Indigenous Woman, Hear Me Roar!

Hi Scott,

I am a young professional Aboriginal woman from Cape York. In the past I made some foolish investments, but a few years ago I picked up your book. I loved it, though I struggled to get my hubby to read it. So I played him your audio-book in the car. He was so excited, given how easy it is to follow. 

Long story short — we are now on our way to financial freedom! We no longer have credit cards or a car loan, we have refinanced our mortgage, and our renters are paying our mortgage off for us. We also have a joint account and have started our little guy on the jam jars. I would love you to do a ‘Barefoot Walkabout Tour’ once COVID is out of the way. 

Tania

Hi Tania,

This makes me so happy. Well done!

We have a shameful history of finance companies ripping off Indigenous communities (especially when it comes to funeral insurance). One not-for-profit group that is making a huge difference in this area is MoneyMob Talkabout, who employ Aboriginal elders to teach financial education in remote communities. Check them out at moneymob.org.au.

The Horses

Dear Scott,

My mother-in-law took out funeral insurance way back in 2004. Since then she has paid approximately $29,000 ($72 per fortnight), but if she were to die the payout would be $17,700. I cannot find a legal way to get them to stop taking more of her money. They will stop when she is 90, but sadly she is 70 and has Parkinson’s. Any ideas?

Sarah

Hi Sarah,

You know what I dislike more than those mindless morning television shows?

The ads that pay for them.

A big infomercial flogger is funeral insurance, and they really press on your emotions to ‘not be a burden to your family’. The Royal Commission showed that the companies that sell this type of insurance are the WORST.

Let me count the ways:

First, you often end up paying more in premiums than the value of the cover.

Second, the premiums often rise as you get older, when you can least afford them.

Third, if you stop paying, in most cases, you won’t get your money back.

Fourth, if your mother-in-law had invested $72 a fortnight into a low-cost index fund for the last 16 years, she’d have $63,000 by now. That could afford a helluva funeral (she could even have Daryl Braithwaite tow her coffin out on a horse while singing The Horses).

So what can she do?

Well, these products are often sold by slick salespeople with predatory practices. If that happened to her, she may be entitled to a resolution.

You’re thinking “but my mother-in-law is a pensioner with Parkinson’s, she won’t stand a chance”. And that’s why I want you to put me in contact with her this week, and I’ll take this on personally.

It’s time to whip these nags!

Message in a Bottle

Dear Mr Pape,

I have $10,000 in a bottle buried for my only granddaughter, who is two. I want to buy her a car when she turns 18, but I may not be here by then as I am nearly 68, and I also realise it will not be worth much by then. I would like to know how I could grow it better. 

Loving granny, Mary

Hi Granny,

Money in a bottle?

That reminds me of a guy I know who does a lot of cash jobs. Over the years, he has buried some of this cash in his large yard. Yet one day he went to dig it up and, lo and behold, he’d forgotten where he’d buried it.

So he got what he uncharitably called a ‘yokel’ (local) to find it for him, being careful to describe it as “just an old box of papers”.

“I’ll pay you ten bucks an hour … but no bloody lunch breaks!” he snarled, as he left in the morning in his Merc.

That evening when he returned home, he couldn’t believe his eyes: the yokel had dug up every inch of his expensively landscaped yard. Seriously, there were more craters in it than the moon. And yet, despite his hard work, the poor yokel never did find the box. (Or so he said.) True story!

And the moral of the story is that keeping your money in a bottle is not a good idea. You have 16 years to grow it: I’d suggest thinking about investing it in the share market via a low-cost fund. You may also want to investigate a share investment bond, which allows you to nominate what age your granddaughter can receive the money, and for what purpose. Do that and the only bottle you’ll have to focus on is champagne at your granddaughter’s 18th.

Scott

Dodgy Banks, Dodgy Accounting

Hi Scott (you dirty misandrist haha!),

I am hoping to get your thoughts and advice on these dodgy banks. Years ago, I bought a home for $535,000, with a 5% deposit, initially paying ‘interest only’ on my home loan. (So a ‘loan to value ratio’, or LVR, of 95%.) Cut to today and I have brought the loan amount down to $460,000. So I thought I’d do the Barefoot thing and ask my bank for a better rate than the 3.97% I am currently being slugged with. Yet when I called them to review my loan, they said that because my house price has fallen (I live in Perth) they now consider my LVR to be 120%! I expected them to reduce my rate once my LVR was sub-80% of the original loan and house valuation. My question is: can they move the goalposts like this? It is absolutely shattering!

Steve

Hi Steve,

Better grab two Panadol and a Berocca, Steve. This one’s going to be rough.

Here’s the deal: you bought your joint when the property party was in full swing.

Your bank was feeling liquid and loose! How else can you explain that they let you buy into a new suburb with just a 5% deposit and an interest-only loan? Now it’s the morning after, and the hangover has set in.

In your case the bank has revalued your property down from your original purchase price, $535,000, to around $380,000. And that’s how you get the 120% loan to value ratio — you’re only looking at the ‘loan’ part of the ratio while the bank is looking at the ‘value’ part.

Bottom line?

You’re upside down. 

If you had to sell in a pinch, you’d be out of pocket. As would the bank (and banks hate losing money).

The situation you find yourself in is why I steadfastly recommend people save up a 20% deposit.

You’re in no position to negotiate a better rate, so there’s no hair of the dog for you, my friend.

It’s tough, but you need to ride the porcelain bus, then get cracking on paying down that loan.

Scott

Jimmy the Gold-Digger Responds

Hi Scott,

Having my gold question answered by you just knocked me off my old sneakers, and I was not offended whatsoever! On the contrary, I was overjoyed and showed your reply to my wife. She was overjoyed that you agreed with her about owning shares instead of gold. As a reward for my honesty, she wants to buy me a bar of gold bullion. I will be stroking gold soon and might even take it to bed. Maybe it will help me sleep better than a weighted blanket. Now all are happy, maybe even Karen who criticised you so intensely. Thanks a lot, mate.

Jimmy

Hey Jimmy,

I’m glad to be of service.

And given that I’ve been labelled a misandrist (‘man hater’), and been threatened with the Racial Discrimination Act, I will certainly not even comment about how happy I am that a 71-year-old bloke can go to bed ‘stroking’ a gold bar.

You got this!

Scott

NAB CEO says ‘get out now’

“Get out now.”

That’s the advice the CEO of NAB has given to homeowners who are struggling to make their repayments.

Yes, in his quarterly trading update last week, NAB’s new-ish chief, Ross McEwan, warned:

“There will be some circumstances where people are better off selling out early and taking some equity out of their homes, or keeping some equity, before it disappears.”

While most of the media didn’t give his words much attention, there are two good reasons that you and I should:

First, because in all the years I’ve been doing this column I’ve never heard a bank boss speak so candidly. 

Bank bosses are basically politicians: they get parachuted into the top job, stay there for five years, and rocket out with $40 million. Their main job is to stick to the script: “keep lending”. (And we’ve all witnessed how bad things go when bank bosses go off script, like getting into wealth management.)

So why is NAB’s CEO sticking his neck out?

Well, that brings me to my second point: he obviously doesn’t like what he sees on the horizon.

And know this: McEwan isn’t peering into a cloudy crystal ball. Over the years NAB has invested billions into tracking its customers’ every financial move. In fact, all the banks have incredibly detailed customer analytics that tell them what people are doing — or not doing — with their money, in real time.

Now, according to the banking regulator, APRA, roughly 1 in 10 mortgages in Australia are paused.

Which gets me thinking ...On one side, how long can the banks cop 10% of their customers not paying?

On the other, when will customers who are really struggling finally bite the bullet?

It’s a grim situation.

My hunch is that the banks are betting that the overwhelming majority of their customers will get through this. Yet they also know a small number of their customers won’t, and so they (well at least Ross McEwan) are turning up the heat on them.

My advice?

Please don’t misquote me: I am not saying you should sell your home.

What I am saying is don’t be a frog … if you were in hot water before COVID hit, don’t just sit there bubbling away.

We’re still early on in this crisis, and you have more options than you think. And if you want someone independent (and free!) to walk beside you and carefully lay out your options, call the National Debt Helpline on 1800 007 007 and speak to a financial counsellor (like me) immediately.

The last word goes to McEwan:

“We’ve seen in other crises around the world, when people try to hold on they end up walking away with nothing.”

Don’t say you haven’t been warned.

Tread Your Own Path!

The Big Purchase

Hi Scott,

My little boy’s ‘Save’ jar just got emptied for this little beauty! He paid for it with six months of chores plus selling some old toys on Gumtree — a ‘Money Challenge’ that was in your book The Barefoot Investor for Families. He managed to save $143 in small change, which he counted out to a very patient store manager.

It took a whole day for him and his dad to build, and it sleeps next to his bed with its own special blanket. (We are now slightly worried that he is calculating the cost of other household items to sell for LEGO.) He has blown us away with his tenacity to work for the three jam jars.

Thanks, Scott!

Gail

Hi Gail,

Look at how proud this little guy is!

Can you imagine the swagger of having $143 in his pocket? He’ll never feel that rich again, right?Awesome!While we’re all stuck at home (particularly here in locked-down Victoria), there’s only one thing better than going ‘Marie Kondo’ and turning trash into cash … getting your kids to do it.

Thank-you for reading,

Scott

Kochie Gets Into Bitcoin?

Hi Scott

I have always liked David Kosch … and now he appears to be advertising Bitcoin trading. The ad promises, like other get-rich-quick schemes, instant wealth. My question is, though Bitcoin has recently crashed, is it OK now as the ad is saying? Could you advise me on a $500 investment with Bitcoin in this lousy viral climate?

Gill

Hey Gill,

Two things: firstly, it’s David Koch … and, secondly, the ad you’ve seen is a scam. 

It has absolutely nothing to do with Kochie, or Bitcoin for that matter. I know this because scammers have used my name and image in the past. And right now they’re using Dick Smith in their ads quite a bit too. 

They can afford to plaster these ads right across the internet because (a) they’re obviously not paying talent fees and (b) they’re making out like bandits — literally! — making millions of dollars ripping people off.  

Stick to the Sunrise Cash Cow. 

Scott

Mortgage Wars

Hi Scott, 

After reading ‘Mortgage Month’ in Step 3 of your book, I apprehensively (as I avoid confrontation) called the bank and stuck to your script. Our rate was dropped from 4.03% to 2.74%, no questions asked. I shared this idea with my sister (single mum with mortgage, whose employer just announced her contract will not be renewed). Her rate dropped from 4.1% to 2.94%. A teary (because those bastards charged us so much for so long) and heartfelt thanks from both of us!

Sarah

Hey Sarah,

Sweet as! 

If there’s one thing you can do when you’re stuck at home, it’s to get a better deal on your home loan. The big four banks have all been reducing their basic variable offerings to around 2.7%. They’re really slugging it out on fixed rates -- though I’d stick with a variable rate.  I had a window-shop this week and saw three small lenders were offering deals below 2%. I have never, ever seen rates this low. Time to get the banker off your back!

Scott

I Turned $30,000 into $900,000 — Now What?

Hi Scott,

Many years ago when I was single I invested $30,000 into Apple shares, and this has grown to just over $900,000. I have a young family, and a mortgage, and due to COVID my work has dried up. My big worry is that holding so much of Apple means all my eggs are in one basket. I have a ‘glove puppet’ argument in my head, with one puppet (Warren Buffet) telling me Apple is a great business and to never sell, and the other puppet panicking about the need to diversify. It does not help that Apple shares are rocketing! Should I take my profits and diversify, or am I suffering from FOMO?

Dennis

G’day Dennis,

You think you have FOMO? I bought my first iPhone way back in 2007. If I’d spent the money on Apple shares instead, I’d have $20,000 today.

Here’s a way to think about your question: if I gave you $900,000 right now, would you invest the lot into Apple? Only you can answer that, but I’m guessing your answer might be “probably not”.

Yes, Warren Buffett is a big fan of Apple, saying “it’s probably the best business in the world”.

His company, Berkshire Hathaway, owns 245 million shares in Apple, which makes up a staggering 43% of the Berkshire portfolio. (Fun fact: his Apple shareholding has increased in value by $40 billion since March. Funner fact: Buffett traded his old-school flip phone for an iPhone … last year.) 

However, despite Buffett’s love for Apple, there’s a reason he’s decided to put his wife’s entire estate into a simple index fund — to stop what you’re going through. Life’s too short for imaginary arguments with glove puppets!

Scott

I’m in trouble with Racial Discrimination Act, apparently

Last week’s column on gold generated a lot of, well, gold in my inbox.

Like passive-aggressive Paul:

Hey mate,

You ramble on with such garbage. Who has time to read your anecdotes?

Paul

Obviously not you, Paul!

However, by far the shiniest nugget came from a woman who threatened to dob me in to the feds ...

You’re a Misandrist, Barefoot

Scott,

You really do have a way with you to regularly throw backhander insults at mainly ageing, bald white males. Last week you wrote: “Secondly, you’re 71, mate — where are you getting your income to pay for things from?”

Really! Be careful, young Scott — although not so young anymore — for one day you too will be 71 and some cocky young person will make a mockery of you and the money you have made. Please stop being ageist and misandrist in your writing or you may find yourself in court charged with an offence under 18C(1)(a). 

Your otherwise useful Barefoot Investor book, which I have bought for my teenage grandchildren, is littered with similar offensive, misandrist, ageist statements. They need to be removed. 

Karen 

Hi Karen (well, that’s the name I’m giving you),

Thank you for writing, and for teaching me a new word/insult:

‘Misandrist’.

At first I thought you were calling me a citrus fruit, but then I looked it up in the dictionary and found that it means “a person who dislikes, despises, or is strongly prejudiced against men”.

Boom!

I’ve been called many things, but never a misandrist!

It was news to my wife, who in the past has complained that I “spend far too much time in the shearing shed”.

(Click go the shears! The truth is that white, wealthy, middle-aged men — of which I’m one — screw most things up when it comes to finance. Really, how often do you hear about conwomen?)

Anyway, thankfully my counselling studies (and now practice) have helped me understand, appreciate and connect with people from different backgrounds at a much deeper level.

Even you, Karen.

You’re totally entitled to feel offended, to insult me, to even threaten me with the Racial Discrimination Act.

Heck, I’m publishing your complaint about me to millions of my readers!

However, I stand by the quote you pulled out:

The fact is that a 71-year-old (Jimmy, who described himself as an ‘old, and not a very bright bugger’) was considering investing in gold, which pays no income.

So I asked a very simple question: “Where are you getting your income to pay for things from?”

Questions like this are universal, and it’s my job to ask them.

Tread Your Own Path!

The 12-Year-Old Miner

Scott,

My 12-year-old son wants to become a Bitcoin miner. He wants to purchase a special device for $120 and believes he will earn around $30 a day. We have researched online and based on the power consumption of the unit, he will be lucky to make even $1 a day, as the difficulty level is extremely high. What is your opinion of Bitcoin mining ? Is it worth the effort or expense? I am more worried about the risk of the house burning down or having our computers hacked. 

Bec

Hi Bec,

A dollar a day is maybe on the high side … however if my kid was more interested in Bitcoin than, say, Fortnite, I’d be mining that hobby for everything it’s worth. So double down on antivirus software, keep a fire extinguisher at the ready, and HODL away!

Scott

Crash Landing

Hi Barefoot,

My wife and I live in regional Australia, earning good dough. Our problem is our rental in Brisbane. Our tenants (no problem up to this point) have been stood down due to COVID. He is a pilot and the main income-earner for his family of six. For the past three months we have discounted their rent by 50%. They have just come back requesting a further discount period because he is still on stand-down. Shouldn’t they have their finances sorted so that my wife and I are not subsidising their lifestyle? Or do I show a level of compassion and continue with discounted rent on the basis that some rent is better than zero?

Gary

Hi Gary,

You seem like a good bloke. Many landlords haven’t been as generous as you, judging by a report out this week from Better Renting which found that fewer than 10% of tenants who asked for rental relief received a satisfactory discount. Yet, if I were you, I wouldn’t simply approve their request for a further discount period.

Instead I’d write to them explaining that the fairest thing you can do is give their family time to make some tough financial decisions. Nominate a certain date you’re willing to give them to make that decision, and, importantly, spell out the amount that this will cost your family. At that date they need to come to you with an acceptable offer, or move out.

Scott

I Used My Mojo to Buy a $10,800 Handbag

Hi Scott,

I am a long-time Barefooter and, overall, have made money decisions I think you would be happy with: I have a good job ($110,000 a year), have paid off my bad debts, have started maxing out my super, own my car, pay extra on my mortgage, and have started a share portfolio. Most importantly, I have three months of Mojo — until yesterday, that is, when I walked into a Chanel store and bought a flap bag for $10,800 (my 38th birthday present to myself). I’m giddy with happiness and anxiety all at once. This is a classic bag I will have for life. Chanel raises their prices each year (it cost $6,000 five years ago), so I will never lose money on resale. Yet I also feel sick as it is an enormous amount of money — am I insane?

Elisha

Hi Elisha

So I learned something this week: handbags are an investment.
In fact, research from Knight Frank found that, over the last decade, handbags have more than doubled in value.

Well, not every handbag. (Liz’s is like a lucky dip to another world: you can pull out half-eaten crumbly cruskits, a hairy hairclip, a Wiggles concert ticket from 2018, but never the ringing mobile phone that she’s desperately searching for.)

Elisha, you seem to have worked hard to get your financial life in good shape. And if the bag makes you “giddy with happiness”, well, that sounds like a good purchase to me. You may as well enjoy it!

The only thing I’d say is that you raided the wrong bucket: it should have come from your ‘Smile’ bucket (the savings account for longer term purchases that will put a smile on your dial). 

Having a well-stocked Mojo bucket is not nearly as flashy as a Chanel bag, but it will give you the inner confidence to face any financial fires coming your way.

Scott

Should I Buy Gold?

Uh-oh.

I’ve caused a fight with Jimmy and his missus.

All the poor bloke wants to do is to buy his lovely wife some gold … but it turns out she’s not having a bar of it.

Take it away, Jimmy...

Hi Scott,

I am old (71), and not a very bright bugger. I only know one thing: that my wife drives me up the wall because she regards you as her financial guru. I have tried to convince her that gold is a safe and profitable investment. She does not believe me, as you apparently take the Warren Buffet view that gold is not a good investment. Have you changed your opinion as the price of gold keeps skyrocketing daily?

Jimmy

Awesome question!

Yes, you are right, I’ve previously written that I don’t invest in gold, and since then the price has risen spectacularly.

Yes, the price could go much higher as the boom takes off and speculators chase higher prices.

So to your question: have I changed my opinion?

Not at all.

Let me explain:

The possibilities for investing your money can be overwhelming. There are more fads in finance than there are in fashion, and there’s always something more exciting to invest in: Bitcoin, shares, bonds, infrastructure, private equity — and of course gold and other precious metals.

So, I’ve come up with a simple, time-tested rule for deciding where to invest my money:

I only invest in things that regularly put money back in my pocket.

Chief of which are companies that pay dividends and properties that generate rent.

And that’s the rub: gold doesn’t generate any income. Which means that the only way you can make money is by hoping the price goes up, and then selling.

Yet that’s not how I invest. I actually don’t focus too much on the price of my shares, because I know that share prices can — and often do — move around quite dramatically in the short term.

So what do I focus on?

The dividends that are sent to my bank account four times a year. 

And, over the long term, owning a portfolio of businesses is the best way to not only safeguard your wealth but grow your income faster than prices rise.

A study by Wharton finance Professor Jeremy Siegal found that if you had invested $1 in gold it would be worth (approximately) $3 today. Yet if you’d invested that $1 in the share market in 1802 it would be worth $1,033,487 today.

That’s not to say that gold isn’t having an amazing run: it’s up 80% since its lows of 2015.

How long will it continue?

I have no idea — and no-one else knows either. But I think that’s the wrong question to ask.

Here are three better questions for you and your wife to ask yourselves:

Firstly, are you buying gold because you’ve got FOMO from watching it go up each day?

Secondly, you’re 71, mate — where are you getting your income to pay for things from?

And, finally, what would you do if gold went down 30%? Would you start panicking and sell at a loss?

If I watched my shares go down 30% (and I did, a few months ago!) I’d grin and bear it, knowing that my dividends were still rolling in.

Tread Your Own Path!

The Broke Accountant

Hi Scott,

I am a single parent of two kids and, financially, I am hemorrhaging. I have been trying to domino my debts for three years, often paying off too much and leaving myself struggling (then ending up in more debt). I have multiple family debts and multiple payday loans that end up costing me a fortune to repay. I have accessed my super twice in the last five years, and have only $9,000 left in super. But here’s the kicker: I am a qualified CPA accountant — I should know better.

Jane

Hi Jane,

That must have felt good to get off your chest, right?

Well, I’ll let you in on a dirty little secret: I know a couple of financial pros who are broke. I also know a doctor who smokes, and a manic-depressive motivational speaker.

Look, let’s be honest, going to school and learning how to read a balance sheet doesn’t stop you from ordering $50 worth of UberEats instead of cooking a $5 spag bol. Managing your money is about your behaviour and the story you tell about yourself. Which for you currently is, “I’m a fraud, and I’m ashamed of myself, and things won’t get better.”

It sounds like your life is out of control.

And you know what?

As long as you believe it, you’re right. Your life will continue to spin out of control, and you’ll end up bankrupt.

So you need to find a new story. For example, you could say to yourself, “I’m an educated single mum raising two beautiful kids. I’ll do anything for them. No one messes with my family.”

You Got This. 

Scott

Life-Changing Money

Hi Scott,

I am currently listening to a crowd who are selling a trading program to get into ‘call’ and ‘put’ options. I do not understand a thing about the stock market, and do not have a lot of time to sit in front of my screen watching the stock market to earn “life-changing money”. But in this tragic time, where people are dying worldwide, is options trading something I should look into?

Terry

Hi Terry,

No, it’s not.

Scott

Nor Way! My Mother-in-Law is a Thief!

Hi Scott

We have had a bit of a shocker the past few days. My mother-in-law, who was visiting us from Norway, was arrested for shoplifting. We thought it was all a misunderstanding over a jar of manuka honey but, shockingly, she later admitted it was deliberate as she “didn’t feel like she’s worth much”. She also shared that she had incurred a huge debt (AU$1.7 million) on a bad business deal. She is 54 and is super-fit and organised, but she has not worked full time in a while and her main source of income is renting out rooms in her home, plus government handouts.

With my daughter-in-law hat on, I tried to encourage my husband to get her to see a counsellor. And, with my Barefoot hat on, I suggested she could sell an apartment she has that is worth $1 million. (She refuses to downsize from her main home as she is very attached to it.) Most importantly, I suggested she should get a job — any job! — because, aside from the financial upside, it would give her some purpose and a social life. But my husband tells me “she won’t get her government handouts” if she does. ARGH! What would be your 2 cents’ worth on all this?

Lexie

Hi Lexie,

Oh, I would be staying the hell away from this.

It sounds like your mother-in-law needs to sit down with a counsellor to help with her mental health.

If I were in your shoes, I’d encourage her to make an appointment with her GP, or call Beyond Blue (1300 224 636).

They’re qualified to deal with her situation, and they can refer her to a free financial counsellor.

Just understand that if she doesn’t want to get help then there’s nothing you can do. So, after encouraging her to see a professional, that’s exactly what I’d do: stay out of it, not lend her any money, and support your husband. That’s my 2 cents!

Scott

Are You Like Chickens?

Working from home is great.

Until you want to get any work done. Then it’s the worst.

My almost-three-year-old daughter has taken on the role of my annoying interrupting coworker — so much so that we had to put a kiddie rail at the bottom of the stairs to stop her coming up to my office.

But that just made it more fun.

This morning she MacGyver’d over the rail, raced up the stairs, burst through the door, and — now completely out of puff — blurted out: “Are you like chickens?”

Huh? As in for dinner tonight? Or in general? Or wait … are you trying to psyche me out?

She didn’t say, and began rolling around on the floor, staring up at the ceiling.

Good chat.

This, however, was far from the only nonsensical thing that happened this week … let me tell you about a few.

Let’s start off with my Barefoot inbox. Questions flood in from people all over the country, giving me a good insight into what the man on the street in a mask is thinking. 

You’d think that people would be asking about COVID, JobKeeper or JobSeeker. 

You’d be wrong. For the past few months the questions have been dominated by how to buy and trade stocks. And, with gold hitting fresh highs, people are now asking me about how to buy that too.

Next, there’s my day job. As a volunteer financial counsellor, you’d think I’d be run off my feet, with so many people out of work.

You’d be wrong. Last year our agency would get a dozen calls a day from people in financial crisis … yet at the moment the phone barely rings. There’s a certain financial pain-point people need to get to to seek out our services. The government stimulus has largely — though temporarily — taken that away.

The final nonsensical thing I came across this week was when I went to pick up some photos of Mini-MacGyver from the local camera shop.

The owner confessed that last year he’d been thinking about shutting up shop. Things were that tough. And then came the lockdown. You’d think he’d be struggling to stay afloat.

And again … you’d be wrong. Instead, something weird happened. “I’ll be blowed”, said the owner, “but since we came out of the first lockdown the shop has been going absolutely mental … our sales are through the roof! In fact, I don’t think we’ll qualify for JobKeeper this time around because our figures are too good.”

“People are buying cameras in Sicktoria?” I enquired. “To shoot what? The inside of their homes?”

He shrugged his shoulders.

“So I’m thinking I’ll spend a bit on doing the shop up ... I reckon things have turned the corner”, he said, smiling.

Maybe … or perhaps the $42 billion raid on super, combined with the government stimulus, has served as a short-term sugar hit. We may not have found a vaccine, but plenty right now are double-dosing on retail therapy.

Tread Your Own Path!

From the Depths of Despair

Hi Scott,

Not a question. I just want to say THANK YOU!

I know you receive hundreds of messages like this, probably each week if not each day, but I just wanted to share my experience of going Barefoot. At 31, having been married the year prior, I sat in my GP’s office crying my heart out, feeling suffocated by my $27,000 debt, feeling depressed like there was no way out. My GP listened to every word I said (in between sobs) and finally said, “I think we need a longer appointment”, and asked me to come back the next day.

Around that time a friend had suggested I read The Barefoot Investor. I had of course scoffed at the suggestion, but that day I decided I needed something, anything, to help. I read the book cover to cover in a day and felt so empowered that I began to draw my buckets and to have the conversation with my husband.

Two-and-a-half years on, I never did rebook that appointment! My husband and I are completely debt free! We own (outright) two cars, have had a baby, have been on a four-month holiday overseas, have saved $40,000, and are ready to buy our first home. Thank you, Scott. You will never know what your book did for our family.

Nikki

Hi Nikki

You bloody ripper!

In the sea of doom and gloom and depressing news, I’m craving good news stories, and hope — and that’s exactly what your story offers people.

You Got This! 

Scott