Should I Sell My Telstra Shares?

Hi Scott,

I was one of the sheep who bought Telstra in the floats (T1 and T2) when the government thought it would be a good time to sell off taxpayers’ assets. I have been a long-term investor -- I have been holding them for 20 years and they have delivered me bugger all! Now they have come out and cut their dividend, the share price has been shredded even more. So my question is, should I just sell this dog?

Tim

Hi Tim,

The first thing to understand is that the stock market doesn’t give a stuff about what price you bought Telstra for.

Seriously, it’s totally irrelevant.

The only thing that matters is what the price is today.

So you need to ask yourself this question: “Knowing what I know now, would I buy Telstra shares today?”

If you wouldn’t, sell them. If you would, keep them. It’s that simple.

Personally, I’m a Telstra shareholder … and I’ve been buying Telstra shares recently.

Why?

First, because data is about to explode, as the internet goes from your computer to syncing up to your fridge, your washing machine, and every other smart device.

Second, the NBN is proving to be quite the white elephant. While it’s true that Telstra has (sensibly) decided to stop paying out all its profits in dividends to shareholders … this decision is in part to fund the roll out of their 5G mobile network, which could eventually eat the elephant.

Finally, while the dividend has been cut, on the revised numbers it’s still delivering around 6 per cent fully franked. They’re my reasons for continuing to hold the dog-and-bone, anyway. Over to you.

Scott

The Present I Gave Malcolm Turnbull

Last week I sat down one on one with the Prime Minister.

A journo from a rival rag snivelled, “He’ll answer questions from hosts who aren’t wearing shoes” … which, unless Malcolm has been doing vox-pops with homeless people, is a swipe at yours truly. (And for the record, I not only wore shoes, I even donned my wedding suit jacket for the occasion.)

Anyway, I found him to be a good bloke — though maybe that’s because we’ve got a lot in common (like me, in his line of work he tends to upset people, and, like me, he’s even been known to cop it in the neck from his own … err … kitchen cabinet).

The video is on the Barefoot Investor Facebook page … but here are some of the highlights from our chat:

(note the shoes)

Power to the PM

Barefoot: You’ve recently given the energy retailers a slap. I’ve saved $540 on my power bill by going to energymadeeasy.gov.au. Have you run the numbers on The Lodge?

PM: (laughs) Well, I’m pretty sure my son-in-law has …  but I must say your savings are representative of what a lot of people are making by switching.

Financial Education in Schools

Barefoot: Something close to my heart is financial education. The Commonwealth Bank is one of the biggest providers of financial education in schools. Do you think there’s a conflict of interest in having the banks teaching kids about money and then getting them on a database to sign up as customers?

PM: Well, um, I can understand that argument but I think the important thing is getting plenty of people in schools giving that financial education. I mean financial literacy is critically important as you say, so it’s a fair point, Scott.

Barefoot Community Q&A with the PM

Barefoot: Now to some questions from our Barefoot Investor community. Laurie asks, “Why does our government continually reduce the amount we can salary-sacrifice into super?”

PM: I don’t think it’s fair to say we continually reduce. We made some changes in the last budget to make the super system fairer and more flexible, but we don’t have any plans to make any other changes.

Barefoot: Elle asks, “Why is so little being done to help housing affordability? There are so many tax deductions for property investors, like negative gearing, but those of us trying to buy just one home get jack!”

PM: You’ve got to recognise that there’s nothing special about negative gearing … It’s been part of the income tax system since the Income Tax Act was passed in 1911.

(Barefoot aside: Though in 2005 he agreed with you, Elle, labelling it ‘tax avoidance’.)

Barefoot: Finally, I’d like to give you a copy of my bestselling book. I think you’ve got your money sorted, but you might want to give that to ScoMo — it could help him balance the budget.

PM: (laughs) Thanks very much, Scott.

Tread Your Own Path!

Fish’n’Chips and a Smile

Hey Scott,

I would just like to say a massive thank you. I have just had the best holiday in Exmouth (WA) with my kids and it was all paid for from our ‘Smile’ account! While we were treating ourselves to a fancy fish’n’chips dinner, the bloke behind the bar commented on the word ‘Smile’ written on my card. He said it was the second one he had seen in a week. I got to tell him all about the Barefoot way. So thanks again!

Frank

Hey Frank,

That brought a smile to my face!

For readers wondering what the hell Frank is on about, let me explain. In the Barefoot world, you allocate your pay into separate (zero-fee) accounts: 60% for daily stuff (‘Expenses’), 20% to put out financial fires (‘Fire Extinguisher’), 10% for fun (‘Splurge’), and 10% to save up and spend on longer-term things (‘Smile’) … like a good old-fashioned family holiday where you have fish’n’chips with your kids.

Who needs New York or Paris, when you’ve got fish’n’chips with Dad on the beach!

Thank you for reading ... and happy Father’s Day!

Scott

Divorced Dad Wants to Win

Hi Scott,

As a dad, how do I best set up my son financially? He’s four, and I'm planning ahead! I am 42, separated, and renting. I have no debt other than a mortgage. My total assets are $20,000. I am on a low training wage now (midlife change of career) but if I pass I will be earning up to $100,000. So, do you suggest saving or investing for him in his name? Or building up my assets so I can provide a home?

Tim

Hi Tim,

You’re already making the right long-term investment for your son -- by lifting your income to six figures, you’re going to be able to buy yourself long-term financial security. When you have your money sorted, you’re free to focus on the things that really matter. Your son doesn’t care about what car you drive, whether you own or rent your home, or how much money you have in your bank account -- all he really cares about is spending time with you. What more status do you need? You’re the man!

Finally, I’ll tell you this: handing a kid a huge cheque on their 21st birthday sometimes does them more harm than good. If you really want to build your son up, invest the time you have with him right now. Do ‘jobs’ with him, and pay him in gold coins into three jam jars (‘Save’, ‘Spend’, and ‘Give’). That’ll do more to shape his values than almost anything else you could do.

Scott

Chasing Ghosts

Hey Scott,

I am a 32-year-old soon-to-be father (with my beautiful fiancée). In the past, my spending was out of control, causing me to rack up $55,000 in credit card debt and a huge car loan. Now all of that bad debt is history and we will soon be settling the purchase of our first house in the suburbs. But I feel that the ghost of reckless consumerism still lingers in my past. How do I stop this poltergeist from infecting my children and plunging them into a life of bad debt?

Nick

Hi Nick,

You’re not the first bloke who was a little loose when he was younger. And you’re also not the first bloke who has cleaned up his act in the face of the impending Triple Ms (marriage, mortgage and midgets).

My view?

You’ve clawed your way out of a heap of debt and got yourself in a position where you and your fiancée are buying a home for your family. There’s nothing loose about any of that, mate. Besides, the fact that you’re admitting you’re packing your dacks about the awesome responsibility (and privilege!) of providing for your family tells me you’re up to the challenge.

Finally, remember it’s not your money anymore. It’s your family’s. You’re not a single bloke, you’re a team! So do the Date Nights I speak about in my book -- once a month get a babysitter (or grandparents), take your wife out and, over a glass of wine, make joint decisions about your finances. It’s one of the best things you can do for your marriage -- and your stress levels!

Scott

Am I Making a Big Mistake?

Morning Scott,

When reading the section of your book where you talk about starting a business, I remember thinking, “I can’t see that happening to me”. What would make me leave my secure, well-paying job ($100,000 plus)? Well, an opportunity has presented itself. I have been offered a contract by my current company (construction) that is open ended -- if I am happy to do it, they will pass on client work. I figure it will cost about $80,000 to set up the business, and I can earn $150,000 p.a. plus. I am 75% convinced this is the right thing, but my wife is not -- her parents lost everything in a failed retail business. I see this as a potentially life-changing decision for our young family ... but only if I get it right. Any help would be appreciated.

Jim

Hi Jim,

My first question is this: would you be running a genuine business, or is your boss just parlaying some of his risk?

There are rules against ‘sham contracting’ which you should look into -- make sure it’s a genuine opportunity for you … and not your boss!Now, your wife is right to be wary: right now you’re earning $100k plus.And in this case the plus really is a plus. As an employee, your boss shells out for your superannuation, you get four weeks paid holidays, and you get paid time off for sick leave, carer’s leave, long-service leave, and public holidays. And unless you go loco and bring a gun to work and start waving it around, it’s actually quite difficult for your boss to sack you.

Best of all?When you get home, you can kick the footy with your kids and not have to think about work or where your next pay cheque is coming from.

However, if you start your own business, you’ll have, as Jay-Z says, 99 problems: you get to spend your nights doing bookwork, stressing about where you’ll find new, profitable customers, and possibly dealing with employees and paying their entitlements. Oh, and your worried wife will be riding you harder than your current boss.

Bottom line?

If I were in your shoes, to go it alone I’d want to be earning (eventually) AT LEAST double what you’re currently earning as an employee, especially if you’ve got to stump up $80,000 of your own dough, bro!

Scott

What Motivates Me

When I was younger, I was motivated by trying to attract women (largely unsuccessfully, but that’s another story).

That was a long time ago.

These days, I’m a dad, and my motivations have changed. It does have an upside though, I now get to wear the same jumper and chino combo most days (it’s my dad uniform), and I couldn’t care less if women looked at me … and they still don’t!

As a Dad, the thing that really motivates me now is being a hero to my kids.
(My wife? Well, the polish has worn off me, but, like a comfy pair of boots, she keeps me around.)

And let me tell you, it’s hard work impressing my boys.

Take this week, when I proudly announced:

Barefoot: “Today I’m meeting the most important man in the country!”

Four year old: “Donald Trump?”

Barefoot: “No … the Prime Minister of Australia!”

Four year old: “Does he know Jimmy Giggle?” (The ABC Kids host).

Barefoot: “No, I don’t think so … ”

Every DIK (Dad I Know) is motivated at a deep level to be a hero to their kids. (Of course, the only one who really nails it is Jimmy Giggle … he’s got it all sorted out.)

The thing fatherhood has taught me is that deep down your kids aren’t impressed with what car you drive, or the suburb you live in, or the clothes you wear, or even the fancy-pants people you get to meet in your job — all they really care about is spending time with their hero.

Pediatrician Meg Meeker, in her book Strong Fathers, says that if dads could look at themselves through the eyes of their kids — and see just how big and important and powerful they are to them — that’s all the status they’d ever need.

And to celebrate Father’s Day, this week’s questions are dedicated to dads …

I’m a Single Woman Earning $210,000 … How Do I Pay Less Tax?

Hi Scott,

I am a 40-year-old, single, professional woman with no dependants (other than my pets). I have recently increased my income to $210,000 and so have moved into the top tax bracket -- a double-edged sword. I am following your steps, claiming deductions where I can, and saving for a home. The trouble is, most of my income disappears through tax! I have seen you recommend family trusts, splitting income, etc, as ways to reduce tax. What options are available for employees like me who do not have a traditional family?

Jessica

Hi Jessica,

I don’t think earning $210,000 is a double-edged sword … it’s more of a diamond-encrusted poker.

So let me poke you a bit.It’s not true that most of your income disappears through tax. The Australian tax system is based on marginal rates, so you are only paying the top rate of tax of 45 cents in the dollar, excluding Medicare, on each dollar you earn over $180k. The total tax payable on your $210,000 is around $71,932 per year, roughly one-third of your income.

My advice?

Put away your violin, and start swinging from the chandeliers!

You still have $11,503 after-tax income is hitting your bank account each month. and you have no debt and no dependants to share it with. Life is good! However, the truth is that you’re working a very demanding job, so my advice would be to keep your financial affairs simple and build up your financial security.

Here’s what I’d do over the next decade:

First, save up a 20 per cent deposit and buy yourself a nice home. You deserve it, and you can afford it.

Second, add to your employer’s pre-tax super contributions so that you round it up to $25,000 per year.

Third, build up a Mojo account of three months of living expenses.

Fourth, focus on paying down your mortgage as quickly as you can.Fifth, then start building up your investments, inside and outside of super.

Disclaimer: I understand that none of this is as sexy as taking out a whopping big loan, investing in something exotic, and then running a spreadsheet of how much tax you’ll save each year.

But my plan is simple, and it works.

And if you continue earning big bucks, you’ll retire a very wealthy woman, no doubt about it.

Scott

Centrelink Property Mogul

Hi Scott,

I’m a 41-year-old single mum stuck on Centrelink benefits. I cannot work for health reasons, but I love (and have always loved) houses! I am cashflow poor but have a good amount of equity in my home and want to work towards having two or three properties to support myself and provide for my future. I have found a few cheap, positively geared properties I could buy with the equity, but once their value reaches $250,000 my benefits would be cut. Any advice on how to get out of this cycle?

Natalie

Hi Natalie,

I love that you want to get off the welfare cycle … but you’ll be replacing it with a debt cycle.

Now, even though you have equity in your home, and you’re planning on buying cash flow-positive investments, the banks are bound by responsible lending laws to take your income into account.

And if you’re on Centrelink, you don’t have enough income.

My view?

If you’re smart enough to hunt down positively geared investments, then you should be able to turn your talents to doing paid work in some capacity. And working is the only surefire way to escape the welfare cycle. You’ve got this!

Scott

Too Young to Be Barefoot

Scott,

I do not have a job or any real income, besides weekly allowances and lunch money, because I am only 15. I picked up your Barefoot Investor book (thought it might be an interesting read) and am halfway through, but I can’t really relate because I can’t save up or anything like that. Anyway, my question is, how do I make sure that I never have to turn my life around financially and that I am ready for any financial fires that come my way?

Oscar

Hi Oscar,

Truth is, I get a lot of teenagers who write to me with concerns like yours. Often it’s because they’ve grown up in homes where a lack of money was a big problem. Often they learn what not to do from their parents.But you know what, Oscar?

The cool thing is that it doesn’t matter who your parents are, or where you’re from, or what you look like, or whether you’re good at sport, or how popular you are.

All you need to do is build some ‘million dollar habits’: work hard, save, and compound your money.

Money is the great leveller in life. All you have to do is have at least a passing interest in it, early enough. The fact that you’re reading a finance book and not on Snapchat tells me you needn’t worry about any financial fires. You’re going to tread your own path!

Thank-you for reading!

Scott

What’s a Girl with Bad Credit to Do?

Hi Scott,

In my early twenties I had a drug addiction which resulted in me having my car repossessed and taking out huge loans I could never repay. Three years on, I am in a reliable job (earning $55,000 p.a.) and have paid off all my debts. However, as you can imagine, I have terrible credit. I want a chance at buying a house, but what’s a girl with bad credit to do?Please help! 

Tegan

Hi Tegan,

You’ve been able to beat drugs and you’ve been able to repay your debts, so I have no doubt you’ll eventually buy your own home. You’re a fighter!

I’d suggest you grab a copy of your credit report (go to www.checkyourcredit.com.au and following the links to get a free file sent out in the post) and make sure any debt you’ve repaid is marked as ‘settled’. If not, you can ask your creditor to do it for you.

Honestly, though, there’s no way to ‘clean’ your bad credit file, despite what those dodgy ‘credit repair’ companies claim. It’s really a waiting game: overdue accounts and defaults drop off your file after five years, while more serious matters last for seven years.

What’s done is done. Instead, focus on increasing your income and boosting your savings. You’ve got this!

Scott

My Husband Is My Banker

Hi Scott,

I am a 31-year-old stay-at-home mum of two kids. My hubby has a new job (paying $130,000 p.a.) and has arranged for payroll to pay the money into his account each fortnight. Once paid he direct-debits money into my account to pay all bills for the fortnight. He also has a (maxed out) credit card on his online banking which he adds to. He works long hours and deserves some spending money, but I honestly do not know how much he spends each fortnight! Please help me address this issue without ruining us.

Eliza

Hi Eliza,

This is going to sound like a blatant plug (because it is), but the easiest way to address this issue is to get a copy of my book. The book is set around Barefoot Date Nights, where the two of you sort out your finances as a team (with a wine in your hand). The book explains why married couples should share the same account. If he baulks at the idea, well, he has the rest of the dinner to explain why he doesn’t trust you enough to share money with you. Good luck!

Scott

Am I Foolish to Pay off My Home?

I owe about $80,000 on a house worth a bit over $500,000. I am 29, earn $100,000 p.a, have a wife and two kids, and no debts other than the house. A person I respect said it is stupid to have equity sitting in a home and even stupider to own a home outright. He has used the equity in his home to buy real estate and make about $600,000 for ‘doing nothing’, as he puts it. He said at my age it is foolish to pay off my home. I must admit I am tempted, but what do you think?

Tom

Hi Tom,

Dude! Well done! You’ve got yourself in a position that most 59-year-olds would like to be in -- at age 29!

(I’m so impressed with you, Tom, I’ve pulled out three exclamation marks! What the hell, let’s make it five!)

Okay, so now let’s deal with your friend.

You need to understand that they’re talking about their own personal experience … yours may be different.

So let me share with you my personal experience.

The day I paid off my home was the proudest (financial) moment of my life.I don’t want to get too Oprah on you, Tom, but it really was a life-changing moment: life became a lot simpler.

See, whether you admit it or not, debt always makes things more complicated, and more stressful.

But once you’ve got the banker off your back, you have the freedom to call the shots. For me that meant being able to ‘invest’ more time into hanging out with my kids, and less time stressing about ‘stuff’.

And being around my family is what makes me truly happy … that’s what makes me feel rich.

My advice?

If you can wipe out your mortgage in the next few years, you’ll then have the ability to redirect your repayments into building up your long-term nest egg, via pre-tax super contributions. It’s simple. It’s tax effective. And if you stick at it over your working life, you’ll end up seriously wealthy.

Scott

Are we heading for a stock market crash?

Well, less than a year ago, the leader of the free world had this to say about the market:

“We are in a big, fat, ugly bubble. And we better be awfully careful.”At the time, the Dow Jones was trading at 18,000 points.

Recently the Dow broke through 22,000, but this time Trump tweeted triumphantly:

“Stock Market at an all-time high. That doesn’t just happen!”

Thought bubble?  Well, we all know the Tweeter-in-Chief has four of those before breakfast. (And if you’re trying to make sense of any of this, you haven’t been paying attention.)  Whether Donald likes it or not, the share market has a nasty habit of crashing (on average) every 10 years or so:1987 was the Black Monday crash.

1997 was the start of the Asian Financial Crisis.

2007 was the start of the Global Financial Crisis.

2017 is  … well, let’s not get carried away, because, just like the Trump presidency, there’s no logic to any of this.

(Case in point: the ‘tech-wreck’ happened around 2000, which didn’t fit the 10-year pattern.)

Again, to be clear, I’m not saying the share market is going to crash this year.

However, I am growing more cautious, and taking my cues from another US billionaire …Warren Buffett’s Berkshire Hathaway currently has $100 billion in cash in its war-chest. That’s the most they’ve ever had. As a percentage of Berkshire’s assets, it’s actually more than the prescient pile Buffett went into the GFC with, when he made good on his motto: “Be greedy when other people are fearful.”Tweet! Tweet!

Tread Your Own Path!

How to Save 98% of Your Income

Hi Scott,

My mum and I always read your column, and it is one of few times we stop arguing and have great discussions. I am in Year 11 and interested in sports journalism and management. I have worked at KFC for 18 months and saved 98% of my pay, just over $3,000. Thinking ahead to next year when I get my licence, I will not be able to buy much of a car so I was hoping to invest some of my savings. Would be grateful for your advice. Oh yes, and I turn 17 soon, so your book would be a wonderful gift, don’t you think! 

Mark

Hey Mark,

First of all, congratulations on being a saver; it’s the number one habit of financially successful people.

However, the ‘11 secret herbs and spices’ on how you’re able to save 98% of your pay packet is … it’s your mother who’s picking up the tab. Finger lick’n good!

So what should you do?

First, put $500 into a Mojo account, so you can stand on your own two drumsticks.

Second, if you’re focusing on long-term investing, think superannuation. Just make sure you’re not getting screwed with fees on your super, and think about opting out of the expensive (and automatic) life insurance while you’re young and still living at home.

Third, start researching what wheels you can buy for around $7,000 (like, say, an early noughties Subaru Forester … rugged, urban, yet understated), and then apply your hard work and savings ability until you get it.

Oh, and if you’re saving 98% of your income, buy your own bloody book … better yet, buy one for your lovely mum!

Scott

Should I Dob in My Brother to the Cops?

Dear Scott,

For the last year or so, my younger brother has been doing some online share trading. Long story short, he has lost it all -- hundreds of thousands of dollars. In the process he has nicked money from some of my family members, which has wiped out their savings. He even took a loan out in the name of a family member without them knowing! Given he is family, is it better to keep this amongst ourselves or to involve outside parties?

Hamish

Hi Hamish!

‘Nicking money’ is like $20 from your mum’s purse. You’re talking about wiping out their life savings!

That’s not nicking, that’s fraud. And the fact that your mother used to change his nappy doesn’t change the fact that he’s committed a crime.

It sounds like he’s an addicted gambler, yet rather than sitting in front of a pokie screen he sits in front of a trading screen. It’s the same thing (and has basically the same odds).

What would I do if I were in your shoes?

Well, I’d tell your brother that he needs to do three things: first, he needs to get legal advice (and so should your family, even if no charges are ever laid. It will bring home the gravity of what he’s done). Second, he should get professional help for his addiction. Third, when he’s sorted out, he needs to start repaying the family debts by getting a job and earning some real income.

If he doesn’t do these things, I’d consider handing the matter over to the authorities.

Good luck.

Scott

Airbnb Trap

Hi Barefoot,

I have had a friend of my brother’s flatting with me for the past seven months, for which I have been charging him $150 a week cash. Now he has moved on, I am thinking of renting out his room on Airbnb. Question: would I need to declare that money on my tax return?

Lisa

Hi Lisa,

Yes, you would certainly have to declare it.

Unlike with your mate’s brother, who presumably paid you in cash, Airbnb is all electronic payments.

And therefore the ATO will be able to track the income that comes electronically to you from Airbnb, and they’ll send you a ‘please explain’ letter in the mail.

Given the ATO has the computing power to check these things, it’s also a fair bet they have the ability to send you another letter if you sell your home without factoring in any potential capital gains tax (CGT) ramifications. Talk to your accountant.

Scott

What Would ‘Rich Dad Poor Dad’ Do?

Hi Scott

My husband and I (in our late 30s, two kids) both run our own small businesses. We work part time and are not earning steady money, about $60,000 combined per year. Our incomes never meet our expenses -- NEVER -- and now we have stopped paying our mortgage because we are so tired of ‘the game’, as I call it. My question is this: is it really worth all the effort to own your own home? ‘Rich Dad Poor Dad’ author Robert Kiyosaki calls a home your biggest liability -- not an asset! Do you agree with him?

Katie

Hi Katie,

Please insert your thumb into your mouth and begin sucking it while I pat your head and gently whisper: “Being a grown-up totally sucks, doesn’t it?”

The ‘game’ you say you’ve opted out of is called ‘being an adult and facing up to your responsibilities’. You made the decision to buy a house and take out the mortgage … so you either sell your home and rent, or you continue honouring your commitment.

It sounds like you’re not earning enough money in either of the business (presumably because you’re both only working part time?). If they aren’t making you enough money, and you see little prospect of improvement, by all means get out of that game. Either way, my advice is simple but brutal: one or both of you need to get a job so you can put food on the table for your kids, and avoid losing your home.

Now to your actual question: Is it really worth all the effort to own your own home?

Well, I agree that maintaining a home is expensive, and at times it can be a huge drain on your cash. But I still think it’s worth it.

Yes, creating your own castle involves sacrifice, hard work and a commitment to providing stability for your family. Yet that’s what being a parent is all about, right?

Finally, what would ‘Rich Dad’ do? I have no idea, though I do know he filed for bankruptcy in 2012.

Scott

How to Make $500 Without Even Trying

Recently my editor emailed me a request:

Editor: “Can you give us your top tips for saving on power bills?”

Barefoot: “Okay. How about ‘turn off your bloody lights!’.”

Editor: “Errr … do you have anything else?”

Barefoot: … (No reply)

Truth is, I don’t do money-saving tips:

“If Jenny uses her Hills Hoist instead of her clothes dryer, she could save $384 a year on her power bill!”

Seriously? Jenny didn’t twig that the giant golden ball in the sky could dry her clothes … for free?

Yet I get it, power prices are insane. This week we learned that Australians are paying the highest power costs in the world … twice as much as the Yanks! (Hang on, aren’t we basically a giant coal pit?)

And a report by the Australian Energy Market Commission found that almost half of households haven’t switched their plan or retailer in the past five years … a ‘lazy tax’ that costs on average an extra $507 a year on power and $285 on gas.

So this week I decided I’d buck the trend.

I typed ‘cheap power’ into Google and started dutifully scrolling through the 136,000,000 results it served up.

The top pages were power comparison sites, and they reminded me of walking through a market in Bali:

“Hey Mister! You want free power?”*

“$2 gas for you!”*

(*Just sign up for a horribly confusing bait-and-switch plan that will see you rolling over and being charged an average $278 more for power the year after your deal expires.)

Thankfully, I came across a government website that makes it really simple:

https://www.energymadeeasy.gov.au

It may not be sexy, but with a copy of my last power bill, and a few clicks, I saved $540 a year. (And then I put a note in my calendar to remind myself to go back to the site next year.)

Power to you!

Tread Your Own Path!

I’m a Homeowner!

Hi Scott,

I do not have a question for you, I just wanted to say thank you. After three years of planning, last year I told my husband I wanted a divorce. There was a high level of domestic abuse in the relationship. The past 12 months have taught me who I can and cannot depend on, and you and your fantastic book have supported me through this time. Today I collected the keys to my new property -- I’m a homeowner! I would not have got here without your help.

Thank you xxx

Lisa

Hi Lisa,

Well done!

Your question (like the one previous) shows why it’s critical for women to understand, and take control of, their financial situation. I’ve met far too many women who stay in unhealthy relationships because they’re fearful they won’t survive financially on their own. You’ve proven that’s not the case. You’ve got this!

Scott