\u201cAccording to my clients, over the years, debt may be the single greatest stressor when it comes to financial planning,\u201d said Horn.<\/p>\n
\u201cFinancial success can be achieved on two levels: the journey towards a financial goal and the destination – when the specific goal is reached. In simple terms, for households and individuals to know whether they are financially successful or not, they must have financial goals.\u201d<\/p>\n
Horn said some people set these goals consciously, and others do it on a subconscious level. \u201cAll the same, financial goals should exist for all households and individuals. Perhaps that should be issue number one in your household budget address.”<\/p>\n
Save yourself by saving your money<\/strong><\/p>\n Along with rising and rampant levels of debt, the Momentum\/Unisa research also indicated that many South Africans simply don\u2019t have access to emergency savings. Many consumers have been forced to sacrifice savings in order to cover expenditures and service their existing debts. But Horn says saving is a key component of a sound financial plan.<\/p>\n \u201cLife happens, and when it does, you need to be able to meet it head-on. Ask yourself, 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?\u201d<\/p>\n If you want to avoid possible financial ruin, Horn advises building up an emergency fund and to be prepared for all of life’s major pitfalls. Horn advises taking a look at your budget and assessing where you can free up some money to stash away in your emergency fund.<\/p>\n \u201cThe truth is, more than half of South Africans cannot even afford a financial setback of R20,000. You need to start figuring out how much emergency money you should have based on your lifestyle and expenses.”<\/p>\n
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