Can you really afford another emergency?

Emergency funds are top of mind for many consumers since the implementation of the two-pot retirement system in September last year, as the system was designed to give consumers a little access to their retirement savings in the case of emergencies.

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Christiaan Coetzee, CEO of FinFix, says South Africans are under growing financial pressure, with households increasingly running out of money before month-end.

"Savings remain low, with consumers saying they would not be able to cover an emergency expense of R10 000 without borrowing or selling something," he says.

"These sobering realities highlight one key financial truth: without an emergency fund, many consumers are one crisis away from economic freefall.

"Whether it is a medical emergency, job loss, or an unexpected car repair, financial disruptions are inevitable. The real question is: how prepared are you if a problem arises today?

"With South Africa's official unemployment rate at 32.9% and inflation eating into disposable incomes, even a minor financial disruption can trigger a downward spiral of debt."