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Your Magic Formula for Financial Freedom

How to Calculate It (and Start Building It Today)

Author

MoneyMoves
June 19, 2025

There are a few ways to ask the same golden question:
“How much money do I need to retire?”
“When can I stop working?”
“What’s my financial freedom number?”

At the heart of it, you’re chasing one thing: The ability to do what you want, when you want, how you want.

To view the full breakdown, check out our conversation on YouTube!

Financial Freedom in Money Terms

So, what does that actually mean in money terms?

Financial freedom is achieved when the income generated by your assets is enough to cover your monthly living expenses.

Example:

  • If your monthly expenses are R30,000

  • Your investments need to reliably generate R30,000 per month - without you needing to work for it.

  • This means that if you go to work, you’re working because you want to, not because you have to.

How Much Do You Actually Need?

There’s a simple rule of thumb to estimate your "magic number":
🧮 Yearly Expenses × 20–25

Here’s what that looks like:

Monthly Expenses

Annual Expenses

Magic Number

R30,000

R360,000

R7.2m – R9m

R50,000

R600,000

R12m – R15m

R100,000

R1,200,000

R24m – R30m

How Do You Invest to Reach the Magic Number?

When you go to work, you work for money. But when you invest, your money works for you.

Herewith the Menu of available options available to investors. These options are called “asset classes”. Each asset class generates a different type of income for investors.

Steps to Success

Here's how to reach the magic number:

  1. Cover Your Basics:

    • Medical aid or hospital plan

    • Income protector

  2. Kill Bad Debt:

    • Personal loans and credit cards that often charge 15%-30% interest.

  3. Invest Smartly:

    • Build a diversified portfolio that fits your unique profile.

    • Focus on maximizing returns at the lowest possible cost and risk.

There’s no “one-size-fits-all” investment plan. The best portfolios are customized to you - your goals, your personality, your timeline.

Want to Invest In Our Funds?

Our client portfolios have been performing extremely well over the past 5-years. I’m not saying I’m the next Warren Buffett... but let's just say we're doing something right. 😎

Disclaimer: This is not financial advice. FSP: 52899

Who Are We?😎

The Knowledge Chest

Paul holds an Honours degree in Financial Analysis from Stellenbosch University. With a career spanning investing, accounting, and education, Paul is committed to becoming the best financial planner in South Africa. Despite his many accolades, Paul insists that his greatest achievement is that he is dating a yoga teacher.

The Anchor

Ingrid holds a BA Honours in Journalism from Stellenbosch University. She is a self-diagnosed workaholic, excelling in various roles such as marketing, publicity, social media, and strategic partnerships. Ingrid's commitment to promoting wellness and balance extends beyond her professional endeavours, as she is also an avid yoga teacher.

Our Full Offering🎖️

We have extended our value offering to five key pillars:

  1. Investments

  2. Insurance

  3. Arbitrage

  4. MoneyMoves

  5. StockMaster (coming soon!)

If you’re looking for someone to chat about your investments, feel free to reach out. We’re here to help.

MoneyMoves - Where We Make Your Money Move For You!

Warm regards,
Paul & Ingrid

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