🏛️ Avoid This Common R250 Mistake

SARS just got a R4 billion war chest and they're coming for you.

Over 1,000 new debt collectors. AI-powered auditing. No more paper letters (everything's going digital). And they're not just targeting the big fish - they're coming after SMEs, professionals, and anyone who's missed a PAYE payment or underestimated provisional tax.

But before you panic, here's what you need to know, along with a video that I recommend you watch before the end of the week.

THREE MARKET OPPORTUNITIES 🎯

1. Middle East Chaos Creates Gold Rush

US bombing of Iranian nuclear sites sent oil past $80/barrel (now around $67/barrel) and the rand weaken to around R18.15/$. While commodities like gold are growing with a Krugerand starting at around R65,738/ounce and can “easily exceed” R100,000.
The opportunity: Gold is up 38% year-on-year and provides rand-hedge protection during geopolitical uncertainty. Krugerrands are VAT-exempt for SA investors - consider speaking to your financial adviser about portfolio allocation for volatility protection.

2. JSE Resources and Financials Lead Strong Gains

JSE performers in June include Reinet (+19.0%), Implats (+23.2%), and Sibanye-Stillwater (+13.28%), while Gold Fields went down 8%. Financials like Capitec (+3.1%) showed resilience amid improved policy clarity and SARB rate cuts to 7.75%.
The opportunity: Resource stocks offer rand-hedged revenues and attractive dividend potential, while financials benefit from improving credit conditions and supportive monetary policy during the recovery phase.

3. SA SME Digital Boom: E-commerce Surges 21.4% Annually

South African small businesses are riding a digital wave with e-commerce growing at 21.4% compound annual growth rate through 2030 and internet adoption jumping from 68% to over 75%. The opportunity: Start or digitise your business now to capture the mobile commerce boom - with 91% of SA's formalised businesses being SMEs contributing 34% to GDP, there's massive room for growth in the digital economy.

Note: This is not financial advice, merely observations. For personalised financial advice, you can book to speak to a financial advisor here (powered by a registered FSP: No. 51310).

TWO REALITY CHECKS ⚠️

#1: SARS Is Coming For You

The New Reality:

• 1,000+ new debt collectors deployed.

• AI flagging large deposits automatically.

• Digital-only communication (no more paper letters).

• Focus on SMEs, professionals, missed PAYE payments.

• R50 billion in unpaid taxes being actively pursued.

What To Do:

• Update your eFiling profile - verify all contact details.

• Don't ignore legitimate SARS communication - it appears in your eFiling account.

• Get professional help early - tax practitioners can negotiate debt reductions.

• Know the triggers: Large deposits, late PAYE, underestimated provisional tax.

#2: Your Emergency Fund Is Probably Useless

48.1% of South Africans have less than 3 months of emergency savings, but even if you think you're prepared you could be making these mistakes.

The False Security Trap:

• You're calculating wrong: Most people base emergency funds on total monthly expenses, not essential survival costs.

• You're storing it wrong: R50,000 in a savings account earning 8% loses R2,000+ annually to inflation after tax.

• You're defining "emergency" wrong: Load shedding equipment, security upgrades, and medical aid shortfalls aren't covered by traditional emergency funds.

A Local Reality Check:

• Average job search: 6-8 months (not the global standard of 3 months).

• UIF maximum: R17,712/month for only 12 months (probably less than your typical bond payment).

• Medical aid gaps: R100,000-R300,000 for serious procedures not fully covered.

• Load shedding costs: R15,000-R40,000 for backup power solutions most families need.

If you earn R25,000/month and lose your job:

• Standard advice (3 months): R75,000 emergency fund

• SA reality (6+ months): R150,000+ needed just for basics

• True emergency fund: R200,000+ including medical gaps, security, infrastructure failures

Your "emergency fund" isn't protecting you from the emergencies you're most likely to face. It's time to rebuild it for our unique risks.

ONE ACTION TO TAKE 🚀

Conduct Your "R250 Mistake" Audit This Week

Most South Africans are bleeding money through small, recurring costs that compound into massive wealth destroyers. From the video above we’re “reframing” it as the "R250 mistake" because that's typically what a subscription or service costs monthly.

Your 4-Step Audit Process:

Step 1: The Bank Statement Scan

• Download last 3 months of bank statements

• Highlight every recurring debit you don't immediately recognize

• Circle subscriptions you haven't used in 30+ days

• Target: Find R250-R500 in unnecessary monthly costs

Step 2: The Insurance Reality Check

• List all insurance policies and premiums

• Check if you have duplicate coverage (car insurance through bank + separate insurer)

• Verify you're not paying for outdated coverage amounts

• Target: Optimise coverage without gaps or overlaps

Step 3: The Investment Fee Investigation

• Log into all investment accounts

• Find the Total Expense Ratio (TER) or annual fee

• If it's above 1%, research lower-cost alternatives

• Target: Reduce investment fees by 0.5-1% annually

Step 4: The Compound Effect Calculation

• Add up all savings found (aim for R500+ monthly)

• Calculate: R500 x 12 months x 30 years x compound growth

• Result: R500 monthly invested at 10% = R1.1 million over 30 years

Why This Matters: The difference between financial success and struggle often isn't income level - it's eliminating wealth-destroying habits while making the most of wealth-building ones. That "small" R250 monthly subscription or habit becomes R569,000 in lost compound growth over 30 years.

Watch This

While finishing this newsletter looking back at June and doing my half year budget this episode was released on the Diary of a CEO. I didn’t want to keep this from YOU, give it a watch or listen!

Reply with the biggest "R250 mistake" you discovered in your audit. Your transparency could help another reader identify their own wealth leaks.

See you next month,
The FinMeUp Team

Your money matters. Make it count.