Take control: Securing your right to financial security in 10 steps

Sharon Hamman

Human Rights Day is a time to reflect on the fundamental freedoms every person is entitled to. But what about the rights people deserve?

For Sharon Hamman, Momentum Senior Legal Adviser, among these should be the right to financial literacy that will pave the way to financial security—the ability to not just survive but thrive.

A recent Financial Sector Conduct Authority (FSCA) survey, conducted in partnership with the Human Sciences Research Council (HSRC), found only 51% of South Africans are financially literate by definition.

Without financial knowledge and the right foundations in place, Sharon says many South Africans remain vulnerable to economic hardships that can strip them of opportunities and stability. She believes financial security is not a privilege, but a right we should all be fighting for.

“Economic realities are constantly shifting, and financial security doesn’t happen by chance. It requires planning, preparation, and the right mindset,” says Sharon. “While we mark Human Rights Day, we should also champion the right to financial empowerment, ensuring everyone has access to basic financial education and the tools they need on their journey to success – you do not know what you do not know – so the first step is to know”

Financial illiteracy hampers financial stability and progress, adding to inequality, not just for the current generation but also for those that follow. Financial illiteracy has a domino effect - limiting access to education, healthcare, and basic needs. But Sharon says we can take control by advocating for financial literacy, taking responsibility for our own knowledge levels by reading and asking the right questions, by making a conscious effort to upskill ourselves to allow us to make informed decisions that protect our financial future.

Here are 10 ways to assert your right to financial security and take charge of your personal finances, especially in economic uncertain times as the world is experiencing at the moment:

1. Prioritise essential spending
Cut back on non-essential expenses to ensure financial flexibility. If your income is uncertain, adopt an essentials-only budget and renegotiate fixed costs like phone and internet contracts.
2. Avoid lifestyle inflation
Now is not the time to take on unnecessary financial burdens like a bigger home or a new car. Keeping fixed costs low makes it easier to adapt to economic changes.
3. Build and protect your emergency fund
Aim to save at least three to six months’ expenses in a high interest-bearing savings account. If you’re self-employed or have an unpredictable income, consider saving even more.
4. Reduce or settle high interest-bearing debt
Be smart about debt. Credit cards are great for short term debt as no interest is generally payable in the first 30 days, but thereafter it becomes very expensive. Consolidate debt where possible, using interest efficient finance options. If interest rates drop, maintain your current repayment amounts to pay off debt faster.
5. Stay invested – don’t panic sell
Short-term market movements should not derail long-term investments. Staying invested ensures you benefit from future recoveries and wealth growth.
6. Diversify your investments
A well-diversified portfolio protects you against market volatility. If you’re unsure how to adjust your investments, consult a financial adviser.
7. Be mindful of tax implications
Understand how changing tax regulations, such as South Africa’s two-pot retirement system, impact your financial future before making investment or withdrawal decisions.
8. Adjust your budget for inflation
Rising prices affect everyone. Stay ahead by tracking your spending and making necessary budget adjustments to maintain stability.
9. Get your Will in order
A secure financial legacy includes protecting your loved ones. Having a valid, executable, up-to-date Will with a reputable executor prevents legal complications and ensures your assets are distributed according to your wishes.
10. Take advantage of financial advice
Financial security isn’t just about saving money; it’s about making the right financial decisions. An licenced financial adviser can help you optimise your financial position, no matter what the future holds.

Financial security is freedom
Given the importance of money in our lives, true freedom includes the ability to control your financial future. “Freedom is a fundamental right upon which our country is built. Just like we have to work towards retaining that freedom every day, we also have to fight for our own financial freedom, and it starts with educating ourselves.

“No matter how uncertain the world feels, staying informed, planning ahead, and seeking expert advice can help secure the financial future we all deserve,” Sharon concludes.