I hate election years. Politicians spew more nonsense than usual (as if that is possible). I hope May comes as soon as possible so we can move on with our lives.
The question I want to ask is: Does the election matter? Will anything change? Or will government continue to do what it does best... pretty much nothing. Other than a certain red party gaining a majority one day, I don't think the election does matter. The ruling party will probably continue tripping itself up. The blue party will continue to blame everyone except themselves. The red party will continue to be angry and talk rubbish on social media.
We are not unique. The UK politicians screwed up Brexit and the US president is a mad man. Even the "Saffa safe haven" (Australia) has a new prime minister every other year. My point is politicians and politics are net value destroyers.
Ok. Yes, politicians are my least favourite people but this post is not really about them.
Going back to whether elections matter now. I think if you build or have to change your financial based on what happens in May, you need to have a hard look at your plan. A short term event should not put your entire plan at risk. Repeat after me. This election in May should not cripple my investment portfolio. I'll remind you why:
- Invest your money in real assets (property, shares etc - if South Africa goes south, ZAR cash isn't going to worth very much. I feel real assets have a better chance of maintaining purchasing power.)
- Build an offshore store of wealth or investment portfolio (heck, if you want to leave, it can be the start of you saving towards one of those Visa's you can buy in some European countries)
- Have access to offshore cash in hard currency (USD, EUR or GBP). If you need to get on a plane then you have some rent and food money.
- Start meditating (I am serious). Learn to deal with stress/anger that uncertainty in South Africa is causing you.
- Lastly, on a sunny African day go for a walk on the promenade at your nearest beach and wonder is it all really that bad...