Good day and welcome to the August 2025 edition of FC Viewpoint.

In investing, lasting success isn’t built on luck—it’s built on patience, consistency, resilience, and remembering that the most valuable outcomes won’t come quickly…but they do come.

IN THE NEWS:

• The JSE All Share Index is on 100 855 on 11 August 2025. The JSE All Share Index achieved the 100 000-point mark milestone for the first time in July 2025.
• 1 US Dollar will cost you R17.71; 1 Pound = R23.85 and 1 Euro = R20.67.
• Annual consumer inflation (CPI) is at 0%.
• The prime lending rate in SA is finally at 10.50% per annum.
• The price of Oil is $65 per barrel.
• The United States is South Africa’s second-largest trading partner after China, and the central bank governor, Lesetja Kganyago, has estimated the new tariffs could cost the economy around 100,000 jobs, with agriculture, citrus, wine, and manufacturing feeling the most pain. Currently not impacted are South Africa’s mineral exports, which make up 60% of total exports and are exempt from the tariffs.

Debt is like a fire: when small and controlled, it can be useful. But if you ignore it, even for a moment, it can quickly turn into an uncontrollable and destructive force. When that happens, it becomes an obstacle you face all day, every day — stopping you from saving, building wealth, and enjoying life. Once in this position, some people never get out. They take loans to cover other loans, and the interest on those loans begins to snowball.

How you can regain control of your finances in 4 simple steps:

1) COMMIT TO A DEBT-FREE WAY OF LIFE

To get out of debt, you have to take drastic measures, and you have to accept that life will be hard for a while. You’ll have to practice a great deal of self-discipline to follow through with your plan.

2) CREATE A BUDGET & START SAVING

Prioritise your expenses and cut ruthlessly. Think of your budget as an overweight guy — your job is to get him lean.

Once you have a list of all essential expenses, put them into one of five categories – rent, debit orders, groceries, transport, and utilities. Your rent and debit orders should be the same every month, but you should track spending on the three other categories to ensure you don’t overspend.

3) CREATE AN EMERGENCY FUND

An emergency fund is essential for staying debt-free. Without this rainy-day cushion, you’ll be forced to rely on loans when unexpected expenses hit — like burst geysers, vehicle repairs, or sick kids.

4) CONSIDER CONSOLIDATING YOUR DEBT

When you have multiple loans, it makes sense to combine them into a single loan (Like your home loan or a specific consolidation loan). This means you now have only 1 loan repayment a month. Ideally at a lower fixed interest rate for the same period of time, or over a new term.

Wealth regards,

Fanie Jansen Van Vuuren CA (SA), CFP®

Director: FC Wealth and Investments (Pty) Ltd

E: [email protected]  |  T: 083 384 5868

W: www.fcfin.co.za