Financial resilience can help you get through any financial challenges you may face

Financial resilience can help you past any financial challenge by allowing you to be prepared to handle unexpected financial events. Picture: Freepik

Financial resilience can help you past any financial challenge by allowing you to be prepared to handle unexpected financial events. Picture: Freepik

Published Feb 2, 2024


South African consumers had a tough 2023 financial year following high interest rates, high petrol costs, increases in food costs, and hikes in the cost of electricity.

Following a difficult 2023, people need to be financially resilient in 2024 to protect their financial future.

According to Wikus Olivier, managing director of CreditSmart Financial Services, financial resilience means being prepared to handle and overcome unexpected financial events. This could be sudden expenses resulting from changes in the economy, interest rate adjustments, or medical emergencies.

Olivier said that developing financial resilience is more important because it allows people to get through challenging times without resorting to harmful credit and debt practices.

Here are four ways you can be financially resilient:

Set goals and nurture your money relationship

How you perceive and handle money is deeply personal and often shaped by your upbringing and life experiences.

Instead of letting past discussions about money discourage you, you should see them as an opportunity to assess your financial goals, both long- and short-term.

You can also adjust your action plan so it is sustainable for your unique situation because there is no one-size-fits-all solution.

Embrace financial education

The world of personal finance can be intimidating, especially if you feel like you don’t have all of the information. Have a look at resources such as podcasts, seminars, and readily available reading material.

People need to ensure that the professionals or organisations they follow are registered and reputable.

By expanding your financial knowledge, you can make informed decisions and confidently navigate the complex landscape of money and finance.

Set aside a part of you budget to savings

A budget is an essential guide to help people monitor their income and expenses.

You should treat savings as a regular monthly expense, even if it is a small amount, and set aside money for an emergency fund.

By creating space for savings in your budget, you ensure that you have a financial safety net during challenging times or unexpected circumstances. Cultivating this habit will provide you with much-needed financial stability.

Have a good credit score and avoid excessive debt

Maintaining a healthy credit score means that people need to pay their debt on time every time, and they should practice responsible debt management to protect their financial well-being.

Take charge of your financial health by checking your credit score annually and making informed decisions when it comes to taking on additional debt.

AI or quick fixes may not solve severe debt situations. If you require urgent help with your finances, consider a legal and regulatory solution to help you break free from debt’s shackles.

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