For households with a mortgage, we strongly recommend the Primary account is a 100% transactional offset

your next holiday, or the ‘education’ fund. If you have an investment property, the rental income comes into your Primary account – it doesn’t go to paying down the investment loan. (Don’t worry, the Primary account pays the monthly loan repayments from the ‘Loans jar’.)

Make sure also that when using the debit card at a point of sale, it is correctly linked to the eftpos or the cheque button, and not the savings or credit buttons. (You check this with your bank, not at the point of sale machine.)

If you use the general rule of thumb, you should be targeting to trap a surplus of 20% to 30% of the overall income that is flowing into your Primary account each year.

You must do so religiously – no ifs, buts or maybes. Have we made ourselves clear? Because otherwise you will be charged interest and this will cost you more than you make.

Expected Income – Expected Regular Spending – Planned Provisions Spending = Targeted Yearly Surplus

5. Tell us what life looks like now that your problem is solved or being solved. We are clear on our end goal and what we can spend. Money SMARTS just works behind the scenes for us. Groceries still prove to be a constant challenge to keep within budget (and eat healthily) but we are working on this by buying in bulk.

Also check with your bank that when you ‘swipe’ or ‘tap and go’ at point of sale, the money will come from the Living & Lifestyle account.

alcoholic beverages Clothing and footwear Education – out of pocket costs Personal care Child care Investment property costs Other investment costs Income protection insurance Professional fees Car registration Pets Household soft furnishings House and garden maintenance Fares Gifts Donations Dining out/takeaways Entertainment Sport and recreation