If the pandemic has proved anything, it’s that those ‘rainy days’ will come and we need to be ready. It’s not easy. It takes foresight, planning and some sacrifice. But your future self – and your family – will thank you for your efforts.

South Africa’s current situation is concerning. South Africans are feeling the financial pinch at historic levels. 

• Just in the last 18-months of lockdown, the Sanlam Benchmark Report of 2021 found that there’s been a 100% increase in debt counselling. 

• We’ve hit the record unemployment rate of 34.4%

• Just 6% of South Africans are on track to retire comfortably and 49% of people have no retirement plan at all

The human cost of the pandemic has been profound, with many losing their loved ones and, in a lot of cases, their primary source of income. Against this context, Sanlam’s mission to empower people to live with confidence seems more important than ever before. This is the reason the group sponsored our 2021 Agenda Women Summit. It’s focused on using financial education as a tool to enable more South Africans to take control of their money matters and build a better life. 

“We all desperately want to see these statistics improve, both for the well-being of individuals and for the financial health of the nation. Improved financial literacy can empower people to grow their confidence to better manage their money. Financial confidence can drive positive financial behaviours, such as saving. This in turn, fosters the socio-economic inclusion so critical to sustained GDP growth,” says Mariska Oosthuizen, Head of Brand at Sanlam.

The pandemic’s impact on women

As the pandemic shows no signs of slowing down despite increasing vaccination efforts across the world, women, known as the more cautious investors, are bearing the brunt of Covid-19. As it stands, research shows that men have better changes at employment and better pay than women. In fact, the World Economic Forum suggests the pandemic may have set progress to gender pay parity back by a generation. A big reason for this is that throughout the pandemic, and generally, women take on most of the family- and childcare.  In South Africa, 43.1% of children live only with their mothers.

“Covid-19 has had serious consequences for many people, but the toll on women has been profound. In the current climate of job losses, mounting debt and uncertainty, it’s no wonder people are struggling to save. However, it’s imperative to have the confidence to set goals, make a plan and to ask for professional help should you need it,” says Oosthuizen.

So, how can more women be empowered to live with confidence and have enough saved to survive curveballs like Covid-19? 

Sive and Solam Mbana recently won the Sanlam Moola Money Family TV Game Show. This hit show by Sanlam used a fun, interactive game show format to break down complex money topics in an accessible way. Its ultimate aim? To share financial education in a novel format that resonated with South Africans. 

Winners Sive and Solam are an excellent example of how to prep for rainy days. She’s a pilot, he’s in the alcohol industry. This meant they were severely impacted by the pandemic. They’d been married for just three months when the first lockdown hit. They had to relook their finances to get through each month. Solam said, “In the lean periods, we learnt how to live for the better periods. Now, we budget much better and understand where all our money goes.”

They spent a lot of time educating themselves on taking control of their finances… which clearly paid off as it also helped them win Sanlam Moola Money! The show featured multiple ‘Money Rules’ to help people go after their goals and prep for a rainy day. Here are a few lessons to live by: 

1. Pay yourself first. Before you do anything else, move your money where it needs to be. 

2. The best time to start saving was yesterday. The second best time is today. Ideally, you should aim to save 20% of your take-home pay. Pop it in a high interest-earning account to make your money work harder for you. Adele Barnard, Sanlam Financial Adviser, stressed that you don’t need to save a lot… Save what you can! Whether it’s R100 or R10 000 – every amount saved deserves a ‘happy dance’.

3. Save more. Spend less. Repeat. Look for ways to cut unnecessary expenditure by relooking your budget regularly. 

4. Have an emergency fund. This should ideally be equivalent to three-to-six-month’s worth of salaries. 

5. It’s best to invest. Adele calls compound interest the ‘eighth wonder of the world’ because of the way it helps grow your money. Again, you don’t need a lot to start investing! Satrix has no minimums, so you can start with R10!

6. Ask for help: Adele says that getting your finances in order is like going to the doctor… or rather, the gynaecologist! Sometimes, you need a professional to help you come up with a practical plan that adapts and keeps you on track when those big life changes come your way. And if you aren’t sure of what questions to ask when you see your “financial doctor”, you can make use of the Sanlam Financial Check tool for a preliminary diagnosis.