With President Cyril Ramaphosa announcing the national lockdown effective from 27 March 2020, emergency funds will become more important than ever for the larger part of our population. The government can’t afford to fund every individual and those incentives do not apply to everyone.
The rainy day fund or the “short-term emergencies liquidity jar” for the more technically inclined. This is for all the unplanned expenses that’s not in your budget. And they do happen, especially when you need that cash the most.
These funds need to be easily accessible but not be mistaken as the payment method of that new pair of shoes that you have your eye on. Your own lifestyle will indicate your liquidity needs but here are a few examples as to what your hard earned money could be paying for in a short-term crisis:
- Car repairs or maintenance: Engine failure, new tyres, new battery.
- Home repairs: Burst geyser, leaking roof, appliance failures.
- Insurance excess payments: Excess on short-term insurance.
- Medical bills: Out of hospital claims, co-payments.
- All monthly expenses during the lock-down.
This crisis shows us just how important it is to plan ahead and take control of your personal finances.
Good luck to all Bovest clients and your families at this time.
Ruvan J Grobler