A “financial freedom number” refers to the amount of money you need to never have to work for a salary or a wage again.
To be financially free you need:
An emergency fund (large enough to cover three months’ expenses)
- Investments that generate enough to cover your monthly expenses
Ingram spoke about how to determine what amount of money you will need to be financially free.
He suggested starting with your expenses (monthly, annual and periodic), not your income.
Ingram also discussed the “5% rule” and a simple, quick way of determining a rough number - you’ll need about 20 times your annual expenses.
Alternatively, multiply your monthly expenses by 12 and divide it by 0.08.
For more detail, listen to the interview in the audio below.
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:
Recommendedby NEWSROOM AI
South Africa still tops the Absa Africa Financial Markets Index but other countries on the Continent are snapping at its heels.
The Motsepe Foundation is partnering with 33 religious groups to launch the fund, says its founder, Dr Precious Moloi-Motsepe.
Consumer journalist Wendy Knowler explains how to get reimbursed if you can’t travel after a failed visa application.
"Not since the Gupta landings have there been such excitement at Waterkloof air force base," says Bruce Whitfield.
Black Business Council president Sandile Zungu on his attitude toward money (hopes and fears, successes and failures, etc.).
Portfolio Manager Byron Lotter shares his stock picks of the week with Bruce Whitfield on The Money Show.
Rugby legend John Smit opens up about money and career changes.
You are just one deal away from turning your dreams into reality.
Moderna (a Nasdaq listed biotech company developing vaccines), AngloGold, and TenCent are on the menu tonight.
You could buy Sasol today at the same price as you could get it in 2006.
It started in Asia, went through Europe today, through Africa, we felt it in South Africa....and into the United States.
Questions have been raised in the wake of the murder of eight-year-old Tazne van Wyk.
EWN reporter Kgomotso Modise says the residents say if the tariff increase is granted they will not be able to make ends meet.
Eyewitness News reporter Edwin Ntshidi gives more details of Monday's proceedings.
It was reported last week that the Lesotho prime minister was receiving emergency medical attention in South Africa.
Eyewitness News reporter Ahmed Kajee says one person has been shot and Entrance 1 has been cordoned off.