How to build a capsule wardrobe for your finances

IN THE spirit of Women’s Month, let’s explore your financial planning through the lens of a capsule wardrobe, a timeless collection of essentials that can be adapted as your needs evolve.

- RITA COOL

Just as your clothing staples form the foundation of your style, financial basics form the backbone of a secure and confident life. Once you have these in place, you can accessorise with additional products and strategies as circumstances change.

Start with the basics: underwear and your emergency fund

This safety net could be cash in a bank account, an available credit facility, or extra funds in your access bond. The key is accessibility at short notice. While retirement funds now allow a limited once-off withdrawal from a “Savings Pot,’ this should not be mistaken for a true emergency fund. A good rule of thumb is to keep three to six months of expenses set aside.

Eliminate the moths: dealing with debt

Even the most beautiful wardrobe can be destroyed by moths, just as debt can quietly eat away at your finances. Without realising it, your disposable income vanishes, leaving you unable to invest in your future.

Your trusty pair of jeans: retirement savings

Denim never goes out of style. A well-fitting pair of jeans is reliable, durable, and built to last - much like retirement savings. Whether it’s through your employer's retirement fund or a retirement annuity, this long-term investment is a cornerstone of financial security.