Economist advises on the importance of saving for a rainy day
While its ideal for families across the country to have an emergency fund for a rainy day - that's easier said than done.
Economist Graeme Kerner has been speaking to Newswatch after a recent household wealth index found that household wealth in South Africa had declined by 0.9% in the third quarter of 2016.
The index - by Momentum and Unisa - also found that many households don't have a sufficient emergency fund saved.
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Kerner says consumers have been under a lot of pressure with food inflation rising last year - on average - to over 10%.
He says people aren't getting the salary increases that can protect them from the ever-increasing cost of living.
"A lot of consumers in South Africa are really battling, and the net effect of that of course is that many people don't have the luxury of that savings net. It is critically important. A lot of the experts say you need at least three months - but ideally six months worth of net salary to cover you for medical emergencies, or your car packing up, or whatever the case might be," he said.