Aussie Firebug

Financial Independence Retire Early

DEC19 Net Worth $743,570 (-$1,028)

DEC19 Net Worth $743,570 (-$1,028)

With the risk of virtue signalling, I’ll keep this really brief:
Sometimes really bad tragedies unfold in the world that puts our personal issues into perspective.
The bushfires near my home back in Australia is one of these events. Everyone I know is doing ok (the fires have not reached where I’m from) but there are so many people who aren’t as fortunate.
If you’re thinking about donating, the CFA has an option to donate to the ‘Bush Disaster Appeal‘.

 

Heading back to full-time work reminded me of how insanely unhealthy it is for humans to not move around for 8+ hours on end. During our ‘mini-retirement’ in Oct/Nov this year, we were doing something active every single day without even trying.

Just shooting hoops, throwing the frisbee or walking everywhere within a 3km radius because the extra time meant there were no pressures to get somewhere quickly.

The extra time and no commitments to be anywhere really helped. I would purposely look forward to walking down to the Super Market and even take the longer, more scenic route because I was digging my audiobook and wanted to listen a little bit more.

I’m still listening to my audiobooks but now I’m in a stationary position for 30 minutes on the incredibly polluted ‘tube‘ crammed full of people coughing and sneezing all over me 😓

I’m loving the work we’re getting stuck into, but again, I’m sitting down (I have requested a standing desk) for over 8 hours a day and because I’m trying to get my head around everything, often I’m working a few hours from home each night.

And as the old saying goes…

“If you don’t use it, you lose it”

Over a period of around 3 weeks, my lower back started to tighten and I knew it was probably just screaming out at me to stretch it more and actually use its muscle instead of letting it waste away sitting around all day.

The human body is incredible at adapting. If I had not made it a priority to get my ass to the gym a few times before Christmas, the backaches would have probably resided and eventually it would have become comfortable to sit down and not move at all for the majority fo the day.

In fact, I’d argue that the majority of 1st world adults have bodies adapted to moving the least amount possible during the day.

I mean… we build bloody ‘moving walkways’ just so people don’t have to walk for 15-20 meters. I wonder how much those things cost to build and maintain 💸

The minimalist in me finds it insane how there’s a billion-dollar industry trying to fix all the illnesses/diseases caused by our lack of exercise. Wouldn’t it be easier to be proactive vs reactive?

I think I’m going to buy a second-hand bike and try my hand at riding into work each day. The only thing that worries me is the rain. I’m cool with it being cold but the rain sucks and makes things a lot more dangerous.

Are there any London bikers reading? I’d love to hear your experiences riding around London below please 🙂

This was my second time starting a new gig in late November/December and it seems to be a really great month to join an organisation. With the lead up to Christmas, most people are winding things down and social events are peaking which makes it easy to get to know your colleagues and move past that ice breaker stage.

But there’s a hidden trap with all the festive food and drinks…

Heathrow Injection Noun
 
heath-row in-jec-tion
 
A metaphor for the weight one inevitably gains when one migrates to London for an extended stay. It is attributable to the fast-paced lifestyle that leads one to eating mostly take-away and fast foods.
 
Person 1: “I reckon i’m getting a little tubby. I think i’m developing love handles.”
Person 2: “Yeah well you’ve been here in London for three months now. That’s the Heathrow injection right there. I’ve been here for two years now. Look at this flab on me. I slap it and it makes waves.”

 

London and Christmas parties, name a more iconic duo. I’ll wait…

I think I’ve been out and about more in December than I have in the last 4 years combined. Add all that with all the Christmas food that’s been getting around of late and I feel I’ve been well and truly blessed with the Heathrow Injection.

I can’t blame it all on London though… The land of maple syrup, poutine and Ice hockey definitely played a part.

O Canada! O Canada!

We decided it would be nice to have a white Christmas for once in our lives and head over to Toronto where I have 3rd cousins. We thought about heading back home to see family but it’s just such a mission. An 8-hour flight seemed a lot more palatable.

What else seemed a lot more palatable was all the delicious food we got to indulge in.

Smokes and Timmy Horton’s. Doesn’t get much more Canadian than this!

La Banquise Poutinerie, Montreal. The best poutine on the planet.

BeaverTails- a delightful Canadian pastry shaped like the tail of a beaver with your choice of topping, yum!

We spent a week in Toronto for Christmas and then a few days in Montreal before heading to Mont Tremblant for a bit of snowboarding which is where I’m posting this article from right now

Downtown Toronto

Sled dogging on Mont Tremblant

Quebec has been freezing!

The day we left, it was forecasted to be -27 and I can tell you that human beings are just not meant to live in such conditions even with snow gear on 🥶

I didn’t bring my snowboarding mitts overseas so we had to buy $3 ones at Dollarama. Safe to say these were not designed to be used in -9 conditions and basically every chairlift consisted of me taking off my gloves to warm up my hands underneath my armpits lol.

Mrs. FB learnt to snowboard which was great but if you’ve ever been snowboarding before, you’ll surely remember how hard it is when you’re just starting out.

Her arms were absolutely cooked from pushing herself up every few minutes three days straight.

Dog sledding was an incredible experience. We got super lucky on the day we went with sunshine and a tiny bit of snow.

At first, I was hesitant about doing the sledding because part of me felt like it was similar to seeing the elephants or tigers in Thailand. I made that mistake when I was 19 and quickly realised that these animals are miserable and are being forced to do the tricks.

I did a bit of research about dog sledding and came to the conclusion that like every industry ever, there are some dickheads that are running shitty businesses. But ultimately if the dogs are well looked after and get to enjoy a comfortable retirement, I’m comfortable participating in their own desire to run/mush that’s been bred into them for thousands of years.

In fact, you could argue that people who buy Huskies and Malamutes that don’t walk their dogs every day are the cruel ones. You really need to see it in person to understand just how excited these dogs are when they get to mush.

I love Canada and if we were 3 years younger, I’d definitely consider living here once we’ve done UK/Europe. One item I’ve always had on my bucket list that’s probably passed me by is living on a mountain for one snow season.

But you can’t have your cake and eat it too. We prioritised saving and investing for most of our 20’s and are reaping the rewards now.

Net Worth Update

We didn’t end up hitting $750K to end the decade but no complaints here.

It was an expensive month and the markets didn’t really do anything plus I still haven’t received my first consulting check from the new job (something about their payroll closing for Christmas 🙄).

It was only the second month this year where the old net worth went backwards which was a pretty big surprise, to be honest.

I had it in my head that 2019 would most likely see minimal gains because I wasn’t sure of our working arrangements before we left. But to my surprise, we managed to pile on an additional $120K!

I can only hope that 2020 will be as prosperous and maybe we’ll be in striking distance of the big $1M by 2021 😀

 

Properties

No changes in the properties this month.

Property 1 was sold in August 2018

 

*DISCLAIMER*
Various data sources (RP data, Domain.com etc.) are used in combination of what similar surrounding properties were sold for to calculate an estimate. This is an official Commonwealth bank estimate and one which they use to approve loans.

ETFs/LICs

The above graph is created by Sharesight

And so the end of the decade comes storming home with… not much happening at all.

Which is A-OK with us.

Not a whole lot to report on from the graph above.

As per usual, we continue our strategy and bought another $5K worth of A200.

 

Networth

 

Podcast – Making Money On Youtube – Brandon

Podcast – Making Money On Youtube – Brandon

ListenOnSpotifylisten-on-soundcloudListen-on-Apple-Podcasts-badge

Summary

Have you ever heard stories about some people being able to make a living by uploading videos to YouTube?

You know what I’m talking about, those urban legends of a cat video going viral and the owner receiving thousands of dollar each month in passive income.

Today I’m speaking to Brandon, a 24-year-old Physio from Canberra who also runs the Aussie Wealth Creation YouTube Channel that currently has over 45,000 subscribers and generates over $3,500 thousand dollars a month through YouTube Ad revenue. 

Some of the topics we cover today include:

  • Why Brandon started his YouTube channel
  • How to monetise a Youtube channel
  • What’s important when creating content
  • How much money you can expect to make per views
  • Other passive income techniques Brandon has tried
  • The Young Investors Podcast

And much more!

Show Notes

DEC19 Net Worth $743,570 (-$1,028)

NOV19 Net Worth $744,598 (+$8,621)

The dream is over!

Not really, quite the opposite in fact but I’ve landed a 6-month contract which means I’m back in the office.

That might sound a bit depressing, and there was definitely a stage in my life where rocking up to a cubicle each day felt grim.

But mindset makes a hell of a difference!

For as blissful as our October update was, my mind was melting a little after not being fully stimulated for over 4 months! We travelled during our time off which was fine, and our mental recharge/mini-retirement was one of the best things I’ve ever done. But both of these don’t scratch the all-important itch that all humans have and that’s challenging/meaningful work.

It’s an absolute staple for mental health IMO.

And for any other developers/programmers/admins/IT experts out there, you’ll know what I’m talking about when I say there’s something really special about creating a solution that solves a real-world problem.

Whether it be crafting a beautifully written script that automates a business process and eliminates human error, or designing a custom front end form that enables field workers to enter in data and not have to double handle it when they get back in the office, or optimising a SQL query and marvelling at the efficiency and speed that it returns your dataset.

This was the part of my life that I needed back.

I’m also an extrovert and love team environments. I felt all cooped up inside for the last few weeks applying for one job after another.

There’s also the negative feelings associated with the perceived notion of rejection when you don’t get a job.

It’s funny because there was absolutely no pressure financially for me to get another job and relatively little social pressures other than my flatmates asking how I was going every few days but I still felt some kind of internal pressure.

There was a lot of valid reasons why I wasn’t landing contracts in the first few weeks, and I’m an optimist at heart but I just couldn’t shake it. And I was only searching for a little over a month. I could imagine that it would have gotten worse the longer the search went on.

I’m working at a startup now and I am loving all the tools, fresh environment and office space.

Check out my view!

Sunrise at the new office

The tech stack the IT has implemented is really cool too.

Literally, everything is cloud-based. Which means I get to work from home two days a week 😁

But for real, working at established companies usually means dealing with a heap of legacy systems that are hard to change, interface with, update etc.

With a start-up, you get to start completely fresh and they have chosen the best in business tools which just makes working a delight.

It’s my first time using Slack too. So much fun!

We visited Richmond park this month too and I was honestly blown away by the sheer size and beauty of the place.

It was absolutely gorgeous to visit in autumn, the colour of the leaves falling and the sunshine poking through really made for an enchanting Sunday walk. These photos just don’t do this place justice!

That’s right, there are wild deer at the park 🦌!

We also saw John Mayer at the O2 🎸

I only managed to get through two more books last month.

*The above books have affiliate links

This is mainly because of the sheer size of Stephen King’s ‘The Stand’. My god is that book long and I didn’t particularly enjoy the ending either 😒

‘A Guide to the Good Life: The Ancient Art of Stoic Joy’ was a book I’ve been meaning to read for a while and one recommended by MMM himself.

There seems to be a lot of crossover for us FIRE folk. 8/10 times someone on the road to FIRE will usually be interested in minimalism, delayed gratification, frugalism (is that a word?), environmental impact and/or more often than not… stoicism.

Stoicism gets confused in mainstream media but it can be a fantastic philosophy of life. I’ve been trying to practice negative visualisation every day since reading that book and I can truly say I feel more grateful for it.

I was on the tube the other day when my connecting train was delayed 😡. Everyone was pissed (myself included) but then I tried to imagine what it would have been like living in London 500 years ago when trains hadn’t even been invented. I thought about how hard it would have been, walking to places in the mud, trying to cover yourself when the wind and rain belted down, the limited options you would have had etc…

And before you knew it, my train had arrived to whisk me away in incredible comfort, speed and convenience. If you think about all the 21st centuries luxuries we have, it’s actually incredible to be alive in 2019!

And lastly, I was told about the Christmas festivities in London but my god do the Brits get around it!

Seriously, the lead up to Christmas is nothing I’ve ever experienced before. The city is buzzing with Christmas cheer lol. Ugly Christmas jumpers everywhere, pubs are packed, Christmas parties are popping, festive markets, hot mulled wine, outdoor ice skating rink at Hyde Park, Christmas trees in almost every major lobby and to top it all off… it’s cold AF.

It’s not snowing (which would be epic) but it’s the first time in my life where the lead up to Christmas has been feezing (by Aussie standards). And there’s something magical about rugging up and sipping on a hot chocolate while walking around the city enjoying all it has to offer.

It’s a novelty for us this year but not something I’d like to do every Christmas. Beach cricket and barbies will always reign supreme!

And if you haven’t joined the Facebook group yet you’re missing out! We just cracked 2K members!!!

 

Net Worth Update

It’s been absolutely fascinating to watch the markets continue to roar on upwards this year.

Everyone (including myself) was expecting some sort of crash leading up to 2018 and then 2019 but it still hasn’t happened. I’m not saying it won’t, quite the opposite actually because it’s a matter of when, not if, but the point I’m trying to make is that there are still people sitting on the sidelines waiting for the house of cards to come falling down.

But even when the next crash does happen, who’s to say you weren’t better off investing through it rather than trying to pick the bottom and going all-in?

Once you’re in the market it’s a lot easier to keep adding to the snowball as opposed to sitting on the sidelines with a wad of cash.

We didn’t save too much cold hard cash in November because I only just got another job and haven’t received my first paycheck yet. The share market contributed a whopping $17K to our net worth last month.

We also booked a 3 week holiday for Christmas and New Years which meant our cash reserve took a hit. But now I’m back in a job for a decent amount of time (6 months) we’re going to tap into our big cash reserve a bit more aggressively and start to transfer our £££ to $$$.

I’m hoping we have a good month in December and can crack $750K to end the year!

 

Properties

No changes in the properties this month.

Property 1 was sold in August 2018

 

*DISCLAIMER*
Various data sources (RP data, Domain.com etc.) are used in combination of what similar surrounding properties were sold for to calculate an estimate. This is an official Commonwealth bank estimate and one which they use to approve loans.

ETFs/LICs

The above graph is created by Sharesight

Absolutely unbelievable!

The bull that just won’t quit. We saw gains across the board with the states leading the way followed closely by Milton and the other Aussie investments too.

I’m expecting an enormous crash any day now because this year has just been off the charts. Sharesight is telling me that the portfolio has grown by over 17% within the last 12 months. We know that historically we should be aiming for 8-9% so that is well above the norm.

I’ve said it once but I’ll say it again. These numbers look great on paper and they do make me feel good but in reality, all investors shouldn’t hope for increasing equities when in the accumulation phase. Once you retire, you hope everything goes to the moon! But each month everything becomes more and more expensive, meaning we’re able to buy less and less units that will ultimately enable us to retire early.

It’s bittersweet when I see the markets have had such big gains.

Following Strategy 2.5 we bought another $5K worth of VEU in November.

 

Networth

 

Ask Firebug Fridays 23

Ask Firebug Fridays 23

Nothing written below is financial advice. The below questions and answers are for general information only and should not be taken as constituting professional advice. You should always do your own research when making any financial decisions.

Question (2:30)


Hi Aussie Firebug,

I currently have some cash funds that is used as my emergency fund. Given the poor cash rates on bank savings accounts, what would you recommend I invest in, in order to generate some return whilst still having access to the funds? I know Mutual Funds do have some fixed income funds.

I assume this would be a similar position for most investors when they save up for a deposit on a property.

Thanks,

Franco

Firebug’s Answer


Hi Franco,

This is always a tricky one to answer and it depends on a few factors.

Firstly, your emergency fund should always be in cash and I wouldn’t be using it as a down payment for a home. It’s possible that I’ve misinterpreted your email but it sorta sounds like your saving up your emergency fund to one day use as a deposit for a house? Sorry If that’s wrong.

When are you planning on buying? What’s the timeframe? Your investing horizon will dictate a lot. If you’re realistically going to be buying a house within the next year or two, I’d personally just leave it in a HISA.
You could potentially make more by investing in other assets but you run the big risk of a market going downhill when you want to pull your money out to use!

Unfortunately, the current economic climate is punishing savers 🙁

-AFB

Question (6:40)


Hi Aussie Firebug,

My partner has been following you for some time now and he has recently introduced me to your blog! My partner and I are 23 and 21 and are keen investors and avid followers of your blog. I feel as though we are in the very position you would have been in at our age with similar goals in mind. We were considering buying a house over the next few years but having read your blog, we’ve opted to rent until kids are in the picture and we’ve even decided to delay our euro trip as well lol.

I am just messaging you to see if in hindsight you wish you had done anything differently roughly 8ish years ago or any advice you would give to your younger self! (Other than the value of investing in ETFs :P). Specifically speaking in terms of investments.

Thanks so much and look forward to hearing back from you.

Firebug’s Answer


Hi Jess,

I would have never set up a trust if I’m being honest. Too complicated and you don’t need it to reach FIRE. A 50-50 split or 100 to the lower income earning wll work just fine. It also makes accounting difficult. Having it in your own name is a lot more simple and sometimes it’s worth paying more for simplicity.

I would have bought IVV instead of VTS because IVV is almost the same (same low MER) but is domiciled in Australia which means no W-8BEN-E forms. Small change but again, less complicated.

I don’t regret investing in property even though it’s way more work. It has taught me many life lessons.

I wasted a whole heap of money before discovering FIRE around 23-24 so you’re already way ahead. You guys are so young that getting the snowball started now is so beneficial.

The other thing I’d say is that you need to make sure you’re living a great life too. A great life doesn’t cost much but don’t deprive yourself too much. I was way too hardcore at the start and in the long run it doesn’t actually make that much of a difference.

I bought a car worth $21k that I slightly regret. Could have had a similar car which would have got me from A to B for around $6k but oh well…

Other than that… Not much really. I’ve always been pretty frugal in general so no major stuff ups.

Hope that helps

-AFB

Question (16:25)


Hi Aussie Firebug,

Firstly, thank you for everything you’re doing. The information and content that you put out is truly life-changing. You’re inspiring me to save, invest and get excited about what’s possible in my financial life, for that, thank you.

I’m also looking for your advice on this topic, here’s my current situation.

My partner and I began our investing journey about six months ago. We currently own Betashares A200, VAS and VEU since following your strategy which makes sense to us.

We also follow Scott Papes work and he recently released his ‘Idiot Grandson Portfolio which listed reasons why he prefers VAS over A200. We’re now considering switching to VAS and I’m trying to understand the implications of buying different ETF’s (although they are both index-tracking ETF’s). And the primary question I want to get clarity on is; will the dividends pay more if we hold more of one ETF versus holding two ETF’s? For example, will I receive more dividends if I have say, 200 units of A200 shares versus having 100 VAS and 100 A200?

I guess overarchingly, I want to understand how having a bunch of different shares that are the same in many ways affects the overall dividends and compound interest. I know you recently switched from VEU to an iShares product and I keep asking myself, ‘doesn’t that affect his compound interest longterm?’.

Any advice you can shed on this topic would be greatly appreciated

Nu

Firebug’s Answer


Hi Nu,

I’m pumped to hear that you’re enjoying the content so much mate 🙂

I’ve read Scott’s ‘Idiot Grandson’ Portfolio too, it’s a fantastic read with great reasoning behind the decisions on investment products.

The price of any unit of a company is largely irrelevant as in it’s an arbitrary number. That’s because when they first go public, usually another company comes in to give a valuation for the IPO but after that, the market sorts out it’s worth through supply and demand based upon how much of the company a single unit is worth.

Theoretically, if a company is worth $100 and they have 10 units outstanding, that would mean each unit is worth $10. But what happens if they dominate the market and are worth $100M in five years? Each unit is now worth $10M which means it’s very hard for people to sell their units to other buyers. What a company can do is a share split where the board of directors increase the number of outstanding shares to current stockholders. The primary motive is to make shares seem more affordable to small investors even though the underlying value of the company has not changed.

So each company/index fund may have a different value for their unit price, but as long as the underlying assets are the same it should not impact return at all.

A200 and VAS are a bit different in terms of dividends because of how new A200 is as a fund. I believe I’ve answered why that would be the case in another AFF as it’s a bit lengthy to go into. But over time they should be extremely similar.

I hope that answers your question mate.

Cheers,

-AFB

Matched Betting Feedback

Matched Betting Feedback

Disclaimer: 

Matched betting is not for everyone. If you have an addictive personality or have had a gambling problem in the past, close the page right now. This is an advanced strategy that is susceptible to human error which could cost you a lot of money. 

 

Earlier this year I published a podcast to chat about a peculiar way to make money online that I’d never heard of… matched betting.

If you want to learn more about how matched betting works go listen to the podcast. In today’s article, I wanted to highlight some of the feedback I’ve received since that episode and clear up issues that arose from it. It’s been a good 6 months since that pod and I felt like that episode needed a follow up because many of you out there have reached out and there were a few keys things missing from that initial discussion that really needs to be brought to attention.

 

The Blow Back

I received some criticisms for the matched betting podcast from both my audience and other online forums.

I want to address some of the main criticisms.

 

Matched betting is a scam and doesn’t work

This is just straight-up wrong. You’ll see in the feedback below that people are using this technique with success. It’s not perfect and there are things that can go wrong. But to say it doesn’t work is no different from someone saying that the stock market is a scam because they lost money.

 

AFB didn’t highlight the negatives of matched betting well enough

Guilty.

This was probably the one criticism that, upon reflection, was not addressed well enough at all. We did speak about human error in the pod but after listening back to it a few times, we (Nico and I) could have spent more time on it and highlighted the traps and pitfalls. You can lose money if you don’t execute correctly and there are plenty of points where you could make a mistake.

The other major negative that we didn’t touch on at all is matched betting could be considered a gateway into gambling and/or re-traping a person who’s already had gambling issues. I have updated my resources page and that podcast to highlight this more but in hindsight, gambling is a major issue Australia is facing in general and I dropped the ball here.

If you’re reading this right now and are thinking about trying matched betting please please please stop and think if this advanced side hustle will cause you more damage than it’s worth. If you’ve had issues gambling with anything at all in the past, skip this. If you’ve got an addictive personality, skip this.

I’d even go as far as to say that this technique is only really suited for people who are good at learning something new. Because if you make a mistake, it can cost you a lot of money. And mistakes can and are made by pretty switched on people all the time.

 

AFB made more money through his affiliate relationship with Bonusbank than he did actually using matched betting

Guilty again.

But I don’t see the issue even though I know there will always be people who don’t like affiliate relationships.

Fair enough.

I ended up making a touch over $2K from matched betting but received a lot more through affiliates from that podcast. I can’t give the exact dollar figures or details of the contract because that’s against the terms and conditions (although you’re free to speculate using my 18/19 income review), but know this:

Matched betting, regardless of whether you used my affiliate or not is a legitimate and legal strategy for Australians to make some extra money on the side.

 

Once you have exhausted the sign-up bonuses, matched betting isn’t worth it

This is such a strange criticism.

Like… so what?

If you’ve got the time to put into learning how matched betting works, going after the low hanging fruit makes the most sense to me. If you feel like the time to reward ratio is off after that, cool, stop doing it.

If done right, you should have made a nice little tax free profit. How is that a negative?

I was extremely time poor when I tried matched betting earlier this year so it wasn’t worth it for me to continue after that. And I’d rather spend my time on other projects (AFB being one of them) than to do matched betting right now, but not everyone is like this. There’s plenty of people who have the time and an internet connection that can continue to make money online (a tad harder mind you) through matched betting. Examples of this are below.

 

Although I didn’t cover everything, those were the main ones that kept coming up in one form or another.

 

The Good

Ok, now the good stuff.

I can’t describe how happy it makes me feel when I receive positive feedback from readers. It’s been a decent chunk of time since I published the podcast and I’ve reached out to my audience through emails and the Australian FIRE Facebook Group to get some feedback from their experience.

Below are just a tiny per cent of emails I received that was positive (I couldn’t publish all of them).

*I’ve removed names for privacy reasons

 

Profit: >$11K. Continued past the signup bonuses

I signed up to Bonusbank after hearing your podcast. I’d always enjoyed a punt but had backed off quite significantly in recent years as I’ve been saving to retire early. It’s nice to have a team or a horse to cheer for again in each game and race again now.

I’d had prior experience using betfair to lay bets which helped immensely. Some of the people I’ve introduced to the site have not been able to get their heads around laying on betfair and have stopped matched betting thinking it’s too difficult.

When I first started it was football season so I did a lot of betting on the NRL and AFL, it was quick and very simple. Would take me 15 mins per week and I was making around $250 per week in profit on average. That lasted for a few months before some of the lesser-known bookies banned me (Bluebet, Palmerbet). This had little impact as their promos were few and far between. Then I lost Ladbrokes and Sportsbet a few weeks later. They both had amazing sport promos and after that my winnings dropped to $100 a week on average. Then I decided to give racing promos a go, these are much more difficult and the markets change quickly. Often by the time you use the bonusbank calculators the odds have changed and you’ve missed the boat. After a few weeks of using the calculators I got an idea of roughly what they’d say so just started using estimates to put the lay bets on. That made it much quicker and although you can get a slightly better or worse result on a race it seems to even out over the course of many hundred bets in the past 6 months. Once I got the hang of race betting my winnings increased dramatically to around $500 per week and over the spring carnival when there were many additional promos around I was routinely making $1,000 per week. Time invested was around 5-6 hours per week to get this level of winnings.

It’s important to put “Mug bets” on to keep your accounts alive. These are bets on non promotional markets that make it look less like you are matched betting. Pointsbet seem to offer the best promos but are quick to ban, my account is more than 6 months old and still going strong due to mug bets. You can often put several hundered dollars of mug bets on an have it only cost you $5 in losses. Obviously this is a tiny amount compared to what you are winning so well worthwhile. I have accounts left at only 3 major bookies now after losing Bet Easy today. I’ll still make $300-$400 per week I’d imagine from those accounts as long as they last.

Total profit now is over $11k. Biggest challenge is funding betfair. My total balance across the accounts is $21k so I’ve needed to lock up $10k of my own money in the past 6 months to keep rolling. Many people may not be able to afford to do this.

Interesting enough I’m always putting money into betfair – meaning my bookie bets are winning regularly. I’d be up $18k if I just bet with the bookies and never laid a horse on betfair. This would be stressful though as there are times I’d have lost several thousand in a day if I hadn’t laid.

I am starting a trial of non matched betting now as I believe I’ve identified a pattern in horses that have betfair odds close to the bookie odds that win enough to make it profitable. I’ll be starting with $5 per race though rather than $50 per race I’ve been betting to manage downside risk whilst I trial the idea.

Next I’ve got a friend who is opening some accounts for me to play with, will probably take it slower and use it to top up my cash flow when needed. Just bet a little to pay for a game of golf, a carton of beer each week etc rather than going hard at it again. Would be nice to see if I could keep those accounts open for years and just slowly milk them.

Thanks for the amazing podcasts – I commute a 6 hour round trip once per week and it’s always great when I see a new podcast from you pop up before I get in the car.

Cheers

Profit: $3K from the sign up bonuses

Hi Matt,

I’m a really big fan of your blog/podcast. I cannot thank you enough for providing such high quality Australian FIRE content.

Anyways, onto my personal thoughts about matched betting.

For me, the matched betting podcast couldn’t have come at a better time. Due to my partner taking on a 6-month work contract at short notice earlier this year, I had to move my work from Sydney to Newcastle during this time. Since I run my own services business (locum health practitioner), I initially didn’t have many contacts in the area and hence didn’t have too much work lined up in the first month. I was, on average, working about 2-3 days a week.

It was during this time that I listened to the podcast and decided to give matched betting a shot as I had more free time on my hands. I signed up to the free 1 month trial at BonusBank, made multiple betting accounts under my own name as well as my partner’s and just did all the sign up bonuses. I made just under $3000 tax free and that was with some mistakes on my end (inputting the wrong numbers into the back/lay calculator). It was enough for me to make up for the shortage of work/income I had during the month and only took about 15 hours of my time. Most of this time was spent learning how it all worked, signing up to the various bookies and doing ID/bank account verifications.

There was also a weird sense of productivity that came about when I was watching sports and also matched betting. I remember enjoying a NBA playoff game knowing that no matter what the outcome would be, I would be pocketing a few hundred dollars. It definitely reduced the guilt of me sleeping in on a day off to watch the playoffs.

After the sign up bonuses, matched betting gets much more complex and the effort/hours required is significantly higher especially if you wanted to sustain it as a steady side income. Also, most bookies tend to pick up when you’re matched betting and I have been banned from quite a few of them. Luckily, by this point, my usual work picked up again and I didn’t feel that the increased effort/time involved with matched betting (beyond just the simple sign up bonuses) yielded enough income for me to continue.

Overall, it worked out well for me and I’m very thankful for you publishing the podcast. I feel most people should give it a try as it’s effectively just free money with very little effort especially if you just do the sign up bonuses. However, they should also be wary that errors can cause some huge losses if they’re not careful.

As a side note, despite matched betting being the main subject of the podcast, I think we can take a step back and look at the bigger picture. I viewed the episode as offering one of many ways to make a “side income”, which I’m sure some FIRE enthusiasts would definitely consider to accelerate their journey. Perhaps this can be the first in a new series of podcasts which focus on how various people create and sustain “side incomes” or “side hustles” (just to add to your already long list of things to do). Or perhaps, we as your audience could simply view the episode as a story about how the guest found his own unconventional path to FIRE through turning his own niche skills into a profitable business model, which I’m sure of us in the FIRE community will find interesting and perhaps even inspiring.

Nonetheless, I love your podcast/blog and thanks again for the amazing content (sorry for the long e-mail).
All the best

Profit: $14K knew nothing about matched betting beforehand

Hi Matt,

I have probably made the most money out of all your listeners from Matched betting. I knew nothing about matched betting before your podcast and joined bonus bank and started matched betting about 1 week after your podcast. So far I have made 14k profit after taking off all costs like bonus bank monthly fee and cost of a separate device I got to use for matched betting.

I could have made more money but lost about 1k worth with some silly mistakes. My overall profit got boosted due to me getting access to one of my family member accounts about 2 months back as well. Most of my profit is made in the last 3 months once I got the hang of racing promos and took advantages of all those spring racing offers. I have lost most of my own bookies but still got 80% bookies on my family member accounts so hopefully I can make a bit more money before calling it quit.

My end goal is to make 20k profit and my grand plan is to invest all the profit I made from matched betting to an ETF or LIC I don’t currently have in my portfolio currently(most likely argo) and turn on DRP and just watch this part of my portfolio grow over the next decade or so.

Thanks a lot to you for doing this podcast as well as putting lot of quality content on your blog. I have learnt a lot from your blog posts and podcasts.

Thanks

Profit: $4.2K but was promo banned from nearly every bookie

Hi Aussie Firebug,

Just wanted to reach out and say thanks for all the great financial tips and inspiration over the last couple of years, particularly for getting me on to matched betting. I’ve made $4200 in the last couple of months and counting – that’ll go straight to buying LICs!

I managed to get promo banned from nearly every bookie in Australia in the process though so I’m gonna wrap it up now that footy season is over.

Keep up the good work and good luck in the race to FIRE!

Profit: $5K in three months. Money was in the horses but the time commitment was too much in the end

Hey Matt,

Hope UK is treating you well?

Matched betting. The first time I heard the term was on your podcast with Nico. My initial thoughts were this is s bit left of centre and suspicious. Nico however, came across as down to earth and genuine enough to spark my interest to explore further.

I read bonusbank in detail and researched more from other sources which all appeared to align. I decided to give it a crack. Chucking in $500+ into betfair was a bit scary initially but this soon was eased when I started to see the concept working.

I quickly learned that after sign up bonuses, the money is in horses. As experienced by everyone, horses were initially daunting however, if you stick at it you’ll grasp the concept and then go on to perfect it, which is what I did.

I started off making roughly $50 a week to quickly smashing up to $500 per week. I became more proficient in doing the betting on my phone and not requiring calculators to figure out the correct lays etc. This was great as I was able to access mid day promos whilest at work and then convert the bonuses on weekends. My biggest day was making x17 $50 bonus bets across multiple bookies in one day which roughly worked out to $600 after conversion. How crazy is that?

The main negative that I experienced with all this is time required. All the best promos are on Saturdays with all main races happening then and to access majority of them you have to devote most of your day to it. This was exciting initially however, quickly weaned. Over time I was doing less and less focused Saturdays and mainly doing few races on my phone whilst out and about. This was a bit annoying to my partner and anti social as we would be enjoying the days activity but I quickly had to pull out my phone to put a bet on. She loved it though when we would cover whole days expenses in a couple of bets!

The other negative is getting promo banned. There is plenty of tales on bonus bank forum and chat of how people try and prevent getting gubbed however, I saw majority of them required even more time to properly play the game. They may work but were not guaranteed. I did get gubbed by three bookies so far but there is still plenty of fish in the sea.

Overall, in a period of approx. three month I made $5,000. I was very happy with this! I could have made more if I tried harder but have been losing interest slowly over time mainly because of time required on the weekends which I was unwilling to sell.

Nico and his team have done a fabulous job in setting up the site and all the calculators. They are always there to answer any questions and I love how Nico is always on chat on Saturday mornings going through the race line ups with everyone and celebrating their achievements.

I have no negative comments to say about bonusbank or your decision to associat with them The concept and idea was nothing short of genius. It’s sad to see you’ve copped some criticism but as with anything there will always be people who see the glass half empty and want to critique others for their failures. The main issue I would see turning people off, as highlighted by Nico in his podcast, is human error. It’s very easy to make mistakes especially with horses and people may rather blame the system then themselves. This can be learned and mistakes minimized.

Thank you for bringing light to matched betting and for everything you do. I’ve said it before but it has to be said again, you’ve done a fabulous job with your blog and podcast! Be proud and I look forward to reading and listening to more of your content.

Enjoy the UK winter and if you can, visit Ireland and Scotland. Beautiful places!

Profit: $1K. Avoid if you’re bad at maths

Hey Matt,

Sue here. I tried it after your podcast. I live in Vic so not all sign up bonuses were allowed. Still made $1000 easy off the experience. Quit after all bonuses were used up. I would advise people who are bad with math to avoid it, it takes a bit to wrap your head around what’s going on with your money. Mistakes can be made and can be costly even with the help of the bonus bets website. I had a good experience and thanks for introducing me to it.

 

The Bad

A lot of the negative emails I received were from people who made human error mistakes and lost money. Or they only made <$200 and were angry (lolwut?). I’ve tried to include the more serious and unique ones below. As a percentage, I roughly received one negative email for every 20 positive.

Potential identity theft 

I tried out match betting and decided it wasn’t for me. I did find that while trying to close my accounts, Betfair asked me for a selfie holding my driver’s license as confirmation of my identity. Two weeks later my identity was used to open a Sportsbet account and a CBA transaction account.

The only reason this was discovered was the CBA sent a bank card to my address.
Both accounts were flagged by Sportsbet and CBA as potentially fraudulent before I received the card, but it still cost me almost a full day between dealing with CBA, Sportsbet and advising other agencies (Betfair didn’t seem particularly concerned that they were the most recent company to have my details, IDCARE, notifying the credit score agencies, and making a report to ACORN takes time).

I can’t say that I can recommend match betting after my experience, but I do acknowledge that identity theft isn’t unique to their industry, and far from the only source of it occurring. My issue stemmed from trying to close my accounts rather than the use of them.

Thanks for all the work you do with the blog and keep up the fantastic work!

Cheers

Profit: $6.5K but impacted re-financing application

I have been match betting since Feb this year and have made $6500 so far. I have two mates that have been doing it for about 3 years and they would be about 20k up in total.

One of the issues is that match betting is that sign up bonuses have legally stopped so where I could get a $500 sign up bonus then convert it to $375 risk free these opportunities are limited. Also the agencies are on to people betting like this and they are quick to ban you off there promos that are required for this type of betting. Basically now I have only two agencies left to bet with. It probably makes it easier for people who are actually interested in sports and horse racing as I have been, otherwise it would be dead boring. But even if I only ever make this amount, who wouldn’t take 6.5 K free cash?

Other thing that people may need to be wary of as you have to shuffle money around at times, I recently applied to re finance my loan to a lower rate, but was knocked back even though I wanted to borrow only $200 k against a house worth 480 K and have a holiday house worth 350K that is owned outright plus 75K in shares!!! So people should consider this before getting into it.

Profit: $2.5 not worth the time

Hi

I jumped on the matched betting bandwagon after your podcast. As it was right about the time that the welcome bonuses were drying up, I joined a whole heap of bookies all at once and had a lot of bonuses to work through in a short space of time. I found it pretty easy to get the hang of, I settled for some lower returns due to the time constraints, made a few mistakes not reading the T&C properly on some of the bets.

Once I had used all of my bonus bets, I found that the time involved vs the payout just not worth it to me. I tried as many different techniques as I could but it seems that horse racing is about the only way to continue beyond the initial profits and it was too time-consuming and less set and forget. Plus you are competing with all the other software users to jump on the horses once they hit the sweet spot so you don’t have long to get on board. I found the assorted matched betting websites quite helpful and there were lots of good how to guides.

All in all I enjoyed it and made about $2500 but have cashed out of all my accounts now. But thanks to your podcast as I had never heard of it before that.

Cheers

Profit: $430 BB software is good but not worth the time and effort. Better to spend it on another side hustle

Hey Matt,

I gave matched betting a go with bonus bank after your podcast and made ~$500 from converting signup bonuses into cash and then extracting it which was about ~$430 after a couple months of bonus bank fees to use their calculators…

My honest feedback is that the site is really well set up, tutorials are fantastic and calculators work brilliantly.

However, the time and effort involved to extract a pretty small return in my view was just really not worth the effort – plenty of other side hustles or optimisation efforts you can make for a far greater return. I was based in NSW too which I think was one of the more restrictive states…

I gave up after the signup bonuses as they were supposed to be the low hanging fruit… I can totally see that if you are living in south east asia or something with all the time in the world on your hands and a cost of living <$50 a day or something that it isn’t a bad idea to play around with for a bit of extra cash… however if you are working full time, optimising your investments, living your life and looking for a high value side hustle – this isn’t it.

Hope that’s useful mate. Love your work – keep it up!

 

Some Stats

A few months after the podcast was released I worked with Nico to survey some of the members that had signed up with BB to see what results they were getting.

We surveyed a total of 66 people and found the following

The ‘count’ is how many people recorded their matched betting profits.

The splits are broken down like so (in ascending order of count)

  • $1000 – $2500 – 39.3%
  • $500 – $1,000 – 23%
  • $2500 – $5,000 – 21.3%
  • $250 – $500 – 9.8%
  • $5,000+ – 4.9%
  • $0 – $250 – 1.6%

Nearly 40% of people made between $1,000 – $2,500!

These stats were only after a few months as well. After I posted in the Australian FIRE Facebook Group I was swamped with emails, mostly positive but some negative.

I went through a heap and roughly added up the figures and calculated that my audience has made in excess of $100K through matched betting. Probably a lot more considering most people can’t be bothered with surveys and responding to my emails 😅. I can’t take the credit for that as many had been doing it for years and there are many factors involved but still.

To think that my podcast could have collectively helped that many people is mind-boggling to me. I’d imagine that these numbers are absolute pittance compared to someone like the Peter Thornhill or the Barefoot Investor. It’d be impossible to measure but could you imagine if we knew how much money Thornhill or Pape has not only saved people but also helped them make through investing/debt recycling/side hustles etc. It could honestly be in the $100M+ mark… maybe even >$1B.

Conclusion

And now we finally come to the big question.

Is matched betting worth it…

And like most things in life… it depends.

It’s been a good chunk of time since the original matched betting pod and after reading 100+ emails (not even kidding) from my audiences I’ve come to the following conclusions.

Matched betting:

  • Dangerous for some individuals who are susceptible to gambling or have an addictive personality – Don’t try
  • Risky for people who have a hard time understanding a new concept that involves maths – Don’t try
  • Time intensive after the signup bonuses. Effort/reward ratio wears off for some
  • Depending on how aggressive you are, you may need to float a very large amount of cash in your betting accounts, this involves risk
  • You can be banned from the bookies and have your account closed. If you’re someone who extrapolates entertainment through these types of accounts, separate from matched betting, you could be banned permanently
  • The low hanging fruit of the signup bonuses is relatively easy money for people who execute the technique correctly
  • The longer-term income is in the horses. It requires a lot more effort but depending on circumstances, you may deem this effort to still be worth it and it can provide a nice little tax-free side income

If there’s one thing you take away from today’s article let it be this.

Matched betting works… for the right person 

People have a negative experience with matched betting when applying the technique incorrectly. It’s complex and mistakes can be made.

But I still stand by my original conclusion.

Matched betting, when done right, is a valid form of income for any Aussie on the path to FIRE. I, like many others, went after the low hanging fruit and was richer for it. But the required time commitment after that wasn’t worth it for me personally. That’s not to say it won’t be for you, however:

 

Never Stop Learning

I’d expect nothing less from the astute Australian FIRE community to meet, what I’d consider to be a relatively unknown technique, with scepticism and caution. I myself even ignored matched betting a few times before taking a closer look.

But what I don’t want to happen is that we, as a community, don’t allow ourselves to be open to new ideas and techniques that can help us along the journey. Some of the best ideas I know of were discovered by reading about different and weird strategies others were using to save/make money like CC points, debt recycling, trusts, credit card tarting/stoozing etc.

Hell, for the majority of my life even the stock market was seen to be no more than a casino.

My point is that whilst we should be sceptical we can’t shut ourselves off completely to new ideas and be forever stuck in the echo chamber of ‘Vanguard ETFs everything else is a scam or not as good’.

I think a major part of the FIRE culture is looking for legal ways to ‘hack’ the system and being really clever by thinking outside the box.

I’m always interested in new strategies and techniques and from what I gathered by a whole bunch of emails, most of you guys out there are too!

If you’ve got an unconventional way to make money on the side I’d love to hear about below in the comments 👇

Spark that 🔥

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