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Support Thread on Taking back financial control? (Barefoot Investor inspired)


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#426 raspberry sherbert

Posted 06 April 2019 - 10:14 PM

Wow cardamom, congratulations. So exciting to be able to start looking at what is available.

Edited by raspberry sherbert, 06 April 2019 - 10:14 PM.


#427 StillDreaming

Posted 08 April 2019 - 09:33 PM

So awesome to read success stories! Very motivating!

I just wanted to ask others if they have followed bfi advice and not put money into an offset account or if you’ve gone ahead with it anyway? I’m in the process of buying a place and have gone for a package with an offset. I figured I could always refinance down the track if need be and besides the annual fee (I know how Mr Pape feels about fees and I’m not a fan either!) the rate was actually a bit better than having no offset. I really wanted to secure a loan more than anything and can juggle when I’m working  more and in a better position financially. In the meantime, I just wanted to see how those with a mortgage and an offset account are making it work.

Thanks!
* I’m in the process of rereading the book as a refresher so it’s possible I haven’t reached an important part yet.

#428 Disydo2018

Posted 08 April 2019 - 09:49 PM

That’s fantastic cardamom!! Congratulations.

#429 Manicmum

Posted 08 April 2019 - 10:46 PM

Congratulations!!

#430 WaitForMe

Posted 19 April 2019 - 04:48 PM

View PostStillDreaming, on 08 April 2019 - 09:33 PM, said:

So awesome to read success stories! Very motivating!

I just wanted to ask others if they have followed bfi advice and not put money into an offset account or if you’ve gone ahead with it anyway? I’m in the process of buying a place and have gone for a package with an offset. I figured I could always refinance down the track if need be and besides the annual fee (I know how Mr Pape feels about fees and I’m not a fan either!) the rate was actually a bit better than having no offset. I really wanted to secure a loan more than anything and can juggle when I’m working  more and in a better position financially. In the meantime, I just wanted to see how those with a mortgage and an offset account are making it work.

Thanks!
* I’m in the process of rereading the book as a refresher so it’s possible I haven’t reached an important part yet.

We still have an offset but we try not to use it for daily expenses.

Its essentially our Mojo account, and Fire Extinguisher goes straight into it. I know he specifically says not to have Mojo in an offset but its actually hard (kinda) for us to access the money as the bank provided eftpos cards only - no visa/mastercard or chip, and I never even bothered activating my card.

Except for one problem - our credit card is paid off with it. Its a leftover from pre-barefoot. And we are struggling to live off just our Daily Expense account, so when we discover at the checkout we can't pay for groceries, out comes the credit card.

So if you make your offset hard to access by never activating the cards and not setting up any payments from it, I don't see it as any different to his definition of Mojo. And you'll never get as good an interest rate on savings as your mortgage rate.

I've now discovered with ING I can set up notifications, so I get an sms if the account goes below a certain amount and I can top it up so our bills don't bounce and we can eat. Hopefully that will get us a step closer to killing the credit card.

Edited by WaitForMe, 19 April 2019 - 05:04 PM.


#431 Charli73

Posted 19 April 2019 - 05:10 PM

I’ve always had our mojo in a separate U bank account but I worked out it was earning less interest for me over the year (plus I paid tax on it) than the interest saved on placing it in our redraw on the home loan so I moved it over recently.

I suppose you have to be strict on being tempted to spend it.. if you might be tempted maybe have it in the account that’s harder to access.

Edited by Charli73, 19 April 2019 - 05:11 PM.


#432 WaitForMe

Posted 19 April 2019 - 05:32 PM

View Posthappygoluckyinoz, on 06 March 2019 - 11:03 AM, said:

I’ve been doing an admin temp job for the past 5 weeks, but next week start a ‘proper’ job again – so our income vastly improves. Our DE is still on the high side (67%) but with two kids in daycare 4x a week and a super high mortgage we will just have to live with it for now. There is fat that could be trimmed (cleaner for example) but for my own sanity now I’ll be working full-time I’m just not willing to give it up. DH is hoping to find a new job soon and get a pay bump which will bring the DE down again which would be good. We have some house things still to do so our fire extinguisher will be half directed at getting our Mojo up and half saving up to finish those bits and pieces. Once we’ve got Mojo up to 3 months DE we intend to start looking at investing in shares so might sign up to Blueprint.

Childcare is such a killer!

We are over 60% atm too and I place the blame pretty much on childcare!

#433 StillDreaming

Posted 19 April 2019 - 07:42 PM

View PostWaitForMe, on 19 April 2019 - 04:48 PM, said:



We still have an offset but we try not to use it for daily expenses.

Its essentially our Mojo account, and Fire Extinguisher goes straight into it. I know he specifically says not to have Mojo in an offset but its actually hard (kinda) for us to access the money as the bank provided eftpos cards only - no visa/mastercard or chip, and I never even bothered activating my card.

Except for one problem - our credit card is paid off with it. Its a leftover from pre-barefoot. And we are struggling to live off just our Daily Expense account, so when we discover at the checkout we can't pay for groceries, out comes the credit card.

So if you make your offset hard to access by never activating the cards and not setting up any payments from it, I don't see it as any different to his definition of Mojo. And you'll never get as good an interest rate on savings as your mortgage rate.

I've now discovered with ING I can set up notifications, so I get an sms if the account goes below a certain amount and I can top it up so our bills don't bounce and we can eat. Hopefully that will get us a step closer to killing the credit card.

Thanks for your reply! I think I will do the same - keep it as my mojo account and put my fire extinguisher money in there too. It was scaring me, the idea of all my expenses coming out of one account and not being able to see money for different expenses. I don’t trust that I have enough control to spend only the allocated amounts - especially while I’m only working part time and things are pretty tight.

#434 born.a.girl

Posted 20 April 2019 - 05:59 PM

View PostStillDreaming, on 19 April 2019 - 07:42 PM, said:

Thanks for your reply! I think I will do the same - keep it as my mojo account and put my fire extinguisher money in there too. It was scaring me, the idea of all my expenses coming out of one account and not being able to see money for different expenses. I don’t trust that I have enough control to spend only the allocated amounts - especially while I’m only working part time and things are pretty tight.


That's the big advantage of the separate accounts - it actually works to stop people spending money, so you end up better off.

If you do have the control to have it all in an offset then you will definitely be better off.  No interest (after tax) can compete with mortgage savings.

#435 IamOzgirl

Posted 20 April 2019 - 07:04 PM

So we had an offset, and all our bills were paid via credit card and the credit card was paid from that acct.

We had a separate actual daily acct for groceries dinner out etc.

It works for us as those were true fixed amounts and the DE acct was fluctuating.

So a fixed amount that covered the bills (divided by pay period)

#436 WaitForMe

Posted 05 May 2019 - 08:24 PM

Yeah, we could have all our bills just come out of our offset but then we aren't really doing Barefoot, and I think missing out on some of the power of it.

I've had a small win - DH has finally agreed to open up a Smile account. I was whinging about the sheer number of people that went on o/s holidays over the easter/anzac/school holiday trifecta, and he said maybe we should be putting some money aside for holidays. And I reminded him that was actually exactly what I wanted. I doubt it'll be an o/s trip but its still some money to have some fun with!

Actually its looking like there will be another win. DH has been asked to take on a 3 month contract, to fill in for someone who will be acting in the role above. DH will need to put his startup semi on hold, and partly backfill himself, but the money is well worth it. He can spread the money over a year and give us a top up.

Mortgage and childcare are both absolute killers. Combined, they are over half my pay. Childcare, there is nothing we can do about that. Mortgage is a bit hard too. We'd never sell, but even if we did, rent in this area is now not far off our payments. So we'd have to completely uproot our lives to actually save anything.

#437 ~THE~MAGICIAN~

Posted 15 May 2019 - 09:02 AM

I fell off using his methods! I'm getting back on today!

I still have all the accounts all set up with the money I was putting in, so the start up is there!

Looking forward to it!

#438 Chicken Pie

Posted 22 May 2019 - 03:02 PM

View Post~THE~MAGICIAN~, on 15 May 2019 - 09:02 AM, said:

I fell off using his methods! I'm getting back on today!

I still have all the accounts all set up with the money I was putting in, so the start up is there!

Looking forward to it!
good luck!

im trying to get somewhere but unforseen events have set me back including and debt increased. so reviewing all accounts and things set up to see if anything i can tweak and focus on it again

#439 WaitForMe

Posted 10 June 2019 - 10:24 AM

I've just been flipping through the book again this morning, procrastinating all the housework I said I'd do while DH took the kids out...

And, it occurred to me, I don't understand why there is a separate bank account for Fire Extinguisher. Isn't it always just going straight into something else? Wouldn't it always just go straight onto a credit card debt or mortgage etc? Whats the point in putting it into a separate bank account first?

Edited by WaitForMe, 10 June 2019 - 10:25 AM.


#440 jkate_

Posted 10 June 2019 - 12:59 PM

View PostWaitForMe, on 10 June 2019 - 10:24 AM, said:

I've just been flipping through the book again this morning, procrastinating all the housework I said I'd do while DH took the kids out...

And, it occurred to me, I don't understand why there is a separate bank account for Fire Extinguisher. Isn't it always just going straight into something else? Wouldn't it always just go straight onto a credit card debt or mortgage etc? Whats the point in putting it into a separate bank account first?

I always thought that too!  Only makes sense for people who are directing FE to say a house deposit for example.

#441 happygoluckyinoz

Posted 10 June 2019 - 01:34 PM

View PostWaitForMe, on 10 June 2019 - 10:24 AM, said:

I've just been flipping through the book again this morning, procrastinating all the housework I said I'd do while DH took the kids out...

And, it occurred to me, I don't understand why there is a separate bank account for Fire Extinguisher. Isn't it always just going straight into something else? Wouldn't it always just go straight onto a credit card debt or mortgage etc? Whats the point in putting it into a separate bank account first?

Because there will always be a fire to put out is how I think about it. So we transfer the % into the fire ex account each pay & if we get to the next pay without using it we transfer it out to savings/mortgage/shares leaving $1k in there as a buffer. Like this month we had to replace the car key docking station - that was $970 that came out of fire ex. If we’d already transferred the money elsewhere straight away we wouldn’t have the funds to pay for it.

#442 WaitForMe

Posted 10 June 2019 - 02:35 PM

View Posthappygoluckyinoz, on 10 June 2019 - 01:34 PM, said:

Because there will always be a fire to put out is how I think about it. So we transfer the % into the fire ex account each pay & if we get to the next pay without using it we transfer it out to savings/mortgage/shares leaving $1k in there as a buffer. Like this month we had to replace the car key docking station - that was $970 that came out of fire ex. If we’d already transferred the money elsewhere straight away we wouldn’t have the funds to pay for it.

Ah ok I always though thats what Mojo is for, but its not very accessible so yeah that makes sense.

#443 jkate_

Posted 10 June 2019 - 10:40 PM

^^^ that explanation is good happygoluckyinoz

#444 IamOzgirl

Posted 11 June 2019 - 10:28 AM

Interesting - i didn't think there was a separate acct for FE, it was just an allocation of money that was sent somewhere each pay.

ie with HGLIO example above. you would have actual taken that $970 from Mojo and then used FE money to top Mojo back to the amount it is supposed to be, whether that is the $2000 he initially suggests, or the 3 mths DE money you are supposed to build too.

Note the 3mths of DE should be saved using FE before you redirect it anywhere else (after paying you debts off,)

#445 kass87

Posted 12 June 2019 - 06:07 PM

How can you make this work using only onebasic accoubt

#446 Purple Polka Dots

Posted 12 June 2019 - 06:41 PM

We still use an offset account - our bank (comm bank) allows us to have six offset accounts. Only one of these is linked to a debit card (our splurge account) so this is the only one we really take money from/use at the shops. Everything else is auto-transfers from the account our pay goes into.

It works for us, because we can still split the money out and see the different accounts growing, but it is all offset. We are also disciplined, which helps.

#447 WaitForMe

Posted 12 June 2019 - 06:52 PM

View Postkass87, on 12 June 2019 - 06:07 PM, said:

How can you make this work using only onebasic accoubt

Spreadsheet? App?

It would require alot of work... I'm not sure why you'd want to tbh.

#448 kass87

Posted 12 June 2019 - 06:53 PM

My hubby wants to keep it all in one account. Says transferring money all the time between accounts is making us look suspicious.

#449 Lees75

Posted 13 June 2019 - 12:02 AM

I’m feeling quite happy with myself. I have almost managed to pay all my debts off (other than the mortgage) so re-read the book. On the spur of the moment, I decided to set up an investment bond for my son. With AMP, the child advancement bond has to be set up before the child is 16, and DS is 16 soon. I chose to vest it to him for his 21st. You don’t need a lump start to start, just a $100 per month commitment.

#450 Literary Lemur

Posted 13 June 2019 - 05:20 AM

Am I allowed to sneak in even if Im not following The Bare Foot Investor?

Im at the other end of things and trying to get my head around how to transition into retirement. It seems like a scary leap of faith!




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