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The question of whether you should stay in South Africa or search for another home surfaces whenever there is an election, but to well-known economist, Dawie Roodt, there’s no reason to jump ship – as long as you take steps to protect yourself, your family, and of course your money.

Global challenges have made so-called greener pastures less attractive than they used to be, and the Northern Hemisphere seems to be doing its best to nudge the Doomsday Clock closer to midnight than the current 90-second warning we enjoy.

Australia, the UK, Canada, and the United States are still popular havens for those who have had enough of poor economic growth, an unstable political environment, high crime rates, and collapsing infrastructure. Most South Africans however don’t have the option of leaving, so heeding some advice from Roodt might make staying put work for you.

Our global interconnectedness also means that it’s now possible to earn your salary in a stronger currency than the shaky ZAR, meaning that you could offset much of the financial nightmare of staying by working for global companies from your home office in Putsonderwater – if you so choose.

“Economies today are not as physical as they used to be. This makes it possible to stay in South Africa and work in the global economy.”

Roodt also reckons that safeguarding your family needs to be a priority. Whether this involves living in a security estate or simply avoiding the alleys around Loop Street on a Saturday night, staying safe has been known to help you stay alive, which in turn makes earning money easier.

Once you are safe and secure, you need to make sure that you have the skill set required to operate in an advanced global economy. This means learning to love AI and staying up to date with how things are done outside of South Africa. If you want foreign companies to dip into our talent pool, you need to offer value that is as good, or better, than they have in their backyard pool.

Of course with all this income, SARS will be knocking at the door. Roodt advises South Africans to “pay as little tax as possible without breaking the law”.

“Taxpayers should object to the government’s overspending by using legal means to pay as little tax as possible.”

“I encourage people not to break any laws but to make use of every possible loophole to pay as little tax as possible in South Africa,” he said. He is however adamant that tax boycotts are not the answer and will only exacerbate the issues we already face. Pay what you must, even if it hurts.

With your family safe, and the pounds rolling in, it’s time to look at protecting your wealth. This means safeguarding against both economic and political problems in South Africa. Investing abroad is a good way to ensure your wealth doesn’t get halved whenever a politician says something ignorant and kneecaps the rand, s Roodt advises South Africans to have “a diversified portfolio, with a large portion invested abroad”.

Navigating the local financial legalities is likely beyond the ordinary South African, but fortunately, we have level-headed and competent advisors such as our partners at 123 Consulting to navigate the turbulent South African waters. A financial advisor can tailor a solution that fits your needs, whether you want to pay less tax, or take your online business to Putsonderwater.

[source:businesstech]