Mojo or Offset?

Question


Hi Scott,

We are absolutely loving your book — we are on Date Night Three and already feel more in control than we’ve ever been. But the one thing we can’t get our head around is your advice on Mojo — you say that people shouldn’t put their Mojo money in an offset account. We make $170,000 combined and have $342,000 on the mortgage, which has an offset account. Wouldn’t it be the best of both worlds to use our offset account as our Mojo account?

Kelly

Scott's Answer


Hi Kelly,

Great work on the Date Nights!

As far as parking your Mojo money goes, I strongly favour keeping it in a totally separate account with another bank. It just gives another layer of separation from your day-to-day banking (and spending).  

Yes, I know more tax effective to park your Mojo in an offset account than a savings account, but the real return you get from Mojo is being able to draw on it when life hits the fan. And I’ve met a lot of people who’ve ‘borrowed’ from their Mojo money and never replaced it.

Ultimately, though, I suppose it doesn’t matter where you keep it, so long as you have it!

Scott