Mo Money #477 The Offset Account Trap
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Nov 19, 2025 Explore the allure of offset accounts and why they can be a trap for your finances. Discover common mistakes people make that could hinder long-term wealth. Compare the returns of offset accounts versus share market investing over the years. Learn when it makes sense to use an offset and how to establish an effective emergency buffer. Gain insights into disciplined spending and making your surplus cash work harder, while avoiding the 'good enough' mentality. It's a deep dive into smarter money management strategies!
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Offset Safety Masks Opportunity Cost
- Holding cash in an offset feels safe but costs you meaningful compound returns over time.
- Ben Nash shows a $15k/year example where shares nearly double offset outcomes in five years.
Run Side‑By‑Side Return Scenarios
- Do compare projected returns: offsets vs growth investments over multiple timeframes before locking cash away.
- Ben Nash models 5, 10, 20 and 30 year outcomes to show long-term compounding favors shares.
Keep Offsets For Liquidity And Shortfalls
- Use an offset for emergency cash and short-term needs, not excess savings earmarked for growth.
- Keep 3–12 months of living or investment shortfall buffer in cash depending on job stability and property exposure.