Controlling Cashflow With An Offset Account

Are you using your offset account to its full potential? In this video, Robbie covers some excellent tips on maximising the savings your offset account provides while having more control over your cashflow.

How to Control Your Cashflow Using an Offset Account

Robbie from Axon Property Group shares one of the simplest yet most powerful ways to make your money work harder: using an offset account. By linking your savings, income, rent, and tax returns directly to your home or investment loan, you can reduce the interest you pay and keep your cash working for you – even while you sleep.

In this video, Robbie explains:

How an offset account works and why it’s essential for your property investment strategy
Practical tips for keeping income in your offset account while using a credit card for everyday spending
Micro-strategies that can save you hundreds of dollars in interest every month
How to structure your cashflow during the accumulation phase of your property journey

With the right setup, every dollar you earn can be optimised to reduce debt and accelerate wealth creation, giving you more control over your financial future.

Take control of your cashflow today: Sign up for our free training seminars for ADF members and learn how to use your Defence housing entitlements and smart property strategies to build a sustainable portfolio.

Video Transcript:

Robbie: This is my last little video, and it’s my favourite one: how to control your cashflow using an offset account.

A lot of people come to me and say, “Oh, I’ve heard of an offset account.” I ask them, “Just tell me what you understand about how it works.” They usually say, “It’s an account attached to the loan that stops you paying interest.” I say, “That’s pretty good.”

But I want to give you a full understanding of the mechanics so you can really put the best structure in place.

Remember, during your property journey, there are four phases: Prepare, Accumulate, Consolidate, and Enjoy.

When you’re in your accumulation phase, the first thing I said was that we need to be focused on strategy and structure.

Strategy is brand new: land and build. Structure is all about cashflow. The financial structure absolutely needs to include an offset account.

Let’s just say without offsetting, if you’ve got your home loan and your savings sitting in a separate account, you pay interest on the whole home loan.

When you have your offset account linked, you only pay interest on the portion that isn’t offset.

Here’s a slide to make it even clearer:

You have a property and a loan. The value of the property and loan is irrelevant – this is the “penny drop” moment I often see with coached clients. They go through this slide and say, “This is a no-brainer. It’s going to save us a few thousand dollars a year in interest repayments alone.”

Remember one of the other videos: rent money is dead money, and so is interest on your loan. An offset account helps stop paying as much interest.

The offset account works like a savings account with a BSB and account number, but it’s linked to your loan. You can even attach a credit card to the offset account.

All your rent, income, and tax returns should go into the offset account. Every dollar you have access to should be working for you, even while you sleep.

An offset account doesn’t make you money, it stops you from paying money on interest.

For example, if you have a 5.5% interest rate on your home loan, that’s non-tax-deductible debt. You want to plug that hole as much as possible.

Let’s put some numbers around it:

$400,000 loan
$30,000 in your offset account

Interest is calculated daily and billed monthly. Instead of calculating interest on $400,000, it’s calculated on $370,000. You’re saving yourself around $300–$400 a month, depending on rates and balance.

So effectively, every dollar you have access to should be in your offset account.

Now about the credit card: some people say, “I never had a credit card in my life, I pay cash.” That’s great. But if you’ve got an investment property or your own home, you may want to do things differently.

All income goes into your offset account and sits there. When you spend $200 on fuel with a debit card linked to the offset account, that $200 leaves the account and stops working for you.

Instead, put $200 on a credit card and pay it off at the end of the month. That $200 stays in your offset account, working for you every day while you sleep.

For example, if you earn $6,000 per month net, put it into your offset account. Give yourself a $4,000 credit card limit. You’re never living above your means, and the remaining $2,000 acts as a buffer.

You can also set up a sweep system where the credit card talks to the offset account, paying itself off before interest is applied. Most credit cards have a 45–60 day interest-free period, so you avoid the 18% interest.

Here’s another example: I literally did this this morning. I had insurance due on one of my investment properties in two days. The renewal notice came six weeks ago, and I set a reminder on my watch.

I paid $2,300 this morning, and that money had been sitting in my offset account the whole time, working for me.

A lot of people pay bills as soon as they receive them. That’s great, but you don’t need to pay immediately – use the time allowed by the institution to keep your money working in your offset account.

These are micro-tricks that make a massive difference. I’ve been using them for years. Make sure you implement these strategies, and you’ll see a real impact on your cashflow.

I can’t wait to see you in the coaching session!