By now, our listeners should understand the importance of good money management habits. It is the core of building a successful property investment portfolio and has been reiterated multiples times throughout this podcast.
Since episode 3, as part of the Four Pillars of Mastery, Bryce and Ben have talked in various occasions about Cash Flow Management and the flow of money in your household. This includes where money comes from, types of spending and types of investments for your surplus. In episode 41, they talked about the moving parts of cash flow management otherwise known as the money and accumulation model. This model looks at variables and assumptions to consider when you’re modelling sophisticated money and wealth outcomes.
On page 58 of the Armchair Guide to Property Investing, they introduced the money SMARTS system. It’s a money management system and the name stands for Surplus, Mindset, Application, Resources, Timelines and Strategy. The book provided an overall summary of each section and also some tips on how you can set up this account structure yourself. But we’ve received some feedback that our readers would like us to explain this little bit more so that is exactly what Bryce and Ben have done in this podcast.
As an extension of the money SMARTS system, we are also sharing a “cheat sheet” on which account to use for different types of expenses. Just fill in your details below and we’ll send you the link to download it.
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