South Africans are known for their resilience. Our ability to adapt, endure and keep moving forward, even when faced with load-shedding or water disruptions, makes us unique. But true financial resilience goes beyond grit. According to JJ van Wyk, financial adviser at Momentum Financial Planning, it starts with a well-considered backup plan.
With the cost of living continuing to rise, many individuals and families are just one unexpected event, such as a burst geyser, unforeseen medical expense, or job loss, away from serious financial strain. An emergency fund can be the buffer that helps people stay on track when life takes an unexpected turn.
According to Momentum’s latest research, only 1 in 4 South African households are financially well. What sets them apart? According to van Wyk, it often comes down to one powerful habit: saving consistently, especially with life’s unexpected challenges in mind. It’s not always easy, but planning for emergencies can offer families a sense of stability when they need it most.
“Resilience doesn’t just happen,” says van Wyk. “You build it by making small, consistent choices today. Emergency savings are a crucial part of that. And a financial adviser can help you put the right structures in place to make that possible.”
Van Wyk outlines three ways an emergency fund helps you bounce back stronger when life takes a turn:
It gives you breathing room
In times of crisis, many South Africans are tempted to dip into their long-term savings. The Two-Pot System has made this even more accessible, but drawing on retirement savings too soon can come at a cost. Not only does it reduce your retirement income, but it can also lead to penalties and lost investment growth.
“Your emergency fund acts as a buffer,” explains van Wyk. “It allows you to navigate short-term challenges without derailing your long-term goals.”
It reduces stress
Financial stress is real and constant for many households. Momentum’s latest 2024 statistics reveal that 52% of financially secure clients believe they can keep improving their financial situation. This is compared to only 33% of financially stressed clients who had the same feeling.
According to van Wyk, a well-structured emergency fund doesn’t just provide financial support — it also contributes to mental resilience. “When you know you have a plan, often built in partnership with a qualified financial adviser, you feel more confident to deal with whatever life throws your way.”
It keeps you on track
Without a financial cushion, even a minor setback can feel like a major emergency. But with an emergency fund in place, van Wyk says you can focus on bigger goals like building wealth, supporting your family, or planning for retirement. It puts you in the driver’s seat.
Perhaps most importantly, an emergency fund puts you back in control, giving you the power to respond to life’s challenges with confidence and clarity and not fear. Working with a financial adviser means you don’t just save — you save with purpose,” adds van Wyk. “Your plan is tailored to your life stage, your income, and your goals.
The bottom line?
Emergency savings are the backbone of real financial resilience. Van Wyk says Savings Month is the perfect time to get intentional about your financial future. “Resilience isn’t just about getting through today. It’s about building a future where you’re ready for anything that life throws your way.”
Image credit: Freepik
