072 | Dumb Things People Do with Their Money!

We’ve received a lot of great feedback regarding our MoneySMARTS system and quite a number of our listeners have requested us to unpack it a little bit more. So for today’s episode, we will be talking about some of the dumb things people do with their money!

If you’ve listened to all our previous episodes in this podcast, by now you would have understood that good money management is crucial to building a successful property portfolio. But this is easier said than done. What we would like to highlight in this episode is that small things lead to big things. A tiny expense here and there will eventually sum up to a significant amount if not monitored properly.

So Bryce and Ben listed 12 bad habits that they’ve seen and here are the top 5!

1. Having too many separate individual bank accounts
2. Not changing your lenders simply because you are familiar with the facilities and online banking arrangement
3. Thinking credit card money is your money
4. Not paying yourself first
5. Not having an offset account

Tune in to find out the rest! 🙂

 

We will also be answering questions from:

• Luke: Hi guys, love the podcast as it has helped me define my goals and strategy. Keep up the great work! I took great interest in your MoneySMARTS system and have recently started using it. My question is, you say to pay investment property expenses from the Payments Account (i.e. the credit card), however, I have noticed that if paying by a credit card (VISA or American Express) you are charged a considerable fee (1.5-3.6%). Do you suggest we still pay via credit card as the interest savings from keeping funds in the offset account will outweigh the charge for using the credit card? For example, I went to pay the strata fees for one of my properties which were $407 for the quarter. If using American Express, I would have been charged an extra $15. Do you think it’s worth it?

 

• Michelle: Hi! Just a quick question regarding your MoneySMARTS system. I’ve been implementing some of your theories in regards to putting all income into an offset account (including rental income), paying money into a spending account for discretionary expenses, and using a credit card for known expenses (managing to save an extra $1,000 per month this way – woohoo!). Is this setup still acceptable if the offset account is linked to an investment property loan and not a PPOR? Thanks for all the great info via your podcasts and The Armchair Guide to Property Investing, I’ve just given birth to our third child so podcasts are a saviour when I’m spending countless hours feeding my baby!! Multi-tasking at its best

 

Apart from that, we are also sharing Bryce’s free report called How to Buy an Investment Property without Impacting the Family Budget. Just fill in the form below and we’ll send it to your nominated email:

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Other resources mentioned in this episode:

• Episode 53: The MoneySMARTS system – Listen here
• Episode 3: Four Pillars of Mastery – Cash Flow Management – Listen here

 

If you enjoyed this episode (Dumb Things People Do with Their Money!), don’t forget to rate us on our iTunes channel (The Property Couch Podcast) and our Facebook page. Any questions or ideas? Feel free to drop us your thoughts here: https://thepropertycouch.com.au/topics/