Mojo. A place for long-term savings in case of a bigger financial rough patch. Should ideally be 3 months of expenses. He's big on people freelancing and giving up massive amounts of their time to try and pull in some extra money and very dismissive of the criticisms that not everybody can or should freelance. I work in healthcare, I can't exactly start running a clinic out of my garage now can I? and why would I want to? Money is awesome and all but honestly, living within your means and having free time to spend with friends and family is more awesome. Not only are their figures much more attainable, they’re based on ABS research on what Aussie retirees actually spend.

Here’s the deal. There are two ways to invest ethically within super: by choosing a dedicated ethical fund, or by selecting an ethical investment option within your existing fund.First, there are people who are using it for the purpose it was intended: maybe they’ve been laid off or have lost hours and they want a cushion for what promises to be a very long winter. My husband and I have been with Christian Super Fund for the past 20 years. Today they sent us a letter saying that they’ve been underperforming and that we should change funds. My husband is 61 and I’m 59. We don’t have much super. Should we be worried about this? Yet I also agree with Superannuation Minister Jane Hume, who says that it’s simply another tool, and if it encourages women to leave a dangerous, abusive relationship then that’s a good thing. Personally, as a strictly low-cost index fund investor, I have very little sympathy for super funds that underperform the benchmarks over the long term. Even so-called ethical funds like Christian Super. Fact is, there are low-cost index funds that will screen out unethical companies. Use them instead. Then donate the extra money you make to causes that you’re passionate about. Look, I'm sure you could do a lot worse than follow Scott's advice, especially if you don't have any clear financial goals and want to feel more in control of your money. A good chunk of what he suggests is common sense, and I have started implementing some of his suggestions. But as someone not even remotely close to buying my own home yet, I won't even get past Step 3 of his 9-step plan for several years yet. So more than half the book is only theoretically useful at this stage of my life.

Look, I'm not great with money. I have managed to save some when I've needed to, but usually I'm the kind of person that wants to spend, spend spend. As I found myself unemployed, borrowing money to pay for rent and food and feeling bad about life, I also found Scott's book. This book motivated me to take control of my finances more so than I ever have before. It showed me the mistakes I've made in the past with money and how to correct them. It taught me how to structure my bank accounts and how to be smart with my income so I'm able to handle financial fires when they happen (like not having a job). It taught me the importance of superannuation, allowed me to weigh up the benefits and negatives of property and introduced me to the world of investing. They’re actually higher than you state: you left off the investment fee (0.116%) and indirect fees (0.09%). Some of the funds that were singled out for charging high admin fees include Verve Super (who market to women), Spaceship Super (who target millennials), Student Super (who need a detention), and the ironically named Cruelty Free Super (well, except for their barbaric admin fees). It is highly advised that you have this account with a different bank to prevent you from spending the money in it on things covered by the Blow accounts. However, you can choose to keep it with the same bank as your Blow accounts – you’ll just need to practice a little more discipline. Yet for the generations of Australians such as myself who were offered credit cards as soon as we left school, who start to snooze as soon as someone mentions superannuation, and who have never really been debt-free, a lot of what Pape espouses seems revolutionary.

Don't not buy a house for fear of a crash, just do it. Buy within your means and make predictions about what costs you're going to have through the life of the mortgage (kids, new car, etc). Don't start with an investment property if you want a family home and don't forget to save while renting, make it work. Jenny, it’s come to my attention that I’m a jerk. I’ve underperformed for so many years that I’m writing to you today to suggest you go on Tinder and find someone who can truly listen, get along with your mother, and meet your needs without being passive aggressive.” Pape avoids complicated Jargon that can often be off putting to new comers and instead lays out a set of simple yet actionable steps that anyone can follow. He argues that with just a few minutes each month and a few small tweaks to the readers lifestyle and money management habits anyone can begin to build long term wealth by following his principles. I strongly encourage any reader to put his steps into place as the immediate effect of these actions will hardly be felt yet the long term benefits will see you living a healthier, wealthier and generally leas stressful lifestyle.

In 2004, Pape wrote a book, The Barefoot Investor: Five Steps to Financial Freedom, which was released in Australia in November of that year. [2] It has since been republished, revised (as recently as 2020) and is now sold throughout the world. [ citation needed] He also appeared as the financial expert on the SBS show The Nest in 2008. Pape was also previously a regular guest on The 7pm Project. Invest for your kids or grandkids, by starting early and adding small amounts regularly, compound interest can give them a great head start in life when they're ready to be financially responsible.

Let’s Chat …

Personally for me there was too much self-help happy motivational jargon throughout the book, and some pretty unhelpful advice. I don't have the book in front of me now but recall that he talks about just working more if you need more money. A great help to the thousands of under-employed people across the country, no doubt. The financial advice is basically common sense. There is nothing in it that is particularly groundbreaking or revolutionary. It's essentially reduce debt, save your money and invest in your future. Save a 20% deposit using your fire extinguisher to avoid paying Lender's Mortgage Insurance. If in a serious relationship, live off one income, and allocate the second income purely to saving for the house. Overall, it's an easy to read and fairly sound financial strategy, if a little unnecessarily convoluted in places. He is a pig though so you'll need to get past that.