The Barefoot Investor: The Only Money Guide You'll Ever Need

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Pape tries to get his readers into the position of the secure middle class, which in these days of insecure, short-term contract work and bloated house prices can be a lot more difficult than it looks. How can ordinary Australians buy a house, take an annual holiday, enjoy treats like going out for dinner, save some super for their (increasingly) old age, have a buffer for tough times and invest when they have some leftover cash? When you see all your worldly possessions burn in front of you, it changes your perspective on ‘stuff’ Scott Pape

Some of the principles set out in Barefoot Investor are curiously – almost depression-era – old-fashioned. There’s an emphasis on saving, not living beyond your means and having a manageable mortgage. 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.It is an inspiring book, well-written with a wonderful sense of purpose, and most importantly imparts practical and easy-to-implement advice, which is what we are after in the first place. Neil, a suburban accountant, wrote to me saying: “You’re nothing but a government stooge for promoting their tools. You should be ashamed of yourself. You disgust me.” You could even bribe her with a new pair of shoes if she can find a good high-growth option in a low-cost fund. Because the money she saves getting this right will eventually buy her a whole new wardrobe. Freelance and earn money through others stream, if it's your passion that you're working on or the opportunity arises to let go of your current job in favour of the freelance work, go for it, but at the right time. Working for yourself is favourable to working with a boss, so when your side hustles get to the points that they can match your 9-5, let go of the 9-5 and double down on your hustles. Regardless, there’s a very good chance your super fund has dumped any Russian assets it was holding. Since the start of the crisis, most funds have written off hundreds of millions of dollars of Russian investments. Yet the only way to be really sure is to call your fund and ask them.

Last month they received regulatory approval to launch a super fund. They're still fine tuning things, but later in the year they expect to launch a target date index super fund that will automatically adjust your portfolio all the way through to your 85th birthday. I would recommend this book to everyone. Even if you just take a few of the steps in the book (which I'll outline below), you'll be better off financially. That’s because I worry that all this money-printing will at some stage lead to inflation: if inflation averages just 2.5% per year, then after 15 years a third of your purchasing power is gone. After 30 years, more than half the real value is gone.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. Reason being, in the current climate there’s a very real possibility that you could be underwater for many years. 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. Either way, for far too long the super industry has played to the millionaires in the members’ stand. What these figures do is give the average Aussie a fighting chance at scoring 100 (not out!). Find the super fund with the lowest fees and roll everything over to that. The author recommends Hostplus. The recommendation is also to salary sacrifice into your superannuation so that 15% is going in. If you're in the public service you won't need to do this, but the rationale is that the mandatory 9.5% is often insufficient to build a big enough nest egg for retirement.