The Uncomfortable Wife

Hi Scott,

I own my home, have five of my own children still at home, and recently married a second time. My new husband does not want to combine our money or have the same accounts, and he wants to keep everything separate. He has no assets, savings or superannuation. He works on commission, and he is 10 years off retirement age. He contributes here and there, but l feel uncomfortable. Should l get a prenup now? 

Felicity

Hi Felicity,

This ain’t your first rodeo … so why are you acting like a rodeo clown?

You may think this guy is a puny pony, but he is every bit the bucking bronco:

He has no assets, no savings, no super, no reliable income … and no plan. 

My worry is that he’s likely to turn around one day and decide to launch you into the cheap seats. 

After all, he says he wants to keep money separate – yet he enjoys the use of your assets and doesn’t contribute consistently?

Easy, horsey!

It’s time you pull the reins in on this bloke and lovingly drive your spurs deep into his guts. 

Here’s how:

Book in to see a family lawyer today.  

Now, you can’t get a prenup after you’re married! So the legal document you need is a Binding Financial Agreement (BFA) – and you should absolutely get one. Also, update your will and estate plan to protect your kids. 

Felicity, you do not need permission to protect yourself and your kids. Enjoy the ride.

Scott.

My Mother Is Acting Like a Teenager

Hi Scott,

I’m nearly 18 and the only one bringing in money for my family. Mum’s been out of work for 17 years – tried a job but quit due to bullying. Dad pays minimal child support and, despite cutting costs, we’re drowning in bills. Mum ‘borrowed’ $1,700 from my savings, leaving me with $2,100, and now she and my sister want to start a clothing business. I’ve started a part-time job, but I feel pressured to cover our expenses. I get $200 a fortnight from Centrelink and I’m expecting a $20,000 injury payout that I wanted to invest. I love Mum, and she’s sacrificed so much, but I’m about to start uni and I have my own goals. How do I support my family without sacrificing my future?

Kelly

Hi Kelly

First of all, I just want to take a moment to recognise how awesome and mature you are: there are very few 18-year-olds who would have the insight and emotional intelligence to write me a letter like you’ve just done. 

Now it sounds like the roles are reversed in your household: your mum is acting like a teenager and you are playing the role of the responsible adult. That’s a lot to take on, but I have the sense that you’re up to the challenge, Kelly.

Here’s what I’d suggest.

First, protect that payout. A $20,000 windfall at your age is life-changing. Consider sticking it in a locked-off term deposit, or in a low-cost share index fund, where it’s out of reach but still growing. Whatever you do, don’t let guilt drain it away.

Second, sit down with your mum and lay out the hard truth: you’re going to uni, you’re not funding the household anymore, and she needs a real job, not a business gamble.

Finally, you’re about to start your adult life. Set up your Barefoot Buckets, save aggressively, and focus on uni. Helping isn’t giving your family money – it’s showing them what real financial responsibility looks like.

Good luck!

Scott.

My Boyfriend’s Addiction Has Cost Us $30,000

Dear Barefoot,

I’m 25, and I’m really worried about how much my partner has lost on cars. He loves them, and I used to love that too – until his latest purchase, a $30,000 sporty luxury car (bought with a personal loan), turned into a financial nightmare. Expensive insurance, high running costs, and a brutal commute wore it down, then the engine blew – costing us $9,000. We cut our losses, bought a more practical (but still fun) VW Golf, and listed the old car for sale, but no one’s biting. We’ve dropped the price below $19,000, but we’re getting lowballed, and I’m terrified we’ll lose close to $30,000 overall. To top it off, he thinks I should buy my own car because I can’t drive a manual. I love him but I feel so helpless. I’ve always been frugal, and seeing this much money vanish hurts. Can you please tell me it’s going to be okay? 

Heather

Hi Heather,

Your partner is acting like my four-year-old, who spends all his pocket money on Tonka trucks (though at least he pays with his pocket money, rather than taking out personal loans like your partner does).

Now there is something your petrolhead partner probably knows … that he isn’t telling you:

This is possibly the worst year to be selling a second-hand car. 

That’s because right now a flood of second-hand vehicles is overwhelming the market, with the Australian Automotive Dealer Association (AADA) reporting a surge in listings but a sharp drop in sales. Cars are currently sitting on the market for nearly 49 days, and the AADA says 2025 is shaping up to be a bloodbath for sellers.

So, what to do?

Well, I think it’s time for your little boy to pack up his toys. This car needs to go, yesterday. I don’t care what he ‘believes it’s worth’ – he clearly ain’t an expert, and it’s a rapidly depreciating hunk of metal. So, if I were in your shoes, I’d drop the price aggressively, sell it, and clear as much of that loan as possible. If he still owes money on the loan, he needs to work his backside off to cover the difference.

Finally, let’s talk about you for a second. You say you’re frugal, yet you’re watching your financial future get torched. You can’t build wealth when your partner is setting it on fire, Heather. 

So, on your next Date Night you need to sit down, lay out the numbers, and have a genuine conversation about the fact that one of your core values is financial security. If he’s not willing to change, you might need to consider a trade-in of your own.

Oh, and one last thing: he thinks you should buy a car? 

No. You should learn to drive a manual. Problem solved – at zero cost!

Scott.

My Brother-in-Law is a Parasite – Help!

Scott,

My brother-in-law has it sorted – he has a mail-order bride, kids, and he’s living rent-free with my mother-in-law. Every Christmas and birthday, they expect us to buy them top-tier Apple gear (we once got their 10-year-old a $2,000 iPad Pro). When we stopped funding their wishlist, he just blew his own money – then came to us for car repairs and other essentials. I gave him a copy of your book, thinking it would help. He promptly asked for $10,000 to ‘invest’ in the stockmarket, which he has now lost. Recently I offered to pay him to do some odd jobs for me on the weekend he refused. Sadly, ceasing contact with said brother-in-law is not an option due to cultural issues which promote familial harmony. Do you have any suggestions?

Emma

Hi Emma,

Oh yes, I have suggestions.

Look, parasites thrive on guilt and obligation – which of course is code for ‘family harmony’. He doesn’t want your help – he wants a handout.

My view?

You’ve got to make peace with the fact that saying ‘no’ doesn’t make you a bad person – it just makes you someone who refuses to be financially manipulated. In other words, it’s time to bust out the bum chocolate (or combantrin, that’s what my kids call it anyway).

So the next time he comes asking for money, tell him:

“We’re always here to support family, but real support means helping each other stand on our own two feet. We’re happy to offer opportunities, but not cash.”

Will that work?

Yes, if you stick to your guns. 

But beware: once he realises you’re no longer the easiest meal, he’ll move on to someone else in your family (good for you,  bad for them). Because that’s the thing about parasites: they don’t starve – they just find another host.

Scott.

Should I Call Off My Wedding?

Hi Scott,
 
I’m blindsided but I am in love. I’ve just discovered my fiancé has $9,000 of debt he accrued overspending on Afterpay and Uber Eats over a two-year period. He consolidated this debt into a loan (at 17.5% interest!) and I only found out when I opened a piece of mail from a bank neither of us use (or so I thought). I’m not sure what to do. I’m not going ahead with the wedding now, so we’ve likely lost $10,000 in deposits, and we have $14,000 in savings. For context, we live in a three-bedroom townhouse that I own. I don’t know whether to try and make it work or cut my losses and run. Please help!

Renata
 
Hi Renata
 
I know your type.
 
You really value financial security.
 
That’s why you own your home. That’s why you’ve already calculated how much backing out of the wedding will cost you. And it’s also why you’re asking me – a finance dude with no shoes – if you should call off your wedding, rather than, say, a relationship counsellor.
 
However, I don’t know your fiancé’s type … but you love him, so I’m willing to cut him some slack. After all, maybe he racked up the Afterpay and Uber Eats debts wining and dining you?
 
Like you, perhaps he’s also blindsided by love, but he just so happens to be clueless about money (which would make him a card-carrying Aussie).
 
My view?
 
Let’s give love a chance.
 
If you haven’t done it already, I’d sit down and paint him a picture of what your ‘happily ever after’ looks like. Go into all the scary details: a paid-off home, a million-dollar super fund, private schools for the kids.
 
And then smash him with the following line:
 
“I do not want to marry you if we’re not on the same page financially.”
 
Of course, there’s every chance this poor shell-shocked bastard will agree to whatever you say.
 
So, it’s then that I’d bust out my book and ask him to read it. If he takes it on board, sets up the Barefoot Date Nights, and starts aggressively paying down his debts, you’ll know your financial values are aligned.

 But what if he doesn’t do the work? Well, he’s shown you what he values, and you can both move on and find people who are your types.

Scott.

Should We Forgive Our Prodigal Son?

Hi Scott,
 
My husband and I loaned our son and his partner, who have two small children, $30,000 as a deposit on a house. At the time we explained to them that we were not well off, that we were still paying off our own mortgage, that the money was to help them secure a home, and that they could eventually pay us back using their own house as collateral.  
 
 Well, they squandered it (we still don’t really know what on) and my son is very remorseful, though his partner not so much. So no house and $30,000 gone! My husband and I are now at odds – he says our son has to be accountable and pay it back. I’m feeling awful about it all and just want the old relationship with my son back, so I want to write off the loan as a gift (albeit ill spent) and move on with our life. Hubs says a firm NO. So, should we forgive and forget, or make them scrimp and save to pay it back over countless years?
 
Loving Mum

Hello Loving Mum
 
Oh, I really feel for you.
 
All you were trying to do was help your son, and it’s not only strained your relationship with him but is causing friction in your own marriage … and to top it off it’s cost you thirty grand!
 
So what do I think?
 
I think you should sit down with your husband and let him know that you agree it’s time you put yourselves first. After all, this is clearly eating you both up inside (a lot more than it is your son, or he’d be paying it off!).
 
I would also suggest to your hubby that the quickest way to get rid of this ugly angry feeling is to forgive the loan and move on – not for your son’s sake, but for yours. After all, you’re still grandparents to his kids, and he’s still your son.
 
But never, ever loan him another cent.

Scott.

For love, not money

Dear Scott,
 
I am a 58-year-old woman. I own an apartment in Sydney with about $1 million in equity and have $200,000 in super, though I have no savings. For the past 20 years I have run a reasonably successful small business. Two years ago I married a rich older Asian guy, eight years my senior. His offer on the table was that he pays for pretty much all my day-to-day expenses, and when he dies I will inherit his monthly (ex-diplomat) pension of US$5,000 per month until the day I die! We live half at his place in Asia (I run the business remotely) and half at mine in Sydney. He does not want to combine any assets, nor move to Australia, and he wants to keep his assets and cash separate as all this will go to his daughter and grandson.
 
Yet now I’m jack of spending half the year in Asia at his house, and I want to move to Sydney, pay off my mortgage, find a lower cost home in rural Australia, and settle. He will not contribute to this move. Should I see a financial accountant or a family lawyer, or both?
 
The Wanderer
 
Hi Wanderer
 
Your husband has an old-school defined benefit pension (which defines the payout: $US5,000 a month, probably increasing with inflation, for the rest of his life … or to his surviving partner). They’re so generous that almost no employers offer them now. Still, most of these plans are very clear: if you are not classified as his de facto when he kicks the bucket, you won’t be entitled to receive his pension.
 
Come to think of it, that would be a very attractive thing to put on a Tinder profile:
 
“89-year-old seeks fun-loving hot 25-year-old. I like long wheelchair pushes along the beach … and when I kick the bucket I can offer you a $5,000 a month pension, indexed to inflation, for the rest of your life.”
 
OH BEHAVE, BAREFOOT!
 
Hey, I’m just pointing out that there’s a lot of hungry young people doing OnlyFans earning a lot less.
 
All jokes aside. You’ve got a million bucks and, in your words, a decent business that affords you a decent living. You’ve got 20 (or so) years to do whatever the hell you want to do. So my advice would be to only stay with him if you love him – don’t do it just for the money.
 
After all, the old bugger might end up outliving you!

Scott.

My Husband Has Been an Addict for 31 Years

Hi Scott,
 
My partner and I, both in our mid-forties, have been Barefooters for years. We live in the outer south-eastern suburbs of Melbourne and have two kids, aged 10 and 13. We should have our mortgage paid off within the next two years, currently have no other debts, and have discussed plans to invest in Vanguard. My partner is focused on eliminating debt and growing our financial future but, sadly, he is not ‘investing’ in his physical health. He’s now heading into his 31st year of smoking and doesn’t want to give it up. I’m hoping you might be able to provide him with the motivation – for financial reasons – to butt out for good!
 
Bella
 
Hey Bella!
 
I’ve had a lot of experience helping addicts, so let me tell you the bad news first:
 
Beating them up about how much money they’re wasting on their drug of choice will not only not work; it will more than likely stress them out and make them use more!
 
To a non-addicted brain, this sounds completely ludicrous, but not to anyone who is in a pit of addiction.
 
This is as true for those who are sending thousands of dollars up in smoke as it is for gambling addicts losing hundreds of thousands of dollars a year.
 
What would I do?
 
Well, it sounds simple: if you treat the addiction the money will sort itself out.
 
And how the hell do you do that after 31 years of smoking?
 
Easy.
 
First, in the Father’s Day cards get your two kids to write about how much they love their dad, but also how afraid they are that he’ll get sick and be lost to them.
 
Second, get your kids to buy him a very special Father’s Day present:
 
Allen Carr’s Easy Way to Quit Smoking Without Willpower
 
(This book has 7,680 reviews on Amazon with a 4.6 star rating and has been around in various forms for 40 years.)
 
Finally, give him the peace and quiet to read the book.  
 
Health is the ultimate form of wealth.
 
Good luck!

Scott.

Trouble on the menu

Dear Scott,
 
I am a single divorcee, recently retired at 70 with about $650,000 in super after selling my inner-city house and relocating to the far north coast of NSW. My son is 37 and absolutely passionate about his chosen career as a chef, at which he is excelling. He used to talk about opening his own restaurant, but this hasn't been mentioned for a while. 
 
My ex-brother-in-law (a real estate agent) is trying to convince me to go into partnership with my son in a restaurant by gifting/loaning him $100,000 out of my super, saying that we will both make a motza. But I am really concerned about this for several reasons: Firstly, I’m pretty sure it would take a lot more than that to open a new restaurant! Secondly, my son and I are in a good place now (after some rocky times) and I don’t want to spoil that with the possible stresses of a business partnership. Lastly, I want to spend time travelling, and I don't feel that I can afford to lose that $100,000 if things were to go pear-shaped.

I trust my son with the money and I know absolutely that he would do his best, but I also know that hospitality is not all roses at any time. Am I being reasonable or simply overcautious?

Cautious mum

Hi Cautious Mum
 
You’re doing me out of a job!
 
Literally, I couldn’t have answered your question any better than you just did.
 
Do not doubt yourself … you are 100% right.
 
The only thing I’d add is to remind your ex-brother-in-law that he’s an EX for a reason – and to butt out of your business!

Scott.

My Wife Found the Lord … But Not a Job

Hi Scott,
 
My short question is this:
 
Is it legal for a partner to refuse to get work? And who can I turn to if they continue to refuse to get work?
 
The longer question:
 
When we got married, my wife gave up her well-paying job for us to start a family. Our plan was for her to give up work, then return to work when the children were in school full time.
 
Fast forward six years, both the kids are in school full time, and I’ve asked her about getting a job. She refuses to get one, but has spent the last four years doing various TAFE courses. Also, while studying she got heavily involved with a church. During this time her commitment to the church was far superior to her commitment to her family, with her often attending church activities and leaving me and the kids at home late into the night.
 
The house is a pigsty and we haven’t had guests over for at least five years. I’m mentally stressed from being the sole breadwinner, as well as consistently looking after the children. If I leave, I’ll potentially lose the house and assets I've paid for (she brought nothing financially to the relationship). And she point blank refuses to participate in any marriage or financial counselling. Where can I turn?
 
Dennis
 
Hi Dennis
 
The short answer is, no it’s obviously not illegal for a partner to refuse to work!
 
I’m not a relationship counsellor, but one thing I can tell you: whatever decision you come to, don’t make it based on money.
 
There is a lot to unpack here … yet I don’t think your wife getting a job will solve your problems.
 
Your real problem is that you’re living in an unhappy marriage where your wife is getting at least some of her needs met by her faith and the church rather than you.
 
So the real question you need to ask yourself is this:
 
Are you willing to try and improve the relationship … or are you too bitter, twisted and hurt?
 
The only person that can answer this question is you. And even if you do decide to try and improve your relationship – perhaps by going to church with her – there’s obviously no guarantees from her side. If you come to the conclusion that the relationship is cooked, that’s your main concern … not the money.

Scott.

My Mother has a Lover

Hi Scott
 
My mother has been sending large amounts of money to a holiday fling for the last 14 years. She has almost lost her home, she’s drawn on her super, and I fear she will be in dire straits soon if this continues. It happened like this: in 2010 she met a young Casanova in Egypt, and a holiday fling quickly became a business partnership. My mother has zero business experience. She’s borrowed against her home to fund some outlandish ideas. She has been back a number of times and has seen where her money has gone – apparently! I’m not sure whether it was the car manufacturing plant or the haute couture fashion house. I wish I was kidding – these are examples of their ‘ventures’. Despite 14 years, hundreds of thousands of dollars and zero return, she’s even more optimistic now. In reality she is a teacher struggling to find a permanent position because she is past retirement age, is burdened with debts she can no longer afford, and has enough super to keep her until Christmas this year. And she will not listen to my concerns! I was hoping this was something I could report to the relevant authorities so they can intervene before she loses everything.
 
Linda
 
Hi Linda
 
That sounds like one hell of an expensive shag!
 
Still, you can’t call the cops. From the sounds of it, he’s not doing anything illegal (immoral perhaps, but not illegal). And you’ve tried talking sense to her, but clearly after 14 years that hasn’t worked.
 
So what can you do?
 
Well, you need to protect yourself emotionally and financially.
 
I’d suggest writing a letter to your mum explaining how much you love her and how concerned you are for her financially. Then detail the likely consequences of her actions. Paint her a picture of what her retirement will look like. How will she service her debts when she’s too old to work?
 
Understand her debts will die with her: you won’t inherit them … but that also means you won’t inherit any dough from her either. So double down on your Barefoot plan!

Scott

Nervous Wife

Hi Scott,
 
My husband and I are both in our mid-forties and have a combined income of $210,000. We have paid off our mortgage, and we lease our cars through my husband’s work as part of a salary sacrifice program. We have no other debt and around $75,000 in savings. We have been paying extra into superannuation, and when he retires from his job as a firefighter he will retire with a lump sum payment that will be more than adequate.
 
But now my husband wants to invest in day trading, and has been doing a trading course to ‘educate’ himself. I’m not very investment savvy and would definitely be the more money cautious out of the two of us. This seems a bit risky to me, but when I say this he tells me that we need to make our money “work for us”. Do you think day trading is a smart way of making our money work, or can you suggest something else that we should consider?
 
Nervous Wife.

Dear Nervous Wife,
 
Ding! Ding! Ding!
 
I’m hearing a fire alarm, and your firefighting, risk-taking hubby is running towards the danger. The only problem is that if he begins day trading it’s your money that he’s going to set on fire.
 
Look, some of the savviest day traders I know have gone broke more than a few times. And these days it’s even harder because you’re trading against AI bots. It’s just not a game you can reliably win.
 
Allow me just one last analogy: you two have reached the top of the mountain. Yet, instead of sitting back and enjoying the view, your husband has pulled on a snowboard and is doing some tricks for some extra kicks. That’s crazy.
 
I’d gently remind him that your money is working for you, via your superannuation. I’d focus on how much you need to contribute to it to live comfortably. Once that is set up, I’d get him busy thinking about all the exciting things he could be doing with his time, rather than risking his money.
 
Enjoy the view, don’t let him screw it up!

Scott.

So My Wife Has a Boyfriend …

Hi Scott,

I was reading your article ‘So My Husband Has a Lady Friend’ from last week, and it struck me that this is exactly my story. Except it’s me, the husband, who has discovered his wife is having ‘catch-ups’ with her ex-boyfriend from before we met. I’m gutted. She is already talking about getting her name off joint accounts and is asking about separate bank accounts. I’m very worried because I run my own business and don’t know how this will affect it, as well as the equity we’ve built up in our home (we have put most of the retained profits from the business into the mortgage). Is there any advice you can give dads out there, as this doesn’t only happen to women – it can happen to hardworking, loving, supportive blokes too.
 
Terry
 
Hi Terry
 
Thank you so much for reaching out to me – I can’t imagine how tough this would be for you.
 
So let me be blunt:
 
Whether you work it out with your wife or not, the next year or two is going to suck.
 
You’re going to be put through the wringer emotionally, and you’ll need a lot of time to focus on you. Yet, if you’re the chief ballboy and bottle-washer for your business, something’s going to have to give. It could be your mental health, or the health of your business, or … both.
 
So here are three meetings I’d suggest you have:
 
First, sign up to a free Small Business Mentoring Service in your state and get some help setting up procedures and strategies that will allow you to step away from the business when you need to.
 
Second, talk to the NewAccess for Small Business Owners service (1300 945 301). It’s a government-funded program that matches you with a mental health coach (all the coaches are former small business owners, not bureaucrats) who will have really practical ways to help you manage stress and overwhelm.
 
Finally, see a family lawyer – this week –   and explain exactly what’s going on.
 
Good luck.

Scott.

So My Husband Has a Lady Friend …

Hi Scott,
 
My husband has met a new lady friend. We got through Covid without killing each other (or the kids), but this year has been horrible. I’m totally stressed out that in November our home loan repayments will jump $1,200 a month, and so I’ve been telling him we need to buckle down and stop spending. But he has no idea about money. In fact, just to tick me off, a few months ago he joined a very expensive gym which he flat-out refuses to drop. And today I’ve learned that he’s been messaging a woman there that he ‘trains’ with. I’m at boiling point, and I want him to leave. But what do I do then?
 
Hi Natalie,
 
I am not a relationship counsellor.
 
However, I’ve helped enough people in your situation to know one thing for sure:
 
After the initial shock wears off, you’ll know in your gut whether it’s going to work out … or not.
 
And if you decide it’s over, here is what you do next:
 
First, lock everything down.
 
Change all your passwords and PINs, and lock down your phone’s privacy and location tracking settings. Then find as much financial information as you can: you’re looking for copies of your marriage and birth certificates, and any information on shares, property or superannuation.
 
Second, call your bank’s hardship department.
 
Let them know what’s going on (and if there’s been any family violence tell them that too). Ask them to put a freeze on all joint accounts, including credit cards. And, if you have a redraw or a line of credit on your home loan, have them change it so you both have to sign before making transactions. Then, open a new bank account in just your name that he can’t access.
 
Third, see a family lawyer.
 
Actually, you should meet with a family lawyer even if you’re still sitting on the fence with the relationship. Reason being, the first meeting will be free, and you’ll be able to get answers to many of the questions that are swirling around in your head as you lie in bed at night.
 
Finally, whatever happens, make sure you reach out for support – it sounds like the next 12 months could be rough, and you don’t need to do it on your own.

Scott.

Help! My Elderly Dad Is About to Lose His Home!

Hi Scott,
 
Some years ago my dad was approached by my sister and her ex-husband Larry (they were divorced) to go guarantor for a business loan. Larry promised he would repay the loan in three months, and my sister said that if anything happened she’d be there to help.
 
At the time, Larry hired a lawyer to represent my dad and also hired a translator on his behalf. And my dad signed. But (despite the lawyer and translator) I don’t think he understood the full impact of his decision, as there was nothing to his benefit.
 
Fast forward to today and Larry has not been able to repay the loan. Even worse, he has defaulted on the original loan multiple times. Each time, the borrowed amount was increased to cover the principal and interest on the previous loan. Now my dad, who is in his 80s, has received an eviction notice from the Sheriff demanding him to move out by the end of the week.
 
My dad migrated to Australia as a younger man, and he and my mum worked their arses off over many years to pay off their home. My mum postponed her cancer treatment when they bought this house in order to keep working, leading her cancer to advance until it was too late. She passed away more than a decade ago. This house is Dad’s heart and pride, and I can’t bear to see him lose it all.
 
Please, Barefoot, will you save us from this mess?
 
Bill

Bill,
 
This is very, very serious.
 
(And kind of weird, given your dad backed a bloke who’d already divorced his daughter!?).
 
If your father has been given an eviction notice, it’s critical that you deal with this immediately – which is why I called my personal lawyer, Dr Brett Davies, and briefed him on your situation.
 
Brett’s view is that the guarantee your father gave is potentially unenforceable.
 
In other words, if your dad was conned into it by Larry (or the lawyer), then he shouldn’t lose his house.
 
(Someone should lose their home … but it shouldn’t be your dad.)
 
So, ask some hard questions, like:
 
Who was the lawyer Larry arranged, and was he independent?
 
Who paid the lawyer’s bill? (If he was acting for your dad, he is duty-bound to provide a copy of the file. Get that file.)
 
Who was present when the ‘guarantee’ was being explained?
 
Was there pressure put on your dad?
 
Was the guarantee valid? (As you correctly state, your dad got “nothing to his benefit” by signing a guarantee. Usually a bank would also require a sign-off by an accountant or financial planner, as well as a lawyer. Did he get that?)
 
So, tomorrow, call Mortgage Stress Victoria on 1800 572 292 and speak to a lawyer.
 
And never invite Larry over to dinner again.

Scott

A Question For Missus Barefoot

Hi Scott (and Liz),
 
Since 2017, I’ve followed Barefoot to a ‘T’ and managed to purchase a home at the ripe old age of 25. And then in walked the man of my dreams and – BOOM! – love struck! So should I sell my house, or should we borrow on the equity to make our family home dreams come true? I’d do anything for him but I have this little Barefoot voice in the back of my head: safety, safety, safety! Everyone I speak to says, “Never sell”, or “It’s our biggest regret!” I know Liz sold her home to buy the family farm, but does she regret it?

Tina

Hi Tina,
 
First a disclaimer: my wife is a television producer, not a financial adviser (and, even though she’s married to the Barefoot Investor, she cares as much about money as I do about reality television).
 
Still, I dutifully asked her whether she regretted selling her (tiny) studio apartment.
 
Her response: “No, not really.”
 
I’ve often thought it would be nice to still own that tiny little dogbox (with an oven her brother found on the side of the road). Not because it was a good investment, but because it was such a huge achievement … and a great lesson for our kids, especially our daughter.
 
Yet, at the time, we couldn’t comfortably afford to keep both. We were starting a family, and the wisest financial decision was not to take on additional debt and financial stress.
 
We sat down on a Barefoot Date Night, ran the sums, and made an emotional but sensible decision together. That’s the story we’ll tell our kids when they’re older.
 
So that’s the first thing to discuss after you order wine at your next Date Night!

Scott

Help! A Duffer Got Me Up the Duff

Hi Scott,
 
My partner and I have just found out we are pregnant. We have only been together six months and had our first financial Date Night scheduled for the weekend following the news. It has definitely not been ideal! While I don’t have much in savings, I do have an apartment and a car. He has neither assets nor much in savings: a total of $7,000 in his account and last night he told me he wants to buy himself a bike worth $1,300! I am freaking out about combining my assets with someone who is financially irresponsible, particularly while I am pregnant and then on maternity leave. I know you advocate sharing bank accounts, but are there instances when they should be kept separate?

Narelle
 
Hi Narelle,
 
Congratulations on your news!
 
Now, I don’t know anyone who’s ever been fully prepared for their first child. It’s a shemozzle from the get-go (and then you have another one).
 
You sound like you’re a few financial bases further on from your partner, which is a good thing, but don’t write him off yet.
 
My advice?
 
Do the Barefoot Date Nights, starting next week.
 
The first Date Night gets you to set up a bank account. Here’s where you have your first of many honest conversations. Let him know that you’re not going to share a bank account with him right now, because you need to protect yourself and your baby financially. 
 
Then explain that the way to prove he’s committed is to follow the Barefoot Steps. They’ll not only keep you on the same page, they’ll guide your new little family to financial safety.

Scott.

My Husband Won’t Let me Stop Working, Even Though We’re Worth $7 Million

Dear Scott,
 
My husband is in his 60s and happily retired. I am in my mid-50s and still working. We are childless. We have nearly $7 million in assets (including a paid-off house worth about $1.5 million), our dividends are about $500,000 a year gross, and I want out. He is concerned that we’ll run out of money if I stop working. I just don’t know how to sit down and work out when ‘enough is enough’? How do I get my husband to see my point of view?

Christina

Hi Christina,
 
Your question reminds me of a legendary story by John Bogle:
 
“At a party given by a billionaire, author Kurt Vonnegut informs his pal, Joseph Heller, that their host, a hedge fund manager, had made more money in a single day than Heller had earned from his wildly popular novel Catch-22 over its whole history. Heller responds: “Yes, but I have something he will never have – ENOUGH”.’
 
The same could be said for your husband. You could stop working today! With no debts, and $500,000 passive income a year, you have more than ENOUGH.
 
It sounds like you need a Barefoot Date Night. And if he still doesn’t listen to your concerns, you could gently tell him you could live off $250,000 a year … which is what you’d get if you divorced him. Not that you ever would, of course.

Scott.

Barefoot Fight Night

Hi Scott,
 
During lockdown my hubby started a small hobby business to ‘keep him busy’. It has now taken over, and not in a good way. He runs it with its own account, separate from our family. I didn’t mind this arrangement as, initially, he was saving for a motorbike. Then I discovered he’s been gambling the profits away into crypto. A massive argument ensued. He says he’s ‘investing for the future’ and it’s ‘his’ money. I say he’s misinformed. What say you?
 
Wendy

Hi Wendy,
 
I see crypto as being in the same category as betting on the nags, breeding gerbils or buying Pokémon cards. So tell him, “mate if that’s your idea of fun, well, pikachu to you!”
 
Just gently suggest he only set aside a small amount of money for his fantasy coin fetish … and then get him thinking about directing the bulk of his profits towards something more meaningful.
 
Like what?
 
Well, I’d go on a Barefoot Date Night and ask him the following question:
 
“What do you LOVE to spend money on?”
 
He might say ‘travel’.
 
Then you say, “Okay, what’s one experience you’ve always wanted to have travelling?” It might be a cooking class in Italy. It might be the Grand Prix in Monte Carlo.
 
The key is to get him excited about saving up for a goal, and not defensive (oh, and also to make it feel like it was his idea in the first place).

Scott.

My Wife Has No Idea What I’ve Done …

Hi Scott

I write this with a heavy heart. Three days ago I found out that the investments that my wife and I were making were a scam. We have lost $90,000, our entire house deposit savings. The thing is, she doesn’t know yet. Tough pill to swallow.

This wasn’t a run-of-the-mill scam like clicking on a link or allowing a hacker access to our banking details – it was a sophisticated scam involving purchasing of ‘shares’ for multiple ‘companies’. What concerns me most is how do I face the shame when telling her? (Yes, she was on board with it at the time, but it was my idea.) During our Barefoot Date Nights, along with other topics, we discuss the shares we’ve ‘purchased’. This is probably my biggest fear – letting her down.

And where to from here? Four years of savings, all gone. Thanks to Barefoot we’ve been debt free, but I’m in such disbelief that our house deposit has vanished. Your words keep replaying through my head: “put it into a high-interest savings account if you plan on using it in the next five years”. Fool me once ...

Steve

Hi Steve

I’m so sorry this has happened to you.

The only thing you can do is to be honest with her. Admit that you screwed up and then quickly ‘assume the brace position’, as they say on the Qantas safety cards.

Then, once the turbulence has passed, I have a practical suggestion for you:

I want you to go on a Barefoot Date Night and ask yourselves the following questions:

– What can we learn from getting scammed?
– How could this be a good thing?
– What are we grateful for?

Look, this scumbag scammer already took your money. Don’t let him steal your most precious assets: your self-esteem and your time. You two got yourself out of debt and built up a deposit in four years. You’re still standing. You have each other. You’ll build back better. You got this.

Scott.