HOW TO PREPARE FOR THE UNEXPECTED

Recent interest rate increases, fuel price hikes and the increase in the daily cost of living have left many people struggling to make ends meet and facing unexpected financial challenges. In times like these, it's important to prepare and have a plan in place. Here are some tips on how to prepare for these unexpected financial events.

 

1. Become familiar with your monthly debt repayments on your Credit Report:

Your Credit Report will identify each account you have, including the opening, current and instalment values. Knowing who you owe and how much you pay monthly, along with any arrears you may adding to your monthly repayments. To get your Credit Report, you can simply sign up with Kudough where you will get a free Credit Report from XDS, however we recommend getting your report from all four credit bureaus by upgrading to a package that suits your budget. Once you have your full 4 bureau credit report ensure that all the information is accurate.

2. Cut back and save:

Knowing where and how much money you spend every day, week and month is critical in identifying where you can save money. cutting back on unnecessary expenses and saving money can help prepare you for financial impacts. Start by identifying areas where you can cut back on expenses, such as eating out or buying unnecessary items.

Once you've identified these areas, plan to reduce your spending and save more money. Kudough has great vouchers you can use to get up to R750 discounts on your groceries. You can also consider taking on a side hustle or freelance work to earn extra income that can be used for emergencies.

3. Budgeting is more important than ever.

Creating a budget is an essential step in preparing for financial impacts. Having tracked your income and spend for at least three months, build your budget with potential hikes and increases in mind so there are no surprises when they happen. Don’t forget to put a little extra away into your emergency expense savings accounts for emergencies, such as a car repairs or medical expense.

4. Interest rate hikes:

With interest rates on the rise, it's important to be prepared for the impact they can have on your finances. One way to prepare for interest rate hikes is to consolidating any high-interest debt you may have, such as credit card debt or a personal loan. Another way is to consider Debt Consolidation. With Kudough we can help you lower your monthly Debt Repayments.

 

In conclusion, by preparing for unexpected financial impacts are essential in today's economy. By getting and understanding your credit report, budgeting monthly,  cutting back on unnecessary spend, saving for emergencies, and preparing for interest rate hikes, you can be better equipped to achieve financial stability.

 

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