Preparing your budget for unexpected expenses


Unexpected events (expenses) such as a loss of income due to illness or retrenchment can have a long-lasting impact on you and your family’s financial wellbeing. For example, if the breadwinner is retrenched or a family member is diagnosed with a health problem that is not fully covered by a medical aid, the financial impact on the whole family could be quite severe.

“As a leading insurer with more than 175 years of experience of enabling positive futures for customers, Old Mutual is a proud sponsor of For Better or Worse. The show airs on Mzansi Magic Channel 161 every Tuesday at 21:30 and celebrates the unity of marriage while sharing insights into the trials and tribulations of couples who have stuck together through various challenges. The show also delves into the thorny subject of handling financial challenges as a couple,” says John Manyike, Head of Financial Education at Old Mutual.

In the first episode of For Better or Worse, celebrity couple Phumeza and Shota Mdabe had to grapple with unexpected emotional distress and financial troubles when their child lost his eyesight.

Financial setbacks can be a huge blow and pressure couples to make drastic lifestyle changes just to stay afloat until circumstances change. In some cases, this may mean selling a car, moving to another neighbourhood or moving in with in-laws and changing schools for children. It’s crucial for couples to jointly consult a financial adviser to help craft a financial plan which, among other things, covers risks that may materialise in their lives.

“if you no longer receive an income it’s simply not feasible to carry on as normal. During such a crisis, major financial adjustments are necessary to accommodate monthly financial obligations including daily living expenses,” says Manyike.

“It is precisely for this reason that financial experts always recommend that couples consult a financial adviser while they are gainfully employed to get an understanding of risk products that offer protection and peace of mind in case the unexpected happens,” he adds.

Catch the next episode of For Better or Worse with Mo and Phindi every Tuesday night on channel 161 (Mzansi Magic) at 21:30 to hear more stories about couples who navigate the highs and lows of marriage, especially the challenge of managing money responsibly and harmoniously.

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