![]() ![]() The way I did this is to have my income landing directly into my Daily expenses account and then transfer the money straight out – 10% to Smile, 10% to Splurge and 20% to the Grow (fire extinguisher bucket). This way, you’re paying yourself first and not leaving savings to whatever might be left over at the end of the month. Set up direct transfers into your Daily Expenses, Smile, Splurge and Grow accounts each payday. Automate your Finances: Automating your money flow is key to success with this strategy.The second separate bank account is your Emergency Fund – the Mojo account, which should be a high-interest online savings account with one of the barefoot investor banks. The first set of Barefoot investoraccounts or buckets are your Daily Expenses (transaction), Splurge (transaction), Spend (savings), and Grow (savings). Pape recommends having these with different banks to avoid the temptation of transferring money easily between them. This is in order to keep your Emergency fund (Mojo) separate from your transaction account. Set up your Buckets: The first step is to open up two separate barefoot investor bank accounts at different institutions.So how can we use this to manage our spending and achieve our financial goals? ![]() Rather than getting into the nitty-gritty of every line item, it allows you to set aside broad categories of spending and savings. The beauty of the Barefoot budget is in its simplicity. Now let’s see how it works and how it might be used to align with your financial goals.įocus on spending your money where it matters most to you and cut back on unnecessary spending Applying the Barefoot Investor’s Budget to your Household
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