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Barefoot Investor Scott Pape shares the five money rules he follows to get ahead

The Barefoot Investor Scott Pape has revealed the five money rules he follows to keep his personal finances in check and get ahead.

Mr Pape said that setting personal financial rules can help Australians stay in control of their budgets and permanently break bad spending habits.

‘For years I’ve applied this thinking to money. I don’t rely on willpower – instead I’ve created my own Money Rules,’ he said in his weekly email newsletter.

‘These are automatic, non-negotiable rules that keep our finances (and my sanity) in check.’

His first rule was to take his wife out on a date night on the first Tuesday of every month.

‘Despite having four kids under 11 and a life that’s a total shemozzle, we make it happen.

‘Every action is a vote for the type of relationship we want, and a monthly date night is a vote that we’re connected, committed, and eating food that hasn’t been touched by tiny fingers.’

His second tip was to buy shares every month.

‘On the day after our date night, I buy shares (index funds of course). Some months it’s a lot, some months it’s a little.

‘The point? I’m an investor, so I invest. I don’t try to time the market. I just stick to the habit.’

The Barefoot Investor, Scott Pape, said he follows five personal and financial rules every day

His next rule was to give money away every month. 

‘Giving isn’t just about charity – it’s about breaking the chains of materialism, feeling grateful, and ensuring our kids don’t grow up to become contestants on MAFS,’ he wrote.

He said that in his family, discussing giving is just as common as discussing spending. 

His fourth rule was to set aside a $400 personal allowance each month for both himself and his partner. 

‘We’ve set a $400 no-questions-asked spending limit. Anything over that, we chat about on date night.’

He also explained that he and his wife share a bank account, as it helps them communicate regularly about their finances. 

Mr Pape encouraged Aussies to go on a date night with their partner to set financial goals

Mr Pape encouraged Aussies to go on a date night with their partner to set financial goals

‘It works for us, but let’s be clear – joint accounts aren’t for everyone, especially in abusive relationships.’

Mr Pape’s final rule was to avoid stressing over every minor transaction or unexpected cost, as he found the mental strain wasn’t worth it. 

‘Even after nailing all the Barefoot Steps, I can still catch myself sweating the small stuff – like spending two hours researching a $45 omelette-maker, or spiralling into a pit of despair from copping an excess baggage fee on good old Onestar.

‘So, I created a forget about it number: if it’s under $100, I let it go. My time and sanity are worth more than a few bucks, and yours probably are too.’

He encouraged Australians to sit down with their partner on their next date night and create a personalised set of money rules together. 

Barefoot Investor’s nine steps to get ahead financially

Step 1: Schedule a Monthly Barefoot Date Night 

Get dressed up, go out to dinner and put in place the Barefoot Steps—actually do them: set up the accounts, have the conversations while you munch on garlic bread and have a glass of wine. 

Step 2: Set Up Your Buckets 

This is what I call my ‘Serviette Strategy’ – a simple three ‘bucket’ solution where you put your money on autopilot so you’ll never have to worry about it again. 

Step 3: Domino Your Debts 

Turn the process of paying off your debts into a game of dominos—it’s the fastest way I know to escape the cult of credit once and for all. 

Step 4: Buy Your Home 

Buying a home is one of the biggest (and best) financial decisions you will ever make. My commonsense plan could see you in your very own home in as little as 20 months. 

Step 5: Increase Your Super to 15 Per Cent 

Boost your super to 15 per cent and you’ll never have to worry about money again. It’s time-tested. It’s totally tax-efficient. And it works. 

Step 6: Boost Your Mojo to Three Months 

Boost your Mojo to three months of living expenses. This move takes character – what true wealth is all about.

Step 7: Get the Banker Off Your Back 

Most people have a home loan. Very few people go through this process of systematically knocking down their mortgage, and that’s exactly how your lender likes it. But not you.

Step 8: Nail Your Retirement Number

Let me be clear. You do not need a million dollars in super to retire. All you need is my Donald Bradman Retirement Strategy.

Step 9: Leave a Legacy 

How do you want to be remembered? An important part of building wealth is thinking about how you want to make a difference in the world.

Scott Pape is the writer of The Barefoot Investor – the only guide to money you’ll ever need

 

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