Seeing as Women’s Month is coming to an end, I thought it was fitting to shed some more light on women in business. A few weeks ago, I sat down with Uleen Fourie, a powerhouse in all facets of her life: motherhood, business, social media, fitness and everything we don’t get to see.

Uleen Fourie has built a business that earns close to a million rand a month, yet sponsored posts are roughly 5% of her income (I honestly had to ask her to repeat that).

Before we get into the good stuff, you can listen to my podcast episode with Uleen on YouTube, Spotify, and Apple Podcasts.

The business model no one explains

Uleen is a sustainable health and fitness coach with over 100,000 followers, a co-owner of the Health E app, and has sold 12,000 postpartum programs in just over a year. When I asked if she considers herself an influencer, she didn’t hesitate when she said: “An entrepreneur.”

Pay close attention to the distinction.

She has an app, fitness programs, digital guidebooks, and a postpartum recovery program developed with physiotherapists: the only one of its kind in South Africa. Those products sell every single month, whether or not a brand emails her. Her income doesn’t depend on Instagram’s algorithm or a campaign that may or may not come in because her products run regardless.

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Brand partnerships are “a nice extra,” she says. If a brand genuinely aligns with what she does, she’ll send a rate card. If it doesn’t (like dandruff shampoo), she won’t even respond. Promoting things that don’t fit her audience is ethically uncomfortable and bad for business. Trust, once spent, doesn’t come back.

That’s the model. Real products solving real problems, sold to a real audience who already trusts you.

95% of the money that nobody talks about

Now, get this. She studied financial and investment management… And then she spent her mid-twenties working in international insurance, running an online math tutoring company, teaching 12 spinning classes a week, and building an Instagram presence about health and food on the side.

She knew she wanted to leave corporate but she also knew she needed to be financially positioned to do it, so she built the bridge while still crossing the first road.

The moment she knew it was working was when her online cookbook launched and then her Burnt programs. Then she realised: people will pay for this. Real money. Career money.

“The day I realized this was going to work was the day I started making money. Let’s be honest.”

What she actually owns

Uleen drives a nice car and she owns an investment property in Stellenbosch which she bought a few years ago. The capital gains have been, in her words, “insane.” (I will still have a talk with her about property investing. If you know, you know 😉) She takes a small salary from her business deliberately so as to keep capital working inside the company, and beauty treatments like hair, nails, and laser come through brand partnerships.

She is also completely financially independent from her husband, meaning everything she owns, she bought herself.

This is worth saying plainly, because people don’t say it: when they meet Uleen and her husband, the default assumption from strangers has consistently been that his income explains her life. She stopped correcting people altogether. “I love being underestimated.”

Financial independence gives you the choice of how to respond when someone gets it wrong about you.

The real revenue model for creators

If you’ve ever thought about building an online business (or you’ve been watching someone else do it and wondering how it actually works), Uleen’s breakdown is worth understanding:

1. Own products (programs, apps, guides, digital courses): stable, recurring, algorithm-independent.

2. Commission partnerships (with brands you genuinely use): she drives hundreds of thousands in sales for some brands per month and takes a small percentage.

3. Paid campaigns (the part everyone sees): the part that contributes the least.

The order matters as much as the categories. Products first. Commissions second. Campaigns last. Build in that order and you have a business. Build in reverse and you have a following with a dependency on someone else’s marketing budget (no bueno).

I’m passionate about putting money in the hands of women. Conversations like this one with Uleen remind me why: because the path exists. It’s real and not passive. She works hard for every Rand, but it IS possible.

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Morgan Housel writes that money doesn’t mean a nice car or a nice house. It means freedom of choice.

Uleen figured that out early and she built a business that serves as a testimony thereof.

If you want to listen to our full conversation on your drive to work tomorrow, here are the links:

YouTube:

Spotify:

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I’d just said goodbye to my parents. Again. I had a direct flight to Zurich to catch, and forty minutes to fall apart before I had to pull myself together and board.

The Zulu woman in front of me turned around. “Why are you crying?” she asked. Side note: On Swiss soil no one would ask me why I am crying, Africans are just caring to the core.

“I’m leaving my family behind,” I told her.

“You need to be strong for your son,” she said while pointing at Frank. “You’re creating your own family now. You’ll be okay.”

I decided right there that I would be strong. But I also decided something else: I was going to build a life on my terms, and I was going to figure out how to make it happen.

I wanted a life where:

• A corporate leave policy cannot dictate how much I see my parents and siblings

• Maternity leave ending does not force my 4-month old baby into the care of a stranger

• I don’t have to waste an hour each day that I could be spending with my family commuting somewhere

• I have time to cook healthy meals, exercise, go for walks instead of sit in meetings that could’ve been emails

• Daniel and I can play golf on a weekday

• We can put the kids down for a nap on a weekday, and be home when they get back from school

• We have a community, a village, and even just strangers that genuinely want to help

If you’re an expat, you know the feeling of leaving SA after December holidays. Of collecting as much leave as possible, trying to bunch public holidays in, and asking to work remotely for a few days so that you can make it a 3 or 4 week trip. And still spend half your pay check on flights.

Every December we fly back to South Africa, and every December the same questions creep in. Is it not time to come back? Is it not time to be closer to family? Is it not time to get back to our roots? Is this not what life is about? How have we come to prioritise making someone else rich and getting a high salary over our village?

But then your head takes over. It’s only a holiday, you’ll get over the feeling. The future is too uncertain, it’s unsafe. The future is not in SA for your kids. You have a chance to give them a better life.

Then you land back in Zurich, or London, or Amsterdam and life goes on. You get into the swing of things, the long dark mornings don’t feel so bad anymore. You enjoy the £5 coffee from Starbucks. You tell yourself it’s safer here. There’s more job security. It’s better for the kids. You collect all the reasons that make staying feel like the responsible choice. Your head says: It’s the hard thing to do but it’s the right thing.

But that day in the passport queue, none of the reasons held up for me anymore. And I realised that if I don’t make it happen - it’s not going to. My husband was even more skeptical about a move back to SA than I was.

Why that year was different

I had the flexibility to work from anywhere and build my business. My husband was in the middle of a career transition, so he had flexibility too. There was nothing forcing us to stay abroad.

And the numbers didn’t make sense either. A nanny in Switzerland cost between 5,000 and 6,000 francs a month, sometimes more. That’s more than R100’000 a month. As an early-stage founder, that put enormous pressure on my business to justify the cost of childcare before it had even found its feet. I had Frank in kindergarten costing 3’000 francs (R60’000) a month, but two kids in kindergarten gets expensive fast - and I definitely wanted more kids.

And in Switzerland, kindergarten meant leaving Frank with very young girls who didn’t have children of their own and who I could barely communicate with. I never felt at peace leaving him there. Now, looking back, I realise how different it feels dropping him off at kindergarten in South Africa: people who speak our language, who share our values, who have kids of their own, and who genuinely care for these kids.

I think we really underestimate the quality of life South Africa offers. It’s affordable to test and try things. You can get amazing people to help and support your household (which is crucial as a mom) while working on your business. There’s incredible talent available at a fraction of the cost. And if you build something that sells to people who earn dollars, euros or pounds, you can build a genuinely lucrative life without ever leaving.

What the passport queue made me see

That woman was right that I needed to be strong. But being strong didn’t have to mean leaving home. It meant being honest about what I actually wanted.

I needed support to raise Frank while building a business. I didn’t want to be so far from my parents. I honestly didn’t know how I’d survive in Zurich without a community around me. Even the women fussing over Frank at Dis-Chem broke my heart a little, because I didn’t have that warmth in Switzerland.

So I did the maths. If I’m lucky, I might have 15 to 20 healthy years left with my parents, years where they can still play with the kids and really be present. See them twice a year, and that’s maybe 30 visits in total. See them once a year, from another continent, and that number gets a lot smaller and it starts to become really scary.

I decided I wanted to see them four times a year instead of once. I decided I never wanted to leave again without knowing when I’d see them next.

Two years later

I’ve come to peace with the fact that I probably sacrificed a very good life abroad. A high earning potential, a high net worth, the kind of trajectory that career would have given me. And I’m okay with that, because I wanted more than good money. I wanted a good quality of life. My own business. More freedom.

I’m not sitting in traffic. I’m not commuting to a job full of meetings. I’m doing something creative that has a real impact on people’s lives. I can walk Frank to school every single day. I’m not wearing golden handcuffs in a corporate role I can’t walk away from because I have mortgage and school fees that need the corporate salary.

I’m starting to appreciate the “finer things”, the ones that actually make life worth living, on my own terms. My head used to tell me I needed to go back. Now my heart just tells me I’m home.

This past weekend, the four of us flew to Johannesburg to surprise my mom for her 60th birthday. Her only wish was to see her grandkids. And my heart is full knowing that’s a possibility and we could make it come true.

I know there are many expats reading this and wondering if they could make it work for themselves too. I need to acknowledge that this is not the right answer for everyone. And that’s the problem with a hard choice like this where your head and your heart don’t agree. It’s not black and white. It’s only grey. And you’re choosing the shade of grey you can live with. It’s not a choice someone else can make for us.

But I can suggest this: Write down what your ideal life looks like: where do you live, what does your day look like, how much time do you have with your kids? And then work towards a life where you can make this happen. It took us 5 years to get there. It’s not overnight, but you’ll need to make conscious choices - it won’t happen by chance.

Half the net worth?

The funny thing is, since starting my business, I have earned more (take home) than I have made in any of my roles before. But we made this choice, and accepted we might not reach the net worth potential we had in Switzerland.

Ironically, it seems not only will our net worth be better off, but our quality of life has skyrocketed. We made this move with so much fear and uncertainty, and I don’t want to jinx it, but it looks like it’s paying off. I’m just holding on for the wild ride.

It’s one of the most widely accepted ideas in investing. I’ve discussed variations of this concept on my social channels before, and if you’ve spent any time reading about retirement planning, you’ve almost certainly come across it.

But a new research paper published in 2025 is challenging that conventional wisdom in a way that has sparked significant debate among academics, financial planners, and investment professionals.

The Research That Challenges Conventional Wisdom

The paper, titled “Beyond the Status Quo: A Critical Assessment of Life-Cycle Investment Advice”, analysed investment returns across 39 countries between 1890 and 2023. In total, the researchers examined roughly 2,600 years of combined market history. Their goal was to test whether the retirement investing advice that has become standard practice actually leads to the best long-term outcomes.

The conclusions were surprising.

According to the study, two of the most common pieces of retirement advice might not actually be optimal:

1. Diversifying between stocks and bonds

2. Reducing stock exposure as you age

Instead, the researchers found that the highest probability of achieving retirement success came from maintaining a portfolio invested entirely in shares throughout an investor’s lifetime.

That means no gradual shift toward bonds. No increasingly conservative allocation in your 50s and 60s. Just a globally diversified stock portfolio from the beginning of your investing journey through to retirement.

The Importance of Global Diversification

It’s worth taking a closer look at what the researchers actually found because there is more to the study. It also emphasises global diversification.

The portfolio that consistently delivered the strongest results consisted of approximately one-third domestic shares and two-thirds international shares. No bonds and no cash, just globally diversified equities.

This finding stood out to me because one of the themes I talk about repeatedly is the importance of global diversification.

Many people suffer from what is known as home-country bias. We naturally feel more comfortable investing in the country where we live. South Africans tend to invest heavily in South Africa. Americans tend to invest heavily in the United States. And so on.

The problem is that most countries represent only a small portion of the global stock market. By concentrating too much of your wealth in one country, you’re potentially missing out on opportunities elsewhere AND increasing your exposure to country-specific risks.

What’s particularly interesting is that the researchers argue international diversification may provide much of the risk reduction that investors have historically looked for from bonds. In other words, spreading your investments across global markets may be more effective than combining domestic shares with bonds.

What Does This Mean for Investors?

One of the sections of the paper that really caught my attention looked at savings rates. The researchers compared how much investors would need to save depending on the type of portfolio they held.

Their findings suggested that someone invested in a globally diversified 100% stock portfolio (33% local and 67% international) with a 10% savings rate would’ve achieved similar retirement outcomes to someone invested in a more traditional 60% stock and 40% bond portfolio while saving closer to 16% of their income.

That’s a significant difference.

It means investors who followed a more conservative portfolio strategy had to save substantially more throughout their working lives to reach the same retirement outcome. Depending on your circumstances, an additional 6% of income could mean the difference between feeling financially stressed and having flexibility in your monthly budget. Or going on holiday to Mauritius.

Why Many Financial Planners Disagree

The study is far from consensus yet. And it makes sense to a degree.

Higher expected returns come with higher volatility. A portfolio invested entirely in stocks will experience larger swings in value than a portfolio that includes bonds. While historically, markets have recovered every time, living through those downturns is emotionally difficult. It’s one thing to understand market volatility in theory and another to watch your portfolio fall by 30% or 40% during a market crash.

This is one of the biggest criticisms of the study.

The challenge isn’t necessarily whether a 100% stock portfolio produces better outcomes on paper. The challenge is whether investors can stick with that strategy during periods of uncertainty. Behaviour matters a lot in investing, and a strategy only works if you can follow it consistently.

Want to Become a Smart Stock Market Investor?

I’m doing this again! You can join my upcoming free Investing Masterclass. I haven’t done a masterclass like this in a few months, so I’m super excited for it.

You’ll learn:

• How to become a DIY investor

• 3 Main drivers of wealth

• 5 Worst mistakes in wealth building

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Disclaimer:

All content I share is educational in nature and does not constitute financial advice. Any calculations or returns referenced are based on historical figures, future returns are not guaranteed. All information shared is market sensitive and subject to change as markets and economic conditions evolve. Personalised one-on-one advice is available exclusively to my Invest with Confidence Executive students through direct consultation calls. I am authorised to render financial services, including advice, under Wealth Office (Pty) Ltd, FSP 54904.https://www.moneywithcarla.com/terms

With most things in life, we’ve been conditioned to believe that success comes from doing more.

More research, effort, complexity, and more expensive experts to help.

And in many areas of life, that’s true.

If you want to become a doctor, lawyer, engineer, or athlete, you usually need years of specialised training and relentless effort to outperform the average person. In business, it’s the founder who stays up late and gets up early who makes it in the end.

So naturally, we assume investing works the same way.

We think successful investors must have secret strategies or complex systems. Or some kind of advanced knowledge that ordinary people don’t have access to. Smart investing is made to seem like a luxury experience that comes at a premium.

But the investing strategy I follow is incredibly counterintuitive. It’s one of the things my students (and especially my critics) struggle most to wrap their heads around.

Because in investing, doing less leads to better results the majority of the time. It almost feels too simple to be true. But the statistics speak for themselves.

Why We Struggle to Believe Simplicity Works

I think a lot of people feel it’s unrealistic that building wealth could actually be simple.

Surely it can’t just be:

• buying a few diversified ETFs (as little as ONE ETF in some cases),

• investing consistently every month,

• keeping fees low,

• waiting patiently for as long as you possibly can,

• and selling units to live off when you retire.

People think, “surely there has to be more to it” and then they end up chasing complexity.

They try to pick winning stocks, constantly switch strategies, use complex structures, multiple advisors and funds, and some even try to time the market. One of the worst ones for me: they pay high fees for active funds because they believe this will get them access to superior returns.

But in investing, complexity often creates worse outcomes.

The People Trying Hardest Often Underperform

If effort automatically led to better investment results, professional fund managers should absolutely dominate the market.

They have:

• finance degrees,

• teams of analysts,

• expensive software,

• access to company management,

• and entire careers dedicated to analysing investments.

Yet over a 20-year period, more than 90% of actively managed US large-cap funds underperformed the S&P 500.

The vast majority of professionals trying to beat the market fail to do so over the long term.

And investors usually pay higher fees for these underperforming funds. So people are often paying more money for worse results.

But the more passively you invest, the better you avoid poor human judgment. Emotional investing, bad timing, and trading mistakes.

It’s easy to look back and see what stocks were the best performers over the past decades. But trying to determine which stocks will return the most over the next few decades is nearly impossible, and in my opinion, just a gamble.

And I’m not willing to gamble my entire retirement fund on a prediction.

“Just Buy the Haystack”

Jack Bogle, the founder of Vanguard, explained this perfectly: “Don’t look for the needle in the haystack. Just buy the haystack.”

I love this quote because it explains index investing in such a simple way.

Trying to pick individual winning stocks is like searching for a needle in a haystack. But the best way to ensure you do get the needle is by just taking the entire haystack. Buying a diverse index fund means buying the haystack instead of trying to find the needle.

Historically, this strategy has beaten the majority of active investors over long periods.

From 1990 to 2020, around 64,000 global stocks existed. Only about 2.4% of them accounted for almost all global wealth creation. So when people try to pick stocks, they are trying to identify the fraction of companies that will massively outperform in the future.

That’s incredibly difficult to do consistently. Markets rely on so many different uncontrollable variables, that it really is impossible to predict exactly what will happen in them.

When you own a basket of stocks through an index fund, you automatically own the winners too. You stop trying to outsmart the market and simply participate in long-term economic growth.

If you want to see me explain this in more depth, watch this YouTube video on the same topic.

Buffett’s Bet

In 2007, Warren Buffett made a famous $1million bet. He claimed that a simple low-cost S&P 500 index fund would outperform a collection of hedge funds over 10 years. Only one firm accepted the challenge.

After the 10 years ended:

• The S&P 500 index fund returned 126%

• The hedge fund portfolio returned only 36%

Not a single hedge fund beat the index.

This period included the 2008 financial crisis, one of the worst market crashes in recent history. And part of actively managed funds’ claim to fame is that they can protect you against market downturns and volatility.

Warren Buffett has access to the best investment minds in the world. He could invest anywhere, in anything, with the highest fees and smartest managers if he wanted to.

Yet he still plans to leave 90% of his wife’s inheritance in an index fund.

Investors are catching up to the fact that passive investing is superior, and we can see it by how money has been flowing out of active funds and into passive funds in recent years.

Flashy Doesn’t Necessarily Mean Winning

Index investing is not flashy. But historically, it has been one of the simplest and most effective ways to build long-term wealth.

The irony is that many people spend years trying to outperform the market, only to realise later they would have been better off simply owning the market all along.

Passive investing challenges our instincts a bit but the data has proven that boring works in this case.

But that also means smart investing is accessible to anyone, not just people with lots of money to pay high fees or those who analyse technicals and market sentiment all day.

Passive investing opens the doors or wealth building to everyone who is willing to spend some time to learn about it once.

If you want to hear more of my thoughts on index investing, watch this YouTube video.

Disclaimer:

All content I share is educational in nature and does not constitute financial advice. Any calculations or returns referenced are based on historical figures, future returns are not guaranteed. All information shared is market sensitive and subject to change as markets and economic conditions evolve. Personalised one-on-one advice is available exclusively to my Invest with Confidence Executive students through direct consultation calls. I am authorised to render financial services, including advice, under Wealth Office (Pty) Ltd, FSP 54904.https://www.moneywithcarla.com/terms

Focusing on the wrong things can lead to mistakes. And some of these mistakes can have serious long-term consequences.

In this blog, I want to walk you through 10 mistakes to avoid. These are things that are within your control, unlike stock market performance. And if you want to evaluate how you are doing financially, you can try out my free Wealth Score Quiz.

1. Not Investing in Yourself

Your biggest asset in your 20s, 30s, and even 40s is not your investment portfolio. It is your ability to earn. Your human capital.

Yet so many people stop learning once they are out of university or school. Upskilling yourself is one of the best things you can do to earn more money in future. This extra education doesn’t have to be a formal degree from a fancy institution. It can be as simple as spending time on YouTube or online courses to become more knowledgeable on a valuable topic.

Hint: AI upskilling is probably where you should be looking at the moment.

I am not saying education will solve everything. But studies show a clear link between income and level of education on average. Finding ways to increase your earning potential means you also increase your future investing potential and therefore your wealth.

2. Not Allocating Enough to Your Future

Earning more money as you gain more experience and knowledge is important. But converting that income into future cash flow is just as important.

Many people increase their lifestyle as their income grows. And then they end up no better off financially. Compounding can only work on money you don’t spend.

A common benchmark is investing around 20% of your income towards retirement. This includes both personal and employer contributions. But it depends heavily on your age when you start.

If you start later, the required savings rate increases quickly. Starting in your 40s could require saving around 30% of your income. Starting in your 50s could require closer to 50%.

3. Not Having Clear Financial Goals

If I asked you to list your financial goals, could you actually write them down and put numbers to them?

If you do not know what you are working towards, it becomes very easy to make poor financial decisions. Everything feels urgent (or nothing feels urgent enough), and you lose direction.

Once you have clear financial goals (e.g. a financial freedom number or reducing your work hours), you can evaluate every financial decision with the question, “Does this align with what I actually value?”

Research by PWL Capital shows that when presented with a list of potential goals under different categories, people tend to find it easier to set goals.

Categories like freedom, growth, security, enjoyment, and generosity are a starting point.

Here is a list showing the most popular goals chosen by a group questioned.

I find it interesting that being financially independent, where work is optional, is the top goal.

4. Lifestyle Inflation and Keeping Up With the Joneses

This one is very real. Once you are surrounded by people with nicer cars, houses, clothes, or holidays, it is easy to feel like you are falling short. There will always be someone who has something nicer than you. That is just reality.

But constantly upgrading your lifestyle can destroy your ability to build wealth, even though you look wealthier from the outside.

Real luxury is not a car or a designer handbag. Wealth is what you don’t see, like having control over how you spend your time. And not having the stress of a car payment hanging over you because you were embarrassed of your second-hand Yaris.

5. Not Taking Enough Risk

Putting money in a savings account alone is not enough to build long-term wealth. It doesn’t expose you to enough healthy risk, and in many cases, after tax, savings accounts do not even keep up with inflation.

Taking smart risk is necessary if you want to build wealth that lasts. Volatility is the price you pay for higher returns, so personally, I’m not avoiding it at all.

And by risk, I don’t mean gambling or day trading. I mean investing in a diversified portfolio, like a low-cost index fund that tracks the global market.

Capital is at risk in the stock market, but historically speaking, the longer you stay invested, the lower your chances of losing money. We are opening the waitlist for my investing course, in case you want to learn more about this, join the waitlist here.

6. Falling for Get Rich Quick Schemes

There are always new ways being marketed as the fastest way to build wealth.

If something sounds too good to be true, it is. Real wealth is built consistently over time. It takes time, and it’s boring. Not overnight by your uncle’s friend who can “invest” your money in something you’re not even sure exists. Nothing is going to make a quick buck.

I stick to proven methods that work, and I know that wealth can’t be built overnight by some magic investment. I’m in this for the long haul.

7. Paying High Investment Fees

I like to think of investments as a forest.

Over time, your trees grow and produce seeds. Those seeds grow into more trees, and your forest expands exponentially.

Now imagine someone comes in every year and cuts off a branch of each tree. That is exactly what fees do.

Even a 1% fee can reduce your final investment value significantly over time.

Higher fees can mean losing 30 - 50% of your potential returns - refer to the chart below. That is not a small difference!

8. Paying Too Much Tax

This is another way to cut off a branch from your wealth tree every year: giving it to the tax man. Unfortunately we cannot avoid tax completely. But you can be more efficient with how you invest.

Capital growth is often taxed more favorably than regular income, which is taxed annually.

In simple terms, income gets taxed every year. In most cases, capital growth gets taxed only when you sell the investment, and often at lower rates.

Using tax-efficient accounts, like a tax-free savings account in South Africa, can make a big difference to your wealth over time. Many countries offer similar structures, like an ISA in the UK or Pillar 3a in Switzerland.

9. Ignoring Financial Security

Financial security is not just about investing until you reach a nice-looking number in terms of net worth. It is about having a safety net for when life happens.

Not having an emergency fund or the right insurance can put you in a difficult position when something unexpected happens.

You never want to be forced to sell investments at a loss or take on debt because you were not prepared.

Insurance can feel frustrating because it has a negative expected return. But in certain cases, it’s worth considering if it protects you against events that can ruin you or your family financially.

Your emergency fund should be 3-6 months’ worth of essential living costs, and if you’re in an unstable career or you’re an entrepreneur, you could even go up to a year.

10. Not Having a Will

Not having a will can create a lot of stress for your family if you pass away.

If you do not have a will, your assets may be distributed according to default rules, which might not align with your wishes. A government entity could manage your kids’ inheritance while they are underage, and the whole process of handling your estate could be stretched out unnecessarily. Guardianship over your kids could also be assigned by the state.

Having a will and a clear list of your assets, accounts and contact persons at the institutions makes things much easier for the people you leave behind one day.

Wealth is not built or broken by one big decision. It is the small decisions that compound over time.

But there are a few mistakes that can have a massive impact if left unchecked. The good news is that these are all things you can control.

If you want to see how you are doing across different areas of your finances, you can take my free Wealth Score Quiz.

Yes, I know my parents don’t look (almost) 60. They had my sister and me quite young. The days before Netflix 🙂

The reality is that most people do not have a plan for retirement at all. Like one set of my grandparents - they were not prepared at all for retirement and now rely on their kids to fund their retirement. The problem with this is they would need to ask for funding from their kids if they wanted to go on holiday or visit family abroad. They don’t have the freedom to just choose to go.

This is not retirement on their terms, and I want a better retirement for you.

I’ve seen many people not realise how far off they are with how much they’ll need for retirement and end up going into retirement with a false sense of security. Or a massive amount of stress. Instead of guessing or avoiding it, you need something simple and realistic that you can follow.

What the SAFE Framework Looks Like

SAFE stands for Stabilise, Assess, Fit your lifestyle, and Exposure to risk. It is meant to help you build a plan that reflects your real situation and give you clarity.

If you need help applying this step-by-step to your own finances, I teach everything you need to know about money planning inside my Money Game Plan program. It takes these concepts and turns them into a clear, practical system that is unique to your circumstances, values and goals.

1. Stabilise: Build Your Foundation First

Before you think about investing or retirement planning, you need to stabilise your financial situation.

Start with your debt. List everything from the highest interest rate to the lowest. Continue making minimum payments on all of them, but focus your extra effort on clearing the “most expensive” debt first.

Most expensive = highest interest rate, NOT highest monthly instalment. High-interest debt works against you faster than investments can work for you, which makes this step critical.

While you’re earning an income, it’s critical to pay off debt. You need to reduce that burden while your income is still supporting you.

The second part of stabilising is building an emergency fund. As your earning capacity or time left to earn an income reduces, your ability to recover from financial setbacks decreases. This is why having three to six months of living expenses set aside is essential.

Depending on your risk tolerance and financial responsibility (e.g. do you still have kids dependent on you, or do you have multiple properties), you could consider an even higher amount in your emergency fund.

This money should be easy to access and kept separate from your daily spending. A high-interest savings account works well for this. Avoid locking it away in something like a fixed deposit where you cannot access it when you actually need it.

Actual steps to take today:

1. Write down how much you’re committing to high-interest debt every month

2. Calculate how long it will take you to pay it off

3. Calculate how much you need in your emergency fund, compared to how much you have

4. See much you need to add to that every month to build up to the sufficient level

2. Assess: Get Clear on Where You Are

You cannot build a financial plan if you do not know your starting point.

First, understand what you already have. This includes your home, pension funds, and any investments. Do this with your partner if you have one.

For each asset you own, you should have a rough idea of the expected return and the level of risk involved. It does not have to be complex.

Look at:

• What has the return been per year over the last 5 years? On investment reports you should be able to easily see this. Look at “since inception” returns to get a long-term view of returns.

• Risk can be looked at from an equity and bond split for stock market investments. Look at the fund fact sheet for the fund you are invested in, it will be disclosed there.

• For property investments, get clear on how much is coming in versus going out. Very very few people actually know this. They just look at rental income but ignore ongoing costs and also related taxes. Keep a clear P&L of your property investments because if it’s just costing you money you need to know to make informed choices for the long term.

Knowing your exposure to different asset classes is important. Another mistake I see people make is only looking at their stock market investments in isolation and not considering the amount that they hold in cash, fixed deposits, or in property investments. Having an overview of your overall asset allocation is important to understand your full risk exposure.

Then consider if the split is appropriate for your age. A simple rule of thumb you can use is 110 minus your age to estimate how much you might allocate to equities. If you are 50, that would mean roughly 60 percent in higher-risk, growth-focused investments.

Even at that age, your money may still need to last another 30 to 40 years, so growth remains important. Although this does not give you the full picture, you would also need to consider risk tolerance but it remains a good starting point.

The next step is to understand what you will need in the future. The only practical way to do this is to look at your current spending and estimate what that would look like in retirement. This exercise gives you clarity and often highlights a gap between where you are and where you need to be.

Calculating your future spending needs would also involve looking at a replacement rate during retirement (eg 70%) because realistically, you won’t be spending as much as you are now and research also shows that spending decreases slightly in retirement even after accounting for inflation.

The final part of this step is assessing your reliance on other income sources. Many people depend heavily on employer pensions, government support, or even their children. This approach is risky and often unrealistic. Yes, employer pension is included too. I have seen too many people not having nearly sufficient funds in their employer pension to afford them a decent retirement.

Inside the Money Game Plan, this is exactly where we go deeper and help you calculate these numbers properly with step by step guidance and demo videos so you can make informed decisions.

3. Fit Your Lifestyle

This is the part that most people avoid, but it is often the most important. If the gap between what you have and what you need is too large, you may need to adjust your lifestyle.

For many people, especially those starting later, this is simply the reality. It is not a failure. It is a necessary adjustment to create a better outcome later.

The trade-off is simple (in theory). You can spend more now and have less available to spend in retirement , or you can spend less now and have more in retirement. This is where balance comes in.

I also get comments on my social media, like on this Instagram video about spending money and enjoying life because “what if you die” and take money to the grave with you instead of enjoying it.

Well, statistics are not in favour of this argument. You will most likely live longer than your parents, and you will likely need the money that you’re spending on luxuries now, in retirement. And the younger you start investing, the more time you have for it to compound.

So a YOLO mindset is not going to help you retire. Yes, enjoy your money now, but do it with balance and responsibly because, if you don’t you’re going to rely on your kids, or the government to fund your hiking gear or your flights to your grandkids when you retire. Maybe your kids will pay for that, but the government grants will not.

A better way to think about this is that you are choosing between voluntary restraint now or forced restraint later. If you do not make adjustments today, those adjustments will be made for you in retirement, often in a much more uncomfortable way.

Reducing your expenses might involve downsizing your home, selling a second car, or moving to a more affordable area. It might also mean being more intentional about your monthly spending. These changes are not easy, but they can make a significant difference.

It is also important to think about income. There is a limit to how much you can reduce your expenses, so increasing income becomes an important part of the equation.

This could include renting out a room, using a space in your home for Airbnb, or offering freelance services based on your skills. It could also mean offering childcare or cooking services for people in your area - let me tell you, it’s something I would be willing to pay a pensioner for. Especially for people without family closeby, this is very valuable.

Additional income streams not only improve your financial position but can also provide purpose and mental engagement during retirement, which I start to value more and more as I see family members getting older. More on mental preparation later…

4. Exposure: Be Smart About Risk

As you approach retirement, your investment strategy needs to evolve. You can’t maintain the same level of risk indefinitely, but you also cannot eliminate risk completely.

The goal is to find the right balance. Too much risk can expose you to large losses at the wrong time, while too little risk may cause insufficient growth.

One useful approach is to think about your investments in two parts. The first is the money you need to support your retirement. This portion should be more stable and focused on protecting your ability to draw an income.

The second part is money that you plan to leave behind, such as an inheritance. This portion can take on more risk because it has a longer time horizon. It is not needed immediately and can continue to grow over time.

This approach allows you to balance security and growth more effectively. But you still need to prioritise your own financial needs before planning for others.

For your mind:

If there is something you should spend time and money on before you retire, it’s to develop hobbies that you can do in retirement and to find a cause (or business) that will keep you occupied.

Please don’t become addicted to your phone! It just feeds you information and does not require you to solve problems or think critically, which are things you need daily exposure to in order to stay alert and mentally sound into your old age.

This is not a medical opinion, it is just something I have seen with my own parents. They work out and live a balanced lifestyle, which makes them so much more independent than other people their age. Please exercise daily, and do weight lifting too - there is enough evidence to show it’s not only physically beneficial but mentally too. Taking this seriously will ensure you can have a healthy mind and body in retirement, not only healthy finances.

Bringing It All Together

Preparing for retirement is about taking control and making informed decisions based on your reality so that you can still have a secure retirement.

Many people feel like they are starting too late, but delaying action only makes things more difficult. Taking intentional steps today is far more valuable than waiting for the perfect time. Small steps are better than staying stuck and not doing anything.

If you want help turning this into a clear and personalised plan, that is exactly what I walk you through inside the Money Game Plan program. It is designed to help you understand your numbers, build a realistic strategy, and take action with confidence.

It doesn’t generate income, it doesn’t compound in the way stocks or businesses do, and in many cases, it limits your ability to build real, long-term wealth in other ways. And since a house isn’t a great financial investment, it’s very possible to overspend on it.

Let me show you exactly how this happens, and more importantly, the simple rule you can use to avoid becoming “house-poor”.

What It Looks Like To Be House Poor

A while ago, I spoke to a 55-year-old man in South Africa who had, on paper, done everything right. He had worked at the same company for 25 years, paid off his house in full, and built up an employer pension over time. This is the textbook “smart finance choices”.

Then I ran some numbers, and the reality looked very different. Looking at the pension payments he expects from his employer, once he retires, his pension will cover his home’s rates, taxes, levies, and his medical aid. But after covering that, he will be left with only R2,000 per month - for everything else: food, transport, and basic living expenses.

How does it happen that you follow all the textbook advice: Pay off your house ASAP, max out your employer pension, work for 40 years, and still cannot afford to retire? Seeing people in survival mode like this in retirement breaks my heart.

This is what being “house-poor” looks like, and the scariest part is that you usually only realise you are in this position when it is too late to fix it. In his case, selling the property is an option, but it has not accrued significant value, and after buying something smaller, what’s left would not even fund 2 years of retirement. He also realised too late that relying solely on your employer’s pension to retire is NOT feasible.

The Biggest Mistake People Make

Most people approach buying a house by browsing properties online, speaking to an agent, and then checking what the bank will approve. From there, they assume that if the bank approves a certain amount, they can afford it.

But the problem with accepting the bank’s guidance as your house budget is:

• Affordability is, in most cases, based on your income, less other debt commitments.

• They make money from giving you a loan, so maximum amounts (within limits) are good for their profits.

• They will limit the amount they lend to protect themselves and cover their risks, but they don’t care whether you have enough left to invest for your retirement after paying your mortgage.

• They also don’t care if you have not saved anything for retirement and actually need to be catching up on that instead of buying a big house.

Their business model is to lend you money, earn interest, and manage their risk, which means they will generally lend you as much as they reasonably believe you can repay. The house they say you can afford is designed to work for them, and in many cases, it does not work for you.

Never make a mistake like this again

Let’s Break This Down With Real Numbers

If you earn R50,000 per month before tax, your take-home pay will be roughly R38,000 after tax, depending on your specific situation.

A bank might approve you for a bond repayment of around R15,000 per month, which is about 30% of your gross income, and this would allow you to buy a house worth roughly R1.5 million. I can hear the Capetonians say: “Where do you see anything for that price?” But this is about the principle, so bear with me.

At first, that might feel reasonable, and it is exactly where most people stop their calculation. And they start browsing Property24 in this range. Most people don’t realize that their bond is only the base cost.

In addition to your monthly mortgage payments, you need to consider rates and taxes, levies (if applicable), insurance, and ongoing maintenance and repairs, all of which are real costs that come with owning a property. These are called irrecoverable costs, which means you won’t get them back once you sell the property.

A conservative estimate of these additional costs is about 2% of the property value per year, which, in this case, amounts to roughly R2,500 per month. It could easily be higher.

That means your total housing cost is closer to R17,500 per month.

Now compare that to your take-home pay of R38,000.

You are spending around 46% of your income on housing alone, which means almost half your salary is already committed before you even think about investing, saving, or handling unexpected expenses. Never mind enjoying your life!

This is how people end up feeling financially stretched, and having no path to building up a retirement pot.

The 30% Rule (That Actually Works)

Instead of asking what the bank is willing to give you, a much better starting point is to ask what you can sustainably afford, while also being able to invest for your future self..

This is where the 30% Rule comes in.

The idea is simple. You should spend no more than 30% of your after-tax income on your total housing costs, not just your bond repayment. If we apply this to the same example, your after-tax income is R38,000, which means 30% gives you a maximum housing budget of R11,400 per month.

This amount needs to cover everything, including your bond, rates, insurance, and maintenance. Realistically, this would mean a bond repayment of around R9,500 to R10,000 if we include a 2% additional cost per year, which translates to a house price closer to R1 million (rather than R1.5 million). So ⅓ less than what the bank will lend you.

Yes, it might be 30% smaller, but the difference it makes to your financial life is significant. It gives you breathing room, allows you to invest consistently, reduces financial stress, and most importantly, gives your future self options.

Smaller House = Better Retirement

If you go with the R1 million home instead of stretching to R1.5 million, you free up roughly R5,000 per month. Over time, especially if you invest that money consistently, it can compound significantly to give you a big extra chunk of money for retirement.

Your house does not do that.

“But Property Always Goes Up… Right?”

This is one of the most common assumptions people rely on when justifying stretching their budget for a house.

The idea is that even if it feels expensive now, the property will increase in value, and it will all work out in the end. Some people even rely on a property to provide them with retirement funds, as they hope to sell it one day and live off the proceeds.

The problem is that property growth is influenced by many factors that are extremely difficult to predict over long periods of time. Things like the quality of the municipality, infrastructure development, school zones, economic conditions, and even safety in the area all play a role.

I have not heard of one success story of someone using their home to fund their retirement. I have many, too many, real stories of houses being sold off in retirement for much less than they expected, and after buying a new property to retire in, not nearly having sufficient funds. Then they become dependent on family members or kids.

If you know of someone who successfully retired this way, realise it’s an outlier rather than the norm. Basing your financial decisions on outliers is extremely risky.

The Upgrade Treadmill

There is also a behavioural side to this that often gets overlooked. When people buy a bigger house, the spending does not stop at the purchase price.

A bigger home often leads to needing more furniture, new furniture triggers the need to upgrade existing furniture, buying new appliances, investing in the garden, or even adding features like a pool or entertainment area. Your lifestyle expands to match the space.

You easily spend much more than just the higher mortgage payment. Believe me, I know. What started with a “just a fresh paint job” for our new house ended with a new garden, renovating the kitchen, new furniture, art to match the new decor, etc.

But Wealthy People Always Own Their Homes

We often associate wealth with visible things like a big house or a luxury lifestyle, but that is not what real wealth looks like. Real wealth is having freedom, flexibility, low stress, and the ability to make choices without being financially constrained.

Measurable wealth is in your investment account, and no one drives around in their investment account, so you might have confused what wealth looks like.

Wealthy people do own homes, but their homes typically make up a much smaller portion of their overall net worth. For many, it is around 10-20%. For very wealthy individuals, it is easily less than 1% of their net worth.

They are not relying on one asset to carry their entire financial future.

If You Take One Thing From This

The bank does not know how much you can afford in a way that protects your future. It only knows how much it is willing to lend you while still making a profit and managing its risk.

You need to decide your limits before you start looking at properties, it is very easy to be pulled into a decision that looks fine today but creates pressure later.

Get a Game Plan for decisions like this

Want to Avoid This Mistake Completely?

If this has made you rethink how you approach buying a house or making other big financial decisions, that is a very good place to start. Because buying a house is just one piece of a much bigger puzzle.

The real goal is to build a financial plan where your spending, investing, and long-term goals all work together.

That is exactly what I teach inside my Money Game Plan Program, where I break down how to structure your finances, how to plan for investing in a way that actually builds wealth, and how to avoid the most common traps that keep people stuck. 17 lessons and one tool to bring all your goals and monthly commitments together.

You can join the program here:

Join Today

Think About This

You can choose a bigger house today, or a stronger financial future over time.

For most people, trying to maximise both at the same time creates trade-offs that are not always obvious in the beginning.

The goal is not necessarily to avoid buying a house entirely, but to make sure that your house does not become the thing that limits everything else in your financial life.

Disclaimer:

All content I share is educational in nature and does not constitute financial advice. Any calculations or returns referenced are based on historical figures, future returns are not guaranteed. All information shared is market sensitive and subject to change as markets and economic conditions evolve. Personalised one-on-one advice is available exclusively to my Invest with Confidence Executive students through direct consultation calls. I am authorised to render financial services, including advice, under Wealth Office (Pty) Ltd, FSP 54904. https://www.moneywithcarla.com/terms

He complimented my content, but said I should be careful telling people that investing is better than paying off your mortgage. “Because the average person sees their investments as accessible. They will withdraw it when they want to buy a new car or upgrade their house, whereas money paid towards their mortgage is not seen as off-limits”.

This is a valid point - but I think that type of poor decision making is a lack of education, and I would rather you have all the facts and considerations on the table to decide for yourself which route you choose.

So here goes:

One of the most important cash flow decisions homeowners are faced with is either adding extra money to their mortgage or their investments. For example, when you’re in a position to make additional monthly mortgage contributions, get paid a bonus, inherit money, or sell something like a property or a car.

Should you put the extra money towards your primary residence’s mortgage or towards your investments? This obviously is in addition to the minimum mortgage payments.

When deciding what to do with extra money, there are two elements to consider:

1. The psychological burden of debt

2. The numbers

Let’s talk numbers first.

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Understanding Mortgages and Amortization Tables

If you borrow money from the bank to buy a house, you will repay a mortgage over time, and you will be charged interest on the borrowed money. This is one way banks earn profit.

If you:

• buy a R3 million house

• with a 10% deposit

• take a 20-year mortgage

• and assume a 10% interest,

your monthly repayments will be R26k.

After 20 years:

• Total payments to the bank: R6.2 million

• Total interest paid: R3.5 million - more than the cost of the house!

Over the mortgage period, a fancy table is used to track the principal loan balance outstanding and the interest paid. This is called an amortization schedule.

Even though monthly mortgage repayments are fixed, interest is calculated based on the principal balance outstanding.

In month 1, when your outstanding loan amount is the highest, a R26’000 payment will be broken down as follows:

• Interest paid to the bank: R22’500

• Principal loan amount reduced: R3’500

So even though you have paid R26’000, your loan amount has only been reduced by R3’500. That’s 86% of your payment just going to the bank as interest, and not reducing your outstanding loan.

The blue and red splits of this chart show how each payment over the 20 years is split between interest (blue) and principal (red). As the mortgage balance decreases, the interest component of each payment decreases too, and a bigger portion of each payment goes toward paying off the outstanding balance on the loan.

Extra cash towards mortgage or investments?

If you’re faced with the decision to either invest extra cash or put it towards paying off a mortgage, a simple way to think of this is:

• What is the % annual interest I’m going to save by putting the money in my mortgage, versus

• What is the average annual return I expect (after tax) by rather investing in the stock market

This is simple “trade-off” or “opportunity cost” thinking.

Let’s look at the options:

1. Put R10’000 towards your mortgage

Say your mortgage interest rate is 10% per year. If you put R10’000 towards that, you save R1’000 of interest in the year (R10’000 x 10%).

Here you save R1’000.

2. Put R10’000 into an index ETF:

If you would rather put money towards your investments, the return assumption is very dependent on where you would invest. You could put it in a JSE-tracking ETF and might expect (based on average long-term past returns, but not guaranteed) a 12% return, which, after dividends tax, is around 11%. That’s R1’100 of returns. Capital growth will also be subject to capital gains tax when you sell the investment.

Here you expect to make R1’100.

3. Put R10’000 into your savings account.

R10’000 in a savings account earning 6-7% interest makes you R600-R700 per year. This is the worst option if you have a 10% mortgage, and it does not even consider the tax on interest.

So your two “best options” would be either putting money towards your mortgage or towards your investments. But there are two additional important considerations here:

• The compounding effect is different for the 2 options

• Stock market returns are not guaranteed, whereas the interest saved on a mortgage is. The risk profiles of each option are also different.

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Let’s take Stocks Suzy and Mortgage Molly

• Both bought a house for R3 million with a 10% deposit, on a 20-year mortgage with a 10% interest rate. The mortgage has minimum payments of R26’000 per month.

• Each has R10’000 extra to put towards their mortgage or investments every month.

• Suzy chooses to put extra money into her stock portfolio - we call her Stocks Suzy. So she pays R26’000 to her mortgage and R10’000 into her stock portfolio every month.

• Molly puts her extra cash towards her mortgage - we call her Mortgage Molly. Instead of paying R26’000 every month, she pays R26’000 plus R10’000 = R36’000 towards her mortgage every month.

After 10 years, Molly has paid off her mortgage due to the accelerated payments.

Suzy invested in an MSCI World ETF that tracks the global stock market, which we’re assuming has returned 12% net of dividends tax.

This is what their positions are after 10 years:

(assuming house value increases 5% per year)

Notice that even though Suzy still has R1.9million outstanding on her mortgage, her stock portfolio is worth R2.4 million.

Overall, her net worth exceeds Molly’s. But after 10 years, Molly now has the R36’000 cash that she put towards her mortgage available to put into her stock portfolio. And this is where the compounding impact becomes interesting.

After 20 years:

Both have paid off the house they bought for R3 million.

• Suzy made total payments of R6.2 million over 20 years.

• Molly made R4.2 million in total payments in the 10 years. Due to accelerated payments, she saved R2 million in interest by paying off early. And that R2 million she saved, she was able to invest in the stock market - but she started 10 years after Suzy.

• Suzy focused her extra efforts on the stock market instead, so even though she did not save that interest, she was able to build a stock portfolio early on.

This is their positions after 20 years:

Even though Molly was able to make almost double the contributions to her investment portfolio, at the end of 20 years, Suzy’s stock portfolio is still worth R1.2 million more.

This is the power of compounding. Because starting 10 years earlier is better than waiting 10 years and doubling contributions - crazy, right?

In year 20, their net worth will look like this:

Same house value at R7.9 million, Suzy’s stocks at R10.1 million and Molly’s stocks at 8.9mil. Suzy is R1.2mil ahead.

If contributions stop after year 20, this is their position in year 30.

Net worth after 30 years:

• Suzy: R45.7 million

• Molly: R41.8 million

Suzy had almost 4 million more in her investments.

If we assume both liquidate their investments and pay capital gains tax, Suzy will still have R2.8mil more.

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Different risk profiles

Comparing interest saved on a mortgage to potential returns to be made in the stock market is not comparing apples to apples, because they have different risk profiles.

One is guaranteed and the other is uncertain and volatile. The tax impact is also different.

Interest savings when putting money towards your mortgage is

• Risk-free: Guaranteed return

• Tax-free: you’re not going to pay tax on the “interest saving”

The stock market returns I quoted are a long-term average, but in reality, stock market returns are volatile, and they are not guaranteed. We also have no idea if future returns will look like the past.

This graphic below shows 57 years of returns of the JSE:

• 58% of the time, returns were higher than 10%,

• 42% of the time, they were higher than 20%.

• 21% of the time, the returns were negative.

If your goal was to earn more than 10% on your money, 58% of the time you would have been better off in the JSE than in your mortgage (before tax). If it were a year where the stock market returned more than 20%, you clearly would have been better off putting your money into a JSE index fund than into your mortgage. But you will only know that after the fact, not in advance.

So I want to take the outcome comparison one step further: “What if you choose the worst 20 years in the stock market to prioritize stocks over mortgage repayments?”

20-year rolling period comparison

The thing about stock market returns over the long term is that it becomes less volatile on average the longer you are invested for. The image below explains it well. Note these are returns for the S&P 500 in USD from 1950 to 2021 (71 years).

Focus on the green bar.

For the best one-year period during this time, the return was 47%, and the worst year was negative 39%. But moving to a 20-year period, it’s a 6% to 17% range for a rolling 20-year period. The volatility evens out the big swings the longer the timeline is.

Over a single year, returns can be extreme. The best 12-month return was +47%, and the worst was -39%. But when you stretch your timeline and look at rolling 20-year periods, you’re no longer measuring one lucky (or unlucky) year - you’re measuring the annualised return over 20 years, a long-term average. And that range is roughly 6% to 17% per year across different 20-year windows - not as extreme as one-year movements.

To use these returns in a projection, we’d need to consider what Rand returns looked like since the Rand lost value against the US Dollar over the last twenty years. On average it lost 5% per year, but I used 4% to be more conservative.

Best 20-years in the stock market

Let’s compare Suzy and Molly.

• Suzy favoured the stock market over her mortgage during the best 20 years in the stock market (lucky girl).

• Molly favoured her mortgage, which she paid off in 10 years.

If Suzy favoured stocks in the best 20-year rolling period? The outcome would look like this. After 20 years, she is 15mil better off, and extending it to 30 years? She is 106 million better off.

Worst 20 years in stocks.

What about the worst 20 years in the stock market? Surely Molly would be better off if Suzy’s timing was so unlucky that she favoured investing in stocks over paying off her mortgage for the worst 20 years in the stock market since 1950.

Their positions:

• After 20 years: Molly is 240k better off.

• After 30 years: Molly is 630k better off.

With both their net worth number being more than 20mil, a 630k difference is a very close outcome. And this was during the WORST time for stocks.

Also, remember that choosing the best or worst 20 years cannot be predicted in advance. It’s not like Suzy started the journey by telling Molly: “Ok go on Molly, you put your money towards your mortgage, I’m choosing stocks since the next 20 years will be the best for the stock market in history”. No one would be able to know that in advance..

We’re looking at the data retrospectively. The difference in the outcome between these two scenarios (best or worst time for stocks) would purely be luck of the draw in terms of when you chose to buy a house and what the 20-year returns that followed looked like in the stock market.

AND, this analysis assumes 2 things:

• A 100% stocks allocation, which, if you only bought a house at age 50 you would realistically not allocate 100% to stocks. Probably something more conservative between cash, stocks, and bonds.

• That Suzy will ACTUALLY INVEST the money in the stock market. If she spends it on cocktails and Zara shopping sprees, then paying off the mortgage early would clearly yield a better outcome because at least the 10k per month is going towards your net worth instead of being spent.

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So what to do?

Mortgage rates: lower versus higher

Depending on what your alternatives would be to “allocate your capital”, consider the percentage you could earn versus the percentage you could save.

The lower the interest on your mortgage is, say around 8%, the more likely you’d beto favour investing. Especially if interest rates come down, which it seems like is on the agenda of the South African Reserve Bank.

But only if you invest in something that will be worthwhile over 20 years. Not savings accounts and not high-fee/low-return investment products.

How many years left on mortgage versus time left to invest.

• The longer your time horizon, the better to invest. Clearly, closer to retirement, the focus would be to pay off the mortgage while you have a consistent income. Especially if the time left on the mortgage exceeds your working years left.

• Even though you can use the portfolio you build up to pay off the mortgage, if your timeline is shorter than 10 years, the volatility risk would be too high of having 10 bad years in the stock market. Although I’d still put something in stocks for diversification.

My opinion

I made an Instagram video on this, and the “peace-of-mind” peacekeepers came for me. There are some people who really want to focus on paying off their mortgage for “peace-of-mind”. Remember, if you build up a stock portfolio, you’d be able to pay off your mortgage with that too if you wish. (Assuming it’s not something like an RA which restricts withdrawals.)

• As a homeowner myself, I DEFINITELY put money towards stocks, and not all towards my mortgage. Your house should not be your retirement plan.

• Diversifying away from one asset gives me peace of mind.

• You shouldn’t rely the majority of your net worth on one asset, especially an asset which is also based in the country on which you rely for an income. That is a lot of concentrated risk in one economy.

To keep things simple, the projections are based on past returns which do not in any way guarantee the same outcomes in future.

Here’s a flow chart to help you make your decision:

If you found this interesting, forward it to a friend!

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This year’s update surprised even me. I made a few unexpected changes and shifted my overall risk profile quite a bit. In this blog, I want to walk you through the biggest changes to my portfolio, why I made them, and what goals I have for 2026.

Adjusting Our Risk Split

In 2024, 99% of my portfolio was in high-risk assets. That included stock market investments, business equity, and shares in private companies.

In 2025, that number dropped to 66%.

I have quite a high risk appetite, so why would I do this?

Because life changed. I bought a home. I’m pregnant. I’m building a business. And I’m doing all of this with my husband, who is also self-employed.

And even with my high-risk appetite, (relatively) young age, and financial background, I value peace of mind. So, we increased our emergency fund (cash held) and added a property (with a mortgage, of course).

More cash helps me sleep better at night, knowing that if the business does not perform well, I can easily cover payroll and pay myself a salary for at least 6 months. For me, that’s important in the early stages where revenue is not yet very predictable.

Buying a House

After moving around for a few years, we recently decided to buy a house. For us, this was a lifestyle decision, not an investment strategy. What does this mean? A house that you live in is NOT an investment; it’s a lifestyle asset. The house is not something that will help us retire one day.

You’ll know from my previous blogs that I am a pro-renter. And that in most situations, if you invest and rent, you’ll likely be better off than someone owning a property. So why did we buy? Our almost 3-year-old son will be going to his 4th pre-school this year. As parents, we adapt well to change, but he does not. We want somewhere to live that offers a secure base for our kids.

And let me tell you, I already miss renting. Now we have to pay for so many things that we never even thought of as renters. It is EXPENSIVE to own a house! But that’s another blog for later this year.

I feel like I have “upgraded” to adult life, because for the first time ever, my portfolio includes both property and a car. We have always lived and worked in places (London, Cambridge, Geneva, Zurich) where renting is the norm and public transportation is the way to go. I am not liking the extra costs that come with this new level of adult life, but I am embracing the season change.

My Investment Portfolio Got More Diversified

Besides for the extra cash, property and car, these changes also happened:

Stocks

My stock market investments grew by 49% in 2025.

I’m still heavily exposed to US stocks (S&P 500, Nasdaq, etc.), but I want to change that in 2026. My goal is to shift toward at least 20-30% non-US exposure. The US stock market has been dominant for a while, but it may not always be. And diversification is key to long-term resilience.

Investing for My Son

This year, I added two accounts for my son:

• A tax-smart investment account

• A dedicated education fund (so we don’t need to withdraw from the investment account too early)

Crypto

I re-entered the crypto market, buying some Bitcoin. It’s a small allocation of my portfolio, and it’s currently down. But I’m holding this for at least another 10 to 30 years, so I am not worried about the temporary slump.

Business Growth

My business is now in its second year, and this year was the first time we started generating real revenue. We’re a small team, and I am adding a key hire in 2026 - she starts in Feb.

While I don’t assign a valuation to my business in my net worth tracker, I do include cash retained.

Private Investments

Investments in private businesses (some of which haven’t changed in value yet)

These business assets now make up 22% of my portfolio.

If you want to use the same portfolio tracker I use, you can find it here.

What’s the lesson?

I’ve been adding to my networth, at least seriously, for about 8 years now. And I am amazed at the progress that happens over time. I don’t obsess about stock market movement; I keep my head down and stick to my plan. Time will do the compounding and heavy lifting for me.

What’s Next?

My goals for 2026:

• Add more non-US exposure to my investment portfolio (particularly non-US broad market ETFs)

• Budget for home renovations and stick to it

• Add two new income streams in my business (and hire two more team members)

• Prioritise time wealth. Because with a new baby arriving, I want more freedom and margin in my day-to-day life

It’s About More Than Money

While my net worth increased by 121% from 2024 to 2025, I don’t just want to chase the same outcome in 2026.

I especially want to find more balance in my life so that I have more free time and less stress.

Wealth is more than just numbers. It’s how you feel, how you spend your time, and the options you create for your future.

I also made a YouTube video discussing my portfolio update. You can watch it here.

In a best-case scenario, an individual might reach the end of their life with a large amount left - especially if the stock market performed well during their retirement period.

But if you live in South Africa, applying this rule could leave you in a bad position.

The background on the rule first

A 1994 study by William Bengen analysed US stock and bond returns since 1870 and withdrawal rates from investment portfolios over 75 years to determine how much someone could safely withdraw from their portfolio over a 30-year retirement.

But this was based on US data. US stocks and inflation numbers are vastly different from those in South Africa.

Why this matters

The US stock market has outperformed most of the world’s markets over the last century.

From 1900 to 2020, the US grew from 22% of global stock market capitalisation to over 60%.

That kind of growth cannot be extrapolated into the future. And basing global retirement rules on this one country’s success creates what researchers call success bias: looking only at the winners.

To combat this, Professor Wade Pfau conducted a 2020 study using 190 years of financial data across 17 countries, including South Africa, to assess whether the 4% rule is truly “safe” in global contexts.

Here’s what he did:

• He looked at rolling 30-year retirement periods in each country

• Tested fixed asset allocations based on perfect foresight - e.g. 50/50 stock/equity split will remain for the retirement period based on what the best outcome would have been for the 30-year timeline

• Assumed annual withdrawals adjusted for inflation from the prior year

• Measured the maximum sustainable withdrawal rate in each country; i.e. the rate at which you could safely withdraw money for 30 years without running out in any 30-year period

And here’s what he found:

• The 4% rule only worked in 4 of the 17 countries tested

• South Africa’s safe maximum withdrawal rate was 3.84%

• South Africa’s equity allocation based on perfect foresight was 100%. This was only the case in three of the 17 countries.

Just to clear up “perfect foresight”:

This 3.84% assumes perfect foresight. Meaning the retiree magically knew the best asset allocation for the next 30 years (which is impossible in real life). But the aim of the study was to debunk the applicability of the 4% rule in other countries - even in a perfect foresight scenario.

Here are the SAFEMAX withdrawal rates in other countries studied:

So what does this mean?

Not only is the widely used 4% rule not safe in most countries, but in South Africa, you’d need a 100% stock portfolio for 3.84% to have worked.

And if you’re retiring through Regulation 28-compliant products (like retirement annuities), you can’t even legally hold 100% equities. You’re capped at 75%.

So if you’re basing your retirement number on the 4% rule in South Africa, you’re potentially planning for a best-case scenario that isn’t even allowed.

A SA Retirement Forecast

Let’s say you’re 30 years old and your household spending is R50,000 a month. If you want to retire at 65, and we assume 5.5% average inflation, by retirement you’ll be spending R325,000 a month just to maintain your current lifestyle.

If you apply the 4% rule, which is a 25x multiple on annual spending:

R325,000 x (12 x 25) = R97.5 million

That’s what your retirement portfolio would need to be, assuming you’ll be spending at the same rate in retirement as you do now. If you apply an 80% haircut since you expect to spend less, you’ll need R78 million.

If we apply the 3.84% rule (based on South African data), your multiplier becomes 26 instead of 25.

R325,000 x (12 x 26) = R101 million

And remember, this doesn’t include taxes or fees.

If you’re paying high fees, that withdrawal rate drops by a further 0.60%, which would push your target retirement number to over R120 million.

That’s a R19 million difference just because of fees.

If you want to see my full explanation of this, watch the YouTube video.

The Solution

You need to remember that a one-size-fits-all approach to retirement does not exist.

I created a free Financial Freedom Calculator to help you calculate “your number”, with the freedom to adjust it for your country, spending, investment growth, inflation, etc.

You can download it for free and it has an accompanying tutorial video. It’s a powerful way to take back control and personalise your retirement plan.

And when any asset performs like that, it naturally grabs attention. You might be wondering: Have I been missing out? Should I buy now? Is it time to include gold in my investment portfolio?

Before you rush into anything, let’s see why gold is booming, how it compares to other assets like stocks and Bitcoin, and whether it actually deserves a spot in your long-term portfolio.

What’s Actually Driving Gold’s Big Rally?

Gold has long been known as a “safe haven” asset. This theory holds up in some periods. Between 2000 and 2010, for instance, the S&P 500 wasn’t doing too wonderfully due to the dot-com crash (2000) and the global financial crisis (2008). But gold actually performed strongly.

You can see this from the chart below: Why gold has a strong reputation as a counter-cyclical asset. This means its price tends to perform well and often rise during economic downturns, recessions, and periods of market volatility and uncertainty, when other assets like stocks

may be struggling.

Weirdly, right now, gold and the stock market are both at all-time highs. That’s not what you’d expect from assets that usually move in opposite directions.

So what’s the real driver behind all this growth?

Liquidity, Not Fear

An interesting explanation comes from this article in The Financial Times. Gold isn’t booming because of fear, but rather because of how much money is floating around the global economy.

This liquidity surge started during the pandemic when governments injected trillions into their economies through stimulus measures and quantitative easing. That money didn’t disappear, though. It’s still circulating, and more is being added. The U.S. alone has over $7 trillion sitting in money market funds, which is $1.5 trillion above the long-term trend.

And the liquidity (money pumped into the economy) is not expected to dry up anytime soon since the Fed recently cut interest rates and is expected to cut rates further in the future, which decreases borrowing costs and in turn means potentially even more cash into the US economy.

At the same time, stock market investing has never been easier or more accessible. Zero-commission platforms, fractional shares, and investing apps are opening the doors to millions of new investors.

In short, there’s lots of money to go around, and into the stock market (and evidently, into gold).

Comparing Gold to Stocks

Let’s say you invested $1,000 in gold back in 1970. Today, that would be worth around $110,000.

Not too bad.

But here’s what many people miss: if you had instead invested $1,000 into the S&P 500 and reinvested the dividends, your investment would be worth $389,000 today.

That’s more than three times the value of the gold investment.

Why? Because stocks are productive assets. Companies generate profits, pay dividends, and grow over time. Gold, on the other hand, doesn’t generate income, and you rely entirely on the price going up to see growth.

This is why Warren Buffett said that if you own one ounce of gold, you’ll always own one ounce. It won’t produce more gold for you.

To see me explain this in full, watch my YouTube video here.

What About Bitcoin?

Many people nowadays argue that no conversation about gold is complete without talking about Bitcoin. It’s even sometimes called “digital gold” due to its limited supply, decentralised nature, and role as a store of value.

Bitcoin is far more volatile than gold, but that’s because it’s still an emerging asset.

As Bitcoin matures, it might become less volatile. But that, of course, could also mean lower expected returns than what we’re seeing right now.

I include a small portion of Bitcoin in my portfolio. I think it’s worth understanding and keeping an eye on, but I wouldn’t go all-in.

It’s still being shaped by regulation, tech developments, and adoption trends.

So, Should You Buy Gold?

There’s a famous saying that gold may shine occasionally, but stocks compound consistently.

Sure, gold has its moments, but the long-term data overwhelmingly favours globally diversified ETFs. They provide exposure to companies that grow, innovate, pay dividends, and reinvest profits. That’s where real compounding happens.

That doesn’t mean gold is “bad.” It can serve a purpose in a well-balanced portfolio, especially if you’re worried about economic instability. But historically, over decades, it just doesn’t match up to the consistent compounding power of equities.

Personally, I’m still investing the majority of my portfolio into globally diversified, low-cost ETFs.

I have a small Bitcoin exposure, under 10%. But I’m not buying gold unless I can set a diamond in it and wear it on my finger 😀

If you want to see this explanation in full, watch my YouTube video on the topic here.

Disclaimer:

Content produced by Money with Carla is intended for educational purposes only. It does not substitute the need for professional investment advice. Please consult a licensed professional before investing in investment products. Money With Carla is not a licensed advisor and does not sell investment products.

Today I’m walking you through the three distinct stages of building wealth.

No matter your age or net worth, knowing which stage you are in and what to focus on can make all the difference.

Let’s break them down.

Stage 1: The Build Stage

Here, human capital is everything. Or as someone on Youtube pointed out, human capital is not a nice way to describe it, I should say “earning potential”.

When you are early in your career, you usually do not have much financial capital. But what you do have is your ability to earn, your human capital. Think of it as all your future income, discounted to a current “present value”. Similar to a bond-like asset paying you an annuity.

The younger you are, the more future cash flows from income you have. That is why your earning ability is your most valuable asset at this stage.

But human capital decreases over time. Your goal in this stage is to convert as much of your human capital as possible into financial capital through savings, investing, and upskilling to increase your earning potential.

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What I Would Focus On in the Build Stage

If I were still in this stage, here is what I would be doing:

• Read and learn relentlessly. Your university degree will not carry you far in today’s fast-changing job market, given technology leaps happening at a pace where no one can keep up. Learn about new technologies, industries, and where the world is going.

• Surround yourself with smart people. Work in environments where you can learn from others. But do not rely on companies or institutions to train you. Take charge of your own learning.

• Network intentionally. Your network will shape your opportunities more than you realise. I cannot stress this enough.

• Avoid lifestyle creep. As your income increases, do not let your expenses increase at the same pace. That difference is your investable capital. It’s so tempting to upgrade your car and housing when those around you do. Stop running in that race.

• Take investment risk. Your timeline is long. You can afford to be aggressive with equity in your investment portfolio. I mean smart risk, not crypto meme-coin risk.

Stage 2: The Accumulate Stage

This is where compounding starts to get serious.

This stage usually begins in your 30s to 40s and lasts into your 50s to 60s. You have grown your income and now you are converting that income into assets.

This is when your financial capital should start growing exponentially thanks to compounding. But it only works if:

• You are investing consistently.

• Your fees are low.

• You have sufficient exposure to stocks in your portfolio.

It is also the stage when the reality of retirement hits. You start thinking about funding your kids’ education and your own future. This is why the average age of people doing my investing course is 39.

Priorities in the Accumulate Stage

• Stay consistent in your investing. Make monthly contributions a system that always runs.

• Diversify geographically. Do not keep all your investments in your home country or your employer’s shares, and for the life of me, not all of it in properties located in one city.

• Watch out for lifestyle inflation. Avoid upgrading your car, house, or holidays just because you can afford to. Or because that’s what everyone around you is doing.

• Do not overinvest in your home. A bigger house often means being house poor. Too much wealth tied up in one asset that does not generate income is a common retirement regret.

• Estate planning. Have a will. If you have assets in multiple countries, make sure it is legally valid across jurisdictions. Also, think about guardianship for your children.

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What This Stage Looks Like for Me

I am currently in this stage, but I have taken a different path. I left a high salary investment job in Switzerland to build this platform and my businesses. That means my income is more variable now but the upside potential is bigger. And I view my personal brand as an asset with value too.

That is why I continue to diversify my investments across countries and industries to offset the risk of running a business.

Now that I think about it.. I might have moved myself back into the build stage actually 🙂

Want to see me discuss the 3 stages of building wealth in full? Watch my YouTube video on the topic.

Stage 3: The Protect and Distribute Stage

This is the stage where you start living off your financial capital.

Your human capital is now close to zero, since there is low to zero expected future earning. Your focus shifts to:

• Withdrawing from your investments in a sustainable way.

• Protecting your wealth from volatility.

• Planning how your assets will be distributed after you are gone.

This is also the stage where medical costs and inflation become very real threats.

What to Focus On

• Asset allocation. You do not want 100 percent of your portfolio in volatile assets when you are drawing down. Make sure a sufficient portion is in low-risk investments.

• Family conversations. Do not wait too long to involve your kids in financial discussions. Let them understand what you are planning to leave behind or not and how they should prepare. Also, if you don’t have enough to retire, it would be good for your kids to be able to plan this into their finances if they need to look after you.

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Final Thoughts

Wealth building is not just about investing. It is about understanding which stage you are in and making intentional choices in each phase.

The biggest mistake I see is people underestimating the value of their human capital, delaying investing, and then rushing to catch up when they realise retirement is around the corner.

You have more control than you think, but only if you take action.

We’ve all done it. We’ve held off on investing because it felt safer to keep our money in a savings account or fixed deposit. But what if I told you that playing it too safe could actually be the biggest financial risk of them all?

Saving Feels Safe, But It’s Not Building Wealth

There’s something calming about seeing a fixed number in your savings account. It doesn’t go up and down. It earns interest every month. And if something goes wrong, you know exactly where to find it and how much you’ll have.

But here’s the reality: savings doesn’t grow wealth. It protects you from short-term emergencies and helps you reach short-term goals, but over the long term, savings alone will not keep up with inflation or currency depreciation.

Say you’ve got R1 million in a fixed deposit earning 8% interest. If you're in the highest tax bracket in South Africa, after the interest exemption and tax, you're left with about R55,000 in annual interest. That’s 5.5%, which is just about keeping up with inflation. Factor in the rand historically losing around 6% per year to the dollar, and your wealth is actually shrinking in global terms.

Saving vs Investing

Imagine two people, Saving Susan and Investing Ines. Both contribute the same amount each month over 40 years.

• Susan keeps her money in a savings account.

• Ines invests in a global stock market ETF (like MSCI World).

On these assumptions, after 40 years:

• Susan ends up with around R2.9 million

• Ines ends up with R13.3 million

That’s more than a R10 million difference, simply from taking smart stock market risk over the long term.

Note: These projections are based on past returns which are not guaranteed.

Why We Avoid Risk (And Why We Shouldn’t)

So why do people still avoid investing in stocks?

Two reasons:

1. Fear of volatility: seeing your money drop in value temporarily feels scary.

2. A lack of knowledge: we often don’t know what we’re investing in or how it works.

Every educated investor I’ve worked with has increased their willingness to take risk over time as they became more knowledgeable on the stock market. With risk, I mean smart risk, not crypto meme coins or stock-picking.

Understanding the Risk-Return Curve

Let’s simplify how different investments work.

Here’s how they stack up from lowest to highest risk:

• Government Bonds

• Bank Deposits (like savings accounts)

• Corporate Bonds

• Equity ETFs (like S&P 500 or MSCI World)

The higher the risk, the higher the potential return over time. And yes, higher volatility too. But over time, that volatility evens out.

Look at the chart above. Notice that even with the 2008 crash, the stock market recovered and continued delivering returns far beyond bonds. But, of course, if 2008 was your retirement years, then things would’ve looked much less rosy. That’s why risk adjustments in your investments as you age are important.

110 Minus Your Age

If you’re wondering how much risk is enough, a simple rule of thumb is:

110 - your age = % of your portfolio in equities

So, if you’re 30:

• 110 - 30 = 80

• That means 80% equity (stocks) and 20% bonds or low-risk assets

This ratio can be adjusted depending on your risk tolerance, timeline, and other investments like property.

Remember to rebalance your portfolio to keep your risk exposure in check as markets move up or down.

Don’t Forget: Saving Still Has a Place

Even though savings accounts won’t grow your wealth, they are important for your short-term needs.

Use savings for:

• Emergency fund (3 - 6 months of expenses)

• Short-term goals (within 3 years): house deposit, car, wedding

But for long-term growth, you need stock market exposure.

Risk Isn’t Scary When You Understand It

Let’s be honest: the media loves panic. Bad news sells. You’ll always hear about crashes, but almost never about recoveries.

But if you zoom out, history shows that markets go up over time. Every crash has recovered. Every crisis has passed. The long-term trend is clear.

There’s a clear connection between your investment knowledge and your comfort with taking risk. The more you learn, the more you trust the process and yourself.

Disclaimer:

My content, courses, videos, and blogs do not constitute investment advice. I am not a licensed financial advisor and don't provide guidance or recommendations regarding investment products. This content is only for educational purposes and should not be considered personalised investment or tax advice. Capital is at risk when investing, and historic performance is not indicative of future performance. Accuracy of calculations is not guaranteed, and Carla cannot be held responsible for decisions based upon any of her content. Do your own research before investing.

See website for full disclaimer.

We’ve been conditioned to think that higher costs equal better quality. But with investing, higher fees don’t guarantee better returns. They actually usually do the opposite.

One of my course students recently ended a 12-year relationship with her financial adviser after discovering she was paying an effective annual cost of over 2%. That sounds small, but on her portfolio size, it could cost her millions over the years.

The Investment Plumbing Framework

Think of your investment like a water source. Your profits need to flow through a system of pipes to get to you. Every joint in those pipes is an opportunity for fees to leak out of.

The more leaks, the less water reaches your tap.

Here are the most common leaks:

1. Ongoing Adviser Fees: Often charged as a percentage of your total investment, ongoing.

2. Platform or Admin Fees: Charged by the platform or office your adviser uses.

3. Fund Management Fees: Especially high with actively managed funds, these are usually the most expensive leaks.

Combined, these make up what’s called your Effective Annual Cost (EAC), a % you’re losing each year whether or not your investment grows.

Let’s say you’re earning 10% per year. If you’re paying 2% in total fees, you’re only taking home 8%.

That 2% doesn’t sound like much, but over 40 years, it could mean more than 30% less investment value at retirement. That’s the opportunity cost of “lost compounding”.

Compounding

Imagine your investment is a tree. It grows branches (growth), which then produce seeds (returns). The more seeds you replant, the bigger your forest grows.

But if someone keeps taking half your seeds every year (aka fees), you’ll never grow that forest. That’s the difference between a 0.25% passive ETF and a 2.5% active fund.

Here is one of the biggest misconceptions I hear: “I pay more because my adviser gets me access to exclusive funds.”

But over 90% of active funds underperform the market in the long term. That means simply tracking the index (with a low-cost ETF) will statistically beat most of the high-fee options you’re being sold.

Look at the S&P Indices vs. Active (SPIVA) scorecard. Over a 20-year period, more than 90% of actively managed funds underperformed their benchmark.

To learn more about fees, compounding, and financial freedom, watch my FREE masterclass.

Four Steps to Avoid Losing Millions to Fees

1. Get a Full Fee Breakdown

Ask your adviser for the Effective Annual Cost (EAC). Or check your fund’s “fact sheet” for words like “TER” (Total Expense Ratio) or “OCF” (Ongoing Charges Figure). Add all the layers up to see the real total.

2. Ask Yourself: Is It Worth It?

If you’re paying R30K, R60K or even R100K+ in annual fees… how often are you meeting that adviser? What are you getting for that cost?

Don’t forget: it’s not just the fees. It’s the compounding of lost returns over decades.

3. Start Small with DIY Investing

You don’t need to go all in at once. Start with a small ETF portfolio on a low-cost platform, learn the basics, and build confidence.

4. Consider the Cost of Staying Put

Sometimes, moving your money triggers exit fees or capital gains tax. But even after paying those, you might still come out millions ahead over 20 years. It’s worth looking into to see where you could increase the real growth of your portfolio.

You Can Do This. Don’t Let the Industry Scare You.

The investment industry thrives on making this stuff feel complex so that you think you can’t do it alone. But you can.

If you don’t want to completely manage your investments yourself, you don’t have to go all-in from the start. Getting educated on how these things work can at least protect you from anyone who wants to take advantage of you.

If you want to learn more with me for FREE, watch my masterclass. It’s 90 minutes packed with value for no cost at all.

Disclaimer:

My content, courses, videos, and blogs do not constitute investment advice. I am not a licensed financial advisor and don't provide guidance or recommendations regarding investment products. This content is only for educational purposes and should not be considered personalised investment or tax advice. Capital is at risk when investing, and historic performance is not indicative of future performance. Accuracy of calculations is not guaranteed, and Carla cannot be held responsible for decisions based upon any of her content. Do your own research before investing.

See website for full disclaimer.

Here’s how it works.

Step 1: Plan Your Money Before You Spend It

6 months in advance, I set goals for where my money goes.

• Income and Tax Planning: Know exactly what’s coming in and what tax needs to be set aside (if you’re a salaried employee, the majority of the time this is already deducted).

• Fixed Costs: These costs are fairly predictable, like rent, shool, transport etc.

• Variable Costs: I set realistic budgets for categories like groceries, entertainment, and gifts.

• Debt, Saving, and Investing: I am debt-free, so I focus on saving and investing during this part.

The goal is to have a job for every Dollar (or Rand) before the month starts. If there’s “extra” money, it gets assigned to investments. I do this because if I don’t, I might just spend that money instead, and it can work harder for me in my brokerage account.

Step 2: Pay Yourself First

This is the most important habit that helped me grow my portfolio.

The moment income hits your account, automatically transfer your planned investment amount to your brokerage account. Don’t wait until the end of the month because you might be tempted to use it for cocktails over the weekend, or a new pair of golf shoes, like me.

When I was working for a fixed salary, I had a debit order set up so I never had the chance to “accidentally” spend it. CHF 2’000 into investments as soon as I got my salary.

If you want to use the exact tool I built to plan, track, and review my money each month, click here to get it. I’ve included guidance videos to help you set it up for success.

Step 3: Use Savings Pots for Short-Term Goals

Not every goal should be invested in the stock market, especially if it’s less than 3-5 years away.

For example:

• A trip overseas

• A house deposit

• A wedding fund

Right now, I am saving for a trip to New York City, so when I’m there, I will be spending from the savings pot, not my monthly cash flows.

These short-term goals go into high-interest savings accounts, not volatile investments. Using my tool, I create individual “pots” for each goal, track my contributions, and then track my spending according to my target.

Step 4: Track As You Go

Every time you spend, log it in your tracker (I use my phone for this so it’s quick). This keeps you aware of where you are against your plan.

If you overspend in one category, you can adjust in another. For example, if you go over on the grocery budget, you might cut back on eating out that month.

By the end of the month, you’ll see:

• Total income

• Total expenses

• The breakdown between fixed, variable, saving, and investing

• Where you overspent and where you saved

Want the tracker that does all the calculations for you? Get my full money system here with explainer videos on how to use it.

Step 5: Reflect Every Month

This is the step most people skip and it’s why budgeting apps often fail.

Once a month, review your plan vs. reality. Did you invest as much as you planned? Did variable spending get out of hand?

By reflecting, you can make better decisions for the next month and spot bad habits before they become expensive ongoing mistakes.

Why This Works

The magic is in combining planning, automation, and reflection. You:

1. Decide where your money will go before you get it.

2. Remove temptation by paying yourself first.

3. Keep yourself accountable with regular reviews. I set a time in my calendar to complete my month’s tracker & reflect so I don’t miss it.

It’s simple, but over time the results are huge. This system took me from inconsistent saving to an extra $50,000 invested without feeling like I was constantly counting coffees.

You don’t have to build this from scratch. Get my exact money system here and start turning your income into real financial progress.

Welcome to the stock market. Of course, it's a bit more complex than that, but it doesn’t have to be intimidating.

I will break it down into “stock” and “market” first.

Stocks

Stocks are just pieces of a company that investors can buy.

When you buy them, you own shares in a company. You are a part-owner.

Different companies have different share prices. If you own 100 shares in a company that trades at $300 a share, you own $30’000 in shares.

There’s also something called Market Capitalisation or Market Cap, and this is when we consider companies’ total value or equity. It’s calculated by multiplying the total number of shares issued on the stock market by the price per share.

For example, if company X has 1 million outstanding shares that trade at $300 a share, the market cap would be $300 million.

Note: I have a special insider letter that goes out every Friday, where I share life updates, my thoughts, and other things that I never share on my other platforms. Sign up here to get it in your inbox!

Market

So what does the “market” part of the stock market mean?

Companies can go from private to public, which means that shares become available to the public - for people like you and me to buy.

This happens through an Initial Public Offering (IPO) when they get listed on an exchange, for example, the NYSE, JSE, LSE, etc.

A company doesn’t have to list on the stock exchange of the country it is located in; for example, Toyota, a Japanese company, is listed on the NYSE.

Companies can also cross-list, which is when they are listed on multiple stock exchanges around the world.

An exchange is really just a way to connect buyers and sellers of stocks.

How Are Stock Prices Set?

Stock prices aren’t fixed; they fluctuate constantly. A lot of it has to do with supply and demand:

• If more people want to buy a stock, the price goes up.

• If more people want to sell it, the price goes down.

But what influences demand?

• Company performance (profits, revenue)

• Global events (wars, pandemics)

• Scandals or brand perception

• Economic indicators (inflation, interest rates)

• Investor sentiment and future expectations

For example, when the COVID pandemic hit, airline stocks plunged when travel was restricted.

Similarly, AI-driven companies have been seeing a surge in stock price, just based on future growth expectations - even before turning big profits.

If you want to see me explain this in a video, watch my latest YouTube video on the topic.

Why People Invest in Stocks

There are two key ways investors earn money from stocks:

• Capital Growth: The share price goes up, and you sell it for a profit.

• Dividends: Some companies pay out part of their profits to shareholders instead of reinvesting in the company. It’s a reward to shareholders.

Historically, globally diversified stock markets have delivered excellent long-term returns. The S&P 500, for example, has averaged around 16.8% annually in Rands since its inception.

Yes, there have been crashes, like during the 2008 financial crisis or the early 2020 Covid crash. But when you zoom out, the long-term results are growth.

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What Are Index Funds?

Index = A list of companies (e.g. S&P 500 = biggest 500 U.S. companies by market cap)

Fund = A pooled investment that includes all those companies.

When you invest in an index fund, you’re investing in all companies on that index, even with just one purchase.

Index funds are dynamic. If a new company grows fast enough to qualify for the index, it gets added while the weakest performer gets bumped off.

That’s why index investing offers diversification across companies, industries, and regions, and is lower risk than betting on a single stock.

Understanding the stock market is one of the first steps to becoming a confident investor and building real wealth that lasts.

If you want to learn everything you need to know to build a DIY stock market portfolio, join the waitlist for my flagship investing course, which is running again soon.

Disclaimer:

My content, courses, videos, and blogs do not constitute investment advice. I am not a licensed financial advisor and don't provide guidance or recommendations regarding investment products. This content is only for educational purposes and should not be considered personalised investment or tax advice. Capital is at risk when investing, and historic performance is not indicative of future performance. Accuracy of calculations is not guaranteed, and Carla cannot be held responsible for decisions based upon any of her content. Do your own research before investing.

See website for full disclaimer.

My research into pension or retirement products started when I was faced with the choice of putting extra money into my pension fund in Switzerland in return for tax rebates. Many governments across the world put incentives in place to encourage the population, many times through tax incentives, to put money away for retirement.

This typically comes with some restrictions, like not being able to access the funds until you are closer to retirement and also investing in certain products only (like Reg 28 compliant funds in SA, and pillar 2 in Switzerland) - and this is in place to protect the general public from taking too much risk, and from spending all their money before they retire.

But it also creates an opportunity to lure people into high-fee products where they are blinded by the tax incentive and don’t even consider that it might not be the smartest move - trust me, I have seen really bad scenarios.

Many times, though, these “tax-advantaged investments” act as a tax deferral. You get a tax deduction now, but you pay tax later when you withdraw your money. Admittedly, most often it is the case that the tax rates on withdrawals in retirement are more favourable (like in the case of RAs in SA, where lump sums currently are taxed above 550k and living annuities will be taxed above a certain threshold) and during your retirement years you will probably be in a lower tax bracket too that could count in your favour.

But here are two questions I want you to critically think about:

• What are the fees on your Retirement Annuity (RA)?

• What has the performance been like?

Not all RAs are equal, and I have seen some shocking fees and horrible returns due to funds being invested very conservatively (this is a long-term investment, intended for retirement). Why would you not take risk in this investment?

In summary, this is how I would look at a trade-off calculation for myself.

Nora vs. Rae

Nora says no to an RA, and Rae loves an RA. See what I did there ;)

The assumption is that they both earn R2.2 million a year and want to invest - they are in the highest tax bracket, so they get the biggest tax advantage by making RA contributions. Rae contributes R350,000 to a Retirement Annuity (RA) because she wants to get the tax deductions, while Nora chooses not to use an RA and invests R192,500 through a normal brokerage account, so she has to sacrifice the tax deduction.

The reason Nora invests only R192k is that she has less cash available due to her higher tax bill - we need to put both into the same cashflow position to make this a fair comparison. Rae contributes almost double the amount Nora invests, so you might want to conclude that she will retire with a bigger amount of money, but it’s not that simple.

(Note: Rae’s RA contributions already include her tax savings, as shown in the breakdown above. If you’re saying that she gets a tax refund, she should invest that - then her total investments will increase, but so will NORA’s. If you want to assume that both invest R350k but RAE uses an RA and then invests the refund, her incremental increase in investment value will still be 157k more and will not change the outcome. We need to put both in the same cash flow position.)

Regulation 28: The Hidden Restriction

Retirement Annuities in South Africa have to comply with a law called Regulation 28. This means you can invest a maximum of:

• 75% in shares (equity)

• 45% in foreign shares

• 25% in property

If you’re a young investor, this is a disadvantage, in my opinion. It limits how much equity (shares) and international exposure your RA can have, which are important factors if you want your portfolio to grow optimally.

Nora, investing outside of an RA, isn’t bound by these rules. She can choose to go 100% global equity and invest in ETFs tracking the MSCI World or S&P 500.

The difference is having the freedom to choose the underlying investments. Which for me is crucial. I want maximum equity and global exposure - for long-term returns, diversification, and protection against a weakening Rand.

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How Their Returns Compare

For the assumptions I am using in my projections, I’m using two investments from Sygnia. These are just assumptions - there of course is no guarantee it will play out like this in future. We assume Rae invests her RA in a low-cost, Regulation 28-compliant fund, like the Sygnia Skeleton 70 RA, which has returned 9.2% per year since inception.

Nora chooses an MSCI World ETF, which has historically returned 12.8% per year (since the inception of the ETF). For an additional analysis (and to see some more aggressive assumptions), we also include the S&P 500 ETF, which has returned 16.8% since the inception of the ETF.

(Note that these returns are in Rand, and due to exchange rate movements, different currencies will produce different returns)

Even though Rae invests more in her RA, Nora’s better returns (assumptions) start compounding, and the gap closes after a certain period of time.

The Break-Even Point at 19 Years

This is where the 19-Year Rule comes in.

When comparing the two outcomes, Rae’s RA to Nora’s ETF investment (after-tax), using the return assumptions above, Nora overtakes Rae in year 19. From that point on, Nora’s investment grows faster and finishes ahead, despite her initial tax “disadvantage”.

If Nora had invested in the S&P 500 instead, the break-even would have been even earlier, in year 10, and she would have ended up with over R12 million more after 30 years. (See disclaimer below on return assumptions used).

What do we learn from this? Investing less can still lead to more if your returns are better and your fees are lower.

Taxes

Yes, retirement annuities are tax-smart. You get a deduction now, and you pay (less) tax only when you retire. We’re assuming 1/3 is paid out as a lump sum and 2/3 as a living annuity.

• The first R550,000 of the lump sum withdrawal is tax-free.

• The rest of the lump sum gets taxed at favourable rates.

• The tax on the living annuity will depend on your tax rate in retirement and if your income exceeds certain thresholds.

With a normal brokerage account (like Nora’s), you’re subject to:

• Capital gains tax at an effective rate of ~18% in the highest tax brackets (could be less if you earn less when you withdraw it in retirement).

• Dividends, which are currently taxed at 20%.

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But That’s Not All

• Access: RAs are locked in until at least age 55. A brokerage account is always accessible. If you’re disciplined, this flexibility is a win. If you’re not, it can pose a risk. If you want access to your retirement funds in your 60s because you’re a high-net-worth individual, then this might not be ideal at all, because this could be money you want to use for your kids' education or your beach house.

• Estate Planning: RAs don’t form part of your estate. So, if you pass away, it can help avoid estate duty (saving 20-25%). But if your brokerage investment grows much more, it could still be worth more, even after paying estate duty. This, on the other hand, could be a bonus for high-net-worth individuals since it protects a portion of their net worth from estate duty.

• Fees Matter: This entire comparison assumes low-cost investments. If your RA is loaded with fees (some charge 2-3% annually), your returns get eaten into, causing large chunks of your growth to make your advisor and the investment houses rich instead of you. Always check your fees!

• Living Annuity: After retirement, two-thirds of your RA is converted into a living annuity, which acts as a regular income. While this structure can offer stability, the income is taxable above certain thresholds, and you need to draw a minimum percentage annually.

Post-Video Reflections

After the (overwhelmingly positive) response to my YouTube video, I’ve thought about a few things to add.

• This rule is not a hard fact. It is intended as something to reflect on and help you think critically about whether or not an RA is the right investment for you.

• The outcome is very much dependent on the returns generated, and this was based on past returns. There is no guarantee it will look like this in the future, these are just assumptions. Viewers rightly pointed out that many RA’s have performed better than the one I highlighted, so do some investigation on the performance of your RA.

• I used two specific funds in my analysis, with the difference in returns being 3.8% between the Reg 28 fund and the MSCI World ETF. On a risk-adjusted basis, this is not a fair comparison, but the Reg 28 does not allow you to adjust your equity exposure.

• Note that currency movements impact the average returns on funds like the MSCI World and S&P 500. This means that the average annual return in Rand will be different from that in dollars. (The 30-year annual average return on the S&P 500 of 10.33% in USD, once you consider the ZAR/USD movement since 1995, the total return, including dividends, in ZAR has been 16.3% annually.)

So, What Does The 19-Year Rule Mean?

To put it simply:

• If you’re more than 19 years away from retirement, I would encourage you to do some investigation into whether an RA investment is best for you. Also, check on the RA performance and fees!

• If you’re within 19 years of retirement, the RA tax savings might outweigh the return limitations. But also, check on performance and fees!

• Compare your actual returns with the assumptions above; this may provide a starting point for asking some questions.

I repeat: Check the fees on all your investments. They can quietly eat away your returns over decades. Read this blog to understand the impact of fees better.

Just because something saves tax now doesn’t mean it’s the best choice long term. Tax-advantaged products like RAs restrict how and where you can invest. For some, this is a much-needed protection mechanism, while for others, the restriction could cost more than the tax savings are worth. But, again, these are just assumptions; you would need to do some of your own homework and research to apply my research to your own scenarios.

Disclaimer:

My content, courses, videos, and blogs do not constitute investment advice. I am not a licensed financial advisor and don't provide guidance or recommendations regarding investment products. I share my research, and my content is intended for educational purposes only - it should not be considered personalized investment or tax advice. Capital is at risk when investing, and historic performance is not indicative of future performance. Accuracy and completeness of calculations are not guaranteed and may contain errors. Carla cannot be held responsible for decisions based upon any of her content. Do your own research or speak to a licensed professional before making investment decisions.

See website for full disclaimer.

Here’s his DM:

To be honest, I went into this analysis with a bit of bias. Real estate in Cape Town (where this property is located) has been booming, but I am usually not the biggest fan of investing in it. I have done extensive research on real estate, managed the finances for a £600 million portfolio in London, and analysed more than R1 billion worth of property investments in South Africa. I have come close to seeing it all ;)

That being said, I always keep an open mind, and as a woman of numbers, I need to analyse it properly before drawing conclusions.

Note: I had so much fun doing this, I might do it again in the future. If you would like your investments, property, or anything else finance-related analysed, submit your scenario below! I could feature it next.

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Here’s the info he shared:

• The property was bought at R970k (which is below the transfer duty threshold)

• The mortgage is at a rate of prime minus 1.43%

• It costs the owner R9’300 per month in rates, levies, and bond payments

• Rental income is R9’500 per month, making the property cashflow positive with R200 surplus each month.

This makes it seem like the inflows cover the outflows - but do they?

Here are a few (or many) things I would add to this calculation for completeness' sake:

• Tax on rental profit (Only interest payments are tax-deductible, not the entire bond repayment).

• Repairs and maintenance provisions (Estimated at 1% of the property value).

• Rental agent fees (Which in this case I assume are already taken into consideration, ie, the R9’500 is net of agent fees).

• Tenant vacancy and non-payment (Non-payment in this rental bracket is 3.64%, and vacancy in the Western Cape is 1.07%, according to my research).

• Insurance, which I included at R300 per month/R3’600 per annum (to be increased in ratio to the value of the property) - but it could be more, depending on the mortgage provider and what they require you to take out.

As for the bond cash flow:

• I assumed a 10% deposit.

• The interest rate is 9.32% (prime minus 1.43%). Although rates are expected to fall in future and we are on the higher end of the rate cycle, this rate interestingly aligns closely with the 22-year average prime less 1%, according to the South African Reserve Bank’s historic rates.

• A 20-year bond is assumed.

• Transfer duty is excluded, but other transfer fees and legal fees will need to be considered.

• Considering the above, the total initial cash outflow is R164,630.

For future forecasts’ assumptions:

• Rental income increases 5.96% (average increase since 2012 in the City of Cape Town, according to PayProp).

• Property value increases by 5.99% (average increase over the past 13 years in the City of Cape Town).

For the stock market investments:

• 12.7% MSCI World return in ZAR (annual average according to Sygnia’s MSCI World ETF, since inception April 2008).

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Let’s Get Out the Excel Sheet

These cashflows projected over 30 years look like below. Notice that years 1 to 8 have negative cashflows:

Now, how do we analyse this?

We’re comparing (1) investing in the property to (2) putting the deposit and initial cash outflows, plus the first 8 years of negative cashflows, into the stock market investment.

What the property investment could be worth:

• In 20 years: R3’1 million

• In 30 years: R5’5 million

What the stock market investment could be worth:

• In 20 years: R2’3 million

• In 30 years: R7’9 million

BUT there are 2 things to consider:

1. The property investments become cashflow positive in year 9, and this can be invested in the stock market.

2. There are selling costs and capital gains tax associated with selling the property and stock market investments, and to make this a “fair” comparison, we want to consider the “exit value”.

If you want to see this analysis live in action, watch the accompanying YouTube video.

Watch on YouTube

Who’s the Winner?

So here’s the investment award based on “exit values” - after selling costs and tax:

First prize: The property and stock combo investment (Value of R8’7 million in year 30)

Second prize: Stock portfolio (Value of R6’5 million in year 30)

Last place: Property only (Value of R4’7 million in year 30)

I have to be honest, the results surprised me. I did not expect the property & stock combo to win. But I would say this is an exceptional outcome, specifically because:

• Of the “above-average” increase in property value in Cape Town over the last 10 years

• The average increase in rental income is higher than the rest of South Africa

• The vacancy rate is lower than the rest of SA

• And the non-payment provision for the given rental bracket is the lowest of all properties

What About My Favourite, the S&P 500?

I want to mention one last comparison: what if the initial cashflows and negative cashflows could've been invested in the S&P 500?

Based on the 10-year average returns of the S&P 500 in ZAR, the hypothetical stock market investment would’ve won first prize.

This outcome relies on the ZAR continuing to depreciate against the USD at 5.5% per year, and the S&P 500 continuing to return 10+% in USD. I am still very much pro-US stock market. But these remain assumptions.

So, did this property change my mind about real estate investments? Not quite yet.

Most of all, property investments are:

• Hard work with tenants needing attention, and if an agency takes care of this part, it reduces your return.

• Not providing you with as much diversification to hard currency and international economies.

• Not really passive investments. My stock portfolio does not need any attention from me, only regular contributions, which can be automated.

Did you find my perspective valuable? Submit your scenario for analysis!

Disclaimer: This is not personalised financial or investment advice but rather for educational purposes. I have made every effort to ensure accuracy, but it cannot be guaranteed. Do your own research before making investment decisions. Capital is at risk when investing. These outcomes are purely based on assumptions made based on past returns, and past returns cannot guarantee future outcomes.

One thing my husband, Daniel, and I did wrong with our money was to treat it as “separate” for a long time. Even after we got married, for a few years. We used Splitwise to keep track of “who pays what” and to make sure it equals out every month - it usually meant Daniel paying me a sum because I bought groceries.

We only really joined our finances when our son was born in 2023. It made life so much easier. We had a joint account that we both deposited money into, and the household costs would be covered from there.

But we still invest independently. If I could change one thing, it would be for us to approach investing together earlier on. I was on my own mission, eager to build a significant investment portfolio. And I wish we had set targets together - how much we would each invest - earlier on. It would have accelerated the learning curve and also helped with accountability, instead of each learning lessons in isolation and not really sharing with each other.

When I opened up the discussion about finances in couples to my Instagram followers, it seems we’re not the only ones struggling.

• How should expenses be split?

• Should both invest if only one works?

• What if one has expensive hobbies (or cosmetic routines ;))

And it made me do a deep dive into this. There is research around how couples manage finances and, not surprisingly, couples with joint approaches report higher levels of relationship satisfaction and also lower divorce rates.

But where do we even begin when there is so little guidance on how to approach finances as a couple?

A Joint approach not only makes you happier, but also richer

I often see women who earn significantly less than their husbands, not investing because they think their “insignificant” contributions won’t move the needle. So hopefully this example will change your mind on that:

Two households:

1. Olly and Olive, earn R60k and R20k per month respectively, R80k total

2. Tilda and Tom, earn R60k and R20k per month respectively, R80k total

Olly runs a one-man investing show - only he invests. He puts 20%, which is R12k, into his brokerage account monthly.

Tilda and Tom each invest 20%, and even though Tilda only invests R4k per month, they have R16k total household investments per month.

Assuming a 10% return, the results after 25 years show that Tilda and Tom’s investment portfolio is worth R4.7 million more than Olly’s.

The lesson here is that a little bit goes a long way when it comes to compounding. Whether you have R500, R1000, or like Tilda, R4000 extra invested per month, put it to good use because it could literally make a difference of millions over time.

So here’s a simple guideline to help you as a couple with your game plan.

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The 5-Step Game Plan for Financial Success as a Couple

Step 1: Agree on Shared Values

Money isn’t just about how much you earn or spend. More often than not, it’s about the why behind your spending or saving. That’s why knowing what each other’s financial values are is so important.

Have each person write down a list of their financial values. Once done, compare and find where your values overlap.

Some common money values include:

• Security and stability

• Financial freedom

• Generosity

• Growth

• Enjoyment

My financial values haven’t always been the same. But for where I am right now in life, freedom and growth are two of my most important values. Daniel values freedom and stability. So our overlapping shared value is freedom - we both agree on the importance of using money to create freedom for ourselves.

Step 2: Set Goals Based on Your Values

When you have aligned your values and know what’s most important to both of you as individuals and as a couple, it’s time to set goals.

A goal is a clear, measurable objective that you are actively pursuing as a team. These can include:

• building a fully funded emergency fund by a certain deadline

• paying off debt within X amount of months, or

• maxing out your Tax-Free Savings Accounts yearly

Be sure to include short-term, medium-term, and long-term goals, and that every goal has a measurable outcome.

Remember: “Retire comfortably” is not a clear OR measurable goal. On the other hand, “Have 20 million saved and invested by age 60” is specific and measurable. Both of these have the comfortable retirement in mind, but it’s much easier to track the second one’s progress and meet it.

Refer to this video to help you calculate how much you need to retire.

Step 3: Allocate Income to Buckets

Next, your combined income should be allocated to different “buckets,” which I like to call the WIN buckets.

WIN stands for wants, investments, and needs, and this framework should allow you to allocate money in ways that don’t just look after your current self, but also your future self.

Divide as follows:

• 20% to Invest

• 30% to Wants

• 50% to Needs

Based on your individual circumstances, you should adjust this ratio to meet your needs. For example, if your goal is to retire earlier than the traditional retirement age, your investments might have to be closer to 30% of your income. This could also be the case if you’re starting to invest later than usual.

Step 4: Define the Money Logistics

Here, many people get stuck because of the discomfort they could possibly experience when talking about money logistics. The thing is, the longer you avoid the conversation, the more awkward it will become.

So bite the bullet and discuss (without judgment):

• Will you have joint or separate accounts?

• How will you split expenses - proportionally or equally?

• Who is responsible for financial admin, like updating the budget?

Every situation is different, and your money logistics might be more complicated than others’ or you might do things differently from what’s the norm.

But what matters most is clarity and communication. What works for you, works for you!

Daniel and I have always earned relatively equal salaries, so we split costs equally for years. Now that we have inconsistent revenue streams from our businesses, we have a joint account that we allocate money to proportionally relative to our earnings. We also have a bigger emergency fund / cash buffer because our income is uncertain. Welcome to early-stage businesses :)

Step 5: Set a Monthly Money Date

Lastly, schedule a time and place to discuss finances every month. Review your budget, how you managed money the previous month, and your strategy for the upcoming month.

It’s important here that neither person feels like they’re being interrogated or stresses about the monthly money date. That’s why it’s called a date - it’s meant to be relaxed, fun, and make money in your household an easy topic.

If you want to get comfortable talking about money and making decisions about it together, it should be the topic of an ongoing conversation, not something that only comes up after emergencies or when problems arise.

Couples who thrive financially don’t just “get lucky.” They put in the work. They talk about the uncomfortable things. They create a plan. And they stick to it together.

Setting up a game plan and opening up communication around money could literally change the financial trajectory of some couples’ lives. So I decided to turn the game plan into a live weekend workshop to help couples navigate each step of the way and walk away with a renewed mindset and plan for life!

Later this year, I am launching an online course on finances for couples and individuals where you’ll get detailed guidance on everything I’ve discussed in this blog and so much more! I am talking calculators, activities, and all in all, a revamp of your finances.

Join the waitlist and be the first to know when it goes online!

• 1/2 of couples don’t have shared financial goals or budgets

• 1/3 of couples disagree on how expenses should be split, and

• 1/4 of couples avoid money discussions altogether.

This confirmed my suspicion that couples have a long way to go when it comes to shared finances. My husband, Daniel, and I have a few things to improve on, too. Mostly, when life gets busy, we skip the monthly finance chat. My thinking is that I would rather spend that hour getting something done for Money With Carla. And right now our life is absolutely chaotic with both of us having recently started new businesses.

But we have a very transparent cash flow and investing communication process. We both know exactly what we’re trying to achieve, we’re aligned on how (ETFs for the win in case you have not gotten that from my blogs yet;)), and we analyse every step to agree on what’s best. Like, if we should buy a house or rent one. (More on that later…)

Daniel worked as a private banker to high-net-worth individuals in Switzerland at one of the largest banks, Credit Suisse. So we both have finance and investing-heavy skillsets. Yet we still don’t get this exactly right.

This made me wonder if WE can’t do it perfectly, how the hell do couples with less financial background do it at all? Money is one of the core components of a happy relationship (research shows that approaching finances jointly increases relationship satisfaction), but there is no guidance out there whatsoever on how to approach this. That’s why I’m brewing up something special (more on that below).

As for 1/2 of couples not having a budget or goals, it made a lot of sense. My parents had a budget, and it was always a fight. Because there was no goal. My mom and dad never aligned on what they were actually trying to achieve: was it saving enough for retirement or putting enough away for the kids’ education? A budget without a goal is like a relationship without love - it’s bound to go wrong eventually.

When it comes to building a happy, lasting relationship, money plays a much bigger role than most people realise. I don’t mean how much you make, save, or invest, but rather how it is approached (and communicated) within a relationship.

That’s because money is a highly emotional topic for many people. It impacts people’s feelings of security and freedom, and it informs people’s values.

Interestingly, research also shows that how you spend money also impacts your happiness. It’s not only about future investments but also about how you choose to spend now without guilt.

Not talking about money often enough or in the right ways can take it from an aspect of life and relationships to a real burden in the way of connection and a source of great stress.

And I understand why couples avoid finance conversations. Most of the time, they are trying to avoid the possible conflict or awkwardness that could come with such a conversation. But the truth is that avoiding these conversations is actually what builds resentment and conflict, even if no one ever says so.

The great news is that you can change that with one conversation at a time. Start by taking my Money Personality Quiz to help you understand your starting point!

Take the Quiz

I feel strongly about the fact that when couples have the right conversations about finances, money can become a fun and exciting topic in their households.

And if “fun and exciting” sounds way too far-fetched right now, start by working towards neutrality about money first. Then, the positive feelings will come with time.

Here are three essential money conversations every couple should have to create financial teamwork and strengthen their bond.

Your Shared “Why” Behind Wealth

Most of us want to grow our wealth, but have you ever sat down to ask each other (or even yourselves) why? What’s the deeper motivation behind your financial goals?

For some, the goal might be complete financial independence. For you, it might be about giving back, enjoying more freedom, or creating a safety net to start your own business. Understanding each other’s “why” helps you align not just your budgets, but your bigger life dreams.

When you’re clear on the purpose of your money, decisions about spending, saving, or investing feel less like compromises and more like teamwork. And on top of that, knowing your partner’s “why” behind wealth can give you special insight into how they act the way they do when it comes to money.

Opening Up About Debt

Debt is one of those topics that can trigger big reactions, especially if you and your partner have different experiences or beliefs around it. Whether it’s student loans, credit card debt, or even a mortgage, what matters is how you feel about debt and how you want to handle it as a couple.

Is some debt “good debt” in your eyes? Does the idea of debt keep you up at night, or do you see it as a necessary tool? By thinking and talking about these feelings together, you can take the mystery out of the topic and neutralise it. Then, you can agree on strategies that feel safe and realistic for both of you.

This is a conversation that can seriously help to dissolve hidden resentments and get you to build trust in each other’s financial decisions.

Creating a Vision of Financial Freedom Together

“Financial freedom” can mean wildly different things to different people. For one, it might be retiring below the traditional retirement age. For another, it’s having zero debt or being able to travel without stress.

If you don’t take the time to discuss what freedom looks like to each of you, you could start pulling in opposite directions. Sit down and talk openly about what financial freedom means to both of you and how you can merge those visions into a shared roadmap.

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This isn’t just about goals. It’s about creating excitement for your future together. When you agree on what you’re working toward, money becomes a source of inspiration, not friction.

Money conversations are not just about finances; they’re about building deeper understanding and respect for one another in a financial context. By having these talks openly and often, you turn money into a bridge, not a barrier.

I realised most couples will go their whole lives without ever having a constructive and open discussion about finances and without getting on the same team to plan. So I wanted to create a standstill moment, in a relaxed atmosphere, with guidance for you to do exactly that. And walk away with a game plan for your team.

So, drumroll... I’ll be launching a financial planning course with a special add-on specifically for couples later this year. It’s the perfect opportunity to dive into tough topics on a lighthearted note and walk away with an action plan for your financial future together.

Join the waitlist and be the first to know when it’s online!

Disclaimer: None of my content is personal financial advice; it is for educational purposes only. Always do your own research or speak to an adviser before making any investment decisions.