Tides of the Economy

How global forces move your finances like ocean waves , to put it simply.

Ever wondered why your grocery bill suddenly feels like a luxury shopping spree? Or why your savings account seems to be shrinking even though you’re doing everything “right”?

You can thank (or blame) world economics. Yep, the big, complicated machine that runs the global economy has a sneaky way of creeping into your personal finances. Reading the tides and catching the perfect wave can sound daunting and something that only the professionals can do- but that is a myth. The scariest part is to get up on your board.

I’ll break it down in a way that actually makes sense.

Inflation: The “Invisible Tax” on Your Money

Imagine you’re saving up for a new surfboard. A year ago, it cost R8,000. Today? R9500. Same board, higher price. What gives?

That’s inflation—when the cost of goods and services rises over time, making your money worth less.

Why does this happen? Things like supply chain issues (think global shipping delays), rising oil prices, and even war can make everyday stuff more expensive. The result? Your paycheck doesn’t go as far, and your savings lose value while just sitting in the bank.

What can you do? Invest wisely! Keeping all your money in a normal savings account might feel safe, but it’s actually losing purchasing power. Consider investing options or even a side hustle to keep up with inflation.

Interest Rates: The Cost of Borrowing (and Saving!)

Ever notice how sometimes banks practically throw loans at you, and other times they act like you’re asking for a favor? That’s because of interest rates, which the central bank (like the South African Reserve Bank) adjusts to control the economy.

• When the economy is struggling, they lower interest rates → loans get cheaper → people borrow and spend more → economy grows.

• When inflation is high, they raise interest rates → loans get more expensive → people spend less → prices (hopefully) stop rising.

How does this affect you?

• If you have debt (like a car loan or credit card), higher interest rates mean you’re paying more each month.

• If you’re saving, higher interest rates mean your savings earn more interest (finally, some good news!).

Riding the Currency Wave: Why Your Money’s Value Goes Up and Down

Currency values move like waves—sometimes lifting you up, sometimes pulling you under.

When the rand weakens, it’s like a wave crashing—imports (fuel, electronics, even food) get pricier, and inflation rises.

When the rand strengthens, it’s like catching a good wave—imports are cheaper, and your money stretches further.

How to surf the wave instead of wiping out?

If you love imported goods, consider buying local to avoid price shocks. And if you’re investing? Diversify globally to ride the ups and downs.

Global Events: The Unexpected Budget Busters

A war in another country or a global pandemic can send shockwaves through the economy. Why? Because we live in a global economy, where everything is connected.

How to protect yourself:

• Always have an emergency fund—unexpected price hikes can hit anytime.

• Diversify your income—side hustles, investments, or upskilling can keep you financially stable.

Final Thoughts: Ride the Wave, Don’t Fight It

World economics will always affect your finances like tides affecting the waves - whether you like it or not.

Instead of stressing, use this knowledge to make smarter money moves.

Stay informed, diversify your income, and make decisions that keep you ahead—because the economy isn’t slowing down, and neither should you!

Speak to one of our advisers if you need a surf coach, its do-able.