Financial abuse is a form of abusive control that is often overlooked as a primary feature in up to 99% of domestic abuse cases against women. It leaves victims feeling powerless and trapped. Financial abuse occurs when your partner uses money or financial tools to manipulate, exploit, or dominate you.

The effects can be devastating, but there is hope. By understanding your financial options and taking proactive steps, you can regain your independence and rebuild a secure future. When used wisely, investments are one of the most empowering ways to reclaim control over your financial life.

Understanding financial abuse

Financial abuse can take many forms, from limiting access to bank accounts and withholding income to sabotaging employment opportunities. It often leaves survivors without the means to escape or build a stable life. Taking back your financial power starts with recognising the signs of abuse and deciding to take action.

Investing, even in small amounts, can create a sense of autonomy and pave the way towards financial independence. With careful planning and the right resources, you can begin to grow your wealth and ensure a stable future for yourself and your loved ones.

The power of starting small

Before we dive into investments, it’s essential to establish a foundation of savings. Open a separate savings account in your name to ensure you have control over your funds. Even starting with as little as R50 a month can create a safety net that builds your confidence. Tools like tax-free savings accounts or micro-investment options that you can start with small amounts can help you save while earning interest.

Budgeting is equally important. A clear understanding of your income, expenses, and financial goals will enable you to allocate money for saving and investing.

Investment options to regain independence

Income protection insurance

Unpredictable life events like retrenchment, illness, or becoming disabled can derail your financial progress. Income protection insurance provides a safety net by replacing your income during challenging times. While it might not directly grow your wealth, it prevents financial setbacks and ensures you remain self-sufficient when faced with unexpected hardships.

Unit trusts and exchange-traded funds

If you’re ready to grow your wealth, consider investing in unit trusts or exchange-traded funds (ETFs). These options pool funds from multiple investors to invest in diversified portfolios, reducing risk while offering potential returns. Start small, with manageable amounts, and take a long-term view. These investments not only help you accumulate wealth, but also reinforce the sense of control over your financial destiny.

Retirement annuities

A retirement annuity (RA) ensures that you’re taking care of your future self. It’s a disciplined way to save for retirement while enjoying tax benefits on your contributions. RAs are particularly valuable if you’re rebuilding after financial abuse, as they help create a secure foundation for later in life.

Rainy-day funds

Access to emergency funds is crucial for financial independence. A rainy-day account ensures that you’re prepared for unexpected expenses without jeopardising your investments. Choose notice accounts or other options that discourage impulsive withdrawals but offer access when you really need it.

Education investments

Investing in education, whether for yourself or your child, is one of the most empowering decisions you can make. An education savings plan can open doors to new opportunities and long-term career growth, breaking the cycle of financial dependence.

Building a credit score and managing debt

A good credit record is essential for achieving financial independence. It affects your ability to qualify for loans, secure housing, or even land a job. Take control of your finances by paying debts on time, avoiding unnecessary credit, and gradually improving your credit score. If you’re unsure where to start, speak to a financial adviser to guide you through the process.

Seeking support and resources

Reclaiming your financial power is not a journey you need to take alone. Many organisations and financial institutions offer tools and resources to help survivors of financial abuse. From budgeting apps to financial literacy programmes, these can help you build confidence in managing your money and investments.

Taking back your financial power through investments is a journey of resilience and empowerment. By starting small, setting clear goals, and seeking the right advice, you can regain control of your financial future and break free from financial abuse.

Remember – the power to change your financial story lies within you. Take that first step today – it could be the most important decision you ever make.

For financial advice and planning, contact a Nedbank financial adviser 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