By Sharon Hamman,
We tend to think of financial planning as decisions made around the dining room table: budgeting, saving for emergencies, settling debt, investing and preparing for retirement. These are personal responsibilities that we have the most control over, but personal finances do not exist in isolation. The conditions that shape your household finances are influenced not only by the decisions you make, but also by decisions made in your municipality. The roads we drive on, the reliability of our water and electricity supply, the safety of our neighbourhoods and the health of the local businesses that employ us all shape what we spend, what we earn and how confidently we can plan for the future.
With South Africans heading to the polls on 4 November to elect their local councils, it’s worth recognising that voting and financial planning have more in common than we might think. Both involve making informed decisions today that can influence our circumstances for years to come.
Your community is part of your financial future
Local government is responsible for many of the services households rely on every day, and the quality of those services tend to show up in a family’s budget. When water or electricity supply is unreliable, many households pay twice: once through their municipal account, and again for backup solutions such as water tanks, inverters, generators, solar installations or bottled water. All of which are funded from money that were already spoken for – most often intended for savings or the settlement of debt.
The state of local roads and the availability of safe, affordable public transport affect how much we spend getting to work and how far we can realistically travel for job opportunities. Poor roads also add to vehicle maintenance costs over time.
Where people feel unsafe, they often spend more on private security, alarm systems and insurance. Safety also influences where people choose to live, work and shop.
Well-maintained infrastructure and services can support property values, while neglect can erode them. Rates, tariffs and service charges are also a significant line items in many household budgets.
Small businesses, which employ a large number of South Africans, depend on reliable services, workable regulations and accessible infrastructure. The conditions in which local businesses operate can influence job opportunities and the wider economic activity in a community. It not only contributes to future business (and job) security but also to the emergence of new businesses and overall growth of the private sector.
None of this means that any single election, candidate or council can determine an individual household’s financial outcome. Many factors affecting our finances, from interest rates to global markets, sit well beyond local government’s reach. But it does mean that the decisions made at municipal level form part of the environment in which we earn, spend, save, and build wealth. It is one of the cornerstones of every South African’s financial foundation.
Questions to ask yourself before 4 November
A good financial adviser starts by asking questions about your circumstances, goals and priorities. The same approach can help you prepare to vote. Consider:
- Which local issues have the greatest impact on my household’s finances? It might be water supply, electricity, road conditions, public transport, or safety.
- How do municipal services, infrastructure, and safety affect my cost of living? Look back over the past year: what have you spent on backup power, water, security, transport, or vehicle repairs that is linked to local conditions?
- What are the priorities, track records and proposed solutions of the candidates seeking my vote? Read their manifestos, attend a community meeting, or look at what has been delivered in your ward.
- Have I considered how local decisions may affect my family’s financial future? Think about where you hope to live, work, educate your children, or run a business in five or ten years’ time.
Answering these questions won’t tell you how to vote. That decision is yours alone. But it will guide you to make the choice that reflects what matters most to your household.
Financial planning is about long-term thinking: making considered choices today with tomorrow in mind, gathering the right information and not being swayed by short-term noise. Those same principles serve us well as citizens.
Taking responsibility for your financial future means more than managing your own money well. It also means understanding the wider environment in which your financial decisions are made. While no election can determine a household’s financial success, local government decisions help shape the environment in which families live, work, save and build wealth. As South Africans head to the polls on 4 November, taking time to understand the issues, assess the options and cast an informed vote may be one of the simplest ways to contribute to the long-term wellbeing of your household and your community.
Do the homework, show up at the polls and make the decisions today that your future self will be grateful for.
Sharon Hamman, Senior Legal Adviser at Momentum
