Prisoner’s Last Chance

Dear Mr Scott Pape,

My name is Peter. I am 59 and I have four years left to serve on a five-year prison term. As a prisoner I do not have access to a phone or the internet, so writing this letter is the only way I can get in contact with you.

I have spent most of my life in institutions, from boys’ homes to jails. I have only got a very low level of education ‒ I think I may have finished Grade 6 (am not sure). I need a lot of help with my reading and writing as well as my spelling. Yet recently I read your book and was able to understand most of it. Now I am hoping you could help me.

I have come into some money (just over six figures) which I want to invest while I am doing time, but I am having problems with my bank, NAB. They will not allow me to do electronic transfers from one bank to another while I am in jail. Yet I am afraid to close the account because if they send me a bank cheque it could go missing (that is not unusual for prisoner property).

I do not have any family or friends outside prison who can help me, either. I would love to invest at least $90,000 for the next four years before I get out of jail. My goal is to have enough money to buy my own home before I die, with no debt and maybe some savings. After all, isn’t that every man’s dream? Please help me and write back.

Peter

Hi Peter,

Good on you for learning about how to manage your money.

Having financial security is one factor that will help you stay on the straight and narrow when you get out (and I’ve donated many copies of my book to prisons across the country for this very reason).

Now, I spoke to NAB on your behalf, and they’ve suggested that you write a letter to NAB’s special service:

NAB Resolve
Reply Paid 2870
Melbourne, Victoria 8060

I’d suggest you transfer your money into a term deposit and time it to mature when you get out, and in the meantime spend the next four years mastering an employable skill.

Good luck!

Scott

Family Feud

Hi Scott,

I am 26 and recently got married (yay!), but my husband and I are not sure how to combine our finances. He owns a house with his brother, and I have a decent inheritance which I would not like to lose if we ended up divorcing (yes, I know it’s a bit early for that!). I thought of leaving the inheritance in the offset account, but if my husband dies I do not want to lose it to my brother-in-law either! How can we make it all work? Do we need a (post) prenup?

Ashley

Hi Ashley,

It sounds a little like you want a Meatloaf marriage: “I would do anything for love, but I won’t do that (share my inheritance).”

The way I see it, there are three things you can do:

First, you can go to a lawyer and draw up a ‘binding financial agreement’, which will set out who gets what if you want out of the marriage like a bat out of hell (another Meatloaf reference … ask your parents). The downside to binding financial agreements is that they can be expensive, and they’re often contested.

Second, a more practical approach could be for both of you to write single wills which state that your parents (or whoever) get your stuff in the event of your death. These wills can be updated as you go through life.

Third, if you want to avoid a lot of financial heartache in the future (and also avoid the costs associated with the first two options), I’d seriously consider talking about your feelings to someone qualified ‒ and that’s not me!

Fact is, you’re still in the honeymoon phase of your marriage (which, in my personal experience, lasts until the first kid pops out) yet you’re already choosing money over marriage.

That doesn’t make you a bad person, and it’s nothing to be ashamed of. It just means you have doubts.

And those doubts won’t go away.

Scott

Introducing … Zuckbucks?

Facebook is set to launch its own crypto-currency next year, the BBC reported this week.

(The article referred to the new currency as ‘GlobalCoin’ … though I much prefer ‘Zuckbucks’.)

So, will this be yet another crazy crypto coin?

Not a chance!

My bet is that ‘Zuckbucks’ will be as boring as your Aunt Betty’s status updates.

See, Facebook is already lame (but incredibly lucrative), so they’re doubling down on something even lamer (and equally lucrative): payments.

And that’s because Facebook’s end game is to become the WeChat of the West.

Hang on … what’s WeChat?

It’s the Chinese version of Facebook, Instagram, Twitter, YouTube, Google. All rolled into one ‘super app’.

However, WeChat’s big dumpling is mobile payments. In China you can order a meal, split the bill with your mates, pay your share, and take a photo of your dish to impress your friends ‒ all on WeChat.

This immersive experience throws off a lot of personal data, and that is what Facebook really wants. Oh, and so does Google. And Apple. And Amazon. And thousands of tech companies that you and I have never heard of (yet).

Now think about your current humble little bank account.

Yes, you’ve got an app on your phone … but it still looks and feels pretty much the same as it did 20 years ago, right?

It’s all still BSBs and account numbers, and plastic cards you carry around with long numbers printed on them.

Well, ‘big tech’ is coming for your wallet … and our banks know they have one almighty battle on their hands.

It really began a few years ago when Apple Pay arrived with the promise of ditching your silly plastic card, and allowing you to make payments with your iPhone (in return for Apple sharing a clip of the transaction).

“Bugger off!” said the big banks.

The only problem was their customers wanted Apple Pay.

And so, one by one, they’ve each folded like a cheap card table: first ANZ, then the CBA (who announced this week they’re spending $5 billion on updating their tech to fend off tech competitors), and this week NAB.

And that leaves Westpac, who are gallantly continuing to produce their own ‘Apple lite’ white trash wearables, which they call ‘Centsitive Objects’.

(Geddit?)

Yet my all-time favourite banking bling is the Bankwest payment ring. No jokes. It’s really a thing (and yours for just $39!)

Here’s how Bankwest describes it:

“Our award-winning payment ring is as easy as tap & go – just grab the things you need, fist-bump the terminal and you’re done.”

(Yes, they really said that.)

This week Morgan Stanley estimated that the rapid take-up of smart wallets (payments on your phone) could cost Aussie banks $22 billion in lost revenue as the tech titans move in.

Fist bump to that!

Tread Your Own Path!

Reminder: I first wrote about this years ago and highlighted the low costs. Today there are better deals on offer. How do I know? Because my readers constantly email me about them! So before you do anything, do a quick google.

The Barefoot Kid

Hi Scott,

I am so proud of our three-year-old! Scarlett saved up her pocket money from doing her ‘jobs’. We took her to our local tip shop and she selected a second-hand bike for $5 (see picture). She’s a Barefoot Kid!

Emilie

Hi Emilie,

That’s awesome! As a fellow parent of a three-year-old, I can attest that there’s something amazing that happens when they work hard, save up and buy their own stuff. I love hearing stories from families who’ve read the book. Now it's time to hit the schools as well.

Thank-you for reading, and sharing.

Scott

Car Crash Classroom

Hi Scott,

I am a 25-year-old teacher and I got a car loan in my second year of uni. I had no idea what interest rates were, or how getting a loan worked, and just signed away on the first deal I got accepted for (which ended up being a fixed rate loan with a 17% interest rate). I have now finished uni and am teaching, earning $63,000 p.a. I want to start saving towards my first house, but I have had the car for four years and still owe $8,000! How do I go about fixing this mess?

Sarah

Hi Sarah,

Honk your horn, because you just got totally rear-ended on that deal.

You signed up to a 17% p.a interest rate, fixed for the term of the loan?

Hopefully the term of the loan is five years, which would mean you’ll be free in 12 months’ time. (Though it’s worth checking your contract to see if you can repay early without penalty.)

Unfortunately, I have no magic wand for you. However, you can be the fairy godmother to your students, by making sure they don’t fall for the same trap you did.

So what I want you to do Sarah is to stand up in front of your class and tell your students just how ‘toot, toot, chugga, chugga-d’ you got when you bought a car.

Actually, don’t do that, they’ll use it against you.

Here’s how old Barefoot would teach it.

(It involves harnessing their hormones ‒ their desire to buy a car, travel, party, and get rich!)

Here goes:I’d channel my inner Oprah and start running between the desks and yelling at the kids:

“You get a car! You get a car! You get a car!”(Sorry … got a bit carried away there. Let’s get serious.)

Okay, students. Eyes front. Shoes off. Barefoot is here.

Step 1: Research a car you’d like to buy

Don’t censor yourself ‒ it can be any car you want (new or second hand).

Write down two things:

The cost of the car, which will involve some online research.

And why you chose this particular dream machine: Is it fast? Cute? Would it make you 10% more attractive?

(The class can then vote on the cars the students have chosen.)

Step 2: Decide how you’re going to pay for it

Let’s say you earn $30,000 a year once you leave school, which gives you $2,100 a month in your hand.

You can get a car loan with super-easy low monthly repayments. Why wouldn’t you?

Or you can save up and buy something for cash (though not as flash).

Step 3: App It Up

Download ‘Money Smart Cars’, a nifty car app from Moneysmart.gov.au which automatically calculates all the ongoing costs of owning a car.

Here’s an example:

Lucy buys an adorable 2016 Suzuki Swift for $13,000 and takes out a car loan at the car yard.

How much will this car cost Lucy over the next five years?

$20,000?

$30,000?

Go to the app and type in the details. After factoring in rego and insurance, interest and running costs (including $50 a week in petrol), the total cost of owning the Suzuki after five years is … a Swift $53,765!

(That’s Oprah money right there)

Scott

Here's One For The Teachers

I looked at my bedside clock: 4:03 am.

It was Monday night (actually, Tuesday morning), and I hadn’t slept a wink.

Earlier in the week I’d launched the Barefoot Money Movement ‒ my free, independent, money school program.

I’d made my case that this country needs a financial revolution, and that it needs to start with our kids.

I pressed ‘Send’ on my column … and waited.

(I made a pact with myself that I wouldn’t check the results for 48 hours … a classic ego defence mechanism.)

Would anyone sign up to pilot my money-education-minus-the-bank-mascots school program?

A few hours later I rolled out of bed and nervously checked the stats on barefootmoneymovement.org.au

It turns out people did sign up.

By the thousands.

Teachers from every nook and cranny of this country have joined the Money Movement to ensure that their students learn the life changing lessons most of us didn’t.

Fair dinkum!

There were teachers from Melbourne. From the Cocos Islands. From America. From the UK. From Uganda. From … Russia?

Anyway, I’m absolutely blown away by the response from teachers.

So everything’s ready to go for my new program, right?

Wrong.

There's just one little problem … I’ve spent the past week talking to passionate, hard-working Aussie teachers. And the one thing I’ve heard over and over again is that it’s incredibly hard to teach kids this core life skill if you’ve never learnt it or lived it yourself.

Teachers have one of society’s most important jobs, yet they don’t get paid what they’re worth.

So, here’s my promise:

Teacher Professional Development

Next year, I’ll deliver some free online professional development for those teachers who join the Barefootmoneymovement.org.au

And I’m taking this Money Movement to the top. I caught up with Education Minister, Dan Tehan during the week ‒ who I have been pitching this idea to for a while ‒ and told him that the seeds of our grassroots movement are starting to sprout. And he’s on side, commenting that “Scott Pape’s campaign to teach young Australians the importance of managing money is highly commendable”.

Finally, a big thank-you to all the teachers and principals who’ve already signed up to the Barefoot Money Movement. And if you know of a teacher who could benefit from this, please do me a personal favour and forward this on to them.

Tread Your Own Path!

Barefoot’s Money Movement

Do you want me to come to your school … and teach your kids about money?

Well, if you’re a teacher, a parent or a principal, this may be the most important column of mine you’ve ever read.

For years I’ve been saying this country needs a financial revolution ... and that it needs to start with our kids.

Kids spend roughly 2,400 days in school, yet not one of them is mandatorily dedicated to learning the practical money skills they’ll be tested on every day of their lives.

Most of us didn’t get taught this stuff either, and instead we learned our lessons the hard way. (And many of us are still learning ... given Australian families are shouldering some of the highest rates of household debt in the world.)

Our kids deserve better.

So let me tell you about my latest project, which I’m kicking off today:

‘Barefoot’s Money Movement’

My motto is: ‘Teach the Kids. Help the Parents. Change the Nation.’

And that’s exactly what I’m setting out to do.

I’ve created a brand-new school money education program for kids of all ages, based on my bestselling books.

It’s totally practical for the kids. It’s ‘plug and play’ for the teachers. And it’s mapped to the curriculum.

Oh, and it’s free, independent (no Dollarmites in sight), and totally not-for-profit.

Now my long-term goal is to roll the program out to every school in Australia. Yet to prove it works ‒ and to make it even better ‒ I’m going to pilot my classes in a small number of primary schools and high schools this year. This is a really big deal for me, and I’m going to work closely with each school I select.  

So if you’re a teacher, I really need your help.

To join the movement, go here:

barefootmoneymovement.org.au

And if you know a passionate teacher, please forward this email to them.

This is a grassroots movement, and I can’t do it without you.

Tread Your Own Path!

You Made Me Cry

You made me cry today. My 90-year-old mum had her purse stolen at the local shopping centre. When I told my seven-year-old, he immediately made her a card, put in all the money from his three jars, and gave it to his grandma. I am so proud of him. Thank you.

Melanie

Melanie,

What a great kid you have!

My biggest fear is that my kids will grow up to become entitled brats.

That’s why the ‘Money Movement’ program I’ve created for primary school kids is all about Jam Jars. The Jam Jars give the kids (and their parents) the behavioural building blocks that will shape the rest of their lives: to be hard workers, smart spenders, savvy savers, and generous givers.

The final lesson of the program has the kids brainstorming ideas of who they can help in their local community, and then donating the money in their class ‘Give’ jar.

A Cambridge University study found that adult money habits start to become fixed by age seven!

It makes sense when you think about it: as the Jesuits say, “Show me the boy at seven, and I’ll show you the man”.

Well done.

Scott

Would You Like a Credit Card With that?

Hi Scott,

My 19-year-old daughter just started a job at David Jones. To my horror, one of her KPIs is to sell the David Jones credit card to customers. In fact staff are incentivised $75 for every customer they sign up. There is a lot of pressure on her to meet this KPI, and we both feel very uncomfortable with this. I would be interested in your thoughts on this practice.

Wendy

Hi Wendy,

Would you like a credit card with that?!

Seems the beancounters at David Jones have worked out there’s potentially more money to be made flogging debt than designer duds:

The David Jones American Express Platinum Card has an interest rate of 20.74% on purchases, and a ‘competitive annual card fee of $295’.

(They seriously think that’s competitive? Who the hell are they competing with? Cash Converters?)

Anyway, this is exactly why I’m starting ‘Barefoot’s Money Movement’

Debt has been sold to us so relentlessly, so forcefully and so underhandedly that we’ve become desensitised to it.

Look, I’m not saying that DJs shouldn’t be allowed to sell debt, or that your daughter is wrong for following orders.

(That being said, if she feels uncomfortable about it, that’s a very, very good sign. Encourage her to trust her gut and her ethics. That’s a proud parent moment right there.)

What I am saying is that I’m sure as hell going to do everything I can to make sure kids coming out of school see the trap before they get upsold into the merry-go-round of misery. And in the next few weeks I’m back to my old school (in Ouyen, Victoria) to blend up some credit cards in the classroom!

True dinks!

Scott

First Home Loan Deposit Scheme

Hi Scott,

After years of saving up for a deposit and getting nowhere (I live in Sydney, and I work in hospo!), I was slightly stoked to hear about the new policy that helps first home buyers get a house with just a 5% deposit. You always say “if it sounds too good to be true, it probably is”. So what’s the catch?

Chris

Hi Chris,

When I turned 18, my teetotaling mother gave me possibly the wisest piece of advice I’ve ever received:“Nothing good happens after midnight.”

Too true, Joan. Too true.And way past midnight (in an election sense), ScoMo burped out the First Home Loan Deposit Scheme.

Here’s ... err … the guts of it:

The Government (read: taxpayer) will ‘help’ singles earning up to $125,000 (and couples earning up to $200,000) to buy a house with a 5% deposit, instead of a 20% deposit, by covering their Lenders Mortgage Insurance (LMI) bill.

On a $400,000 home loan with a 5% deposit, the LMI would cost a young couple $13,406, so it’s a huge saving.

Yet it’s also drunk policy ‒ and it has bipartisan support (Bill was quick to say he’d do it too if elected).

It’s a bit like ScoMo (or Bill) is giving you a sleazy pickup line ‒ one that sets you up for a one-night stand that leaves you with itchies and scratchies.

Look, there’s a reason banks require first home buyers, like you, to save up a 20% deposit. You’re entering into a 30-year contract, and they want to make sure you have staying power.

And if a bank that earns $10 billion a year in profits won’t lend to a first home buyer without them taking out expensive ‘default insurance’ ... why should the taxpayer foot the bill?

My view?

If you buy a home with a 5% deposit, you’re setting yourself up for a potential killer hangover … by buying a home you probably can’t afford.

Picture yourself waking up the next morning next to ScoMo (or Bill). He rolls over and whispers, “Was it as good for you as it was for me, baby?”

Don’t do it.

Scott

The School Chaplain

Hi Scott,

I know you have already had lots of positive support, but I couldn’t agree more with the priest who sent you encouraging words last week. I am a School Chaplain. The other day, a few 16-year-old students were asking me about jobs they could make a lot of money from. I told them it was probably more important they learnt what to do with the money they did earn, and then recommended your book. I was amazed when one of them turned up the next day with the book. Coincidentally the department’s network went down that day and this boy was sitting in his IT class with a teacher who couldn’t really teach IT without a network connection. Out comes the Barefoot Investor book, and the young teacher (who loves your work too) starts taking the class through some of the principles. It got me thinking ‒ how do you think it best to bring your Barefoot principles into a classroom?

Glen

Thanks Glen,

I donated a copy of my book to every school library in the country, so I’m glad they’re being read!

As for getting these money principles into schools, I’d really encourage you, and anyone else reading this, to head over to barefootmoneymovement.org.au and apply for our pilot program!

Scott

Bankrupt but They’re Still Chasing Me!

Scott,

I am a 36-year-old single woman, earning $65,000 as an admin officer, and I have recently declared bankruptcy. However, one loan could not be erased, as it is a secured loan, and my car (a Mitsubishi ASX worth $8,000) is attached to it. It is a loan for $17,000 at a high interest rate (29% p.a.), and I still have about six years to pay it off (at $350 a fortnight). I have started using the Barefoot tools from your book (Smile, Splurge and so on), but what can I do with this loan?

Lisa

Hi Lisa,

What a car crash!

You got really bad advice. If you sat down with me at the time you were going bankrupt, I’d have told you to surrender the car to the finance company and then added the shortfall (after they sold the car) onto your bankruptcy. Then I’d have advised you to save up and buy a similar car for cash.

Instead, your repayments are $8,400 a year ... on an $8,000 car!

Look, anyone who charges a 29% interest rate on a car loan is a shark-- they deserve to be battered and dropped in hot oil, and eaten by a tubby bloke at the footy.

So, if I were in your shoes, I’d ring up AFSA (the Australian Financial Security Authority) and explain there was a mistake on your bankruptcy -- you should have surrendered the car. Then explain that you’d like to do it now, and ask how you go about it.

Buckle up!

Scott

The Good Reverend

Hi Scott,

I’m just following up on your question last week, ‘Does Jesus Despise the Barefoot Investor?’

As an Anglican priest I love your books -- they are against debt, they are about living within your means, and they are about being generous. Yes, perhaps I would add a few Bible quotes to back up your principles, but it has been a book I’m happy to recommend. And, yes, there is a danger in making an idol out of money, but in this age our culture makes a bigger idol out of keeping up Instagram photos of so-called success.Blessings,

Rev. Stephen Bloor

Thank you, Reverend

I’ve actually had a lot of Christians write to me echoing your sentiments this week.

(Okay, and the odd religious nut who said I was going to hell. Seriously they did, claiming I run a cult!)

Thanks for recommending my book, I love hearing from people who've used it to get themselves out of debt and back on their feet.

Scott

A Pig Gave me a Fridge Magnet!

The other day my son came home and announced he’d received a ‘present’ … from a stranger at the local park.

“A pig gave me a fridge magnet!” he squealed (as only a five-year-old can).

His younger brother picked up on the excitement and lunged for the prize. And then it was on for young and … slightly younger. All over a freaking fridge magnet. (Then again, that’s all part of the bro code.)

As I separated the two hay-balers, I saw that this was no ordinary fridge magnet.

The pig was actually … a local bank employee dressed up in a costume.

Which bank?

No, not that one.

This swine came from Bendigo Bank, and he was apparently the star attraction at the local community event … getting selfies with the kids. Now I’m sure there were some parents who were taking photos with the pig and having a lovely family time. But, as my kids would soon understand, I’m not like other parents ‒ I get a little intense when it comes to school banking.

For me it was like my son coming home with a packet of Marlboros:

“The cool cowboy gave it to me, Daddy … and a lighter!”

And wouldn’t you know it, the Bendigo Bank boar turned up at my son’s school with bank-branded bags, colouring books and pencils. At this point I’m breathing into a paper bag: if I see that corporate clown around town, I’ll put a skewer up his clacker and an apple in his mouth!

Okay, so I’m joking … but the fridge magnet went in the bin, thus reuniting the boys against a new enemy ‒ their old man: “So unfair, Dad!

Here’s the deal: for the last 15 years, I’ve just been carrying on like a pork chop about this issue.

And, thankfully, other people are finally starting to get their snouts out of shape about it.

Earlier this year  the Australian Education Union (AEU) wrote a letter to the federal Education Minister, Dan Tehan, demanding that banks be banned from classrooms. As AEU president Correna Haythorpe put it: “There’s no place for private corporations to go into schools and try and trap children into banking with them for the long-term future.”

You know what?

We need a financial revolution in this country, and it needs to start with our kids.

Oink! Oink!

Tread Your Own Path!

We’re Rich!

Scott,

My husband (30) and I (24) have inherited an eye-watering $6.5 million! We have paid off our mortgage, bought an investment property and cleared our debts, yet we have no idea what to do with the rest of it. (We have locked it up in our high-interest account while we decide what next.) Now that we have the financial freedom to enjoy our weekly wages freely, we want to be wise with our next move. What do you suggest?

Tim and Sarah

Hi guys,

You have reached your ‘enough’ figure at a time when most couples are still trying to scrape up a house deposit.

That’s the first bit of advice: understand that you have ‘enough’. More money won’t make you any happier from this point on. In fact, as you’ve probably worked out, having lots of zeroes in your bank account is actually bloody stressful, right?

Well, here’s how I’d think about it if I were in your shoes.

Let’s say you have $5 million, which you decide to invest in a low-cost index fund (via a family trust for asset protection).

I want you to think of that investment the same way I think about my family farm (stay with me here!). Twice a year your ‘farm’ will deliver you a golden harvest, in the form of dividends, and it will grow each and every year.

In my case, the land value of my farm goes up, down and sideways (just like share prices), but I don’t care, because I’ll never ever sell my family farm. Besides, it’s the harvest that puts food on the table.

In your case, your ‘farm’ should deliver you around $275,000 pre-tax a year.

Yes, there will be the occasional ‘drought’, and lean times -- but as long as you own the farm, you collect the harvest.

And that’s the lesson: you plant once, and then you can harvest forever.

And that is why you have more than enough.

Scott

The Kind Landlord

Hi Scott,

I would like to tell you about one of our tenants.She was an excellent tenant for four years, but fell behind during the last year and was not able to claw her way back. So I gave her a copy of your book ‒ and in the last eight weeks she has paid her arrears in full, and even started saving for a house deposit.

But what made me cry was what she told me next. Her son’s marriage break-up had left him in serious home loan arrears, with the bank threatening foreclosure – and he also lost custody of his children. He had attempted suicide twice in a week, and his survival could only be described as fate. He rang his mum to ask whether she could stay with him for the weekend. Armed with knowledge from your book, she worked with him through his finances. He has now been able to pay all his arrears and overdue bills, and can focus on repairing himself emotionally.

Your book has helped millions of people with their money. But in this case I think the effect has been rather more profound – with two households at risk of losing everything being able to stay in their homes.Yours,

Jane

Hi Jane,

As the election gets into full swing, it feels like landlords are being unfairly demonised as the enemy of the renter.

Not you.

Thanks for sharing.

Scott

St George Bank Swanns Around

Hi Scott,

I am having all sorts of problems trying to cancel the credit card insurance that was added to my St George credit card when I first took it out. I was told that, as I was a single mum, I would not get the card without it. It is just under $90 per month! I cancelled it over a month ago and they are still debiting my card. St George say it’s not them and to call Swann Insurance, who say it’s not them. In the meantime it has overdrawn my account. Please help.

Louise

Hi Louise,

The St George Bank website says: “Please note Credit Card Protect is no longer sold.”Do you know why they’ve stopped selling it?

It’s not because for years it was known in the industry as ‘junk insurance’ and was hard-sold to unsuspecting customers. That’s exactly why they sold it in the first place ‒ they made a fortune out of it!

No, the reason the banks stopped flogging it is because it got the Royal Commission treatment, and, as a result, banks and insurance companies could be looking at stumping up more than $1 billion in refunds.

The Consumer Action Law Centre has set up a free website that makes it easy to claim: demandarefund.com

Yet you don’t have time to wait.

I can’t imagine how distressing this must be for you. You’re a struggling single parent, and you’ve done the right thing, but still had your account has been overdrawn over Easter ... and then probably been hit with more fees!

And it sounds like they’re giving you the run-around: I mean, who cares about a lowly single mother, right?

So let’s you and I take this to the top.

Ross Miller is the General Manager of St George Bank.

Here’s an old party trick: when you mention a bank executive’s name in print, it pops up in their media tracking service. Which means this column will soon land on his desk.

So, Ross Miller, I think you should refund this single mother all the outrageously expensive premiums she’s paid, plus any overdrawn fees or penalties.

Over to you, Ross Miller of St George Bank.

Scott

Filthy from Head to Toe

Hi Scott,

Thanks so much for your last column. My son and I went on our first camping trip these holidays and it was honestly the best holiday ever. I set a limit of $250 from my Smile account, which paid for food, petrol and admission to the Buchan Caves. He spent the whole time exploring, throwing the biggest stones he could find to make the biggest splash he could, and rolling down dirt piles. He was filthy from head to toe, asleep before his head hit the pillow every night, and already planning our next trip before we left the campground. It was amazing, and what’s more we were out of range so I had to turn my phone off -- and did not feel a twinge of guilt.

Thank you, Marie (mum to a little boy who got to be dirty for a few days and had a ball!)

Scott says ...250 bucks! That’s one night at the suburban Mantra, with food poisoning at the all-you-can-eat buffet.

Give me damper on a stick and boiling billy any day. (And a few frothies around the campfire when the kids are gone to bed.)

Good on you, Marie.

And thank you for reading.

Scott

Does Jesus Despise the Barefoot Investor?

Hi Scott,

I’m a committed Christian, and I’m also a committed Barefooter, which is why I felt a bit conflicted recently when I saw a blog post by a pastor on the Gospel Coalition website entitled: “Does Jesus despise the Barefoot Investor?”

He writes that your book should be setting off alarm bells for Christians because it encourages people to look to money for their safety rather than the Lord. Have you read the article, and, if so, what are your thoughts?

Daniel

Hi Daniel,

No, Daniel, I had not.

I’m used to hearing from disgruntled AMP financial planners … but now God’s trolling me?

Good Lord!

So, what do I think?

Not much, to be honest. He says my book “should be setting off alarm bells for Christians”, and he thinks that the Mojo account is sacrilege, calling it “a modern day idol”.

I figured he was using my name for clickbait (okay, so we’re both sinners in that regard). Yet, just to be sure I wouldn’t be turned away at the Pearly Gates, I forwarded the article on to my mother, a deeply religious woman who not only goes to church on Sundays but backs up on Tuesday nights too.Here’s what she said:

“You don’t make a god out of money! And you help a lot of people that no one even knows about.”

God bless.

Scott

Where’s the Beef?

Hi Scott,

I am a proud and very passionate vegan who normally couldn’t give a stuff about investing. (Okay, so your book really helped me, but I have never get my head around investing in businesses that harm the planet for future generations). However, some of my vegan friends have been telling me about an amazing company called Beyond Meat that has perfected plant-based meat, which some food critics weren’t able to tell wasn’t meat. It’s backed by Bill Gates and a host of other smart people. Should I follow their lead, and if so how do I invest?

Bree

Hi Bree

As a farmer, I’ve been watching Beyond Meat for a while.

And I’ve been saving up your question until they had their IPO (initial public offering), so I could tuck into it like a juicy Sunday roast.

Grab your fork, Bree. Let’s chew some investment jerky!

Beyond Meat’s signature product is the Beyond Burger patty, which has 20 grams of protein, and by all accounts smells, tastes and even bleeds like a real burger (because of beetroot juice ... rather than blood). It’s a plant-based product, not meat grown in a lab. Coles actually stock their products at selected supermarkets, and in the US their burgers are sold in thousands of supermarkets and restaurants, like TGI Fridays.

It’s a massive market.

Aussies are some of the biggest meat-eaters in the world, consuming around 100kg per person per year!

(Think about your pipes, people!)

Globally, meat consumption has increased from 70 million tonnes in the 1960s to more than 330 million in 2017, according to the United Nations.

Why?

Because the world population is growing, and this is the wealthiest time in human history … and wealthier people eat more meat.

However, there are environmental impacts -- depending on who you believe, producing 1kg of beef requires somewhere between 550 litre of water (beef lobby group) or 100,000 litres (Greens Party). And then there’s the growing backlash from animal welfare and vegan groups.

So it’s not surprising that food conglomerates have been shovelling millions of dollars into producing a low-cost alternative. Beyond Meat debuted on the NASDAQ this week, and its share price rocketed 163% on the day.

In 2017, insiders were buying in at a reported valuation of million.Today, investors are buying in at a valuation of .6 billion!

Key point: insiders like Bill Gates and Leonardo DiCaprio got in to Beyond Beef at very, very low prices.

Now they’re selling their shares to the general public (via the share market) at very, very high prices.

They’re all eating rib eye … but are investors getting the ‘mystery sausage’?After all, Beyond Beef is still very much in start-up phase and has yet to turn a profit (in fact, last year the company lost million).

So what’s my advice?

Call me old-fashioned, but I personally don’t invest in companies that don’t make money, regardless of how attractive the future looks (and the more attractive the future, the more competitors a company will have).

However, if I were in your shoes, I’d probably have a crack: it’s something you’re passionate about, and if you believe in the company and the change it makes, put your money where your tofu is. You can buy shares through your bank’s online international share broker. The ticker code is BYND.

Scott