Implementing Money SMARTS via Moorr

A little about MoneySMARTS

Money SMARTS is a powerful money management system designed to help you save more and gain better control over your finances. It goes beyond mere budgeting or banking setups, offering a structured and rules-based solution. The system is user-friendly, time-efficient, and adaptable to various household configurations. It works throughout different life stages, from adolescence to post-retirement.

Money SMARTS empowers you to plan, organize, and manage your money with certainty and confidence. It fills the gap in financial literacy education and has garnered positive feedback from users. In our best selling book, Make Money Simple Again, you’ll learn the fundamentals and components of the system before diving into the 7-step implementation process. This book is free for download! Check it out here.

If you’re already familiar with the 7 Step Process, then buckle up and get ready to experience the incredible benefits of implementing Money SMARTS via Moorr!

The Money SMARTS System - 7 Step Process

The first step toward building wealth is believing in the goal. You must want to achieve this and believe in your ability to achieve financial discipline and self-control.

Once you’re clear with your motivation, you’ll be ready to embrace this change.

Step 1: Gather

If possible, combine your finances by setting up a joint bank account. This will allow your combined money to work harder for you, improving your overall outcome. If you prefer separate accounts, you can still use the Money SMARTS system with virtual Jars to track your surplus amounts.  

For this stage, go hunting for your financial documents including payslips, bank statements, and credit card statements. Familiarise yourself on where to look for those information cause you’ll need it soon. Is it on an online banking platform? What’s your log in to it? Or is it a paper trail? Do you know where you’ve stored them? Or perhaps, is it in your email inbox?

By gathering your financial documents, you’ll start to understand your income, savings, assets, and outstanding debts. Identifying your surplus money will be crucial in creating a plan for building wealth.

Checklist for information required to start money SMARTS:

  • Bank Statements
  • Credit Card Statements
 

Helpful Tips in gathering Income:

  • PAYG – If your income is made up of hourly rate, commissions, allowances etc, gather up about 3- 6 months of payslips.
  • Self-employed or Business Owners – Your last 2 of tax returns is what you need to gather up.
  • Rental Income – Last couple of rental statements
  • Investment Income – Last couple of years of Share dividend records, managed fund statements or refer to your tax returns
  • Government Income – Child allowance, personal carer statement etc.
  • A quick scan of recent Bank Account statements may reveal other sources of Income
 
Helpful Tips in gathering Expenses:
  • General spending – Ideally it’s best to go back and look over your past 6 months of bank and credit card statements to get a clearer picture of ‘where it all goes’
  • Provisioning Spending – think about the big things you plan to spend your money on over the next year. Some could be new for that year such as replacing your couch. Others could be your planned spending on presents and gifts. You need to document what they are and how much you plan to spend on them for the coming year 

How can Moorr Help?: Create your free account, log in, and follow the prompts. You’ll be asked to enter some numbers. Don’t worry if you don’t know it off the top of your head. Just put in a rough figure, and you can update it once you know for certain.

 

Step 2: Sort

Organize your financial documents and sort through the numbers. Record your income, savings, assets, and outstanding debts. Having a clear understanding of your finances is essential in crafting a successful money management plan.

How can Moorr Help?: Now that you have the financial documents, update each section on Moorr, particularly the income, assets, and borrowings sections. We’ll work on the expenses next.

 

Step 3: Determine Your Financial Picture – Calculate

Break down your spending into essential living expenses and discretionary items. Identify your surplus money, which will be crucial in building your own lifestyle by design. Knowing how much you can allocate to your financial goals is key to success.

How can Moorr Help?: Let’s track your spending! 

  1. Get a copy of your bank statement for the last 12 months and get your calculator ready!
  2. Once you’ve got your bank statement, start categorising. You can find all the common bill and spending expenses on Moorr. Start there!
  3. If you’re wondering how to categorize from a statement, it might be best to have it in an Excel spreadsheet first, and then transfer it to Moorr. Break your spending into:
    • Regular spending – Ideally it’s best to go back and look over bank statements and credit card statements from the past 12 months to get a clear picture of where all your money goes. (Getting your numbers as accurate as you can might take a bit of effort now, but you will be glad when you’ve done it, because it will mean a lot less work when you have Money SMARTS up and running.) Note the monthly average in your excel sheet. We’ll transfer it to Moorr soon.
    • Provisioning spending – Think about the big things you plan to spend your money on over the next year. Some of you could be planning on replacing your couch. Others could be spending big on gifts. You need to document what these planned expenses are for the coming year.
  4. Go to the Bills & Spending section on Moorr and enter those Regular Spending that you have recorded.
  5. Next, go to the MoneySMARTS Dashboard and enter the Provisions Spending.

 

Once you’ve completed all this, check out your Dashboard on Moorr!

This is the coolest part because it tells you how much surplus you have and more. It’s like a profit and loss statement. If the dashboard shows that you should have a surplus in place, but you don’t, it means you may have overestimated your income or underestimated your expenses/repayments. Make sure to check and update accordingly.

And here’s a heads up. The dashboard can means different things depending on your unique financial circumstances. For some, it could looks amazing and this means you just need to continue doing what you’re doing and make sure you don’t deviate from this path. For others, this could be a cold harsh reality check but please don’t let it put you down. Use it as a source of motivation to change and to do better. Financial freedom is a journey and just because you are in a tight spot now, it does not mean you’re at disadvantage. The journey to wealth-building is ongoing, and you’ve got plenty of opportunities for renewal and improvement. As we mentioned earlier,

“The first step toward building wealth is believing in the goal. You must want to achieve this and believe in your ability to achieve financial discipline and self-control. “

 

Step 4: Set Up the System – Banking

To run Money SMARTS successfully, you will need to ensure you have the banking set up properly.

If you own the book – refer back to the extensive instructions on Chapter 3, pages 30 – 46 and Chapter 5, pages 94 – 101.

If you have a mortgage, set up your Primary Bank Account and Living & Lifestyle Bank Account as 100% offset account on your owner occupier property. And manage your credit card wisely.

If you don’t have a mortgage, make sure you’ve got a high interest bank account and is trapping all your surplus there.

And this is the time to optimise your spending! Use the Money SMARTS virtual Flour Jar categories to calculate your income and expenditure. Identify discretionary spending and areas where you can cut back to increase your surplus income.

Once you’ve done that, categorize your regular spending, credit card expenses, direct payments, loans, and planned provisions spending. Analyse each category to determine where you can save more and increase your trapped surplus money. Here are some examples: 

  • Living and Lifestyle Expenses: Try an identify non-essential expense items in this category. By cutting back on these, you could save extra per week, which could be used towards your goal.
  • Credit Card Expenses: Keep your bill spending down and shop for better deals! A common one is consider negotiating phone bills to get better deals in the telco sector.
  • Bank Fees and Accounts:
    • If you have a mortgage: Though your bank fees might seem higher, professional packages often include valuable benefits. Shop around using a Mortgage Broker is advisable and consider various factors such as interest rates, borrowing power, credit policy, and more.
    • If you don’t have a mortgage: Look for a high-interest, no-fee account. If interest paid isn’t high enough, try shopping around for the better deal. Ideally, only have one credit card so you can save on the fees.
  • Planned Provisions Spending: If you have some flexibility in planned provisions spending, target specific areas especially for holiday and presents & gifts items. Make sure your spending is really optimise in these provisions.  
  • Primary Account: You have a money surplus, and the trapped surplus money will continue to build up in your 100% offset Primary Account, reducing interest costs. Consider paying down debt more aggressively if you want to tighten your budget further but make sure not to stretched yourself too much.  
  • Banking:
    • If you have a mortgage: Convert all accounts into 100% offset accounts linked to your home mortgage, or if it’s not possible to convert some to offsets, consider transferring the money out and close those accounts. Your Living & Lifestyle Account can be set up as an additional offset account, and you can apply for two debit cards linked to this account. Decide which credit card will be your active card, and keep the second one only for emergencies without fees if you pay it off every month.
    • If you don’t a mortgage: Choose a high-interest savings account as your Primary Bank Account and arrange for your salary and direct payments to flow into this account. Create a separate Living & Lifestyle Bank Account for weekly allowances. Make sure your weekly allowance is transferring each week into your Living & Lifestyle account – so you have your 7 day float up and running. Be strict with your credit card and ideally only keep one.

How can Moorr Help?: Check out our default recommendations!

Prepare to be amazed as you journey through Steps 1 to 3! You’ll gain a deep understanding of your money habits and develop a newfound awareness of your finances – truly fascinating, isn’t it? We’ve emphasized the importance of having the right mindset from the start, and now, as you check out your Moorr Dashboard, you’ll witness your household’s money flow in and out with clarity. This crucial insight will guide you in setting up your banking structure effectively.

Drawing on our extensive experience in money management and insights from our diverse user base, we’ve tailored bank account structure recommendations for different bill and spending categories. Keep in mind that these recommendations are general guidelines based on the core principles of MoneySMARTS, and they might need some adjustments to align with your unique spending habits. Feel free to make tweaks as you see fit to personalize the system.

Once you’ve reorganized your banking structure, make sure to update your progress on Moorr. This way, you’ll be all set to unleash the full power of MoneySMARTS in managing your money like a pro!

 

Step 5: Start the Journey – Take Action

Using the Money S.M.A.R.T.S. platform makes the monthly check up a breeze. Monthly check-ups allow you to track and understand your money and cashflow position in a shorter timeframe to give you some clearer insights into how well you are progressing and controlling your money.

In less than 10 minute a month you can have a clear idea of your numbers and how you are tracking to your targets

How is that possible? Because it’s a very clever system that once set-up and it’s running smoothly, you only need to input a few key figures in to the Money S.M.A.R.T.S section of the platform:

  1. The balance of the Primary account
  2. The balance of the Credit Card account
  3. What spending you did in your Provisionings Spending items for that month


For book owners jump into Chapter 6, pages 107 to 125.

How can Moorr Help?: Monthly Checkup!

Monthly check-ups allow you to track and understand your money and cashflow position in a shorter timeframe to give you some clearer insights into how well you are progressing and controlling your money. In short, you are assessing the cashflow for the month – money in and money out – and tracking it against your yearly targets.

The great news here is, when set-up and it’s running smoothly, this check-up should take less than 10 minutes a month to do! To see the full reporting and insights, you only need to input three figures in Moorr:

  1. The balance of the Primary Bank account
  2. The balance of the Credit Card account
  3. Your total provision spending for the month. (Tip: You can add this On-The-Go via the app! That way, you don’t have to note it down and best yet, you can see how much provision is left before making that buying decision.)

 

Step 6: Adapt and Improve – Tweaks

As you embark on your financial journey, remember that flexibility is key. Be open to adjustments and improvements that will help you reach your goals faster. Increase your surplus money by reducing discretionary spending and stay grounded in reality while working towards your goals. You can refer to Step 4 on some suggestions on how to optimise your spending.

Tweaking is all about fine tuning your numbers throughout the course of the yearly program. If a bills item has gone up and will remain up, change/tweak it to reflect the ongoing costs. Where ever this are small tweaks like expenses going up or going down or even stopping then you jump into the item itself and adjust it, then the software platform does all the other adjusting for you. Cool right!

Soon enough, you’ll be a seasoned MoneySMARTS user, and your money will be on autopilot, saving surplus and preventing unconscious overspending. Keep at it, and financial freedom will be yours to enjoy!

For book owners refer to Chapter 6, pages 127 to 129.

How can Moorr Help?: The best way to do this is to get a trendline of your spending

If you noticed either of these scenarios:

  • You constantly ran out of money on your 7-day float.
  • You have a lot left on your 7-day float
  • You’re spending on something that is not provisioned for
  • You’ve got a lot of provision left
  • When you’re doing your Monthly Check Up, you noticed that you’re saving less than the targeted surplus

Review it, ask yourself if you can optimise this and get fitter with the spending and update Moorr. Stay grounded in reality, but never lose sight of the ultimate goal— living your lifestyle by design. Moorr is here to support you every step of the way, providing the tools and resources you need to succeed.

Step 7: Reflect and Renew – Rollover

Rollover is all about planning for the next 12 months of Money IN and money Out. This annual review is very important to ensure you think about what you are going to need for money for on a regular basis and also on an ad-hoc basis.

The rollover function is about reviewing your overall performance and resetting some of your numbers and most importantly the surplus you are planning to trap for this period!

For book owners go to Chapter 6, pages 132 to 134.

How can Moorr Help?: Annual Rollover

We’ve made it super easy for you to do an Annual Rollover on Moorr! Simply head to the rollover section on the MoneySMARTS page and follow the prompts. 

And don’t miss out on all the amazing insights you can get on your dashboard! Here are some suggestions to give you a better insight on what you’ve achieved so far and what you can do in the next 12 months:

  • MoneySMARTS Dashboard: Did you hit your target? What did you spent on most? Check out the Check-Up reporting table right at the bottom of the page too.
  • Wealth Dashboard: Has your speed increased?
  • Money FIT: How are you doing compared to your peers? If you’re looking for some inspiration on how others similar to you doing, check this page out.

Free Download

MoneySMARTS is an in-house built money management system. It’s a rules based system and its about making use of smart banking structure to make sure you don’t unconsciously overspend. 

The principle is simple but the implementation can be complicated depending on your unique situation. That is why we’ve written a whole book about it! (And it became a best seller too 😎)

So if you are keen to find out how MoneySMARTS can work in your own household, choose an adventure that fits you best below, fill in your first name and email and it’ll be in your inbox in the next 5 minutes.

 

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Potential Outcomes - The Power of Your Choices

Once you’ve got a system in place to trap more surplus, what should you do next? Well, that’s really up to you! Invest it, save it or use it to pay down non productive debt. 

Whatever it is, rest assured that you now have the freedom to choose.

 

Try Moorr For Free Today

Spend money on the things you want without guilt and save for the future with confidence. You can have the best of both worlds. Achieve more, with Moorr

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