Why the first 90 days after resignation or retrenchment matter most

SOUTH African professionals facing sudden career transitions, such as resignation or retrenchment, are at a critical financial crossroads where the first 90 days can determine their long-term financial security.

- ASHLEY LECHMAN

While this is a “high-risk financial window’, it can also be a great opportunity for recalibration and growth, according to Citadel Advisory Associate Zanele Zungu.

“The first 90 days are critical because it is a period of acute transition and is typically marked with emotional and circumstantial instability” Zungu said.

“Whether the exit was voluntary or involuntary, one’s emotional state can significantly influence immediate financial behaviour and the actions you take can either create renewed financial security or result in unintended and rapid financial destabilisation”

Zungu advised that there are three key considerations to keep in mind to avoid common mistakes and achieve the best long-term financial outcomes:

Don't hold on to a past lifestyle

“The most common mistake and the easiest to make is maintaining the same lifestyle as before,’ she explained.

“This is typically a function of a lack of proper budgeting. Without adjusting spending habits to align with a new financial reality, individuals risk depleting their resources far too quickly. Once depleted, this could lead to a dependency on debt? she cautioned.

She highlighted that the priority should be a thorough cash flow analysis and financial risk management.

This includes assessing available liquidity, understanding current financial obligations and creating a realistic and disciplined budget.