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So how much should I have saved by now Ms Money?

In my prior article, I mentioned that you should have saved at least 25 times your annual living expenses in order to "retire".

That article started some interesting conversations. It excites me that young people are interested in driving their Financial Freedom journey.


Some of the questions asked:

  • "So Ms Money, I am 26 years old. I started working at the age of 23. My starting salary was R12 000pm. I received a 6% salary increase each year. How much should I have saved by now?

  • " Is there a specific formula or guide that I can use to measure my savings progress? I am 26 years old"

This table addresses the questions asked: At age 26 you should have at least R77 178 in savings.


Annual Salary x Multiple of Salary = Total Savings

R171 506 x 0.45 = R 77 178

By age 30 you should have at least 1 times your annual salary.


This table addresses the multiple of annual salary you should ideally have saved at the different stages in your life. Everyone 's journey and circumstance are different so this serves as a guide only.


Financial Freedom is possible, it requires you to have a Goal, a Plan, be Committed, take the necessary Action, stay the course; and review and monitor your progress regularly.


Make the necessary sacrifices where possible. Live within your means, pay yourself first by saving, cut out unnecessary expenses, pay off debt quickly. I want to demonstrate the value of paying your bond within a shorter period.


Case study on home loan payments :


Loan amount: R 1 million

Loan term: 20 years

Interest rate: 10%

Interest payable for a 20-year bond: approx. R 1,3 million.

So the total amount you pay back to the bank/loan provider is more than double the amount of the

R 1 million that you borrowed.

So you will pay back R 1m ( loan amount) plus R 1,3 million( approx. interest amount) = R 2,3 m


However, if you pay off your bond within 10 years you reduce the interest amount by at least R 700 000. So instead of paying the loan provider/bank R 2.3 million back over a 20 year period. The amount you will pay back is R 1m (loan amount) plus R 600 000( approx. interest amount) = R1.6m


Within 10 years you now have a bond-free house and the Freedom to continue to invest the " bond repayment" into an investment account that benefits You. This Action is Powerful and will help you to achieve the desired Financial Freedom. Remember every additional payment into your bond account reduces the term of the loan and the interest amount.


Please do the right thing and start spending and investing wisely!!


Thank you for stopping by!


I wish you love, light, happiness, and Freedom

Charmaine Soobramoney

I am the Change and Free

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