13 May 2026

Most of us have some version of the “one day I’ll be financially free” fantasy floating around in the background. Less stress. More choice. Work that you do because you want to, not because debit orders are waiting with sharp teeth.

Today's Money Spark - Financial Freedom

But at the same time, the idea of financial freedom can feel intimidating. It is almost like a different life that belongs to other people. When your income is irregular, it can feel even more out of reach.

On paper though, there is a very simple way to work out your 'financial freedom number'. Financial freedom (also referred to as financial independence) is about having enough invested so that the income from those investments can pay your living costs.

A rough rule of thumb is this: take your entire yearly expenses (living costs) and multiply by 25. That gives you a ballpark “freedom pot” that could, in theory, pay you around 4% a year and cover those costs for a very long time without even touching the capital amount. It is, typically, a huge, ridiculous number. Sorry.

What the number does is to give your brain something solid to work with instead of a foggy dream. You are no longer just wishing for financial freedom, you know what “enough for me” might look like.

So what is your Number?

1. Your living expenses calculation

Add up, roughly, what it costs to run your life for one month. Home, food, transport, medical aid, school fees, etc. but not any business costs (because if you are financially free, you won't need a business, right?). Now turn that into a yearly amount by multiplying by 12. So if today's standard of living is one you would like to maintain once financially free, this is the income you would need to cover each year. So far, so good?

2. Multiply by 12

You will need to be sitting down for this part. Multiply your annual living expenses by 25. It's a BIG NUMBER. That is roughly your Freedom Nest Egg that will feed and clothe you at your current standard of living for a very long time (I would say 'forever' but I don't want to be sued).

3. Start saving and investing

This is where you would be wise to go with an accredited financial advisor who could advise you on how to invest your saved money each month to build up the nest egg.

If you would like more info on financial freedom and the path to get there, here is a useful guide from Standard Bank.

Because I am enjoying making these digital downloads so much, I have basically taken the info above and made a Financial Freedom Number Guide, in a graphic format. The number will still sting, but at least it will be done in technicolour.

"A big part of financial freedom is having your heart and mind free from worrying about the what-ifs in life" - Suze Orman

I have my own financial freedom number which I worked out more than two decades ago. I felt sick the first time I wrote it down (and it grows as your expenses grow). But it also gave me something precious: a bloody huge goal.

I’m still a few years away from my number. I’m fairly conservative, and I want to allow for the things I can’t control: markets, health, curveballs that life inevitably throws. Knowing my number reminds me to stay the course for the benefit of my Future Self.

When I imagine financial freedom, I don’t picture stopping work entirely. I picture choosing my days more spontaneously. Spending long stretches getting lost in creative projects that have no deadline attached. I enjoy the creative side of my work too (I am loving developing the digital downloads, playing with my website, writing my LinkedIn posts, as well as tackling the challenges my coaching clients face). The difference is that I’ll be doing it because I want to, not because I need to pay the bills. And most days post-financial freedom, I will just pick something fun to do. Like pottery....

Financial freedom is both intimidating and hopeful. The important part today is not closing the gap at speed, it is being brave enough to look at your own number and let yourself want it.

I hope you found today's Money Spark interesting :-)