Save for an emergency
Life happens, and when it does, you need to be able to meet it head on. Ask yourself, how long could you survive for three months without your salary? Would you have enough to cover urgent car repairs, or even insurance excess without a loan? Avoid possible financial ruin. Build up an emergency fund and be prepared for all of life's major pitfalls.
Why save for an emergency?
Things go wrong. That’s life, but make sure you are financially prepared for it. You don’t want to go into debt or compromise your other goals.
Your action plan
Look at your budget and see where you can find some money to stash away in your emergency fund. Because the truth is more than half of South Africans cannot afford a financial setback of R20 000. Your financial adviser can help you figure out how much emergency money you should have.