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
‘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.
