the changing economic times that lie ahead.

I’m always in favour of responsibility at any level. So I urge you not to wallow in negativity or apathy especially when it comes to your finances. I know sometimes it’s difficult to keep those thoughts and worries from turning negative. But don't resign from life. 

What do you dream of? What do you want to achieve? It is within your reach. It may not come quickly or easily, but with commitment you can achieve your financial goals. 

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