Barefoot Investor Family Plan | Financial Freedom with Children
Last updated on 18 Apr 2025
Combined Vision for Family Growth & Individual Freedom
This system creates financial harmony for families by combining resources for shared goals while preserving individual autonomy for each parent. It acknowledges that true family partnership means working together toward common dreams while maintaining personal financial identity—all while providing the best for your children.
Family with Children - Example, $10,000 Combined Monthly Income
CURRENT FINANCIAL SNAPSHOT
Combined Monthly Income: $10,000 +
Individual Contributions: Flexible (see scenarios below)
Essential Family Expenses: $6,000 (including children's needs)
6-Month Emergency Fund Target: $36,000
Current Debt: $20,000 (car loan, credit cards, etc.)
12-Month Savings/Investment Goal: $100,000
CONTRIBUTION FLEXIBILITY
The system works with any contribution arrangement:
Scenario 1: Balanced Contributions (5k/5k)
- Partner 1: Contributes $5,000/month
- Partner 2: Contributes $5,000/month
- Total: $10,000 to family account
Scenario 2: Uneven Contributions (8k/2k)
- Partner 1: Contributes $8,000/month
- Partner 2: Contributes $2,000/month
- Total: $10,000 to family account
Scenario 3: Single Income (10k/0)
- Partner 1: Contributes $10,000/month
- Partner 2: $0 (focusing on family care, education, etc.)
- Total: $10,000 to family account
KEY PRINCIPLE: EQUAL PERSONAL ALLOWANCES
Both partners receive equal personal allowances regardless of income contribution. This maintains financial sovereignty for both partners regardless of who generates the income and acknowledges that childcare and family management have significant value.
STEP 1: COMBINED FAMILY ACCOUNT (60% of Income - $6,000)
Set Up a COMBINED FAMILY ACCOUNT
- Bank: Revolut / Wise
- Purpose: Receives all income before distribution
- Action: Set up automatic transfers on 1st of each month
Family Living Expenses (40% - $4,000)
- Bank: Permata Bank
- Account Type: Joint transaction account
- Purpose: Rent/mortgage, utilities, groceries, shared subscriptions, insurance
- Action: Set up automatic payments for all regular bills
Children's Expenses (15% - $1,500)
- Bank: Permata Bank (sub-account)
- Account Type: Dedicated children's account
- Covers:
- Education/Childcare: $700
- Activities/Sports: $300
- Clothing: $200
- Healthcare: $200
- Birthday/Holiday fund: $100
- Action: Track child-specific expenses separately
Family Adventures (5% - $500)
- Bank: Permata Bank
- Account Type: Joint savings account
- Purpose: Family vacations, outings, experiences
- Action: Save for specific goals: $3,000 summer vacation, $2,000 holiday activities
STEP 2: COMBINED VISION BUCKETS (20% - $2,000)
MOJO Bucket (Combined Emergency Fund)
- Bank: Commonwealth Bank (separate from daily banking)
- Account Type: High-yield savings account
- Initial Target: $6,000 by Month 3
- Full Target: $36,000 (6 months of family expenses)
- Monthly Contribution: $1,000 (10% of income)
- Purpose: Family financial security
- Milestone Timeline:
- Month 3: $6,000
- Month 6: $15,000
- Month 9: $25,000
- Month 12: $36,000
GROW Bucket (Combined Long-Term Goals)
- Bank: Commonwealth Bank and investment platforms
- Account Type: Joint investment accounts
- Contribution: $1,000/month (10% of income)
- Financial Freedom Fund:
- Target: $100,000 in 12 months
- Base Monthly Allocation: $1,000
- Additional Sources: Bonuses, tax returns, debt elimination redirection
- Purpose: Creating financial options for the family
- Children's Future Fund:
- Allocation: $300/month (from Children's Expenses budget)
- Account Type: Education savings accounts
- Purpose: College/future opportunities
STEP 3: PAY YOURSELVES (20% - $2,000)
Personal Allowance Transfers
- Total Personal Allocations: $2,000/month (20% of income)
- Each Partner Receives: $1,000 (10% each)
- Frequency: Bi-weekly or monthly on fixed dates
- Transfer Automation:
- Setup: Automatic transfers on the same day each month
- Destination: Individual personal collection accounts
- Timing: After family expenses and combined vision buckets
STEP 4: INDIVIDUAL BUCKETS
Each partner maintains individual bucket systems with their personal allowance:
Partner 1's Personal System
- Collection Account: Receives $1,000 personal allowance
- Account Type: Individual account (Revolut, etc.)
- Purpose: Financial autonomy and personal goals
Partner 2's Personal System
- Collection Account: Receives $1,000 personal allowance
- Account Type: Individual account (Revolut, etc.)
- Purpose: Financial autonomy and personal goals
Individual Bucket Breakdown
Each partner allocates their $1,000 allowance:
- Daily Expenses (20%): $200
- Personal lunches, transportation
- Individual subscriptions, personal care
- Splurge (40%): $400
- Individual entertainment, hobbies
- No-questions-asked discretionary spending
- Personal luxuries
- Smile (40%): $400
- Individual adventures and experiences
- Personal development, education, courses
- Gifts for family members
STEP 5: DEBT ELIMINATION PLAN
Family Debt Strategy
- Monthly Allocation: $1,000 from Combined Account (temporarily from GROW bucket)
- Focus Order: Highest interest debt first (debt avalanche)
- Example Timeline:
- Credit Cards ($8,000 at 18%): Paid by Month 6
- Car Loan ($12,000 at 5%): Paid by Month 10
- After Debt Freedom: Redirect to accelerate $100,000 savings goal
Implementation Approach
- Make minimum payments on all debts
- Put remaining debt allocation toward highest interest debt
- Celebrate each debt milestone as a family
- Once all debt is eliminated, accelerate savings/investment goals
STEP 6: $100,000 FINANCIAL FREEDOM PLAN
Building Your Financial Freedom Fund
- Target: $100,000 within 12 months
- Base Monthly Contribution: $1,000 (GROW bucket)
- Additional Sources:
- Debt payment redirection after Month 10: +$1,000/month
- Periodic windfalls (tax returns, bonuses): Variable
- MOJO overflow once emergency fund complete: Variable
- Optional: Temporary reduction in personal allowances for acceleration
- Allocation Strategy:
- Emergency Fund: $36,000 (36%)
- Investment Portfolio: $44,000 (44%)
- Opportunity Fund: $20,000 (20%)
Acceleration Timeline
- Months 1-3: Focus on initial emergency fund
- Months 4-6: Eliminate high-interest debt while building emergency fund
- Months 7-9: Complete emergency fund, begin investment acceleration
- Months 10-12: Debt-free acceleration of investment contributions
STEP 7: FAMILY COMMUNICATION FRAMEWORK
Family Money System
- Weekly Check-in: 15-minute review of family cash flow and upcoming expenses
- Monthly Family Meeting: 60-minute session including:
- Age-appropriate inclusion of children
- Progress toward family goals
- Upcoming family expenses
- Children's financial education moment
- Celebration of family wins
Parents' Financial Date
- Monthly Deep Dive: 60-minute session (adults only) reviewing:
- Progress toward all financial goals
- Debt elimination status
- Emergency fund growth
- Investment performance
- Relationship financial satisfaction
- Quarterly Vision Session: 2-hour meeting to:
- Review and adjust investment strategy
- Update financial freedom timeline
- Realign on financial priorities
- Celebrate progress and wins
Decision-Making Framework
- Individual Freedom: Complete autonomy over personal allowances
- Joint Family Decisions: Required for:
- Changes to family expense allocations
- Investment strategy adjustments
- Major family purchase decisions
- Children's activity/education expenses
STEP 8: CHILDREN'S FINANCIAL EDUCATION
Age-Appropriate System
- Ages 3-6:
- Three-jar system (Save, Spend, Give)
- Simple explanations of family choices
- Basic gratitude practices
- Ages 7-12:
- Expanded allowance with responsibility
- Introduction to banking concepts
- Family financial goal participation
- Basic entrepreneurship opportunities
- Ages 13-17:
- Mini version of the 7-bucket system
- Debit card with parental oversight
- Active participation in family financial discussions
- Work and earning opportunities
Integration Strategies
- Weekly 5-minute money lessons during family dinner
- Children's input on family adventure planning and spending
- Matching program for children's savings goals
- Celebration of children's financial milestones
12-MONTH ACTION PLAN
MONTH 1: FAMILY FOUNDATION
- ✓ Open all family and personal accounts
- ✓ Set up automatic transfers and payments
- ✓ Create detailed debt payoff plan
- ✓ Establish initial $2,000 in emergency fund
- ✓ Implement children's money system
- ✓ Schedule first family money meeting
MONTHS 2-3: SECURITY BUILDING
- ✓ Build emergency fund to $6,000
- ✓ Begin aggressive credit card paydown
- ✓ Review and optimize family insurance coverage
- ✓ Create system for tracking children's expenses
- ✓ Set up children's education savings accounts
- ✓ Establish regular family financial discussions
MONTHS 4-6: DEBT FOCUS
- ✓ Eliminate credit cards completely
- ✓ Build emergency fund to $15,000
- ✓ Begin investment contributions
- ✓ Create estate planning documents including guardianship provisions
- ✓ Review and optimize tax strategy as a family
- ✓ Celebrate becoming credit card debt-free
MONTHS 7-9: MOMENTUM BUILDING
- ✓ Pay down 75% of car loan
- ✓ Complete emergency fund to $25,000
- ✓ Accelerate investment contributions
- ✓ Plan family celebration vacation
- ✓ Review and adjust financial freedom timeline
- ✓ Begin specific investment education for children
MONTHS 10-12: FREEDOM CREATION
- ✓ Become completely debt-free
- ✓ Complete full emergency fund ($36,000)
- ✓ Accelerate final investment push toward $100,000
- ✓ Implement optimized family tax strategy
- ✓ Take family celebration vacation
- ✓ Develop 5-year family financial vision
FINANCIAL MILESTONES
| Month | Key Milestone | Amount |
|---|---|---|
| 3 | Initial Emergency Fund | $6,000 |
| 6 | Credit Cards Eliminated | $8,000 |
| 6 | Emergency Fund Progress | $15,000 |
| 9 | Car Loan 75% Paid | $9,000 |
| 9 | Emergency Fund Progress | $25,000 |
| 10 | Completely Debt-Free | $20,000 total |
| 12 | Full Emergency Fund | $36,000 |
| 12 | Investment Portfolio | $44,000 |
| 12 | Opportunity Fund | $20,000 |
| 12 | TOTAL SAVINGS/INVESTMENTS | $100,000 |
BENEFITS OF THIS FAMILY SYSTEM
Family Vision Benefits
- Unified Direction: Entire family working toward shared dreams
- Financial Security: Robust emergency fund protects the whole family
- Children's Future: Systematic planning for education and opportunities
- Family Experiences: Funded adventures create meaningful memories
- Wealth Building: Structured approach to family financial freedom
Individual Freedom Benefits
- Personal Autonomy: Each partner maintains financial independence
- Equal Partnership: Same personal allowances regardless of income differences
- Reduced Conflict: Clear boundaries prevent money disagreements
- Individual Growth: Freedom to pursue personal development
- Financial Education: Children learn healthy money management by example
ADJUSTING FOR FAMILY GROWTH
This system can evolve as your family changes:
Additional Children
- Increase Children's Expenses allocation by 5% per additional child
- Adjust emergency fund target to cover larger family needs
- Consider economies of scale for certain expenses
Income Changes
- If income increases: Maintain same percentage allocations
- If income decreases: Prioritize family essentials and emergency fund
Life Transitions
- School Changes: Adjust education savings strategy
- Housing Upgrade: Modify long-term savings goals
- Career Shifts: Temporarily adjust personal allowances if needed
CELEBRATING FAMILY FINANCIAL WINS
Create specific celebrations for key achievements:
- Reaching emergency fund targets
- Becoming debt-free
- Hitting $100,000 savings milestone
- Children's financial education milestones
This family financial system creates the perfect balance – working together toward shared dreams and children's futures while maintaining the individual freedom that keeps your family thriving.