PERSONAL FINANCE SWOT ANALYSIS: PART 3

Financial Weaknesses

When it comes to personal finance, most of us have financial weaknesses that need to be addressed. According to Tyme Bank, 76% of South Africans run out of money before the end of the month. Furthermore, 44% of South Africans earning over R50 000 a month, run out of money before the end of the month.

Step 1 of the Personal Finance SWOT Analysis series focussed on financial strengths. The second step of your Personal Finance SWOT Analysis is to take time to reflect on, and list your financial weaknesses.

What are Financial Weaknesses?

Financial weaknesses are the things that you have done and decisions that you have made that have negatively impacted your finances. Financial weaknesses are also areas in your finances that require improvement. Think about your current financial situation and ask yourself:

• What are your regrets?
• What keeps you from changing your financial situation?
• What makes you run out of money before month end?
• What prevents you from paying your bills?
• What is it that keeps you in a debt cycle with no savings?
• What keeps you from achieving your financial goals?

Financial Weaknesses – Examples

(1) Can’t stick to budget: 15% of South Africans aren’t able to stick to a budget and believe that this is what is preventing them from changing their financial situation².

(2) Not making enough money to get by: 55% of South Africans are not making enough money to get by².

(3) Don’t know how to manage finances: Black women are the most financially illiterate group of South Africans³

(4) Non-essential spending is too high: 76% of South Africans who run out of money before the end of the month, use borrowed money for non-essential spending on clothes, take-aways and socialising².

(5) Too much debt: 40% of South Africans spend between 41% -100% of their income paying off debt².

Reflecting on your Financial Weaknesses is not easy but it is necessary. Just remember that most of us have financial weaknesses, so you’re not alone. Once you have listed your Financial Weaknesses, take a deep breath, well done! You’ve completed Step 2 of 5.

Step 3 of the process focuses on Financial Opportunities, covered in the next post – Personal Finance SWOT Analysis : Part 4.