Financial abuse can take many forms, but it is characterised by a partner controlling or limiting your access to money, leaving you vulnerable and financially dependent on them. When facing financial abuse, understanding how savings and investments can serve your future goals can be a powerful step towards freedom.

Why save or invest after financial abuse?

For survivors of financial abuse, the goal of saving and investing is not only to secure a future, but also to regain control over your finances. Saving a small amount every month and finding ways to grow your money over time are both vital steps towards building financial resilience.

Although financial abuse can leave you hesitant about managing your money independently, it’s important to change the way you think about your long-term finances. Instead of dwelling on past losses or current constraints, focus on the small steps you can take to create a secure future for yourself. Every small amount that you have saved or invested takes you a step closer to independence.

Important differences between saving and investing 

Understanding the difference between saving and investing can help you choose the best tool for rebuilding your financial foundation.

1. Risk level

A savings account is a secure place to store money that guarantees you’ll always have access to your initial deposit. This safety net is essential for survivors to maintain financial stability. Investments, on the other hand, involve varying degrees of risk. While low-risk options might be appropriate during your initial recovery, exploring higher-risk investments can become an option as you rebuild stability and confidence.

2. Returns

Savings accounts offer predictable growth through set interest rates, making them ideal for short-term goals or emergency funds. Investments, while less predictable, can deliver higher returns over the long term, providing a pathway to greater financial independence over time.

3. Flexibility and accessibility

Savings accounts are straightforward and accessible, offering instant or near-instant access to your money when needed. For survivors, this accessibility is crucial for managing day-to-day needs or emergencies. Investments, however, often come with restrictions like waiting periods before withdrawals. While they are less flexible, they can help your grow your wealth once you’re financially stable.

4. Costs

Savings accounts typically come with low or no fees, which is ideal if you’re in the early stages of financial recovery. Investments, on the other hand, can involve costs like management fees. However, options such as unit trusts or exchange-traded funds (ETFs) are relatively affordable and can be explored as you gain more financial confidence.

How to get started

Rebuilding your finances after abuse can feel overwhelming, but small, intentional steps can make a big difference. Begin by setting up a basic savings account where you can deposit money independently. Even small amounts saved regularly can add up over time and provide a sense of control and security.

Once you’ve established an emergency fund or short-term savings, consider exploring low-risk investment options. Make the most of Nedbank’s easy-to-understand investment tools and platforms for beginners to ensure your investments align with your long-term goals.

The importance of taking back control

Financial abuse strips away autonomy and confidence, but learning about saving and investing can help survivors regain both. These tools aren’t just about money – they’re about empowerment, security, and building a future that is free from control.

Each step is a move towards financial independence and reclaiming your life. Remember, even the smallest progress today can lay the foundation for a brighter, more secure tomorrow.

Speak to a Nedbank banker on 0800 555 111.

If you or someone you know is experiencing abuse at the hands of an intimate partner, call People Opposing Women Abuse (POWA) for support.

Helpline: 011 591 6803