Rethink your budget in line with Budget 2025

It is time for consumers to rethink their budgets, in line with the minister of finance and Cabinet, who are rethinking the country’s budget, which was postponed to this week, 12 March.  

Financial planning is not just about numbers for many consumers, but also about turning ambitions into reality and securing the future. The recent postponement of Budget 2025 prompted an unprecedented moment of pause in South Africa’s economic engine, giving households a chance to take stock of their own financial plans, Therese Grobler, head of wealth management at Momentum Financial Planning, says.

“Just as government adjusts its spending to balance economic priorities, individuals must revisit their strategies to stay on track. Everyone has different financial goals, whether it is retiring comfortably, buying a home, or ensuring they have a valid will in place. What is important is aligning these goals with your overall financial situation.”

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Like a national budget responding to economic shifts, Grobler says consumers’ financial plans should evolve. She uses the examples of young professionals who start out confident in their investment path but face retrenchment or couples preparing for retirement who find that rising costs force them to rethink their timeline.

“These moments make it clear that financial strategies need structure as well as adaptability, especially during periods of high volatility and risk. This is where understanding risk tolerance becomes essential.”

Budget not only about how comfortable you are with risk

Grobler explains that it is not just about how comfortable someone feels with risk but also how much they can afford to take on. “As financial advisers, we look at each client’s risk appetite and ensure their investments match their comfort level as well as their financial needs.”

Investment timeframes are another key piece of the puzzle. Short-term market dips can cause panic and lead to hasty decisions. “Your household budget strategy should not change just because the market had a bad month. Stick to your long-term plans and make sure your investments align with their bigger picture,” Grobler says.

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Like a national budget designed for both immediate needs and future growth, Grobler says a well-planned investment approach is built to withstand ups and downs. She says a skilled adviser matches investment strategies to a client’s time horizon, ensuring every decision is timed to support their long-term goals.

“The goal is to invest in a way that meets each client’s needs while factoring in market changes. We use a structured advice process to help investors understand market fluctuations and stay committed to their objectives.”

Personal budgets should be flexible like government budgets

Just as governments adjust to economic shifts, personal financial plans should remain flexible. A sudden drop in income, unexpected medical costs, or a new financial obligation can change everything. Regular reviews help ensure financial plans keep up with life’s twists and turns.

“The most important thing is to stay invested, even when things feel uncertain,” Grobler says.

Just as a finance minister reassesses policies when conditions change, individuals should review their financial plans before making adjustments. Checking whether goals, risk capacity, or investment timelines have shifted is key before making any big moves. This is when professional advice becomes crucial, Grobler says.

She encourages consumers to seek expert advice to understand how external factors affect their finances. “A strong financial strategy should have enough flexibility to absorb changes without derailing long-term goals.”

Much like managing a national budget, Grobler says careful financial planning helps consumers take control of their future.

“With the right guidance and a clear strategy, consumers can navigate economic uncertainty while staying focused on their financial goals. The key takeaway? Stick to the plan, review it often and adjust only when necessary.”