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How to Save Money and the Importance of Emergency Funds

During these times, as we face unprecedented global and economical challenges, the importance of knowing how to save money has become increasingly clear.

It’s usually uncertainty that brings about change. However, it’s this very uncertainty that reminds us to be smart about our financial activity even during times of certainty.

how to save money for emergency funds

How to Save Money – Financial Planning in South Africa

When it comes to knowing how to save money, financial planning can mean the difference between financial stress or stability.

In order to provide excellent financial advice to every one of our clients, we must understand what motivates them, what their aspirations are and what their individual circumstances are.

Our financial advisors in Johannesburg have come together to ask why would anyone want to make financial planning an integral part of their overall goals, and realised the following:

  • Family – the number one concern for our clients is their family and what measures they can put into place to make sure their loved ones are provided for
  • Occupation – what kind of working life do our clients want to have and how comfortably would they like to live, currently and after retiring?
  • Recreation – what sort of lifestyle do our clients want and how much of it includes recreational activities such as travelling and other activities?

Once we have a bird’s eye view of who our client is, we can then develop and put into place a sound strategy that will assist them in achieving their goals.

This strategy includes a collection of appropriate controls that aim to mitigate the financial impact of circumstances that are out of our control.

With these controls in place, we are afforded the opportunity to remain calm and collected, even in the face of economical adversity.

Financial Planning & Management - The Importance of Saving Money

  • Protection against loss of income

Now, more than ever, it’s easy to see how uncertain the future can be, how fast our situations can change and how little control we can have over it all. Having emergency funds set aside can act as your income should you lose it due to retrenchment or an unexpected nationwide lockdown.

  • Keeps you safe from unplanned debt

Some things are unavoidable. Having an emergency fund protects you from having to borrow money to get out of an emergency situation. Emergencies can include anything from vehicle repair and household maintenance to physical injuries or other medical emergencies and procedures.

  • Protects your retirement funds

Without any emergency funds, many individuals have had to make use of their retirement funds to get them out of financial difficulty. This should be the last resort and something that we should avoid doing at any cost.

  • Allows short-notice travel

Not all families live in the same home, city or country but all families are susceptible to experience unexpected emergencies. Therefore, emergency funds can make it possible to cover the hefty costs related to last-minute travelling.

  • Opportunity fund

Savings don’t always have to be used for emergencies. For example, if an unexpected investment opportunity arises you are able to take full opportunity of it. Additionally, you may want to sign up for an online or part-time course you can do so without worrying about how you’ll fit the costs into your budget. Furthering your education can open up further opportunities to earn an income and should, therefore, be seen as an investment.

Olemera Financial Advisors in Johannesburg

We know that saving money is not easy, especially during times of economic uncertainty and instability.

However, our qualified financial advisors combine philosophy, experience, knowledge, and strategy in order to help you reach your financial goals, while living in the present, saving for the future and staying safe from unnecessary debt.

Helping you stabilise your financial position is our mission and we continue to provide our financial services during the current lockdown.

If you would like any more information, tips on how to save money or for advice on how to stay protected during these times, please contact us.

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