CLICK BELOW to compare car insurance quotes across a variety of car insurance providers and stand to save up to 30% on your monthly premium!The lack of an inherent savings culture in South Africa, coupled with aggressive marketing tactics from credit providers, make emergency funds slightly out of reach for most. Some people are of the mindset that insuring against worst-case scenarios is a waste of money, until the worst case scenario materialises. Then the financial damage happens – high-interest loans, maxing the credit card or overdraft facility, or worse: borrowing from friends or family members. Soon you’re in a downward debt spiral that takes you even further away from the possibility of an emergency fund. But, with the current retrenchment statistics especially, an emergency fund is now more than an imperative (at the least, retrenchment cover). Solidarity, a trade union that aims to create job security for its members, published stats on retrenchment in 2015 and 2016 across multiple industries, including the communications and professional industries. There were 88 formal retrenchment processes covering a total of 58 549 job losses that they were privy to. A “drop in the ocean” compared to the number of jobs lost to natural attrition processes in the workplace preceding formal retrenchments.
Solidarity commented: “the current pattern and wave of retrenchments are very similar to [the] situation at the end of 2008 and the beginning of 2009 which was the precursor to the recession.”