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Article Series: Taking Your Barefoot Investor Buckets to the Next Level with the MoneyFormula app!

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PART 4 - Your Barefoot Fire Extinguisher Goals

Your Barefoot Fire Extinguisher Goals
At the heart of your financial freedom lies your Fire Extinguisher; simply choose your Barefoot Goals and the MoneyFormula app will show you exactly when they will finish.
In PART 4 of this article series we'll cover
Barefoot Fire Extinguisher Goals 1. Your Fire Extinguisher Goals
Barefoot Fire Extinguisher Goals 2. Boost Your Mojo
Barefoot Fire Extinguisher Goals 3. Domino Your Debts
Barefoot Fire Extinguisher Goals 4. Get the Bank off Your Back
Barefoot Fire Extinguisher Goals 5. Advanced Mortgage Planning
Your Barefoot Fire Extinguisher Goals
TIP - New to MoneyFormula? Find out how it can help you with your Barefoot Investor finances by referring to the Barefoot Investor Overview.
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If you've read barefoot investor or would like to manage your money like a pro, MoneyFormula will make your life easy and help you save! My experience has been fantastic, and any questions I had, Matthew was able to answer efficiently. Could not reccomend MoneyFormula enough!
Please Note: The information on this page is provided to help MoneyFormula clients who have also read The Barefoot Investor by Scott Pape and are looking for examples of how the MoneyFormula App can be used to implement budgeting principles similar to those described in the book (such as the concept of "buckets").

MoneyFormula is independent of, and is in no way affiliated with, endorsed by, or associated with Scott Pape or The Barefoot Investor. This information is for illustrative purposes only and should not be interpreted as an official endorsement or partnership. You are not required to have read The Barefoot Investor to use the MoneyFormula App.

The Barefoot Investor is a registered trademark of Scott Pape. All rights reserved. This page uses the term for descriptive purposes only, and no claim of ownership or affiliation is made.
1. Your Fire Extinguisher Goals and the MoneyFormula App
Barefoot App Fire Extinguisher Goals
Your Barefoot fire extinguisher - the app lets you choose the financial fires you want to complete.
Your fire extinguisher uses part of your income each month (ideally 20%) to chip away at your current barefoot step. For example, if you are currently at Domino Your Debts the fire extinguisher does all the work to pay down your bad debt.
The great thing about your fire extinguisher is that it gives you an easy and simple way to work through your financial goals one at a time in order of importance.
However, it can be a little frustrating putting all this money aside and not having a clear picture of when your goals will finish or not knowing how much of an impact your fire extinguisher is having.
But we are about to change all of that.
Fire Extinguisher Goals in Real-Time
Using MoneyFormula you can see the full impact of your Fire Extinguisher and instantly see when each wealth goal will complete as the fire extinguisher amount is applied, whether it is the full 20% of your income or you're starting on $200 a month (like we covered in PART 1 - Setting Up Your Barefoot Investor Buckets).
Barefoot App Fire Extinguisher Goals
Your Barefoot fire extinguisher - the app shows you in real-time when you will complete each financial goal.
So if you are looking for answers on when will I domino my debts? how long will it take to boost my mojo? and ultimately when will I crush my mortgage? then simply pick your goals and the answers are yours for the taking.
But, before you rush off, let me show you a few more cool tricks!
Barefoot Investor App BucketsQUICK TIP
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You can also start entering your details, pick your Barefoot Fire Extinguisher goals and get your real-time answers straight away.
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2. Create and Boost Your Mojo
If you are fairly new to The Barefoot Investor approach then one of your first goals will be to come up with $2,000 to set up your Mojo (Emergency Fund )account.
This can be a bit of a challenge, even if you do manage to sell everything in sight (short of the kidneys) and take up one or more side hustles.
MoneyFormula gives you a bit of breathing space here, if you need it, as it provides you with two wealth goals to help you with your Mojo account; the Create Emergency Fund goal and the Top Up Emergency Fun goal.
Barefoot App Fire Extinguisher Boost Mojo
Your Barefoot fire extinguisher - the app has goals to help you create and top up your Mojo account.
So, if you are struggling to find the $2,000 to start your Mojo or it is taking a bit longer than you want, MoneyFormula allows you to point your Fire Extinguisher at the Mojo account to help get it started.
It is very simple to set up. All you have to do is pick both the goals from the list (Create Emergency Fund and Top Up Emergency Fund) and enter your current Mojo balance - then MoneyFormula does the rest.
Example: Mojo with $800
In the example below where the Mojo (Emergency Fund) balance is $800, MoneyFormula will use your fire extinguisher on the Create Emergency Fund goal to get the balance up to $2,000 (or whatever amount you set) before moving on to the next goal.
Barefoot App Fire Extinguisher Mojo Account
Barefoot App Fire Extinguisher Mojo Goal
Your Barefoot fire extinguisher - the app using both goals to help you create and top up your Mojo account.
Example: Mojo with $2,100
In the next example below, where the Mojo (Emergency Fund) balance is already over $2,000 the Create Emergency Fund is automatically set to completed. The Top Up Emergency Fund goal will be used later on when you are ready to boost your Mojo to three months expenses and we can see it will take nine months from now to complete.
Barefoot App Fire Extinguisher Boost Mojo Account
Barefoot App Fire Extinguisher Boost Mojo Goal
Your Barefoot fire extinguisher - the app using one goal to help you top up your Mojo account.
Using the Create Emergency Fund goal is totally optional, but it can be helpful if you are struggling to find the initial $2,000 to start your Mojo.
3. Domino Your Debts
Domino Your Debts is a really important step to get on top of as the result can make a huge difference to your finances as you crush the high interest repayments on bad debt (credit cards, store cards, personal loans, etc.).
MoneyFormula makes it super easy to crush your debts, as all you have to do is set up each debt account ...
Barefoot App Fire Extinguisher Domino Bad Debts
Domino Your Debts - use the app to track all of your debt accounts.
... and MoneyFormula will automatically add them to the correct fire extinguisher goal.
Barefoot App Fire Extinguisher Domino Bad Debts on Goals
Domino Your Debts - the app will automatically add your bad debt to your Crush Bad Debt (Domino Debts) financial goal.
If we review the Crush Bad Debt goal we can see all the debts lined up in the correct order, see which bad debt to target first with your fire extinguisher and when you will be rid of all of your bad debts.
Barefoot App Fire Extinguisher Domino Bad Debts Goal
Domino Your Debts - the app will chart your Domino Your Debts progress and show you when each debt will be repaid and how much you will save.
It will also show you how much you will save compared to just paying the bank's minimum amounts (the Bank's way).
To test different Debt Strategies on your bad debt you can easily change from the default Smallest Balance First approach (also known as Snowball) and see the impact.
Barefoot App Fire Extinguisher Bad Debt Strategies
Domino Your Debts - choose from the different debt repayment strategies (snowball, avalanche and custom) in the app.
You can try the Largest Interest Rate First approach (sometimes called Avalanche) or you can try custom sorting your debts, for example, if there is a debt you really want to get rid of first for emotional reasons.
As you change the strategy, add or remove debts or update your fire extinguisher amount MoneyFormula will instantly recalculate all the numbers, re-sort your debts (if required) and show you which debt to pay first, when you will be debt free and how much you will save.
The Debt Crusher
If you want to see when all of your debts (bad debts, mortgage, investment loans, etc.) will be repaid and how much you will save then head over to the MoneyFormula Debt Crusher report to see them all lined up.
In the example below the Debt Crusher is showing us our current fire extinguisher will save us $86,208.93 and we will be debt free sooner 4 years and 3 months sooner, as we pay off our three bad debts and our mortgage.
Barefoot App Fire Extinguisher Debt Crusher
Domino Your Debts - the app Debt Crusher will include all off your debts to give you a complete picture.
All the numbers are automatically updated if you change your fire extinguisher amount and you can also dive down into the detail if you want to more on each debt repayment (log into MoneyFormula now and have a play if you want to see it in action).
The Debt Free Plan
If you want to compare different fire extinguisher amounts with the Bank's Way of making minimum repayments only, then the MoneyFormula Debt Free Plan has you covered.
Instantly see how even the smallest of fire extinguisher amount can make a huge difference.
Barefoot App Fire Extinguisher Debt Free Plan
Domino Your Debts - the app Debt Free Plan lets you compare the impact of different fire extinguisher amounts.
You can also review the impact of your target fire extinguisher in full flight (at 20% of income) so you can see how life changing it will be if you achieve it; and you can set a custom fire extinguisher amount to any value you want and instantly see the results.
4. Get the Banker off Your Back
Once you have cleared your bad debts and your mojo is topped up, it is time to move on to one of the biggest financial goals - crushing your mortgage.
The financial freedom of owning your own house, rent free, with no bank looking over your shoulders is a dream worth working for.
It also frees up a huge amount of your weekly income when you no longer have to fork out 30% of your wages to the bank.
Barefoot App Crush Mortgage Account
Your Barefoot fire extinguisher - the app will help you crush your mortgage and get the banker off your back.
MoneyFormula comes equipped with a whole range of tools to help you beat your mortgage and wipe the smile off your bank's face!
To start with you can use the Crush Your Mortgage fire extinguisher goal to get the bank off your back. Simply select the goal from the list and see when you will be mortgage free and how much you will save using your current fire extinguisher amount.
Barefoot App Fire Extinguisher Crush Mortgage Goal
Your Barefoot fire extinguisher - use the crush my mortgage financial goal in the app.
As well as using the barefoot fire extinguisher amount (called the Money Flows option) you can also choose to lock in a debt free date, or cut a number of years of your mortgage, and get MoneyFormula to tell you the Fire Extinguisher amount required.
This is a great option if you want to be debt free by a certain date (e.g. a big birthday, before you retire, etc.) and give you something to work towards.
Simply edit the Crush My Mortgage payout option and pick a different payout method (for example, Pay Off Loan By) ...
Barefoot App Fire Extinguisher Mortgage Free Option
Your Barefoot fire extinguisher - choose from the different mortgage payout options in the app.
... enter your target date ...
Barefoot App Fire Extinguisher Crush Mortgage Date
Your Barefoot fire extinguisher - set the date you want to be mortgage free in the app.
... and instantly see what it will take, how much the repayment should be and how much you will save.
Barefoot App Crush Mortgage Savings
Your Barefoot fire extinguisher - the app will show you what it will take crush your mortgage, your new mortgage repayments and how much you will save.
5. Advanced Mortgage Planning
As well as the fire extinguisher goal options to crush your mortgage, MoneyFormula provides you with a set of planning tools and calculators that work on your mortgage (using the current balance, rate and repayments amount).
The Interest Rate Rise calculator takes the guessing game out of interest rate rises and lets you enter a new interest rate to see the impact on your current mortgage.
For example, if your current rate is 4.75% and you enter 5.75% then it will show the impact of increasing your rate by 1.00% and the change to your repayments and total interest remaining; so you can prepare well in advanced.
The Extra Payments calculator lets you enter an amount to increase (or decrease) your current repayments to see the impact on your current mortgage.
For example, if you add $100 to your repayments it will show you how much you will save and how many years you will cut off of your loan.
Barefoot App Mortgage Extra Payments Calculator
Your Barefoot fire extinguisher - the app advanced mortgage planning calculators will show you the impact of extra mortgage repayments and interest rate changes.
The Loan Payout Options is a great way to lock in a debt free date and find out what you have to do to achieve it. You can pick an exact date; or you can choose one of the loan term adjustment options.
Once entered you will see the new repayment amount you will need to pay and the interest remaining before your debt is paid off. This is a great way to decide what value to lock into your fire extinguisher Crush My Mortgage goal (covered above)
What Next?
If you have made it through the articles in this series you should be in a good position to take your barefoot investing to the next level using the MoneyFormula app.
MoneyFormula Roadmap to Success video series
MoneyFormula offers a whole lot more than covered in this article series and if you want to find out more, watch through the Roadmap to Success video series. It will show you everything you need to know about MoneyFormula using Bob & Jill’s finances as an example (sign in to your MoneyFormula account to watch).
The Barefoot Investor book
If you have come across this article and you are not one of the million+ readers who have read The Barefoot Investor then you should probably head over to Scott Pape's website and grab a copy. Find out what all the fuss is about with his enjoyable and down to earth approach to finances and his focus on date nights, serviette strategy, unique bucket names and simple barefoot steps.
For more information on how MoneyFormula can help you with your Barefoot finances refer to the Barefoot Investor Overview.
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PLEASE NOTE: The information in this article is general in nature. It does not take into account your personal objectives, financial situation or needs. Please speak to a qualified financial adviser if you need specific advice on your finances. The terms "The Barefoot Investor", "Fire Extinguisher", "Smile", "Splurge", "Blow", "Mojo" and "Grow" buckets are the trademarks of Scott Pape (The Barefoot Investor). All rights reserved. This page uses the terms for descriptive purposes only, and no claim of ownership or affiliation is made. MoneyFormula / HomeMoneyManager operate independently of, and are in no way affiliated with, endorsed by, or associated with Scott Pape or The Barefoot Investor. The information provided is for illustrative purposes only and should not be interpreted as an official endorsement or partnership..