Sunday Herald Sun - - News -

Tonight, you’re go­ing to set up your buck­ets and put your money on au­topi­lot so you never have to worry about it again.


Whip out your phone and cal­cu­late 60 per cent of your take-home pay.

This is your Bare­foot Bench­mark — how much you should be spend­ing on bare-bones liv­ing ex­penses.

I want you to try to live off the Bare­foot Bench­mark of 60 per cent of your take-home pay. Re­mem­ber, this is bare-bones liv­ing ex­penses (think shel­ter, gro­ceries and bills).

Leave that 60 per cent in your ”Daily Ex­penses” ac­count for, well, daily ex­penses. (See be­low for more about ac­counts.)

Then, cal­cu­late your 10-10-20 fig­ures and set up di­rect de­posits to make it au­to­matic:

■ 10 per cent of your take-home pay to your “Splurge” ac­count, linked to your Daily Ex­penses ac­count

■ 10 per cent to an on­line sav­ings ac­count for longer-term splurges. Call this ac­count ”Smile”

■ 20 per cent to an on­line sav­ings ac­count, called “Fire Ex­tin­guisher” — to fight fi­nan­cial fires such as sav­ing for a home de­posit, pay­ing down your mort­gage or pre­par­ing for re­tire­ment.


Again, on your phone, I want you to ap­ply on­line for:

■ 1 × on­line sav­ings ac­count with a dif­fer­ent in­sti­tu­tion to your ev­ery­day bank ac­count — call it “Mojo”.

When you open your sep­a­rate Mojo ac­count, I’d like you to set it up with an ini­tial $2000 de­posit. And if you don’t have a spare $2000, look around your house and see what you can flog on Gumtree. I’m dead se­ri­ous.

Make it your mis­sion to get $2000 in Mojo. It’s a great kick-off for what will be­come the most psy­cho­log­i­cally im­por­tant ac­count you ever cre­ate. When you have Mojo, you don’t have fi­nan­cial emer­gen­cies.


If you’re sin­gle? Or­der what­ever the hell you want.

If you’re mar­ried? One plate, two spoons. (Get used to it.)

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