Here’s 5 steps to set you on the right path

At some point, you’ve probably thought about it.

How good it would feel to start your mornings unhurried, enjoying your perfectly brewed flat white in peace, without the crushing pressure to open your laptop and update your Teams status to “active”. To plan a bucket-list trip, without having to wait for that leave approval. And to have the necessary funds to do it all, at an age where you’re still fit, healthy and vital enough to enjoy it to the fullest.

But – while many of us would love to enjoy the spoils of our working years sooner rather than later – unless you’ve managed to build a multi-million-rand business in your 20s or 30s and sell it by age 40, retiring early can seem like an impossible dream.

Perhaps not, says Marzanne Jordaan, Franchise Principal and Financial Adviser at Consult by Momentum (“The Hills”). “You might have heard of the F.I.R.E movement – that’s Financial Independence, Retire Early – a wealth-building strategy that is focused on extreme and aggressive saving and investing so that one can retire early, and enjoy the fruits of their labour before their golden years arrive.”

While the philosophy behind FIRE dates back more than 30 years, the movement exploded in popularity after the 2008 financial crisis, as younger professionals began questioning traditional ideas of work, consumption and retirement.

Fast forward to 2026, and based on her discussions with clients, Jordaan believes the movement is once again gaining traction – but in a more contemporary form. “The key difference is that Millennials and Gen Z prioritise flexibility – and not just for when they’re older, but now – more so than previous generations.” The research confirms this, with a recent South African study on millennials in the banking sector finding that flexible work and work-life balance are increasingly viewed as non-negotiable workplace benefits.

“They don’t necessarily want to retire by 40 if it means endless 60-hour work weeks and living on lentils for 15 years. Instead of aiming for an early but traditional retirement, many are starting to employ principles of aggressive saving and investing to escape the standard 9-to-5 grind, creating the flexibility to step away earlier from full-time corporate work and shift towards something less demanding, or more closely aligned with one’s purpose. Their aim is to reclaim control over their time and finances amid modern economic challenges,” she says.

Want to be a young retiree – or just have more personal and financial freedom? Jordaan says that it is possible…but you need to be smart and realistic about it.

1.                           Start with a plan

Achieving greater financial freedom rarely happens by accident. Whether your goal is to retire early, work fewer hours, start a business, or simply create more flexibility in your life, it starts with a proper financial plan, which ideally should be created in partnership with a financial adviser. And it should be built around the lifestyle you want – not just an arbitrary retirement age, says Jordaan.

“The main questions you should be asking are, ‘what do you value?’ and ‘what does financial freedom and quality of life mean to you and your family?’

“Working with a financial adviser can help you define realistic goals, understand what they will cost, and build an appropriate plan tailored to your needs. Because in the end, financial freedom looks different for everyone.”

2.                           Know your freedom number

One of the biggest mistakes people make is treating financial freedom as a vague concept rather than a measurable goal. Instead of simply asking, “How much money do I need to retire?”, it can be more useful to ask: “How much would I need to create more choice in my life?” For some, that may mean covering basic living expenses through investments or passive income. For others, it could mean reducing work pressure or taking a step back from full-time employment.

“It is important to start with the end in mind,” says Jordaan. “Plan around your life and your lifestyle, but also for the risks and challenges that may arise along the way, then work back from there.”

“Defining your “freedom number” gives you something tangible to work towards – and it is often more achievable than people think,” she explains.

3.                           Spend intentionally, not impulsively

Contrary to popular belief, building wealth is not always about earning dramatically more money. In many cases, it is about being more intentional with the money you already earn. One of the biggest obstacles to financial freedom is “lifestyle creep” –  where expenses continue to rise alongside income. The result is that even high earners can end up feeling financially trapped.

“Spending intentionally does not necessarily mean cutting out every luxury or living an overly frugal lifestyle. Rather, it means aligning your spending with what genuinely adds value to your life, while avoiding habits that work against your financial goals,” says Jordaan.

4.                           Build multiple future-proof income streams

The goal is not necessarily to work endlessly or glorify hustle culture. Instead, it is about gradually reducing dependence on one monthly salary and creating various income sources that continuously and collectively generate value. Even relatively small additional earnings can compound significantly over time, says Jordaan.

“Many younger professionals are increasingly recognising the risks of relying on a single income source for their entire financial future. The goal is to build an investment portfolio that stretches, creating more passive income that works harder for you in the long run.”

She adds that building additional income streams – whether through investments, rental income, consulting work, side businesses or passion projects – can create greater resilience and flexibility over time. “Short-term sacrifice will lead to long-term success; build while your energy levels are high and the financial responsibilities are low,” Jordaan advises.

5.                           Invest consistently and think long-term

While social media often promotes the idea of quick wealth, real financial freedom is usually built through some sacrifice, consistency and disciplined investing over time.

Start building financial discipline through setting a goal for the next six months, then one year, three years and five years.  The objective is not necessarily to retire at the age of 40 or 50, but to make your wealth portfolio work for you and obtain financial freedom that’ll enable you to choose how you spend your time.

“One of the greatest advantages younger investors have is time itself, thanks to the power of compound growth. Regular contributions towards retirement funds, tax-efficient investments and diversified portfolios can create significant long-term value, even if the amounts start relatively small,” says Jordaan.

The ‘Rule of 72’ shows how investments can grow over time. “If you earn 8% interest annually, your money could double in about nine years (72 ÷ 8 = 9). This means an investment of R1,000 could grow to roughly R2,000 after nine years through the power of compound interest.”

“Remember to pay yourself first,” she adds.

Her key investment strategy to create sustainable financial freedom?

“One of the best investments that you can make as a Millennial or Gen Z is prioritising financial education, through working with an accountability partner, such as a financial adviser.”