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Building Financial Resilience: The Importance of Having an Emergency Fund


Life is unpredictable, and unforeseen circumstances can disrupt even the best-laid financial plans. That’s why having an emergency fund is an essential aspect of financial preparedness for individuals and families in South Africa. At Maysure Financial Planning, we understand the significance of having a safety net to protect against unexpected expenses. In this blog, we will delve into the importance of having an emergency fund and explore practical steps to build one, ensuring you have the financial resilience to weather any storm that comes your way.

The Essence of an Emergency Fund

An emergency fund is a cushion of savings specifically set aside to handle unexpected expenses or emergencies. These may include medical emergencies not covered by medical aid, accidents not covered by insurance, loss of employment, family responsibilities, and more. It is crucial to define for yourself what constitutes an emergency.

Determining the Right Amount to Save

The ideal amount to save in your emergency fund can vary depending on your individual circumstances. If you have dependents or higher expenses, you may need to save more. As a general rule of thumb, aim to save at least three to six months’ worth of your annual expenses. However, considering the South African economy, saving up to two years’ worth can provide greater security and flexibility.

Getting Started: Overcoming Financial Constraints

Starting an emergency fund may seem daunting, especially if you feel like you’re living from one payday to the next. However, getting started is achievable, even with small amounts. Conduct a thorough assessment of your monthly expenses to identify areas where you can cut back. Often, little savings here and there can accumulate over time.

Consistency and Prioritisation

Once you’ve established an amount to save, consistency is the key to success. Make saving for your emergency fund a priority in your financial planning. Commit to reaching your savings goal and stay consistent with your contributions. It’s essential to be disciplined and not rely solely on credit during emergencies.

Where to Keep Your Emergency Fund

Accessibility and capital stability are vital factors when choosing where to keep your emergency fund. Seek options that provide easy access to funds within a short period, while ensuring that the capital remains secure. While such accounts may not offer high-interest rates, they offer peace of mind during emergencies.

Emergency Fund: A Tool for Financial Security

Having an emergency fund is particularly important when you’re trying to achieve financial security. It acts as a buffer, allowing you to handle unexpected expenses without relying on credit and accumulating debt. Aim to save at least eight months’ worth of salary to cover unexpected costs during challenging times.

Setting Realistic Targets

The size of your emergency fund may seem overwhelming, but it’s crucial to set realistic targets. Start with a manageable goal, such as saving an initial amount and gradually building it up. Small contributions add up over time and can make a significant difference during emergencies.

Starting Your Emergency Fund Journey

Creating a budget is the first step to initiate your emergency fund journey. Identify areas where you can cut back on expenses and focus on saving even small amounts. Consider setting up a separate savings account or pocket attached to your existing account for easy access to your emergency fund.


Having a well-established emergency fund is a crucial pillar of financial security. It empowers you to navigate unexpected situations without derailing your long-term financial goals. At Maysure Financial Planning, we advocate for the importance of an emergency fund and provide specialised guidance to help you build financial resilience. Start your journey to financial security today, and with dedication and discipline, you’ll create a powerful safety net to protect you and your loved ones from life’s unexpected challenges. 

Remember, it’s never too late to begin securing your financial future.

Cutting Costs and Saving Money
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Cutting Costs and Saving Money: Real Life Examples from South Africa

We all want to have more money in our pockets, and one way to achieve this is by cutting costs wherever possible. In this blog, we’ll take a look at some real-life examples of how South Africans have saved money by making changes in their daily lives. From downsizing homes to choosing one streaming platform, we’ll examine the financial benefits of these actions.

Downsizing your home

Downsizing Your Home

One of the biggest expenses for most South Africans is their home. Whether it’s a bond or rent, the cost of housing can take up a large portion of our monthly budget. One way to save money is by downsizing to a smaller home or apartment. Not only will you save on rent or bond payments, but you’ll also save on utilities and maintenance costs.

For example, let’s say you currently live in a three-bedroom house in Johannesburg and pay R12,000 per month in rent. By downsizing to a two-bedroom apartment, you could save up to R3,000 per month in rent alone. Add in lower utility bills and reduced maintenance costs, and you could be looking at a total savings of around R5,000 per month.

Choose one streaming platform

Choosing One Streaming Platform

In today’s world, there are numerous streaming platforms available, each with its own monthly subscription fee. While it’s tempting to subscribe to multiple platforms, the costs can quickly add up. By choosing just one platform, you can save a significant amount of money each month.

Let’s say you currently subscribe to Netflix, Showmax, and Amazon Prime Video, paying R99, R99, and R79 per month, respectively. By canceling two of these subscriptions and sticking with just one, you could save up to R2,000 per year. That’s money that could be put towards savings or other expenses.

The real cost of owning a vehicle

Weighing Up The Real Cost Of Owning Your Vehicle

Owning a vehicle can be convenient, but it can also be expensive. When you factor in the cost of car payments, insurance, fuel, and maintenance, it can add up to a significant amount. Some South Africans have found that using ride-sharing services like Uber and delivery services like Mr. D or Uber Eats can save them money.

Let’s say you own a car and spend R3,500 per month on car payments, R1,500 per month on insurance, and R1,000 per month on fuel. That’s a total of R6,000 per month just to own and operate your vehicle. By using ride-sharing and delivery services instead, you could potentially save a few thousand rands each month.

For example, let’s say you spend R1,000 per month on ride-sharing services and R1,000 per month on food delivery. That’s a total of R2,000 per month, which is significantly less than the R6,000 you were spending on your car. Of course, this option might not work for everyone, but it’s worth considering if you’re looking to save money.

Other ways to save money

Other Ways To Save Money

Of course, there are many other ways to save money beyond these examples. Some people find that they can save money by cooking meals at home instead of eating out, or by shopping at discount stores instead of high-end retailers. Others save money by canceling gym memberships and exercising at home or outdoors instead.

It’s important to remember that every little bit counts when it comes to saving money. Even small changes can add up over time, and before you know it, you’ll have a significant amount of extra cash in your pocket.

Saving money

Final Thoughts

Cutting costs and saving money is something that everyone can benefit from, regardless of their financial situation. By examining your monthly expenses and finding areas where you can cut back, you can potentially save a significant amount of money each month. Whether it’s downsizing your home, choosing one streaming platform, or weighing up the real cost of owning your vehicle, there are many ways to save money in South Africa. So why not give it a try and see how much you can save?

Start planning your future, today. Contact us on the details below.

011 839 2302 

640 417 Maysure Financial Services

The Value of Saving in Difficult Times

South Africa has been through some challenging economic times, with rising unemployment rates, political uncertainty, and the impact of the COVID-19 pandemic taking a toll on the financial well-being of many individuals and families. But even in difficult times, there is value in saving. In fact, it may be more important now than ever before to take out small monthly investment policies.

Building a Financial Safety Net

When times are tough, having a financial safety net can make all the difference. Saving even a small amount each month can help you build up an emergency fund that can help you cover unexpected expenses, like a car repair or a medical bill. This can help you avoid going into debt or having to take out expensive loans, which can compound financial difficulties in the long run.

An emergency fund should ideally be able to cover three to six months’ worth of expenses. (“Safe and Liquid Options for Your Emergency Fund – Investopedia”) However, if you’re not able to save that much, don’t be discouraged. Any amount you can put away is a step in the right direction. The important thing is to start saving now, even if it’s just a small amount and build up your emergency fund over time.

Investing in Your Future

Saving isn’t just about building a safety net for emergencies. It’s also about investing in your future. By putting away even a small amount of money each month, you can start to build wealth over time. This can help you achieve your long-term financial goals, like buying a home, starting a business, or retiring comfortably.

One of the biggest advantages of saving for the long term is the power of compound interest. When you save money, you earn interest on your savings. Over time, that interest can compound, meaning you earn interest on your interest. This can help your savings grow faster than you might expect. By starting to save now, even if it’s just a small amount, you can take advantage of the power of compound interest and see your savings grow over time.

Taking Advantage of Compound Interest

The concept of compound interest can be a little confusing, but it’s actually quite simple. Let’s say you save R500 per month and earn an annual interest rate of 8%. After one year, you’ll have R6,240 in your account. But if you keep saving R500 per month for 10 years, your account balance will be R93,930, assuming an annual interest rate of 8%. That’s a significant difference, and it highlights the power of compound interest.

Making It Easier on Yourself and Your Family

By saving now, you can make it easier on yourself and your family in the future. Whether you’re saving for a child’s education, a down payment on a house, or your own retirement, having a little bit of money set aside each month can make a big difference down the line. It can help you avoid financial stress and allow you to enjoy your life without worrying about money as much.

Retirement is a significant financial goal for many South Africans, and saving for it can be challenging, especially in difficult economic times. However, starting to save early and taking advantage of compound interest can help you build up a retirement nest egg over time. This can help you enjoy your retirement years without having to worry about money as much as you would without any savings.

Investment Options

One of the best ways to start saving is to take out a small monthly investment policy. These policies allow you to save a set amount each month, and they often come with lower fees and better returns than other types of savings’ accounts. Plus, because the amount you save is fixed each month, it can be easier to budget and plan for.

When choosing an investment policy, it’s important to consider your goals and risk tolerance. If you’re saving for a short-term goal, like a down payment on a house, you may want to choose a more conservative investment option that focuses on preserving your capital. If you’re saving for a long-term goal, like retirement, you may be able to take on more risk in order to achieve higher returns.

There are a wide variety of investment options available to South Africans, from traditional savings accounts to unit trusts and exchange-traded funds (ETFs). It’s important to do your research and choose an option that suits your needs and goals. If you’re not sure where to start, consider speaking with a financial advisor who can help guide you in the right direction.


Saving is never easy, especially in difficult economic times. But by starting to save now, even if it’s just a small amount, you can build a financial safety net, invest in your future, and make it easier on yourself and your family down the line. By taking advantage of the power of compound interest and choosing the right investment options, you can achieve your long-term financial goals and enjoy a more secure financial future. So why wait? Start saving today and invest in your future.

Start planning your future, today. Contact us on the details below.

+27 11 839 2302