PERSONAL FINANCE SWOT ANALYSIS: PART 2

Financial Strengths

Part 1 of the Personal Finance SWOT Analysis series highlighted how a Personal Finance SWOT analysis is a simple but effective tool for financial planning. It’s a 5 step process that will help you determine what you need to focus on, what needs your attention, or what needs to be improved1.

The first step is to take time to reflect on, and list your financial strengths.

What are Financial Strengths?
Financial strengths are resources that you have, things that you have done, and decisions that you have made that have made a positive impact on your finances.

One of the biggest strengths black women have is that we do more with less. In comparison to our racial counterparts, we earn less but have still managed to make significant strides financially.

So take time to think about your current financial situation and ask yourself:

• What are you most proud of?
• What have you done to increase your income?
• What have you done to reduce your expenses?
• Have you achieved any of your financial goals?

Financial Strengths – Examples

(1) Saving Regularly: According to Tyme Bank, 43% of South Africans are actively saving towards their financial goals².

(2) Joined a loyalty programme: there are over 50 major loyalty programmes in South Africa (Retail, Travel, Financial Services etc)³. 

(3) Sent money to guardians or parents: to relieve the financial burden on them. Black women, according to Oxfam, bear a greater financial responsibility of supporting family and extended family members⁴.

(4) Negotiated a higher salary: the gender pay gap in South Africa is between 23% and 35%5.

(5) Bought a House / Paid off property: Young black women in their mid-twenties and early thirties are driving the property market in South Africa6. Furthermore, 60% of Black female property owners have fully paid off their properties 7. ⁵.

Once you have listed your Financial Strengths, give yourself a hand, pat yourself on the back. Well done! You’ve completed Step 1 of 5. Step 2 of the process focuses on Financial Weaknesses, is covered in the next post – Personal Finance SWOT Analysis: Part 3.