MENU BAREFOOT DATE NIGHT WEEK 1
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.)