Teacher Gets Schooled

Hi Scott,
 
I love teaching. I love the sparkle in a student’s eye when they ‘get it’. I love being a stable and consistent cheerleader in their lives. Yet things have changed in the past five years – the challenges that come with students who didn’t receive the support they needed during lockdown, and the challenges of the ‘screen kids’ – a generation with too much time on TikTok and not enough time socialising, imagining, reading or being outside. The role of teachers has never been more important, never harder and never less respected.
 
I am at the top of the classroom teacher pay scale ($120,000) after 10 years (I’m 37), with no possibility of progression unless I want to take on a Head Teacher, Deputy or Principal role – and I don’t. We can’t ask for a payrise annually like your book suggests. We have a teacher shortage and an impending education crisis, with three out of four teachers having considered a career change in the past five years. So my question is: how does a highly qualified and experienced teacher transition into another career without taking a huge pay cut?
 
Jim
 
Hi Jim,
 
So what you’re telling me is that the grass is much greener on the other side of the oval.
 
How much green are you chasing, Jim?
 
Let’s say you could earn an extra $60,000 a year. That’d give you an extra $3,000 a month after tax, which, if you invested it, would make a huge difference at your age.
 
However, it would also mean giving up your calling in life, something that clearly gives you a deep sense of meaning and purpose. You need to put a value on that – and I think it’s worth a lot more than $3,000 a month.
 
If I were in your shoes I’d look at your costs, and perhaps entertain the idea of moving to a regional area where you can live cheaper. I’d also think about how you could boost your income from tutoring. Remember, the grass isn’t always greener. Sometimes it’s just astroturf.

Scott.

Confessions from the Dark Side

Hi Scott,

I have a confession to make. For years I have been drawn to the ‘dark side’ — working as a finance broker putting people into ridiculous high-interest-rate loans (up to 29.9%). When I started I was shocked that people would buy these loans, but it soon became the ‘norm’ and I even trained other people on how to sell them. This is something I am not proud of as I have been following the Barefoot way myself the last three years, which has really helped my wife and me. Now I want to right the wrongs I have done and help people, especially young people who do not have a clue. With my knowledge of the dark side, I want to become a ‘finance Jedi’. Where can I best help?

Bryan

Hi Bryan,

You should consider becoming a not-for-profit financial counsellor.

No other job in finance comes close to matching the impact you have on people and their families.

You’ll deal with the same clients, though instead of preying on them you’ll go home at night and pray for them.

It’s mentally draining. People turn up and dump decades of stress on your lap. They tell you heart-breaking stories.

In the spirit of being candid, let me give you a confession of my own:

Financial counselling is the toughest job I’ve ever had.

So why do it?

Well, when I first got into finance my old man gave me one bit of advice that stuck with me:

“Just don’t be a wanker, look after the battlers.”

Turns out to be the best advice I ever got.

Good luck.

Help a Stripper Out!

Dear Scott,

Hoping you can help a stripper out! My name is Emmy (stage name Charlotte), I am a 25-year-old stripper from Byron Bay, and I have just read your highly entertaining book. I would love your advice on budgeting. In my line of work, I can never estimate how much money I am going to make each week — some weekends it’s $3,000+, some weekends it’s less than $500. How do I manage this?

Emmy

Hi Emmy

I know what you’re doing … trying to get my attention with that opening line.

And you know what?

It worked.

My first thought is that being a stripper would be the ultimate cash business.

I mean, your clients literally throw money at you!

Then again, you’ll still face the same financial issues as any self-employed person.

My book sets out how I personally manage my own money … I’m self-employed, and it works for me!

That said, you need to do three things:

First, set up a separate bank account and deposit all the cash you receive.

The ATO data-matches billions of transactions, and they target people working in professions where cash is received. Report your tips in your tax return (usually at Item 2: ‘Allowances, earnings, tips and director’s fees’) and claim any legitimate work-related deductions (lingerie and the like), as with any job.

Second, transfer 35% of whatever you earn into a separate tax account so you’ll never be caught out at tax time.

Finally, work out the absolute minimum you need in your ‘Daily Expenses’ bucket and set up your other buckets by following the plan in my book. Any extra you earn after that should be applied to working through the Barefoot Steps, which will keep you growing a little wealthier each day.

People keep telling me that my ‘three jam jars’ system for kids doesn’t work because nobody uses cash anymore … maybe they need to come and see you at work!

Scott

My Year of Being a Tafe Student

It all began on a Date Night last year, when Liz said to me:

“You’ve sold over a million copies of your book … what’s next?”

“Well, I’ve been thinking a lot about that”, I said. “And I think I’d like to go to … TAFE.”

Liz stared at me blankly.

“I’d like to study for a Diploma of (not-for-profit) Financial Counselling”, I continued.

“So”, she replied warily, “this will be a correspondence course you’ll do at night … after the kids are in bed, right?”

“Well … not exactly. I’m thinking I’ll head back to class … just like my old uni days.”

At this point, Liz began chewing her food very slowly, and raised her eyebrows.

“But you’re a married man, with a full-time business, and three children under the age of six!” she protested.

“Precisely!” I said.

So this year I’ve been one of those super-annoying mature-age students.

It’s been a lot of fun … I’ve sent selfies to my staff as I enjoyed a lazy beer on the lawn on a Thursday arvo while they worked (losers!) … but I’ve also learned a hell of a lot.

I have the finance part covered, obviously.

Yet learning the art of counselling people who are, in many cases, suffering severe stress and trauma — they may have fled a family violence situation, lost their home, or fallen gravely ill — is both challenging and rewarding.

Helping people who can never repay you is a real honour.

And now, a year on, I can happily say that I made it through my lectures (both in class and when I arrived home late … where my new-found counselling skills have come in handy).

There’s just one thing left for me to do before I graduate. The course has a practical component that I’m still completing: I’m required to spend 220 hours volunteering in the trenches … more on that next week.

Tread Your Own Path!

Your Advice Got Us Fired

In 15 years of answering readers’ questions, I have never, ever received one like this:

Subject:  “YOUR ADVICE GOT US FIRED!”

Dear Scott,

My girlfriend and I are both scuba diving instructors, and after reading your book we decided to set up a salary-sacrifice contribution arrangement with our employer.

Six months down the line I realised we had not been paid any of our contributions or in fact ANY of our super for two years!

I hate confrontation, so I wrote our boss a very professional letter asking for payment of super in full for both of us.

The next day I came to work … and found all our dive gear sitting out on the road and a furious dive shop owner yelling and spitting in my face telling me to get out!

Months of going in circles — being told by Fair Work to call the Ombudsman and then to call the ATO — have resulted in nothing. It has now been a year, and in that time the owner has bought himself a brand-new boat and a Mercedes-Benz!

Yet it’s not all bad. After reading your book, we saved and bought our first home, and then set up our own snorkelling business on the side — where we earn as much from one trip as we did in a week at that dive shop. 

Your book has changed our lives and we are happier than ever. So maybe it was the best thing that could have happened?

Dylan (and Lara)

Hi guys,

Congrats on getting your act together.

Yet as far as it being “the best thing that ever happened”, well I think you’ve got happy gas in your scuba tank.

Let’s be clear: this guy is a crook.

Don’t duck-dive this one, cobber, he deserves to go to jail. The only time he should think about wearing a snorkel, flippers and wetsuit is when he hits the showers in H-Block.

Okay, so that’s pure fantasy!

For the rest of us playing along at home, here’s how the world really works:

You steal $100 out of the till, your boss immediately calls the cops, and you’re charged with a criminal offence.

Your boss steals $5,000 from you, and they can … repay it without so much as a slap on the wrist.

No, seriously.

Next month the Government is set to introduce a one-off amnesty for bosses who have unpaid super, without penalty.

Now, given that in 2017 a third of Aussies (some 2.85 million people) were ripped off to the tune of almost $6 billion in unpaid super, according to Industry Super Australia (ISA), it’s time to do a financial deep dive.

Here’s you: “But I work for a big company — they’ll protect me.”

Here’s me: “Woolworths”.

Let me tell you a couple of things.

First, I’m betting that 2,849,990 of those ripped off Aussies had absolutely no idea they’d been robbed (the 10 blokes who worked for Clive Palmer had a decent hunch).

Second, almost every one of them got a payslip saying they had been paid their super.

Here’s the thing: don’t trust your payslip ... it’s as genuine as a Mercedes-driving dive shop owner.

Instead, trust your super statement.

So this week I want you to do me a favour:

Call your super fund and check that the money has actually hit your super account.

You may be surprised, and if you are, please write to me like Dylan and Lara did.

Tread Your Own Path!

Don’t Send Kids to the Coalmine, Barefoot

Hey Scott,

I just wanted to comment on your response last week to the letter from Alice the 15-year-old asking if she should get a part-time job. Could you please recommend that high school students work no more than 12 hours per week, unless they are happy to take a nose-dive in their education! Up to 12 hours per week can help them with time management and all your other points. But not more. And I know what I’m talking about: I am a teacher who sees the results of overworked students!

Cheryl

Hi Cheryl,

I agree with you ‒ a few shifts on the weekend is more than enough. Really, you just want to get kids off their phones and work for a boss who will knock the ‘special snowflake’ out of them.

And here’s a tip for all those tired parents, which I call the ‘taxi rank’: shortlist the youth-friendly employers that are close to your home or the school. Think shopping malls, supermarkets, fast food joints and small businesses that you’re happy to taxi them to and from. Because you will!

Scott

The Perfect Barefoot Side Hustle

Scott,

I have come across a mob who are selling themselves as offering the “perfect Barefoot Side Hustle” with what they call “matched betting”. Is this is a scam? Or am I just a little too risk averse?

Jenny

Hi Jenny,

Thanks for bringing this to my attention.

I have a standing rule that I don’t Google myself, or read anything that’s said about me (good, bad or otherwise).

It keeps me (marginally) sane.

Yet what gets me all ‘Mark Latham’ is when insurance salespeople, mortgage brokers, financial planners, Bitcoin scammers, and even blokes on Tinder (!) use my name to sell their … junk.

Let me be clear: I have absolutely nothing to do with a gambling service.

Someone’s doing a hustle but it sure ain’t me!

Scott

Blow the Whistle

Hi Scott,

I’m 15 years old and do not have regular work, though I do umpire netball in the winter months, which earns me about $15 a game. I’ve just started Year 10 and will have a lot on my plate school-wise, and do not want my studies to suffer. Would you suggest I get a part-time job, or just keep up the casual netball work?

Alice

Hi Alice,

Good on you for (a) taking interest in sport, (b) earning some money out of it, and (c) emailing the Barefoot Investor for financial advice while you’re still in high school ‒ you’re awesome!

Yet I still want you to get a part-time job.

I view a part-time job as one of the most important ‘real life’ high school classes you can take.

Seriously, how else do you get the experience of selling yourself in an interview, working in a team, taking orders from a boss, and learning about setting up bank accounts, paying tax and eventually investing super?

Your parents should pay Ronnie McDonnie for the educational experience! Besides, you only need to do a few shifts a week, so it won’t interfere with your studies, and you can pare it back when you get into your final years of school.

Good luck!

Scott

Down the Rabbit Hole

Hi Scott,I have a spinal cord injury and am paralysed from the chest down. I am self-employed and lucky enough to have a wonderful wife and two great kids. Health-wise I probably have 10 good years left, as I have been in the wheelchair now for 20 years and kidney problems tend to happen at the 30-year mark. I am 46 and earning $80,000 and I want to put my kids through private school, but I also want to see them grow up, not just work and come home exhausted. What is your advice?

Chris

Hi Chris,I’d seriously consider not sending your kids to private school.Why?Because you say you have 10 good years to spend with your kids.Personally, I’d rather spend less time working -- and less time stressing about work -- and invest that time into your kids. If I were in your situation, I’d do two things. First, set up a direct debit into an online saver, so that you put your savings on autopilot. Second, spend that money on experiences you can do with your kids: travel, sporting events, hobbies.Good luck, and good health.

Scott

I Didn’t Get Paid!

Hi Barefoot

Interesting column last week about super not being paid. In my office almost everyone has not been getting super since November last year, and some for 12 months. But, like you said, it shows up on our payslip as being paid. A few people have approached the boss as far back as last year, and as recently as two weeks, and the boss said that there was a ‘glitch’ with MYOB and that the money is in the ‘cloud’.

Mel

Hi Mel,

It doesn’t sound like a glitch ... more like you’re getting stitched.

Times change but the bulldust stays the same: it goes from ‘the cheque’s in the mail’ to ‘the money’s in the cloud’.

Well, after 12 months of not being paid super, it’s about time you made it rain ‒ with your boss’s money!

I’d suggest you go to the ATO website, lodge a complaint, and have them investigate.

Legally, employers have to pay super at least four times a year.If your boss is looking to the clouds to pay your super, it tells me that:

One, the business is struggling. Or two, your boss is a crook.

Neither bode well for getting a gold watch in 20 years’ time.

Time to start looking for another job.

Scott

Financial Planner Wants Advice

Hi Scott,

Am I in the wrong job? I am a financial planner. No, seriously please keep reading :) I got into the industry after being retrenched, as I was looking for something that would pay better than an admin job. I do my best to provide advice that is free from bias and not tied to products. Trouble is, sooner or later my boss is bound to notice and move me on. How do I help Aussies with their finances and still put food on my table?

Tim

Hi Tim,

The old saying ‘don’t hate the player, hate the game’ is true in financial services.

The Royal Commission is great, but unfortunately it tends to tar everyone with the same brush. The overwhelming majority of financial planners and mortgage brokers are good, hard-working, ethical people like you.

It’s the game that sucks. It’s been set up by the banks and AMP. It’s called ‘vertical integration’, and it’s basically where the banks manufacture products and then employ planners to sell them. If you’re working in a Holden dealership, you won’t be selling Fords.  Hopefully a recommendation from the Royal Commission will be to break up the vertical integration game. Yet what advice would I give you right now? Well, there are truly independent firms that charge hourly rates. Or there are financial counsellors, who do important work without flogging products.

Scott

The overnight $60,000 pay rise

Can you imagine getting an immediate $60,000-a-year pay rise?

Well, that’s what happened this week to a bunch of young blokes that I work with.

Even better, the average 20-something who got the pay rise is pulling in a whopping $371,000 a year.

I’m talking about AFL footballers … who this week scored a six-year, $1.84 billion collective pay deal.

But now for the tackle: despite the serious dough they get, a lot of these players will end up kicking their finances out of bounds on the full.

It’s a worldwide phenomenon: American footy players (lycra and crash helmets) earn an average of $US1.9 million a year, but most of them are broke within three years of retirement. NBA basketball players earn an average of $5.15 million a year, but 60% of them are broke within five years of hanging up their boots, according to a fascinating ESPN documentary called Broke.

How does this happen?

Well, this week I sat down with a bloke who knows: North Melbourne coach Brad Scott.

A few things you should know about Brad: first, he’s whip smart; second, he cares deeply about his players; and third, he happens to be a Barefooter!

(Oh, and fourth, I’m helping his boys this year … with their finances, not with their footy. Obviously.)

When it comes to footy and finances, Brad has seen it all.

In fact, when he was first drafted in the nineties, he was paid an outrageous sign-on fee:

“I got seven and a half grand”, he tells me.

“… and $250 a game.”

(And, just like my sheepdog Betty, if he got rubbed out or injured … no pay.)

While you may scoff at the players’ pay rise (and pay packet), after 20 years of playing and coaching Brad knows why many of them end up broke.

Let’s start the siren.

Show Me the Money!

“Part of the problem is that everyone else thinks they’ve got it made”, says Brad.

And then he proceeds to throw cold water over the “$371,000 average wage” claim that’s bandied around in the media (and by yours truly at the start of this column).

“Look, of the 44 players on our list, only 14 are earning above the average wage, and the rest are below it … and that would be similar for all the clubs.”

And ‘below’ is actually … really low:

The minimum wage for a rookie is $71,500, and for a second-year player it’s $100,000.

Sure, good money for doing something you’d do for free … but you’re hardly turning up to training in a Porsche 911.

And herein lies the problem:

“When you’re a young AFL footballer … you get a lot of female attention.”

“And the players … well, they’re not going to downplay the image. Really, it’s not in their interests to say … ‘hey I umm, actually don’t earn that much money’.”

And it’s not just the girls. Often when the players go home they shout their mates, and their families, who all believe they’re loaded.

I know what you’re thinking at this point: “Yeah, but that’s just what they start on, they’ll soon earn the big bucks.”

And you’re right.

Brad tells me that when some young players get a sizeable contract that can mean their salary is double or triple their first pay. And that’s when the real problems begin.

He’s My Private Banker

When your income triples, so do the opportunities to spend it.

There’s no shortage of banks — with private bankers in tow — wanting to lend these players huge sums of dough, to fulfil their Instagram images.

“The average AFL player career is just three years”, says Brad soberly.

“So, yes, technically they can service the debt while they’re playing … but what happens when they stop?”

A financial shirt front. “I’ve seen it too many times”, says Brad. “Plenty of guys I’ve played with end their career with a negative net worth position.”

That’s why Brad tells his players there’s only one thing he’s really impressed by: “It’s not what you earn, it’s what you save.”

Boofhead’s Bar and Grill

The final trap for many players … the world over … is that they tend to invest badly.

“They often invest in exotic investments”, says Brad.

Generally, it’s not their idea either.

The one thing I’ve learnt from dealing with professional sportspeople over my career is that there’s always a ‘bunch of blokes’ waiting around to hip-and-shoulder them into something complex, confusing, and high risk: restaurants, bars, property developments, you name it.

And best of all?

These high-tax-paying players can be so negatively geared, they’ll be positively screwed!

The Good Coach

The AFL and the clubs understand the problems players face, and that’s why they’re investing a lot into player development. Every club employs staff whose sole role is looking after player welfare. Plus, each player is mandated to have at least one weekday off per week to focus on professional development, either study or work placement.

Before the final siren sounds, the last word must go to Brad:

“The reason I’m passionate about financial education is that I’ve seen too many players who struggle after retirement, when they should be a step ahead. The reality is that a lot of players don’t succeed in the AFL — but they can all succeed in life.”

Tread Your Own Path!

What I learned from reading 385 job applications

Okay, so I’m kind of weird.

This year I’ve employed six people.

It’s not supposed to be this way; just ask the Daily Telegraph:

“The chance jobseekers with little or no experience have of finding work has plummeted, with startling figures revealing entry-level positions are ‘virtually non-existent’. Graduate jobs represent a mere 4 per cent of the entire new job market, falling 20 per cent in the past five years.”

Uh-huh.

When I talk to people (especially graduates) they bitch about how tough it is to get a foot in the door:

“It’s impossible to get a job without experience!” — “I can’t even get an interview!” — “How do I stand out?”

Yet, amid all the complaining, there are enterprising people quietly landing jobs … like the six I’ve hired this year.

And they didn’t have relevant qualifications, or fancy résumés, or stellar interview skills.

So what made them stand out? And how can you do the same thing?

Today I’m going to answer those questions, using one of my recent hires as a case study.

First, let me set the scene:

I had 385 applications for a producer role at Barefoot.

But I didn’t ask for résumés. Reason being, most people lie in résumés (and If I want to be lied to I can read Donald’s tweets).

And I didn’t ask for qualifications, or experience, because they don’t necessarily mean they can do the job.

And I didn’t even talk to them. Some people are excellent at talking about a job (you’ve been in meetings with these people), while others excel at interviewing for a job (because they’ve done a lot of interviews!). But, again, it doesn’t mean they can do the job.

As a boss I have an itch I need scratching, and all I care about is how good you are at scratching it (and not in a weird way).

That’s why at Barefoot we’re famous for long online surveys where we get candidates to do the actual task we’re hiring for. And, not surprisingly, a lot of people give up. (That’s part of the plan.)

Now, a confession: I don’t read through an entire application to work out what’s special about you.

No-one else does either. Recruiters spend an average of six seconds on each résumé, according to Time magazine. (Admittedly that sounds like a bulldust statistic. Personally, I spend about 18 seconds.)

Instead, I use a favourite tactic of many business owners: I put in a ‘hidden question’ that I go straight to, so I can do an initial cull. Then I read the ones I haven’t culled.

Now this may seem a hard-nosed way of doing things. Game of Thrones almost.

But I think it’s the most egalitarian way of employing people: I don’t care if you’re male, female or androgynous, how old you are, or where you’re from. All I care about is how good you are.

It doesn’t suit everyone. I once had a senior journalist contact me to apply for a role. We’d worked together years back, and he was a legend in his own lunchbox. Here’s how our phone conversation went.

Journalist: “I see you have a job going … I think I’d be perfect for it.”

Barefoot: “Sure! Just fill out the survey on the website.”

Journalist: “Really?! I mean, I have 20 years’ experience, so I am clearly very qualified.”

Barefoot: “You’re right. No need to do the survey.”

Journalist: “Great! So when would you like to meetup to discuss the role?”

Barefoot: “Never.”

As a postscript to this story, a few months later he did the survey … and his answers sucked.

He’s now working for a competitor of mine, bless his cotton socks!

How to Stand Out From the Crowd

So let’s talk about the person who actually got the position. How did she stand out?

Firstly, she got my ‘secret question’ spot on. She realised there was a question behind the question — so rather than giving a short answer, she explained her reasoning in detail, showing me she knew her stuff.

Second, she joined the Barefoot Blueprint to see if she’d be a good fit — and figured out what I needed to hire someone for. That showed initiative.

Third, she linked me to her profile on the freelancing site Upwork, where she’d done a few jobs in her spare time — which told me she didn’t mind hustling for extra work, she could manage her time, and she could get things done.

None of these things took her long to do, but they paid off in a big way.

Now, I know what you’re thinking: “Okay, Barefoot, but I want to work for Company X, where they have a hiring process with real résumés and real interviews. So your advice doesn’t apply to ME.”

I thought you’d say that. So let me tell you how you can use this strategy no matter what job you’re going for.

Barefoot’s Advice to Jobseekers

My ‘secret question’ technique is ruthlessly efficient: it forces you to show how you can do the job at hand.

And that’s the secret to any job application.

All any employer wants to know is this: “Can you do the job, or not?”

So get to the point.

Ask yourself: what are they actually asking for? What do they truly need done? What’s the real job here?

And then make sure your answer (or your résumé, or interview) addresses that.

What you want to say is: “Here’s the job. Here’s why I can do it better than anyone else. Here’s evidence of how I’ve done it in the past.” Show them, don’t tell them.

Here’s you: “But Barefoot, I don’t have any experience.”

Here’s me: “Well, go and get some. Freelance on the side. Volunteer. Heck — offer to do the job for free for two weeks to prove you can do it.”

Yes, it takes a bit more elbow grease than submitting the same résumé to 56 applications on Seek.

But if you do this, you’ll be irresistible to any employer … and you’ll be too busy getting job offers to complain about how few jobs there are.

Tread Your Own Path

Why it sucks to be a young person in Australia

If you see a Millennial — a person aged between 18 and 34 — go up and give them a great big hug.

They need it.

Australian Millennials are among the most miserable young people on the planet — well, according to the findings of a new survey released by consulting firm Deloitte this week.

The survey, which tracked 8,000 responses from young people across the globe, including 300 from Australia, found that our kids are the emos of the global community:

Only 8 per cent of Aussie Millennials believe they’ll be better off than their parents.

And only 4 per cent believe they’ll be happier.

(Sad emoji.)

Then again, every young generation, to some extent, believes they’re hard done by:

The Baby Boomers had The Doors: “This is the end …”

Gen X had Alanis Morissette: “Isn’t it ironic … doncha think?”

Gen Y had Eminem: “His palms are sweaty, knees weak, arms are heavy …”

And the Millennials have whiney Avril Lavigne: “Why do you have to go and make things so complicated?”

You’re right, Avril, why is everything so complicated?

Let’s discuss.

Why it Sucks to be a Millennial in Australia Today

These days, having a degree isn’t enough.

For years our education system has acted like a corporate conveyer belt, punching out wandering generalists with fancy letters after their names.

But the internet has jammed that conveyer belt: those entry-level graduate jobs, which previous generations used as a career stepping-stone, are increasingly being outsourced to cheaper destinations with hungrier workers.

Case in point: the Deloitte survey found that the most optimistic young people on the planet live in the emerging markets of Asia, where 71 per cent of Millennials believe they’ll be financially better off than their parents.

Damn straight!

Your average young Indian programmer is under no illusion about being a special unique snowflake — he’s too busy kicking ass, taking names, and pulling himself out of generational poverty.

So what advice do I have for our melancholy Millennials?

In a word, ‘focus’.

Your problem is in your pocket.

Technology — especially social media — is not only highly addictive, it’s rewiring our brains, overloading us with dopamine, and interfering with our ability to focus for uninterrupted stretches of time.

Here’s you (texting): “Uh-huh. Focus. Sure. On what?”

Here’s me: “it really is as simple as developing one ‘hard skill’ and one ‘soft skill’ — and the payoff could be worth millions of dollars over your career.”

The Hard Skill …

A hard skill is something that you come out of uni with: you’re a computer programmer, you’re an accountant, you’re a graphic designer.

Job done, right?

Actually no.

The question you want to ask yourself is this: how long would it take an intelligent, diligent Indian university graduate to learn the ins and outs of my job?

See, Australia is awash with qualified, but disengaged, workers. A 2013 Gallup poll found that more than 70 per cent of Aussies are either “ambivalent or completely disengaged with their jobs”.

These are the people who wake up one day to find their job has been rightsized, downsized, or outsourced. Bugger that. If you really want job security, you need to go deep and immerse yourself in challenging work. That’s how you become an expert. And most experts don’t live in fear of losing their jobs.

When you’re focused, and throwing yourself into challenging work, you stand out — people notice — and you’re more likely to be headhunted into something bigger, and better.

The Soft Skill …

Still, there are plenty of hard-ass experts who haven’t reached their full potential because they’re … well, hard-asses. That’s why mastering a soft skill is so important.

What’s a soft skill? It’s how you interact with people — focusing on your E.Q not just your IQ.

Case in point: legendary investor Warren Buffett has made many amazing investments over his 86 years.

But do you know what he calls his best investment?

A public speaking course he did after completing grad school.

Before doing the course, Buffett says, he “would throw up if I had to speak to anyone. In fact, I arranged my life so that I never had to get up in front of anybody.”

Buffett described his first class, where he met up with 30 of his classmates at a local hotel: “We were all just terrified. We couldn’t say our own names. We all stood there and wouldn’t talk to each other.”

What a bunch of weirdos, right?

Well, stop for a moment and think about what you do when you’re in an awkward situation.

Chances are you whip out your phone and teleport yourself out of reality. But what opportunities are passing by as you superficially, like, swipe and text?

That public speaking course completely changed Buffett’s life, teaching him the skill of developing strong bonds with people — people who would go on to make him tens of billions of dollars.

Even better, young Buffett doubled down. To further hone his communication skills after the course, he signed up and taught a finance class to women at the University of Omaha.

So let’s return to Avril. Life really doesn’t have to be complicated.

Fact is, you’re going to spend 90,000 hours of your life working. And for you Millennials, you’re right at the start of it. So you have a choice. Go deep and throw yourself into both the hard and soft stuff, or stay skimming along the surface. Over to you.

Tread Your Own Path!

Five Questions You Need to Ask Before You Give Your Boss the Bird

Have you ever thought about flipping your boss the bird, and doing your own thing?

I’m sure you have.A survey released last week by the NAB found that one in three Aussies want to be their own boss.

The urge to bird is even stronger for young people -- one in two want to run their own show.

So let’s get one thing clear: owning your own business is the most reliable way to get seriously rich.

Yet it’s not all sunshine and cupcakes.

Like you, I’ve read the motivational stories of entrepreneurs who say relatable things like “I’m just a normal girl who sort of just stumbled onto this million-dollar business”.

Unlike you, I get to meet many of these entrepreneurs. Most of them are a little cray-cray. They are not normal. The people who make it to the top of their field in business are, in most cases, total workaholics, completely ruthless, and quite often a little unhinged.

(Guilty, as charged.)

It makes sense. After all, we’re talking about people who are willing to throw in a dependable wage, with entitlements like sick leave, holiday pay, superannuation and normal work hours, to back themselves against against better funded, more experienced competitors.

Okay, maybe you’re not setting out to be the next Richard Branson, but regardless, it’s a huge life-changing decision. So here are six questions to ask yourself before you flip the bird:

Question 1: Have you spent 20 hours a week on your start-up, while holding down your full-time job?

That’s the first question I ask people who tell me they want to quit their job to start their own business.

You’ll clock up 60 hours a week in a start-up … and that’s in a slow week. If you’re not already devoting 20 hours a week to your start-up, there’s a good chance what you’re really doing is running away from a job you don’t like.

You can do both for at least 12 months. If you can’t, you’re probably not cut out for business.I call this the ‘Trapeze Strategy’: don’t let go of the bar (your secure paycheque) until you’re safely holding the next one (your successful business).

If you start your business off part time, you may work out that full-time business in not for you -- but what you’ve got is a great part-time gig that can turbocharge your mortgage or build a huge investment portfolio. What’s so bad about that?

Question 2: Where are your customers?

That’s the second question I ask people.

Most of the time they come back with the three F’s: ‘friends’, ‘family’ or ‘Facebook’ (as in, ‘my friend says they’ll be my first client’ or ‘I’ll spread the word on Facebook’).

That’s not a strategy, it’s a plan for the weekend.

You need to know how much your best competitor has to lay out to attract a customer, and then work out how much profit they make on each sale.

The bottom line is that it’s not enough to be a good programmer or a good jewellery-maker -- you have to enjoy making sales and must be prepared to devote at least 50 percent of your time to doing it.

Question 3: Are you planning on getting into bed with anyone?

That’s the third question I ask, and there’s only one correct answer.

The answer is ‘no’.

I can count on one hand the truly successful business partnerships that have lasted decades, while the vast majority end bitterly. It’s like a marriage, only with money and no sex.

If there’s someone you want to get into business with, by all means sit down and create a sweetheart deal commission structure for them, but you want to own 100 percent of a business or zero. Trust me on this.

Question 4: Are you ploughing your life savings into the business?

Again, there’s only one correct answer.

Again, that answer is ‘no’.

(I’m not classifying a franchise as a business -- in most cases you’re basically buying yourself a 100-hour a week job. The real business is in selling the franchises, and it can be very, very lucrative.)

Small businesses are risky, and most of them fail.

Yet the good news is that you don’t have to stump up large sums. Case in point: half the small businesses from the NAB survey were started with less than $5,000.

Question 5: Does your family support you?

This question trumps the lot of them, because it will have a huge impact on those you love.

When I first met my wife (who, unlike me, wasn’t brought up in a small business family), I explained that owning a business is a lot like having a kid. The first year is like a bombshell -- you suffer sleep deprivation and total exhaustion. It gets a little more manageable over the first five years, but it’s still a slog. And, just like a parent, you’re never totally free from worry.

That being said, it’s the best thing I’ve ever done and, family aside, it’s my proudest accomplishment. I can work from anywhere in the world, see my kids grow up, and be 100 percent in charge of my time, and my income.

So if you’re thinking about starting a business, look at it this way:

The easiest way to make money quickly -- as in next week -- is to freelance. Even better, freelancing cuts through the bulldust and allows you to road-test your ideas, your pricing strategy and your skills … all without leaving the security of your day job.

In other words, start swinging on the trapeze!

Tread Your Own Path!

How to Score a $1.6 Million Pay Rise

Let me share with you an actual email I received from a former employee a few years ago:

Hey Boss,

I know I haven’t exactly lived up to expectations since I started, but in my contract there’s a clause that says I’m entitled to ask for a payrise each year. So I was hoping we could talk about it? :-)

Regards,

XXXX

Let me point out a couple of things about this approach:

First, never use an emoticon when writing to your boss (even if he or she is 20 years younger than you).

Second, hope is not a strategy.

And given that we’re getting close to the end of the financial year -- and, with it, annual performance review time -- today I’m going to show you the easiest way to make more than a million bucks, with a simple five-step strategy that I call ‘Career Compounding’.

I’m serious when I say more than a million dollars. Let’s look at two 25-year-old graduates, each starting on $35,000 a year. One gets a 3 per cent annual increase, while the other gets a 5 per cent increase. The difference over their working life is $1.6 million.

Now, here’s the important point: the biggest source of wealth is your salary. Yet the truth is that most people are as unlikely to compound their salary as they are to earn compound interest. Instead, they look back after a lifetime of working and all they have is excuses.

Your Excuses For Not Earning More

Question: do you know what the biggest mistake most people make when it comes to getting a payrise?

Answer: They don’t actually ask for it.Instead they come up with excuses like:

“Maybe my boss will notice if I put my head down and keep working around the clock”

Maybe, but it’s unlikely. Though it will definitely lead to you picking up the slack for your lazy co-workers, who sit on Facebook all day or waste company time arranging their honeymoon.

“I’ve done my job, as per my position description, so I’m entitled to a pay rise”

Actually, no you’re not. All you did was what you were employed to do. It means you held up your end of the bargain. That means you’re entitled to be paid what you signed on for. You don’t get promotions and above-average pay rises when you do your job -- you get them when you go above and beyond to become a linchpin for your boss.

“I don’t know how to negotiate … I feel awkward”

Seriously, 90 per cent of the negotiation is done before you sit down with your boss. In fact, it’s done over the preceding 12 months. And if you follow my five-step Career Compounding strategy, the only awkward thing will be how much your boss gushes in the performance review.

Introducing: Career Compounding

Did you know that, on average, you’ll spend 90,000 hours of your life working.That’s a huge chunk of your precious time on earth -- add in sleeping, your daily commute, and sitting on the can, and there’s not much time left over. You’ll actually spend more time at work than you do with your family and friends.

And here’s the killer: odds are you are totally unfulfilled with what you’re doing at work.

According to a Gallup poll in 2011, almost two-thirds of Aussie workers consider themselves to be ‘emotionally detached’ from their employer. That results in them turning up, punching the clock, and doing the bare minimum to keep their job.

The solution is to stop being passive. If you’re going to devote 90,000 hours of your life, you want to make it pay -- you want to Compound Your Career.

Step 1 -- Commit to being the best employee in your company

The simplest way to become a multimillionaire is to commit to being the best at what you do. Very few people you work with have ever made that commitment. Those who do, get paid a disproportionate amount of money. Do you think a CEO works 200 times harder than a regular worker? Of course they don’t. And trust me, they’re sure as hell not 200 times smarter either. They’re just committed.

Step 2 -- Make a list

Take out your position description, but this time look at it from your boss’s point of view. How does your job make her life easier? How does it contribute to your company? Most jobs can be boiled down to three fundamental tasks. Write them down. Then set yourself an ambitious goal for each task that you’ll have to stretch to achieve over the next 12 months. Write them down too.

Step 3 -- Arrange a meeting with your boss (no emoticons)

Present to your boss your list of prioritised tasks, and your goals -- and genuinely ask her for feedback.

You’re not doing this to be a brown-noser. You’re going to devote the next 12 months of your working life to this, so you want to be crystal clear that you and your boss are on the same page.Once you’re both in agreement, ask her if you can have a follow-up meeting every eight weeks or so to track your progress.Take notes on whatever she says, and for godsakes, smile.

Step 4 -- Put your goals into your calendar for a daily reminder

You now have your ambitious 12 month goals. The key to progress is doing a little bit on them every day, and tracking your progress. You’ll be surprised how much you can get done by hitting your goals for an hour a day, rather than bitching about the boss.

Step 5 -- Follow up with your boss

Never talk about money, or promotions, in these meetings.

Always talk about what extra you could do to help your boss. What can you do to make her life easier?

The bottom line is this: you want to frame it in your boss’s mind that you’re hungry, but humble. Be grateful for the opportunity to take on more responsibility. Then show her the daily progress you’re making towards your goals.So that’s your 12-month Career Compounding Plan.

Now my original suggestion was that this could earn you a 5 per cent raise. But if you actually do these five steps, I think you’d probably get a 10 per cent raise.

Stop for a minute and think about what a difference that could make to your life.

Then shut down Facebook

.And do it.

Tread Your Own Path!