Empowering South African Women to Strengthen Their Finances This Women’s Month

“This Women’s Month, I want to encourage my fellow South African ladies to make their finances count. While we may not be able to control external economic factors or financial disruptions, how we proactively prepare for and handle unexpected challenges can directly or indirectly impact our financial well-being and future generations' financial decisions and journeys.

Reaching important financial goals, while dealing with life’s ups and downs, is not easy but it is possible. I would suggest one of two strategies to help build financial resilience: increase your income or reduce your current debt," highlights Carla Oberholzer, communications specialist at CreditSmart Financial Services.

Strategies to Increase Your Income

If you want to give increasing your monthly earnings a try, here are a few suggestions to stir up some creativity and fiscal add-ons:

Side-Hustle

Utilise skills others might find valuable, such as tutoring, freelance graphic design, dance lessons, or other services during your off-hours. Don’t forget to turn your hobbies into income streams. Whether it’s selling artwork, crafts, or other handmade products, your passion can become a profitable venture.

Overtime

If your job pays for the extra hours you put in, take advantage of the opportunity to earn more (without neglecting your family responsibilities, of course).

Sell Unused Items

Identify items in your home that are in good condition but are no longer needed. Consider selling kitchen gadgets, furniture, or exercise equipment. Selling these can provide a nice cash boost.

Asking Rent

Do you have a spare or separate room at home? What about an extra parking spot? These income opportunities may be closer than you think.

Strategies to Tackle Existing Debt

If increasing your income isn’t feasible, why not consider a strategic method to help tackle your existing debt instead? Here are a few options to help you find a suitable method that fits your lifestyle and needs:

The Snowflake Method

The snowflake method is like a snowstorm; each separate snowflake may seem insignificant, but together they can create a powerful impact. The same goes for debt repayment using this method. Putting any small savings or extra money—no matter how minor—towards your debt can gradually chip away at what you owe. Over time, these small, consistent payments will add up, helping you reduce your debt steadily. This method is perfect if you prefer a flexible approach and find satisfaction in knowing that every little bit helps.

Taking Action: Whenever you save money, such as skipping a coffee or finding a savings deal on groceries, immediately put the amount towards your 'lower-my-debt fund'. Over time, these small contributions can make a big difference.

The Snowball Method

If you thrive on “quick wins,” the snowball method might be your best bet. Start by listing your debts from smallest to largest. Focus on paying off the smallest debt first while making minimum payments on your other debts. Once the smallest debt is cleared, use the freed-up funds to tackle the next smallest debt, and so on. This method gives you momentum, creating a “snowball” effect that grows as each debt is eliminated.

Taking Action: Begin by paying off your smallest debt, such as a store account. Once cleared, apply that same payment amount to your next smallest debt, building your momentum until all debts are gone.

The Avalanche Method

If you are driven by minimizing long-term costs and competitively tackling challenges head-on, the avalanche method may be your ideal choice. Instead of focusing on the smallest debts, this strategy prioritizes paying off debts with the highest interest rates first. By doing so, you minimize the total interest you pay over time, which can save you money in the long run. Once the highest-interest debt is paid off, move on to the next highest one, and continue this pattern until you are debt-free.

Taking Action: Identify your highest-interest debt, such as a credit card balance. Allocate as much money as possible to pay it down quickly, then move on to the next highest-interest debt. This approach can help you save on interest and pay off your debts faster.

Finding Motivation in Financial Strategies

“Choosing financial strategies that resonate most with you is key to staying motivated throughout any chapter of your financial journey. Whether you choose to increase your income and add money to your emergency fund, or, instead, slash your debt to lower your total debt amount, the important part is to start and stay consistent in your habits and doings. Let’s make this Women’s Month a turning point towards an inspiring financial future, not only for ourselves but also for those who look up to us,” concludes Oberholzer.

Press Release Submitted By:

• Company Name: CreditSmart Financial Services
• Person: Carla Oberholzer