The South African, The Investor?

I personally did not expect Auntie Gill to reduce the Repo rate, but miracles still happen! The question is why did they do it? And more importantly, how does it impact you! Before jumping on google, think about it for a moment. Are they now happy with an inflation rate of only 5.7%. Should you run out the door and swipe your credit card?
So what is the point that I.m making? Being a financial advisor I am often asked where one should invest for special goals such as children's education, a new car or that wedding that you are planning. I reply by asking, "are you already saving?" And like a choir and with a proud answer, "Yes, in the bank!" I personally think that their are many South Africans that would want to invest and receive a better return, but don't because of fear of what happened with their grandparents or has been misguided by their local financial guru/tong master around the braai on a Saturday.
Depositing your money in the bank can hardly be called investing as such monies need to be liquid in order for you to withdraw as and when you need it. 32 day call accounts etc. could offer you a bit more interest as you would have to notify the bank, and this provides them with time to raise the funds, but still look at the interest rate offered minus bank charges and compare it with the inflation rate. If this is a negative, ask yourself the question, "Am I really investing?"
Speak to a financial advisor when investing money and he/she would conduct a risk profile analysis. This would take the term, your age, health etc. to see where your apatite for risk lies. Then, invest accordingly.

Remember that cash is only one of the asset classes. Have you considered Bonds, property, equities, or a spread of these according to your apatite for risk?