Durban - Many women are the sole breadwinners of their homes with the 42,1% of all households being headed by women, according to the Stats SA General Household Survey of 2021.
The prospect of a recession can be scary, especially when you have a family to feed. Women are vulnerable with the rising costs of filling a trolley and petrol as well as increasing inflation and interest rates.
Women who face tough economic times and find their salaries stretched thin, tend to neglect money management including saving and investing.
For women to have true financial independence they need to take more control of their money and grow it. Starting small can help you to create a safety net that will see you through tough times and help you thrive when conditions improve.
African Bank offers women tips on how they can recession-proof their finances:
Living within your means: This means that you will be better equipped to face a rise in the cost of living as well as have money to save. Tighten your budget and prioritise your savings.
Have a clean credit record: A healthy credit score puts you in a better position when hard times hit and help you in the future if you need credit and loans. Maintain a good credit record by paying your creditors on time and don’t miss payments. If you are struggling, speak to your creditors about a temporary lower repayment amount. Check with your bank or a credit bureau to get your free credit report.
Emergency fund: Having access to money earning interest in a savings or investment account in a crisis is important, it means that you won’t be reliant on credit in an emergency. If you are using money from this fund, replenish it as soon as possible.
Saving and investing: The main benefit of saving and investing is that it allows you to stay ahead of inflation as well as increase the value of your money. Do your research to find the best investment rates. Start small then build up your investment or savings.
Start your own side hustle: Having a side hustle gives you an extra income stream which can be a buffer and lifeline. So turn your hobby or talent into a side hustle and make that extra cash.
Financial literacy: Look up basic financial management and investment, there are many online resources that can help you.
Talk about money: It is easier to achieve financial goals when everyone gets involved. Speak to your kids about saving towards financial goals. When everyone chips in then your financial goals are more achievable.