Building your buffer and investing.

After completing this section of the budget, you are well and truly on your way to financial happiness, no longer constrained by debt, and really starting to maximise your wealth.


Buffer and investing


Wow, if you’ve got this far you’ve come a long way. You now know exactly what you spend, have an automated budgeting system and know exactly what you can spend, plus you’ve built up a buffer account in case of emergencies to stop you living off credit, now what?


Before I delve into the exciting stuff around investing. Let’s first talk about debt. If you don’t have any bad debt, congratulations, you can keep moving on to the rest of this video.


Australians have a real problem with debt.

Australians hold some of the highest levels of debt in the world compared to other countries, this is a scary thought isn’t it? Too many people are living above their means.

There’s some debt that I can handle, like debt on a home loan or tax deductible debt for a business or investment as these all have benefits.

But credit cards, car and personal loans, and store cards, these are the enemies. Too many clients I see are living on this debt Merry-Go-Round where they buy things using credit.

They never get to build up savings because they are constantly paying down debt, and continuing to grow their debt amount and never getting ahead and wondering why.


We want to stop this right now for you, lets get you in to that small percentage of Australians that have a hold on debt.

So if you do have a personal loan, credit card debt, or a car loan, pause this video now and move on to our bonus video we’ve included just for you, ‘Step by step guide for getting out of debt’. You can come back to this after.


If you are still with me, that means you are bad debt free.

Now we invest. You will now have 20% of your income going into your high yielding savings account. Once you’ve reached your buffer level, any amount over this is used to invest or for savings.

5% of this money we like to allocate to holidays or large purchases – ‘you savings’.

With this money, if you have a home loan, place it in your offset account or if you don’t have one, consider redraw, depending on the fees from your bank involved in this.

If you are renting, open another high interest savings account for this or get in touch and we’ll open you up a second one. This is going to be the most bang for your buck. Once there’s enough, spoil yourself with a nice trip or something nice.


With the remaining 15%, we get you on your way to becoming financially free.

I like to do this in 2 ways. If you have a home loan, split this amount between paying extra repayments off your home loan and investing, or if you don’t have a home loan we put it all towards investing.

With the money that you are investing, you can choose your investment of choice, we suggest talking to a financial planner to make sure the investment is right for you and get guidance, and if you didn’t know, this is what we do, so call our office and organise your appointment. We are currently offering a complimentary Goal Discovery and Strategy Session for all of our gang that have completed our budgeting program, so get in quick.

This is an hour long appointment to talk about where you are now, where you want to be, and how we can get you there.


This investment could be in shares, property, or simply managed funds, something you can contribute to regularly earning 5-12% (depending on how comfortable you are with investing). By reinvesting these earnings you are compounding the amount of money you are making, making your money make more money and so on. Compound interest is the single most amazing thing to understand about investing, and once you do, you’ll wonder why you hadn’t started investing earlier.

To see the benefits of compound interest, have a play with our savings calculator.


Good news team! If you’ve got here, you have done a spectacular job and are well on your way to achieving outstanding results financially.

Your friends will be wondering what you’ve done and you’ll be the guru in your circle.

Now keep up with the basic principles we’ve covered off in this program and adjust as needed.

As always, I’d love your feedback! I thrive on it and it means that I can update the content to ensure you, my Profolio tribe, get the most out of your time with me.

Email me, Sarah Rogers on

I look forward to kicking back on the beach with you in not too many years to come, talking about that day you completed the budgeting program, that completely changed your life.

Have debt you need to pay before you invest? Click here