Okay, before welcoming 2026, you and I need a year review.
How was 2025, by the way? Hard and unpredictable, most people would say. Such is life, always unpredictable. Nothing changes on that front.
What is predictable is our behaviour and habits. Habits are part of who we are. In short, we are what we do, whether in our personal finance management, health, or life.
As the year gets close to an end, if you are a parent, you have received school reports for your children. That same idea should apply to us, particularly if we want to live an intentional life.
You see, before we swallow something, we have to bite first, and yes, don’t forget to chew. Otherwise, you might need CPR when choking. Before we even conceptualise 2026, if we are serious, we need to reflect on the passing year.
How to Calculate Your Savings Rate and Net Worth for 2025
In financial terms, it’s simple. I will focus on three numbers to measure our success in 2025:
1. Average Annual Savings Rate Example: (on R20 000 salary, saving R5 000/month)
Savings rate formula:
Savings ÷ Income × 100
- Monthly take-home: R20 000
- Monthly savings: R5 000
- Monthly expenses: R20 000–R5 000 = R15 000
- Annual income: R20 000 × 12 = R240 000
- Annual savings: R5 000 × 12 = R60 000
Savings rate = 60 000 ÷ 240 000 = 0.25 = 25%
👉 Your average annual savings rate is 25%.
Note: At this rate, it will take you at least 32 years to reach financial freedom. These numbers assume no increase in income and baseline investment returns. If this is your number, please pull up your socks and increase your savings rate.
2. Calculating Your Current Net Worth (Example Structure)
Net worth = Assets Minus Liabilities
Here is a simple example layout you can copy for your own numbers:
Starting in 2025
- Savings: R0
- Investments: R0
- Emergency fund: R0
- Debt: 0
Starting net worth = R0
Current
- Savings: R30 000
- Investments: R20 000
- Emergency fund: R10 000
- Debt: – R5 000
Current net worth = 30 000 + 20 000 + 10 000 – 5 000 = R55 000
Growth since the start of 2025
R55 000 – R0 = +R55 000
👉 Your net worth has grown by R55 000.
Note: If this is your number, congratulations, you are R55 000 richer today than at the start of 2025. Pat yourself on the back; you are moving forward. Don’t forget to exercise and eat well. Intentional living is holistic; it’s not only about the amount in your bank account.
3. How Far You Are Toward Your FI Number (based on R15 000 Monthly Expenses)
FI number = Annual expenses × 25
- Monthly expenses: R15 000
- Annual expenses: 15 000 × 12 = R180 000
FI number = 180 000 × 25 = R4 500 000
👉 You need roughly R4.5 million invested to reach financial independence.
FI Progress Example
If your invested assets are R20 000:
Progress = R20 000 ÷ 4 500 000 = 0.0044 = 0.44%
👉 You are 0.44% of the way toward your FI number.
Note: It’s a long way to get to FI, but it’s better to start than never; at least you are on the way. Every rand you save and invest is one step closer to your goal. Oh, don’t forget the tailwind of compound interest; you will probably reach your goal faster than your expected time. Keep at it; you are better today than last year, and be on the lookout for FU money along the way.
These three magical numbers tell us a lot about your financial fitness. Business people often say: You can’t manage what you don’t measure.
Your financial life is the same. If you don’t know where you are coming from and where you are, you are likely confused 🤔 about where you are going.
Managing Personal Finances in South Africa: Focus on Habits, Not Inflation
It’s easy to get stuck naming all the awful things that happened this year, things you have little to no control over. Inflation is inevitable. You can’t control interest rates. Neither can you control the Rand’s value against the US dollar, unless you are the governor.
Reality check: most of us don’t sign our signatures on banknotes. If that’s the case, it’s a waste of energy to worry over issues outside your control.
The Financial Scale: Why You Shouldn’t Ignore Your Net Worth Numbers
Health is a classic example. If you eat and stuff yourself with donuts day in and day out, you will soon run out of your wardrobe. Sounds harsh, right? Not at all. As scary as it sounds, step on that scale if you want to improve your situation.
The three numbers I highlighted above are your personal finance scale.
Don’t hide 🫣. Running away from the scale doesn’t improve your weight. Come on, be brave. Face the huge number on your bathroom scale.
Unlike in health, in finance, your number, your net worth, might be zero or even negative in extreme cases. Before we work out New Year’s resolutions, we need an old-year resolution review.
Remember: you are your own competition in personal finance. That’s why you measure your status today against your last-year self.
The ‘Fish in the Pond’ Test: How Much of Your Salary Did You Actually Keep?
Calculate your monthly net salary, multiply it by 12 months, and figure out how much of those rands you managed to keep.
You have been fishing all year round.
How many of those fish are in your pond?
If you are at zero or negative, it means you have been eating your fish before they could reproduce. Maybe your pond only has toads 🐸. Cheer up; at least your future fish in 2026 have some food.
It’s time to see what’s been eating your fish all year. Pull out your bank statements. It’s mostly recorded, unless you mostly use cash.
Start 2026 in 2025: Systems Over Resolutions
Let’s be smart and start 2026 in 2025.
Don’t obsess over your goals as most people do; that’s why New Year’s resolutions barely come to pass. Instead, build systems in the name of habits, and the results will take care of themselves.
Even smarter: before building those systems, you need to figure out where you are currently in relation to where you are coming from. It’s either you are moving forward or backward. Check your status, and soon you will be set.
Even if you are crushing it financially, you still need to do a review of what’s working and what’s not. Trust me, there is always room for improvement. A winning sports team still practices; otherwise, it will lose to the underdog.
A Solution-Driven Financial Audit: This Is Not About Shaming
This is not a shaming exercise or guilting yourself. No need to do that; it’s more tiring and depressing.
Rather, this is solution-driven.
How many goals did you score this year? And how many of those goals were own goals?
What’s your net run rate if you fancy cricket 🏏? (Not the cricket 🦗 in your garden, so many cool loud sounds these days. It’s summer in this part of the world.)
Whether you are happy to take your shirt off at the Durban beachfront or not, you still need to see where you are. You make the call, no pressure!
This review principle separates excellent companies from average ones, where often last year’s success goes to their heads, and they lose focus on the next chapter. The book is still unfinished, and you still have more to read.
Success is not stagnant; we have to keep going, my friend.
Yesterday’s meal is already digested. No need to fantasise over last year’s gammon; it’s a new season. Let’s cook something else.
Intentional Living 101: Building Financial Habits That Actually Work
If your current systems are growing your wealth, no need to change what’s working. In fact, do more of what is working.
This is called Intentional Living 101.
No space for chancing by, let your luck meet you on the way.
Luck often meets those who are prepared and on the move. It’s not luck, actually; it’s hard work that bears fruit. Lazy 🦥 people who repeat the same behaviours and anticipate different results call us lucky.
We are not lucky at all. We are just willing to stand on the scale and take action.
Are we afraid? Yes. But we won’t let our fears cripple us.
You see, you and I are creators of our tomorrow, and we can face tomorrow with yesterday’s data. That’s the mindset for living intentionally to achieve freedom.
Brace yourself for a brand-new year in style by signing off on the previous year properly.
Review what has worked and what’s not working. Personally, this is how I review my life, no comparisons, no competition.
You are ready for 2026 if this is your attitude
Merry Christmas and a happy New Year in advance.
Trading Time or Buying Freedom 
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