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South Africans are no strangers to uncertainty and volatility, but that doesn’t make it any easier to stomach the ups and downs of the rand, interest rates or inflation.
As I always advise, in times of turmoil it’s best to stick to the basics. You can easily lose your mind and make rash decisions that could do more harm than good. Investing is a long-term game, and you’ll be successful over this term if you can shake off the desire to do something drastic because of short-term shocks.
Herewith is my list of 8 basic fundamentals that need to be part of your financial planning. By sticking to these principles, you give yourself a far better chance at success.
Principle 1: Budgeting
Financial budgeting is the foundation of effective personal finance management. It helps you set clear financial goals, to control spending, and to improve your overall financial health.
Why budgeting matters:
- It helps set financial goals; analysing your income and expenses makes you focus on where you can rather save money. Set respective goals for saving, investing, and reducing debt.
- It controls your spending habits; by creating a budget, you can identify areas of overspending and adjust to ensure you don’t spend more than you earn.
- It helps to avoid debt; budgeting helps you to notice where you can cut back on spending and where you can rather use the savings to pay off debts.
- It gives you financial clarity; tracking your income and expenses allows you to live within your means. If you’re not, then it’s best to make some adjustments.
Read also: Five pillars for investment success in troubled times
Principle 2: Managing debt
Debt management is crucial for your financial stability. The key to achieving this is to understand the difference between good debt and bad debt.
Good debt refers to investments that generate income or capital growth, while bad debt includes credit cards and unnecessary loans. My suggestion is to pay off high-interest bad debt so that you reduce interest payments, free up money for savings and investments, and regain control over your finances.
Principle 3: Avoiding knee-jerk reactions
One of the biggest mistakes you can make when market volatility hits is to panic and sell your assets to avoid further losses. While it’s understandable to feel anxious about market fluctuations, you need to stay calm and avoid knee-jerk reactions.
Instead, take a step back, assess the situation, and make rational decisions based on your long-term investment goals. Remember that investing is a long-term game. Short-term fluctuations may cause anxiety, but a disciplined approach is key to success.
Principle 4: Diversify your portfolio
Diversification is a fundamental strategy for managing investment risk. By diversifying, you minimise exposure to any single asset or sector so that if one investment performs poorly, others may offset the losses. Diversification allows you to capitalise on various sectors of the economy, ensuring you’re well-positioned to benefit from potential growth.
Principle 5: Focus on quality investments
You can weather the storm partly if your investment portfolio is made up of quality investments that are more likely to withstand the test of time. I suggest you focus on quality investments that have a proven track record of stability and growth. Look for companies with strong balance sheets, stable earnings, and a history of dividend payments. A worthwhile strategy is to include blue-chip stocks; it is well-established companies with a history of stable growth.
Principle 6: Considering alternative investments
Alternative investments, for example, private equity and hedge funds, can offer further diversification, as well as potentially higher returns than traditional investments. Be wary though, alternative investments come with higher risks and may not be suitable for all investors.
Before investing, conduct extensive research and seek professional advice to understand the risks involved.
Principle 7: Watch emerging trends
While uncertainty can be unsettling, it can also create new opportunities in emerging industries and technologies. Keep an eye on emerging trends and consider investing in sectors such as renewable energy, e-commerce, or healthcare, which are likely to experience growth in the coming years. However, always conduct your research and evaluate the long-term potential of these trends before making any investment decisions.
Principle 8: Stay disciplined and patient
Last but not least, staying disciplined and patient is crucial. Market volatility can be emotionally draining, but remember that investing is a long-term game. Stick to your investment plan, stay focused on your goals, and avoid making impulsive decisions based on short-term market fluctuations. Stay the course and trust in your long-term strategy.
I’m sure you’ll agree that these principles are not difficult to understand or appreciate. What often is difficult is staying disciplined. If you have a clear financial plan, this will allow you to stay on the straight and narrow and it will prevent you from making rash decisions when uncertainty strikes.
- Johan Burger, CFP®, is head of Brenthurst Wealth Pretoria
Megan joined the Brenthurst Wealth team in March 2026 as an Administrative and Fiduciary Services Assistant at our Val de Vie Office in the Western Cape. Prior to joining Brenthurst, Megan gained three years of experience in the retail sector, where she developed management and client service skills.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Esmarelda Isaacs-Andreas joined the Brenthurst Wealth Stellenbosch office in October 2025, taking on the dual role of Receptionist and Fiduciary Administrator.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Michelle Heystek has built a career in the financial services over the last two decades, after obtaining her B.Com degree in Financial Management in 2005. Once she joined Brenthurst in 2006, she continued her academic journey, obtaining her Certificate in Wealth Management from INSETA in 2007, followed by a Postgraduate Diploma in Financial Planning from the University of the Free State. In 2008, she earned the Certified Financial Planner (CFP®) designation.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
ADMITTED ATTORNEY | FINANCIAL PLANNER & HEAD OF BRENTHURST FOURWAYS
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
Maria Smit is a Certified Financial Planner® with over 10 years of experience in the financial planning industry.
