I’m at Breaking Point

Hi Scott,

I’m at my breaking point. Three years ago, my husband was seriously ill – you’d think that would be a wake-up call. Since then, I’ve begged him to set up basic insurance and wills. We’re in our mid-40s with two kids. He’s the higher earner but has ZERO life insurance, TPD or income protection. Not even default cover. I’ve helped him get quotes, offered to write wills online myself, but he won’t commit to anything. He hesitates over every sentence. Meanwhile, he’s happily researching stock investments. 

We’ve argued about this countless times. I’m not doing it for me – it’s for our family’s basic protection. It’s like car insurance, just in case. But he treats it like I’m asking him to plan his funeral. I’m fed up and stressed. How do I make him understand this is his responsibility as a father and husband? Or do I just take matters into my own hands?

Jill

Hi Jill,

You’re right to be fed up. You’ve carried this alone for too long.

So here’s what I want you to do:

Make him a coffee. Butter some toast. Then put this under his nose and ask him to read it.

Hey mate,

Your job is to protect your family.

And getting insurance and a will is a huge part of being a protector and provider.

If you die tomorrow, your wife becomes a single mum with no income and two kids to raise alone.

You don’t think it will happen to you, but I see enough grief-stricken widows to know that it does.

Spending a few hours planning for it is the final way of saying ‘I love you’.

In fact, to help you along, next week I'm going to write a column that I want you to read.

Stay tuned.

The Holiday from HELL

I am trying to dig deep and be strong and brave.

My husband has bowel and lung cancer with a poor prognosis. His oncologist encouraged us to take a family holiday for memory-making with our kids (9 and 11) before treatment starts. So we booked $2,300 in accommodation in Melbourne through Airbnb for July 3–7. Twenty-four hours before departure, the surgeon said my husband needed emergency lung surgery – no other dates available.

The surgeon provided a compassionate cancellation letter. The Airbnb host initially supported cancellation but then declined when it went through Airbnb. Airbnb says it’s the host’s decision, the host says it’s Airbnb’s. We got back $300 from $2,300. We’re now facing mounting medical bills, and a future without my husband. Paying for a holiday we can’t take is overwhelming. We paid with our Macquarie Black Card and have lodged a travel insurance claim, but I’m not holding out much hope. Any suggestions for who can help us get our money back?

Christine

Hi Christine,

First, I’m so sorry you’re going through this.

I spoke to Airbnb on your behalf. They’ve decided to give you a full refund.

I hope this helps ease just a little of the stress during such a heartbreaking time.

Wishing you strength and some peace in the days ahead.

Scott

My Son is a Disaster

Hi Scott,

My son is a disaster. Is this just a 'son' thing?

For his 18th birthday, I sacrificed the first car I’d ever owned so he could have freedom and independence. It was a great little car with full service records and a reliable mechanic. Five years later, he called it “a hunk of junk.” I said: “It wasn’t junk when I gave it to you.”

Now he’s over 30, buying his third cheap car, and heavily hinting about my old Mercedes (worth under $10k). He hasn’t asked outright, but the hints are constant. After years of ingratitude and fleeting thanks, there’s no way I’m handing it over. I’ve learned my lesson.

But here’s what hurts: I no longer feel joy in giving. I’m scared of being taken advantage of again. Teach your sons gratitude, Scott, or this pain will be yours too.

Lesley

Hey Lesley,

Is it a son thing?

Nah. It’s a human thing.

Here’s what I’ve learned: people don’t value what they haven’t earned. You gave him your beloved first car, filled with memories and sacrifice. To him, it was just… free. That stings. But it doesn’t mean he’s ungrateful about everything. It just means your giving needs boundaries.

About the Merc? Next time he hints, shut it down kindly but firmly:

“Mate, I’m keeping it. You’ll value your next car more if you buy it yourself.”

Don’t let his hints rob you of your joy in giving to others who appreciate it. The best things in life are earned – and that’s a lesson he still needs to learn.

Scott

Life in the Backseat of My Car

Living in the country, we spend half our lives in the car (the other half is spent waiting for kids to finish sport). So lately I’ve developed a new trick to keep my road rage at bay: I fire up ChatGPT and run ‘car trip trivia’ with the family. It kills time, stops them fighting (for a few minutes), and sometimes even teaches them something useful.

Anyway, here’s your turn. Grab a coffee, sharpen your brain, and take on this Barefoot Money Quiz. Let’s see if you’re smarter than a bored nine-year-old stuck in the back seat.

1. Which of these decisions has been shown to have the biggest long-term financial impact?

a) Choosing the right career.
b) Marrying the right person.

c) Picking the top-performing super fund each year.

2. You’re 25 with $30,000 in super and earn $70,000 a year. Your industry fund charges 1.5% in fees, but you switch to an index fund charging just 0.25%. By retirement, how much extra money could you end up with (assuming 7% returns)?

a) About $130,000 extra.
b) About $480,000 extra.
c) About $620,000 extra.

3. You meant to pay your credit card bill on time, but life got in the way (a.k.a. you forgot). You were three weeks late, but you’ve caught up now. Will this impact your credit report?
a) No, late payments aren’t recorded on your credit report unless they’re over 30 days late.
b) Yes, because being more than 14 days late means it’s added to your credit history.
c)  It might, but only if you were reported as ‘in arrears’ by your bank.

4. You have no debt except your mortgage, and your Mojo is full. Your Fire Extinguisher bucket should go towards:

a) Paying down your mortgage.
b) Increasing your Blow Bucket.
c) Funding a Smile Bucket purchase.

5. When official statistics report that “house prices have doubled over the last 20 years”, do these figures account for the money homeowners spent on renovations and improvements?

a) Yes – they include all renovation and improvement costs.
b) No – they only consider the sale prices, ignoring any renovation expenses.
c) Sometimes – it depends on the type of renovation and the reporting body.

The crazy thing is the average Australian fails this test — how do you measure up?

 Answers below (no peeking!)

Tread Your Own Path!

P.S Here’s the answers:  1b, 2c, 3b, 4a, 5b

Your Advice is TERRIBLE, Barefoot

Scott,

Your advice last week to Olli, the 10-year-old with ADHD wanting to start a footy coaching business, was terrible. Firstly, he is not a trained coach. Secondly, the concept of volunteerism is DESTROYED by someone like Olli doing this type of thing. I’m a 67-year-old basketball coach and have never asked for payment to help players or other coaches. Over the last 20 years, I’ve watched the idea of giving back all but disappear. Volunteering now means, “Yeah, I’ll help – how much will you pay me?” By encouraging Olli down this path, you’re teaching kids the wrong ideas. Coaching should come from experienced or professional coaches. I don’t mind the entrepreneurial angle, but this sets a precedent with real consequences down the track.

Neil

Hey Neil,

You sound like the type of coach who calls timeouts during warm-ups.

Look, I get you’re passionate about volunteering, and good on you for giving back for 20 years. But the only precedent that I see here is a 10-year-old kid with ADHD finding focus and joy.

Besides, what Olli’s really offering is premium babysitting with a footy thrown in. The parents get a break, the little kids get to run around with an older role model who genuinely loves the game, and Olli learns that passion plus effort can equal pocket money.

My book Barefoot Kids is all about this. I teach kids to start their own little businesses because it unleashes a wave of creativity, passion, and work ethic, that you’ll never get by bribing them with pocket money to clean their room.

Finally, having him make the connection between doing what he loves and earning from it – that’s the gold right there, coach! Without it, we end up with kids studying dentistry just for the gold fillings.

P.S. I bet Olli’s sessions are way more fun than yours ever were.

Help, I’m Flying High and Dry!

Hi Scott, 

I just got an email saying I’ve been caught up in the Qantas hack. I checked my points straightaway, and thankfully they’re still there. And I changed my password. But I’m freaking out that my personal details have leaked. I use the same login for heaps of sites (because, let’s be honest, I’m a mum and can’t remember a million passwords). Do I need to change my name and start my life over?! 

Emily

Hey Emily,

You, me, and six million others got hit (we’re all in the same jumbo, I’m afraid).

I checked my Frequent Flyer points and nearly fainted when I saw all them all gone … then I realised my wife had stolen them for her girls’ trip overseas for her 40th later in the year. (True story!)

Now Qantas has said that no passwords, credit card details or passport information was compromised.

Yet you’re still right to worry. 

Your name, email, phone number, date of birth and frequent flyer numbers are now in the hands of crooks. And they can build on these details and use your leaked details to apply for credit in your name, and you wouldn’t even know until debt collectors come knocking.

In the US, people can freeze their credit file, which slams the door on scammers. I’ve long argued we should have the same here. But our credit bureaus, who keep files on all of us, make hundreds of millions selling our data to banks, so they’ve got zero interest in letting us lock it down. (And they’ve got first-class lobbyists making sure Barefoot economy-class blokes like me aren’t heard from the cockpit in Canberra.)

So, for now, change all your passwords (use a password manager – the Apple one is decent), and check your credit report at least once a year (you can get a copy of your credit report free, every three months, by writing to each credit agency – Experian, Equifax and illion).

Oh, and there’s no need to change your name, unless you’re changing it to Alan Joyce, which gets you an automatic upgrade to the pointy end of the plane.

Scott

The Desperate Mumma

Dear Scott,

As I write this my two-year-old is screaming in his cot and I’m in tears because we’re financially ruined by the rental market. We’ve been forced to move five times in six years – because of landlords selling, or moving back in. And each move wipes out our savings. In 2021 we were left homeless at Christmas, staying with friends for six weeks. My husband does food delivery, and I run two businesses from home while caring for our toddler. We work incredibly hard but live week to week.

Now we’re being kicked out again. We’ve been approved for a new place but need a $4,000 bond that we don’t have. We’re looking at a 29% payday loan just to avoid ruining our perfect rental record. Despite budgeting carefully and trying to follow Barefoot principles, we can’t get ahead. Every time we build up our Mojo, another forced move destroys it. Where do we go for help? I’m drowning and can’t see a way out.

Desperate Mumma

Hello,

The rental market in this country is broken – but you sure as hell aren’t.

You’ve survived five forced moves, built two businesses from home while caring for a toddler, and kept a perfect rental record. That’s not drowning. You’re one of the toughest mother-truckers going around!

But here’s the thing – payday lenders are loan sharks. Their loans are not meant to be paid off. They’re designed to trap you in debt until they eat the food off your table.

My advice?

Call the National Debt Helpline on 1800 007 007 and speak to a financial counsellor. It may be that you can apply for a Rentstart Bond Loan, which can cover 100% of your rental bond – interest free.

Know this: you have done nothing wrong. Your story is the ugly underbelly of a policy failure that’s been years in the making, that Canberra doesn’t care about fixing.

Keep fighting for your family – you’re tougher than I’ll ever be.

Scott

The problem with renting

My old man is buying a new car.

“This’ll be my last one … it’ll see me out”, he said.

(He’s been saying that with every car since he traded in his ’76 Hilux 25 years ago.)

“Why not get a Tesla?” I asked.

I told him about the Model Y, which did something that would have that old Henry Ford turning in his grave. It rolled off the factory line last week and drove itself – no humans – 30 minutes to its new owner’s house. 

(And presumably, if you miss a repayment, it’ll get a notification that you’re a deadbeat, turn itself on, open the garage door, and silently creep back to the showroom in the middle of the night.)

Amazing, right?

Wrong.

“Why would I want a bloody electric car?” he fired back.

Clearly Elon’s Ketamine-induced Nazi saluting has left a bad taste with some car buyers. However, my old man’s concerns with EVs were more practical: where he would charge it, how much it’d cost to fix, and what it’d be worth in a few years.

And he’s not alone. While the Government reckons we’ll all be driving EVs soon, last month they made up just 10.3% of car sales (and that’s actually a record high!).

My view?

Cars have always been a terrible investment. EVs just let you feel morally superior while you do it. 

And with China flooding our market with cheap electric cars, prices are only going one way. In China, BYD – the world’s biggest EV maker – recently slashed its local car prices by 34% overnight.

I grew up choosing between a Ford or a Holden (okay, and Toyota and Mazda). I’m convinced that, for my kids, cars will be like shopping for a TV at JB Hi-Fi: lots of weird-sounding Chinese brand names that get better and cheaper every year.

In other words, it’s an electric race to the bottom … with no one at the wheel.

But not for my old man. He’ll be at the servo, filling up with petrol and grabbing a Chiko Roll, while the rest of us are finding an extension cord.

Tread Your Own Path!

What You Can Learn From a 10 Year Old

Hi Scott, 

My name is Olli, I'm 10 years old and I have ADHD so I have lots and lots of energy. That's why I love footy, I get to burn it all off! My mum and I have been reading Barefoot Kids and it got me thinking ... maybe I could teach little Auskickers how to play footy and be their coach? I'm thinking one session would go for about an hour. I'd teach them the skills they want to learn — and maybe a few extras to impress the parents so they'll want to come back. I was thinking $10 a session. But I don't know if I need insurance, and it sounds expensive. What do you reckon? Do you think it's a good idea? Is there anything I haven't thought of yet? Thanks Scott, I hope you can get back to us (me and my mum). 

From Olli (& Carla)

Hi Olli (and Carla),

I don’t like your idea… I absolutely LOVE it.

And no, I’m not just being nice because you’re a kid.

Here’s a little secret: heaps of successful entrepreneurs have ADHD – and just like you, they turn all that energy into action.

You’ve nailed the essentials: you’ve got a real service (coaching), a clear audience (Auskickers), a smart price ($10 sounds spot on), and you’re already thinking about how to keep customers coming back. Honestly? You’ve thought this through better than most adults who write to me.

Now, insurance. If your mum’s there supervising – and you’re doing the dishes without being asked (top-tier business move) – I reckon you’re good to go. Start with a couple of kids you know. If it takes off (which I think it will), you can deal with the boring paperwork later.

Carla, this is parenting gold. Your son has cracked the code: he's turning what he loves into something that helps others and puts money in his pocket

Olli, you’re my rookie entrepreneur of the year.

Scott

I Saved $1,200 With ChatGPT

Hey Scott, 

I just wanted to say thank you: I finally called my health insurer and used that ChatGPT script to ask for a discount. They ended up cutting $1,200 off my premiums over the next two years! 

Mandy

Mandy,

How do I say this gently?

Well … I don't.

I NEVER said you should use AI for private health insurance!

That's like letting a robot do your prostate exam because it watched a YouTube video on squirrel grips.

Sure ChatGPT can help you sound confident on the phone. But can it tell you if that "cheaper" policy covers your dodgy hip? Or whether you’ll be whacked with an out of pocket $10k fee after a late-night kebab goes full jihad on your intestines?

Here's the truth: insurers can legally give up to 12% off your premium – but they often do it by quietly downgrading you to a junk policy with more holes than a hammock.

So by all means use AI to write your script. But when it comes to actually comparing your cover, go to privatehealth.gov.au. Yes, it looks like it was built by a retired TAFE teacher in 2004 — but it’s kickback-free and it works.

Look, I'm not anti-tech. I'm just sick of Silicon Valley tech bros flogging AI like it's Jesus in a hoodie.

Use it wisely. Your backside will thank you. 

Scott

My Husband told me he's Having an Affair ... and I'm eight months pregnant!

Hi Scott,

I’m not sure if this is the right way to reach you – but my husband of 12 years just told me he’s having an affair. I’m eight months pregnant. We also have a two-year-old and a five-year-old. I’m still in shock. But here’s the strange thing: I’m not panicking about money. We’ve followed your steps religiously. We have solid Mojo, index funds, a modest home that we’ve paid 25% off in 18 months. 

So while I’m heartbroken and terrified about what’s ahead, I’m also deeply grateful. Because of you, “how will I survive financially?” isn’t the first question I’m asking. But now I need to start asking the right ones. How do I protect our financial position through separation? Should I slow down mortgage payments to preserve cash flow? What’s the smartest way to divide the assets we’ve worked so hard to build?

Anna

Anna,

I’m so sorry you’re in this situation.

You’re not the first woman this has happened to, but because of your hard work and financial smarts, you have put yourself in a powerful position. And that means you don’t have to stay in a relationship with someone who betrayed your trust.

Now isn’t the time for big financial changes – not until you’ve spoken to a lawyer and have a clear path forward. So, for the next few months, just keep things steady.

Here’s what I do want you to do this week:

First, gather every bit of financial info you can – bank accounts, investments, super, mortgage, house title. Take photos of everything. 

Second, call your bestie -- you need someone in your corner.

Third, book in with a family lawyer. They’ll explain your rights and help you map out what comes next.

And then?

Do what you’ve already been doing brilliantly: be a calm, powerful force for your kids

Because one day -- when they’re old enough to understand -- they’ll know how strong their mum was. 

That she stood tall when life fell apart. That she protected them with everything she had.

And that’s a legacy worth living.

You’ve got this Anna.

Scott

Why I wrestled a bogan in the street (true story)

Let me tell you the last time I made a giant arse of myself in public.

It started, as these things usually do, innocently enough. 

I hadn’t had my morning coffee and was searching for a café when I wandered past a pawn shop, and thought, Why not?

“BEE BAW,” blared the door chime – unnecessarily loud.

Behind the counter sat a bloke in his mid-forties: bleached blonde hair, an NBA 2017 All-Stars tee that looked vacuum-sealed to his body, and a (possibly pawned) Shane Warne-style diamanté earring.

He didn’t look up. Just kept scrolling on his phone.

So I coughed. 

Then I coughed a little harder.

Eventually, he raised his head, locked eyes with me, and let the silence stretch just long enough to make it awkward. Then he said:

“You look like you need some money.”

Without missing a beat, I shot back: “What interest rates do you charge?”

He slowly put down his phone, eyeballing me.

(Blokes with no money don’t ask about the interest rate first up)

“Get out of my shop!” he snarled.

And that’s when the trouble started.

As I walked out, I noticed a poster of his interest rates and charges in the window. And for reasons I still don’t quite understand, I whipped out my phone, and did the most Karen thing I’ve ever done in my life:

I stood on the sidewalk and took a photo of the poster.

And then I heard …

“BEE BAW”

Shane Warne was bowling out the doors with steam coming out of his blingy ears. 

“Put your phone away, this is private property!” he yelled.

And then he made a jelly-rolled lunge for my phone.

Two middle aged men grunting and swearing and making a ruckus in the street. Not my finest moment. 

Yet later on I looked into it, and what I found made me even angrier.

It turns out, pawnshops have been around since the 15th century. Back then, they were known as banks of pity, lending small sums to people doing it tough, in exchange for something small they owned.

They haven’t changed much since.

Here’s how it works:

You give them your Nana’s necklace, they give you cash.

Pay them back (plus enough interest to buy your nana’s first home in 1974), and you get it back.

And if you don’t? 

They flog it in the front window next to a busted NutriBullet, a lawnmower that hasn't started since the Rudd Government, and a copy of Shrek 2 on DVD. Don't think of pawnshops as sleazy Salvos … they’re really loan shark shops.

And make no mistake: in the current cost-of-living crisis, these guys are not offering a lifeline, they’re stealing food off the table from kids.  You see, these loans are structured to roll over again and again, which means some end up charging the equivalent of a staggering 480% interest. And it’s all perfectly legal, because pawnshops are largely exempt from the National Credit Act.

My view?

The government needs to close the loophole and hold these outfits to account. Because the only thing sadder than a dirty old NutriBullet in the window … is knowing someone skipped dinner to keep it there.

Tread Your Own Path!

My Financial Planner is a Robot

Scott,

Thanks for last week’s column on ChatGPT. It inspired me to test it for a personal project: financial planning for the eight years leading up to my retirement. I entered our full financial picture, including major goals like a new car lease and a caravan, and it generated a 36-page plan covering budgeting, investments, and retirement projections. I had it reviewed by a financial advisor (without mentioning it was AI-generated), and they were impressed, with only minor tweaks needed. The research was solid, with references included. It’s exciting to see AI making quality financial advice more accessible.

Aaron

Hey Aaron

Holy moly, did that column open up a can of worms.

Half my readers are convinced AI will somehow talk them into buying a timeshare in Managatang, while the other half are lecturing me about melting polar ice caps every time someone asks ChatGPT what's for dinner.  (Oh, and lots of people admitted they’re already having deep conversations with the AI version of me, which is just so … weird).

Yet Aaron you've cracked the code by using it as a research assistant rather than a replacement. I bet your advisor was quietly impressed that someone finally showed up having done more homework than googling 'how much super do I need?' five minutes before the meeting.

Well played.

Scott

I'm at WAR with My Mum’s Toy Boy

Scott, 

Five years ago, my Mum, aged in her early 70s, went overseas and fell for a much younger man. After a period of long-distance dating, he finally moved here, and they got married. 

Mum is telling me that she's sending $1000 a month back to his family as 'that is the tradition'?!  Now, she tells me that when she goes, everything will go to said hubby. I don't know how much she has in Super and Savings and she's owned her house outright for over 10 years. 

Am I being jealous, greedy and selfish or would I have a legal right as the only (‘flesh and blood’) child to continue the tradition of passing down to family, as I have 2 children, each of whom, will receive an equal share of my funds when I die. 

I have a great relationship with Mum but we've never discussed wills and I've never pried into her accounts and affairs. As for her non-working, much younger husband, we clash, and he just seems to be sitting back almost rubbing his hands with glee. I'm torn as to what I can do. 

Sia

Hi Sia,

I can see why the chicken might be a bit chewy at the family roast.

A much-younger unemployed bloke marries your 70-year-old mum, moves countries, scores a free house, sends money to his family, and lines up to inherit everything. All in the name of "tradition."

It's a tradition alright. Toy boys have been cashing in since Cleopatra hired her pool boy.

Here's the truth: you can't control your mum or force her to change her will. What you can do is write her a heartfelt letter explaining how this affects you as her daughter and your kids as her grandchildren.

But whatever you do, don't go to war with him. He's not stupid—he's landed the only job where being unemployed comes with a house and inheritance.

Sia, there's only one guaranteed way to lose: letting this wreck your relationship with your mum. If it doesn't go your way, refuse to let this stress bleed into your life. Instead, use it as fuel to build wealth for your own kids and model the legacy you wish you'd been part of.

Scott

The AI Revolution Is Under-Hyped?

Sixteen years ago, I walked into Channel Ten and sat behind the desk of something called The 7pm Project.

I had absolutely no idea what I was doing.

Dave Hughes worked this out within minutes and started going wildly off-script just to watch me squirm.

It worked. I’d get rattled and blurt out strange, borderline-incoherent things on live TV (think: finance segment meets mild stroke).

Management eventually realised I needed more than a script — I needed a miracle worker. So they paired me with a producer who was kind, calm, and blessed with the patience of a saint.

That producer didn’t just lift my performance – she changed my life. And I still can’t believe I got so lucky. She’s still quietly keeping the whole show together, only now the cast includes four kids, a farm, and me still winging it after all these years.

Anyway... RIP The Project.

However, if I’m honest, I’m part of the problem. The only traditional TV we watch these days is ABC Kids and Kayo. Everything else? YouTube.

Speaking of which — here are three videos that completely sucked me in:

The AI Revolution Is Under-Hyped

Oh no. All this talk of ‘super intelligence’ is turning me brain dead.

It’s said that calling AI "intelligent" is like calling a microwave a “chef” (though if we’re honest, most people’s office jobs are basically microwaved dinners anyway).

In this TED Talk, Eric Schmidt — the guy who took Google from scrappy startup to global empire — drops some uncomfortable truths about where he thinks all this is heading.

And Schmiddy’s got a habit of saying the quiet part out loud.

Years ago — well before we fully clocked the privacy issue — he was asked about Google’s data collection:

"We don’t need you to type. We already know where you are. We know where you’ve been. We can more or less know what you’re thinking about."

Now, on AI, he says:

"The arrival of this intelligence is the most important thing that’s going to happen in about 500 years, maybe 1,000. We are not prepared — not even close — for what’s coming."

For him, the real danger isn't overhype, it's that we're totally oblivious, scrolling through TikTok while our kids are downstairs microwaving a fork for lunch.

Watch it here

You May Never Eat This Food Again

Apparently, M&M’s and Doritos might soon carry warning labels in Texas:

“Not recommended for human consumption.”

Seriously. Lawmakers there want all ultra-processed foods (UPFs) to come with a health warning.

Dr. Chris van Tulleken thinks it’s overdue, and he’s not your average kale-pushing wellness guru. He’s an Oxford-trained infectious disease expert who advises the UN.

In this mouth-opening interview he explains how Big Tobacco bought food giants like Kraft in the ’80s and used cigarette-style addiction science to rewire how we eat: they engineered “hyper-palatable” foods — perfect sugar, salt, and fat combos that override fullness — and used tricks like “vanishing calories” to keep us eating. They even targeted kids, just like they did with smoking. 

Today, UPFs make up over 50% of our diets (and up to 70% for kids!) and because of that they’ve overtaken tobacco as the leading cause of early death.

After watching this vid you’ll never look at the cereal aisle the same way again.

Watch it here

Why Governments Are Addicted to Debt

If you spend enough time on YouTube, everything eventually loops back to Trump.

Remember all his tariff chest-beating? 

This brilliant explainer from the Financial Times explains the one thing that actually made him backtrack: America’s soaring debt.

What most people missed is that it wasn’t diplomacy or outrage that shut him up … it was the bond market. Yields spiked, Wall Street panicked, and suddenly ... silence.

For decades, cheap borrowing has allowed politicians to dodge making hard decisions. Yet with inflation back and interest rates rising, the bond market’s getting twitchy again. And no politician wants to actually admit that everything’s fine… until it isn’t.

Watch it here

Happy viewing!

Tread Your Own Path!

Teacher Getting Schooled

Teacher Getting Schooled

Hi Scott

A few years ago, my husband and I built up $60,000 in debt from our wedding, dental surgery, and a new car. We’ve brought it down to $57,000, but it still feels like a heavy weight on my shoulders. My husband is relaxed about the repayments. I’m not. I miss travelling, enjoying life, and feeling financially free. On top of that, we have a $428,000 mortgage. 

When I realised how much we owed, I couldn’t sleep. So I did what I do best — I got to work. I now have four jobs. I teach full-time, park cars on weekends, do occasional demonstrator work, and manage a camp during school holidays. My goal is to pay off the $57,000 within 12 months so I can start my dream business. My question is: I’ve been putting my extra income into a Raiz investment account, but after reading about Capital Gains Tax, I’m wondering if it’s the right move.

Robyn (aka Tired Workaholic)

Hi Robyn,

You are a total weapon.

While most people in your situation would be doomscrolling Dogecoin and tossing up OnlyFans – but  you’ve got four jobs. You’re parking cars, running camps, wrangling kids – and you’re still standing!

So here’s my advice:

Forget Raiz. Forget Capital Gains Tax.

You can’t invest your way out of personal debt. It’s like trying to fill a bathtub with a pasta strainer.

Besides, you already have the best “investment account” there is:

Your high-interest personal loan. Pay it off.

Your 12-month goal is bold, and I love it. Go all in. Every spare dollar, every car parked, every demo gig, whack it on the debt until it’s gone!

Oh, and one last thing. If your husband is chilling on the couch while you’re juggling four jobs — you’ve got a bigger problem than compound interest.

So sit him down, look him in the eye, and say: “we got into this together, and we’re going to get out of it together.”  After all, this isn’t just about numbers. It’s about building a life together, and making sure you both show up for it.  

You Got This!

Scott

Why Are You So Gloomy on AI?

Why Are You So Gloomy on AI? 

Hi Scott,

Regarding last week’s column, I absolutely agree that we need to be cautious about the growing influence of AI in society. But I don’t think it’s all doom and gloom for the next generation. In fact, if used wisely, AI could help solve some of the biggest challenges we face, from healthcare and our ageing population, to climate change, education, and even geopolitics. Instead of just focusing on the negatives, maybe it’s also worth asking: In what ways could AI actually make life better for the next generation?

Lacey

Hey Lacey

I agree with you. One day, AI might help cure diseases, fix climate change, and even figure out how to get teenagers to stack the dishwasher properly.

Yet right now it’s mainly being used to flog fast fashion, spread lies, and feed teenagers (and their parents!) a never-ending stream of junk content designed to keep them scrolling instead of living. 

Remember, the same companies that promised social media would “bring us together” have delivered record rates of anxiety, loneliness, and kids who’d rather text than talk.

Last week I said that I don’t believe that AI is inherently evil, rather that it is simply holding up a mirror to what is already happening. However, if we’re not careful, it won’t just mirror society, it’ll magnify our worst bits.

I’m not anti-AI. I’m pro-human. And I think we’ve got a narrow but golden window to raise kids who use tech with intention, not addiction. So yes, I’m hopeful. But I’m also a dad, and I can see that the iPad isn’t a babysitter anymore, increasingly it’s the boss.

Scott

A Simple Way to Repair Your Credit

A Simple Way to Repair Your Credit

Hi there, 

I recently got knocked back for a credit card and found out there’s a black mark on my credit file from a telco bill I thought I’d paid years ago. It’s really stressing me out!  Is it worth going to a credit repair company who can help get it off for a fee?

Renae

Hi Renae,

Don’t you dare go anywhere near these scumbags.

I trust credit repair companies less than I would a labrador guarding a sausage.

Case in point: I once had a client who was knocked back for a loan because of some very old marks on her credit file that hadn’t dropped off for some reason. She went to a credit repair company and they charged her $458 a fortnight (via direct debit) and promised to “clean her credit file”.

And guess what happened next?

Not a hell of a lot.

By the time she made it to my desk , she’d paid the credit repair firm over $6,000 … and there were still bad marks on her credit file, (yet they kept on assuring her they were making “good progress”).

With one phone call and a follow up email I was able to speak to the lender, argue her case, and get her credit file cleared.

Total time? 

15 minutes.

Total cost?

Zero. 

That’s what financial counselors do, and we do this work for free. Call the National Debt Helpline 1 800 007 007.

Scott

This might be the dumbest thing I’ve ever done

This might be the dumbest thing I’ve ever done.

Microsoft — the company actively building AI robots — ran a survey that found nearly half of workers are scared AI will take their job. 

Well, I’m about to show you three ChatGPT prompts that prove them right.

Use them, and you might not need me anymore!

How to Set Up a Barefoot Buckets Plan in 10 Seconds

Let’s say someone earns $3,400 a month, pay $1,300 in rent, $400 on groceries, $170 on bills, and $280 on a car loan.

I typed this into ChatGPT:

I want you to advise me on setting up my Barefoot Investor Buckets. I earn $3,400 a month. My regular expenses are: rent $1,300, groceries $400, bills $170, car loan $280. Can you help me divide my money into:

 Blow (to live)
 Mojo (to sleep at night)
 Grow (to get ahead)

If I’m stuffing it up, give it to me straight, and give me advice on how to fix it. 

Within 10 seconds it gave me a personalised breakdown — and this absolute pearler:

“Once the car loan is gone → funnel the full $680/month into long-term investments or house deposit savings.”

Then it followed up with three top-rated no-fee bank accounts that align with the Barefoot strategy (I checked — all legit). This thing doesn’t just talk in generalities. It gives specific, practical answers.

How to Save $600 a Month on Your Home Loan (in One Phone Call)

A friend told me she was on 6.2% with a three-letter named bank. On a $600,000 loan, that’s over $37,000 a year in interest. Here’s what I had her plug into ChatGPT:

I’ve got a home loan of $600,000 with XXX BANK  at 6.2%.

Can you help me:

See if I’m getting a good deal
Find better options with lower interest rates and provide live links
Write a script I can use to negotiate with my bank

Finally, show me how much I’d save by switching, including your maths workings so I can check it.

It crunched the numbers for my friend, listed a bunch of different lenders offering lower rates, and handed her a negotiation script:

“I’ve been a loyal customer, but I’ve seen you’re offering better rates to new borrowers. Can we talk about matching those?”

Guess what?

She got off the phone with a better rate!

How to Build a $45,000 Nest Egg for Your Grandchild

Forget the piggy bank. Give your grandkids the magic of compound interest.

To get you started, type this prompt into ChatGPT:

Based on the principles in The Barefoot Investor, advise me on setting up a long-term investment account for my grandson. I want to invest $100/month until he’s 18.

Can you help me:

Choose a simple ETF or recommend a platform
Explain how to automate it
Show me what it might grow to at 8% over 18 years

ChatGPT delivered a full plan — investment options, automation instructions, and a final figure: $45,000+.

It even suggested writing a letter to your grandkid explaining the gift. Brilliant.

Use It Like a Tool (But don’t be a tool)

Look, ChatGPT isn’t perfect. It can make mistakes. And it’s absolutely not a financial advisor.

Yet it’s fast. It’s specific. And it’s helpful. Think of it as a clever assistant that works 24/7, doesn’t take lunch breaks, and doesn’t try to sell you crypto.

And once you’ve tried it, you might not need me.

(Just don’t tell my kids.)

Tread Your Own Path!

P.S. Just to be clear: I wouldn’t outsource any major life decisions to a chatbot, and I strongly suggest you don’t either. I'll say it again: do not trust this thing with your life savings. That’s like asking your air fryer to do your tax return. You'll get cooked, and not in a good way!

The Prick Needed to Be Told

Dear Scott,

I just read your response to the daughter whose father was using money to control her mum – and I wanted to say thank you. You called it what it was: coercive control. And you didn’t sugar-coat it. I’ve been there. My second husband never hit me, but he isolated me, controlled our money, and crushed my confidence. It only lasted 20 months, but the damage was deep. Thanks to my son (and your book), I got out and I’m slowly rebuilding. Sue-Ellen may not see it yet. She might even defend him. But you may have planted the first seed. That matters. And you’re right, couples therapy rarely works with abusers. They manipulate the room too. Thanks for saying what needed to be said.

Linda

Hi Linda,

This question struck a nerve with readers, and no wonder. Coercive control is everywhere, especially in older couples where the pattern has been playing out behind closed doors for decades.

It was a tricky one, because I had to speak to the daughter, not the mum directly. But you're right, sometimes the first act of rebellion is simply naming the behaviour out loud. That’s how change begins.

After everything you’ve been through, you now see that coercive control isn’t about being protective or frugal. It’s about fear, power, and keeping someone small. You found your freedom, with the help of your son. Now Sue-Ellen  has the chance to help her mum do the same.

Scott