Most South Africans are concerned about their financial future and with good reason. Our country has a persistently high unemployment rate and, like many nations, is struggling to keep up with the rising cost of living. Also, how could we forget about loadshedding which is taking a toll on business owners and its knock-on effect on our economy? In short, you'd be right to be concerned about the future of your finances. The positive here, however, is that if you're aware of your needs, you can focus on the solutions and there are many things you can do to become more resilient against economic uncertainty.

It starts with creating a budget

The foundation of financial resilience lies in understanding your income and expenses. This way, you can create a realistic budget that allows you to allocate your income towards essential needs and then channel whatever is left over towards your savings goals. To start, you'll need to track your spending habits and there are many free apps that can help you see where your money's going. Do you really need to spend R2000 a month on takeout? Is it that important to subscribe to three online entertainment streaming services? Are you really getting the best deal on your must-haves like medical aid and car insurance? Identifying unnecessary expenses empowers you to redirect those funds towards building your safety net.

Settle debts as fast as possible

Debt can be a huge drain on your financial resources and prevent you from saving. If you're in the red, do your best to pay it off as quickly as possible, starting with the accounts that are charging you the most interest. If you feel like you're drowning, consider debt consolidation to simplify the repayment process and potentially secure a lower interest rate. Obviously saving is important – everyone needs a rainy day fund they can access immediately – but it's pointless to put money into an account that will earn only a little interest while the amounts you owe are skyrocketing due to their high interest. If this is you, it's time to prioritise taming the debt dragon.

Create an emergency fund

Once you're debt-free, it's time to get serious about saving. If you don't have one, the first thing you'll want to save up for is an emergency fund. Aim to save up at least 3 months' worth of living expenses to create a buffer against the unexpected. Then, when that rainy day does eventually happen, you can pay for it via your emergency fund, not your credit card, and break the cycle of debt. Once that emergency fund has been created, you can start saving for long-term goals – but remember to replenish your emergency fund when you dip into it. That way, your long-term savings can be invested in accounts that work harder than a simple savings account. As an example, a fixed-term savings account, where you agree to leave the money there for an agreed number of months, will offer higher interest rates.

Don't forget about life insurance

There's another type of "emergency fund" and that is life insurance, which can act as an additional layer of protection for your loved ones. If you have a policy with MiWayLife, you'll pay one monthly premium and, in the event of your passing, your beneficiary will receive a lump sum payout of your choosing. This can go a long way towards helping them cover day-to-day expenses and even long-term goals like your children's tertiary education. Also, as our policy is a 4-in-1 solution, not only will you receive comprehensive life insurance, but you'll also have accelerated funeral cover, and a terminal illness benefit and can even get funeral cover for your family members if you cover them as additional lives on your policy.

At the end of the day, building financial resilience is a long game that requires consistency and strategic planning, but it will empower you to navigate life's curve balls as well as remain afloat during uncertain times – and to enjoy that type of peace of mind is priceless.

Did You Know:

You can now take out life cover with us online in a few simple steps. No calls and no agents! Make sure to take care of those you love today by buying MiWayLife cover online.