The Barefoot Investor

3 ideas

1. Percentage-based bucket accounts for automatic budgeting

   Income lands in a Daily Expenses account at a separate bank from which fixed percentages automatically flow into named buckets: roughly 60% to living costs, 10% to Splurge, 10% to Smile (longer-term treats), and 20% to a Fire Extinguisher account that first kills debt and later funds savings. Because each account's purpose is defined in advance and transfers run automatically, spending decisions become a matter of checking a balance rather than tracking categories.

2. Mojo account as psychological emergency buffer

   A cash buffer, starting at $2,000 and growing toward three months of expenses, is held in a separate account at a different bank from everyday spending. It exists before debt is fully cleared because having untouchable cash removes the panic that drives people to credit cards when something breaks. Keeping it out of sight, with no card attached, adds friction that protects it from casual spending.

3. Duplicate super accounts silently erode retirement savings

   Workers who change jobs often accumulate several superannuation accounts, each charging administration fees and default insurance premiums, which compound into large retirement losses over decades. Consolidating into one low-fee fund, preferably indexed, and reviewing the insurance inside it so you pay only for cover you need recovers that money with a single set of administrative steps.

Save and mark ideas in the app