Jump to content

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


  • Please log in to reply
461 replies to this topic

#426 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

#427 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.


#428 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.

#429 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.

#430 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.

#431 jkate_

Posted 10 June 2019 - 10:40 PM

^^^ that explanation is good happygoluckyinoz

#432 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,)

#433 kass87

Posted 12 June 2019 - 06:07 PM

How can you make this work using only onebasic accoubt

#434 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.

#435 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.

#436 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.

#437 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.

#438 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!

#439 Staying Strange

Posted 13 June 2019 - 06:49 AM

Kass87... We recently refinanced our loan. The bank could see very clearly our savings. Our FE goes into the offset. Smile just sits there. And they could see very clearly what we spend from daily. It's actually the smoothest refinance we've done to be honest despite being our first post-banking royal commission refinance with the much tighter restrictions/conditions

Edited by Staying Strange, 13 June 2019 - 06:52 AM.


#440 Literary Lemur

Posted 13 June 2019 - 07:10 AM

View PostStaying Strange, on 13 June 2019 - 06:49 AM, said:

Kass87... We recently refinanced our loan. The bank could see very clearly our savings. Our FE goes into the offset. Smile just sits there. And they could see very clearly what we spend from daily. It's actually the smoothest refinance we've done to be honest despite being our first post-banking royal commission refinance with the much tighter restrictions/conditions

That's a really helpful observation.

#441 WaitForMe

Posted 15 June 2019 - 08:26 AM

View PostLiterary Lemur, on 13 June 2019 - 05:20 AM, said:

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!

The last section of the book is about this. You could borrow it from the library to have a flip through just that section.

From memory the highlights are:
A "don't panic" section - if you have $250k for a couple in super and own your own home, you will have a comfortable retirement.
Instead of 3 months living expenses in cash savings, you should have... I think its 3 years? To ride out any stock market issues.
Keep working as long as possible, just 1 day a week doing something low key. Its good for your health as well.

#442 WaitForMe

Posted 15 June 2019 - 08:37 AM

View Postkass87, on 12 June 2019 - 06:53 PM, said:

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

If you have declared your TFN and have the accounts at just a couple of banks then I think it will look pretty legitimate.

I think its only when it involves transfers back and forth overseas that alarm bells ring.

We have a ridiculous number of dormant bank accounts because each time we move banks, they are a real pain to close off the account. Pretty sure the banks do it on purpose. We've never had any issues.

Edited by WaitForMe, 15 June 2019 - 08:38 AM.


#443 IamOzgirl

Posted 15 June 2019 - 03:01 PM

View PostWaitForMe, on 15 June 2019 - 08:37 AM, said:

If you have declared your TFN and have the accounts at just a couple of banks then I think it will look pretty legitimate.

I think its only when it involves transfers back and forth overseas that alarm bells ring.

We have a ridiculous number of dormant bank accounts because each time we move banks, they are a real pain to close off the account. Pretty sure the banks do it on purpose. We've never had any issues.

So i just had westpac close a dormant acct after 6mths on a zero balance. they said it was policy. I was so mad. have had the acct for over 20years! i also just closed a bankwest acct - it was joint and i could do it just me. seems banks have changed their policies. i remember it being very hard too. (post royal commission??)

#444 jkate_

Posted 16 June 2019 - 11:45 AM

View PostWaitForMe, on 12 June 2019 - 06:52 PM, said:



Spreadsheet? App?

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

Several years ago we were with a bank that only allowed one offset acct and we had an awful lot of things we were saving for - wedding, honeymoon etc.  We had a spreadsheet that allocated money to about 10 different areas - down to expenses with our rental, separate splurge, I can't quite remember the others.

It was an absolute pain in the backside.  Do not recommend.  Stick with the seperate accounts, do it with all the same bank for ease of transfers and you will be in a perfectly fine position.  As for it looking suspicious - the banks have no concern.

#445 kass87

Posted 19 June 2019 - 07:18 PM

Alright so hubby agreed to do joint accounts at ing. We also have our $2000 mojo set up. Things are looking up. Seems we do both want the same outcome. Woohoo.

#446 WaitForMe

Posted 23 June 2019 - 08:55 AM

View PostIamOzgirl, on 15 June 2019 - 03:01 PM, said:

So i just had westpac close a dormant acct after 6mths on a zero balance. they said it was policy. I was so mad. have had the acct for over 20years! i also just closed a bankwest acct - it was joint and i could do it just me. seems banks have changed their policies. i remember it being very hard too. (post royal commission??)

I've just gained another bank account...

I'm changing jobs to a bank, and they will only pay me via one of their own accounts :/

Haven't yet decided if I'll just immediately transfer the money to the ing accounts, or if I'll use it as my Smile account. I like having everything with ing but it may be a good idea to get familiar with my workplace's products.

#447 Minka1313

Posted 10 July 2019 - 02:01 PM

I have had the book on my bedside table for over a year, always too busy to read it. Well, due to a 5 hour flight from Brisbane to Sydney (redirected because of fog) I have managed to read the book in two days.

OMG! It is so good! I am so excited to get started and kicking myself I didn't read it earlier.

Never mind, I'm now on board and will start to nag DH to read it!!!

One thing I was confused about was mortagage offset? We have our home loan with an off set account. I don't think I could get a savings account at or higher than my off set??

What have people done??

Thanks!

#448 born.a.girl

Posted 11 July 2019 - 07:54 AM

View PostStaying Strange, on 13 June 2019 - 06:49 AM, said:

Kass87... We recently refinanced our loan. The bank could see very clearly our savings. Our FE goes into the offset. Smile just sits there. And they could see very clearly what we spend from daily. It's actually the smoothest refinance we've done to be honest despite being our first post-banking royal commission refinance with the much tighter restrictions/conditions


I know this is a month later .... but I'd have thought if there was any doubt, someone who showed a clear ability to budget and keep track of their money over a period of time would be a huge plus for a bank.  Just because people can jump the financial hurdles the loan requires, doesn't make them good money managers.

#449 born.a.girl

Posted 11 July 2019 - 07:57 AM

View PostMinka1313, on 10 July 2019 - 02:01 PM, said:

I have had the book on my bedside table for over a year, always too busy to read it. Well, due to a 5 hour flight from Brisbane to Sydney (redirected because of fog) I have managed to read the book in two days.

OMG! It is so good! I am so excited to get started and kicking myself I didn't read it earlier.

Never mind, I'm now on board and will start to nag DH to read it!!!

One thing I was confused about was mortagage offset? We have our home loan with an off set account. I don't think I could get a savings account at or higher than my off set??

What have people done??

Thanks!


You won't, and what's more you'll pay tax on the interest that you earn.

The whole idea of the system is to help people who found themselves unable to dip into the offset and spend it on what seems like a good idea at the time (perhaps a holiday) but doesn't make financial sense overall.

The idea is that the discipline required to use his system, will leave you better off overall, because your spending patterns change.  If you have enough discipline to do it via a spreadsheet within your offset, gofrit.

#450 born.a.girl

Posted 11 July 2019 - 08:02 AM

View PostIamOzgirl, on 15 June 2019 - 03:01 PM, said:

So i just had westpac close a dormant acct after 6mths on a zero balance. they said it was policy. I was so mad. have had the acct for over 20years! i also just closed a bankwest acct - it was joint and i could do it just me. seems banks have changed their policies. i remember it being very hard too. (post royal commission??)


Interesting.   I had zeroed out some accounts with Members Equity, and just never got around to closing them, and had actually forgotten than I hadn't close them.   Destroyed all the plastic.

I needed a transaction account that wasn't owned by a USA company, or who operated there for a Cuba holiday, which ruled out our Westpac and 28 degrees card, and lo and behold a new card arrived with a new expiry date from ME bank, so we used that.

Might make sure we leave a few dollars in it to keep it 'live'.




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users

 
 
Advertisement
 

Top 5 Viewed Articles

 
Advertisement
 
 
 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.