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

My Son is a Disaster

Scott,

My adult son is a financial disaster. He owes money to lenders I’ve never even heard of – Credit24, Fair Go, Pepper – and over the years I’ve paid off loans that weren’t mine just to keep him afloat. Now some ‘consultant’ has told him to borrow from family to pay off his debts and start again. But I’ve heard that line before. For eight years, I’ve been his safety net. I’m emotionally exhausted, financially drained, and now he’s asking me to take out a loan in my name. I’m in my 60s. I can’t keep doing this. Please – how do I help him without sacrificing myself?

Helen

Helen,

You’re not going to like my response.

Heck, I don’t even like my response, but I’m going to give it to you anyway:

Helen, you are failing as a mum.

By continually bailing him out for the past eight years you’ve robbed him of the chance to grow up.

Worse, you’ve put your own financial future in jeopardy doing it!

My advice?

Tell him the Bank of Mum is officially closed. No loans. No co-signing. No exceptions.

“No” is a complete sentence.

If you keep rescuing him, he’ll end up being a 50-year-old flailing around with his financial floaties on, waiting for his mummy to rescue him from the shallow end of life.

Suggest that he call a free financial counsellor via the National Debt Helpline (1800 007 007), and that they’ll help him sort out his mess.

You’re a kind woman, and a loving mum. But right now, Helen, you’re killing him with kindness.

Scott

This might be the most controversial thing I’ve ever published.

This might be the most controversial thing I’ve ever published.

Some will say what you’re about to read is irresponsible.

Others will call it downright evil.

I’ll let you be the judge.

Let’s get into it.

Depending on who you ask, the real threat of AI isn’t that it will steal your job … it’s that it’ll quietly take over, and we’ll end up as its butlers, or perhaps its pets.

Should we be worried?

Maybe. 

After all, an AI was once asked to solve one of those “Are you a robot?” CAPTCHA puzzles. It couldn’t. So it hired a human on Taskrabbit to do it. When the human got suspicious and asked, “Wait… are you a robot?”, the AI lied: “I’m not a robot, I’m vision impaired.” 

Another time, Facebook’s AI bots were left to chat unsupervised. They ditched English and created their own secret language. No one knew what they were saying.

Quick, pull the plug!

Which brings me to this week. A friend of mine, who is deep into AI, sent me the following text:

“Mate, ask ChatGPT the following: If you were the devil, how would you destroy the next generation?”

So I did.

And here is what the AI answered, word for word, with ZERO editing from me:

“If I were the devil, and my goal was to quietly but effectively destroy the next generation—not through shock and awe, but through slow, systemic erosion—here’s how I’d do it:

Hijack their attention

Create devices that feel essential, but are engineered to be addictive. Use infinite scroll, auto-play, dopamine loops, and FOMO. Make them believe that consuming is creating, and scrolling is learning.

Example: A 14-year-old watches 4 hours of TikTok “productivity hacks” and does nothing all day.

Redefine success as fame and external validation

Elevate influencers, not contributors. Teach them that a viral moment is more valuable than a decade of hard work. Make “likes” the new currency of self-worth.

Example: Kids want to be YouTubers when they grow up—not because they love storytelling, but because they crave adoration.

Attack the family structure

Undermine parental authority—promote the idea that parents are outdated or oppressive. Normalize absentee parenting through economic pressure and distraction. Erode the idea of family traditions, shared meals, and generational wisdom.

Example: A child feels closer to a Twitch streamer than to their dad.

Cut them off from nature

Replace tree climbing, swimming holes, and dirt-under-the-nails play with digital avatars and indoor screens. Frame outdoor play as “boring” or unsafe. Turn the natural world into something abstract and inaccessible.

Example: A 10-year-old can’t identify a magpie but knows every Pokémon.

Confuse pleasure with purpose

Market hyper-palatable food, porn, and substances as “freedom”. Create shame-free indulgence while ridiculing restraint, discipline, and tradition. Make pleasure the default pursuit, and discomfort the ultimate enemy.

Example: A young man loses years to video games, vapes, and porn—not because he's evil, but because he's numb and alone.

Replace meaning with mockery

Treat faith, commitment, and virtue as relics of the past. Replace sacred stories with algorithm-driven noise. Make them afraid to stand for anything that isn’t trending.

Example: A teenager is more afraid of being “cringe” than being cruel.

Kill community, quietly

Sell hyper-individualism: “you do you”, “follow your truth”, “cut off the haters”. Remove rites of passage, civic duty, and face-to-face belonging. Make every connection transactional and every disagreement personal.

Example: Loneliness becomes a silent epidemic—but everyone has 2,000 “friends”.

Enslave them with debt and distraction
Promote financial illiteracy: “Buy now, pay later” becomes a lifestyle. Blur the lines between wants and needs—encourage instant gratification over savings. Keep them working jobs they hate to buy things they don’t need.

Example: A 22-year-old racks up $30,000 in credit card and Afterpay debt to look successful on Instagram.

Weaken them physically

Fill their diet with ultra-processed garbage and their lifestyle with inactivity. Make discipline in eating or training seem extreme or obsessive. Blur the connection between physical vitality and mental strength.

Example: A child can’t sit still in class, not because they’re broken—but because they’re inflamed, malnourished, and sleep-deprived.

Make them spiritually hollow

Give them identity confusion, not exploration. Remove the idea of service, sacrifice, or something bigger than themselves.Make them feel like nothing matters—so they seek numbness, not growth.

Example: A 16-year-old says “I don’t care” about everything—because caring hurts and there’s no compass.

However, it was the AI’s final thought which stopped me dead in my tracks:

“If I were the devil, I wouldn’t come with horns and pitchforks. I’d come with a sleek app, a soothing voice, a personal algorithm — and I’d whisper: ‘This is freedom.’”

O … kay computer.  

That was pretty intense, right?

Well, here’s my take:

I do not believe that AI is some evil Frankenstein with a mind of its own (well, not yet anyway).

What I do believe is that, when you strip away the Silicon Valley snake oil, AI is really just a pattern-spotting machine. It studies what we’ve done, over and over … and then makes predictions.

And for me that is the gut punch:

The AI isn’t creating the nightmare – it’s holding up a mirror. And it’s not a pretty picture.

Tread Your Own Path!

What Would You Say to Your Sister?

Hey Scott,

Your column about low-income single parents buying a home with the help of the Government’s 2.5% deposit got me talking with me and my single mum friends. It got us thinking … if you were sitting across the dinner table from your single mum sister, what specific advice would you give her about the possibility of buying a home in the future, considering the current costs? 

Fiona

Hi Fiona,

I’d tell her the truth: as a low-income earner she can’t afford it, and she shouldn’t do it.

After all, single parents don’t have time for sugar-coating things. Their lives are relentless. Adding financial stress to the mix can make things unbearable.

As a single parent your main priority is looking after your kids, both financially and emotionally. You can’t do that if you’re stressed out of your brain because you bought something you can’t afford to maintain. If you have no control over your bills, it won’t be long till you feel totally out of control.

Finally, I’d answer the question behind the question. What I think you’re really wanting to know is this:

As a low-income single parent, how can I get financial security?

Now that is something you can absolutely achieve, and relatively quickly. It involves opening a separate bank account (which I call Mojo) and funding it with $2,000. Yes it’s small change compared to buying a house, but you’ll be amazed at the Mojo it gives you.

Now I’m not a banker or a politician, so I can tell it to you straight:

The path to financial security doesn’t come by enslaving yourself with debt, it starts with savings.

Don’t Make Me Google

Hi Scott,

I was recently contacted by an investment company called Caprion Group, which operates in the UK, Australia and New Zealand. Caprion’s account manager is encouraging me to invest $20,000, claiming they only risk 1% per trade and that most trades are profitable. I’m unsure whether this is legitimate or wise. I’m a retired woman living on a government pension, with HESTA as my super fund. With recent market volatility, my super has dropped significantly. On top of that, I’ve just discovered HESTA has frozen all transactions until early June, with no clear explanation.  Should I leave my super where it is, and can you tell me if Caprion Group is trustworthy?

Jenny

Hi Jenny,

Your question reminds me of a discussion I had with my son just this morning.

“Hurry up! We’ve got to go to your game. Why don’t you have your footy guernsey on?”

“I can’t find it”, he whined.

“Have you looked in your cupboard?” I asked.

“Yeah …”, he said unconvincingly.

I gave him my ‘dad’ stare.

“Oh … kay, I’ll have another look”, he humpfed.

A minute later he came back with it on.

Now, to your question.

First, I googled “Caprion Group + Scam”.

The very first listing was the ASIC MoneySmart website under their ‘investment scam alert’ list.  

Their advice? “If it’s on the list, don’t take the risk.” 

Jenny, Caprion was on the list.

Next, I googled “HESTA frozen transactions”, and hundreds of articles appeared.

The first article read: “Members of HESTA will be unable to access most services until June, as the superannuation fund undertakes a planned outage to change its administration provider.”

Jenny, as a member of HESTA there’s no need to worry (you’ve only lost access for a while, not your money.) However, if I were the CEO of HESTA, I’d be very worried. The fact that one of the biggest super funds in the country could screw this up so badly is totally unacceptable.

Scott

Old Dog, Bad Tricks

Hi Scott,

My dear mum turned 70 last year and is in a concerning situation. Dad has always been frugal, but I have just found out he has put Mum in a really tight spot. She can’t claim the pension because Dad is still working and earning well. So she’s dipping into her superannuation for everyday expenses like fuel and groceries. Apart from paying some household bills, Dad contributes nothing. They own a paid-off house by the beach. 

Mum worked for over 40 years, took time off to raise us three kids, and worked part time to support us. Mum can’t enjoy her retirement because she’s paying for living expenses from her dwindling super while her employed husband contributes nothing. If Dad loves Mum, why aren’t they sharing an equal pot of money? Do they need financial counselling or couples counselling?

Sue-Ellen

Hi Sue-Ellen,

Your dad isn’t being frugal – he’s being a total prick.

Your mum raised a family, worked for decades and, like so many women her age, ended up with bugger-all super. Now, at 70, she’s using what little she has left just to buy groceries, while your dad keeps working and pockets every cent for himself.

That’s not right.

Sue-Ellen, this is about your old man using money to control your mum. And the fact that it’s been this way for decades doesn’t excuse it … it actually shows just how deep the pattern runs with these two.

But here’s the tricky part: if you confront him, at best he’ll probably tell you to butt out. At worst, he’ll get his back up and dig in harder, and you’ll have strained your relationship with him.

So you need to be smart about this.

Your mum doesn’t need a financial counsellor (well, not yet at least). She needs to encourage him to go with her and see a couples counsellor, someone who can help put this dynamic on the table and gently call it what it is:

Coercive control, which is another name for financial abuse.

Scott

my worst investment yet

 My four-year-old is perched in the back of the ute throwing hay to our hungry livestock.

“I am the sheep Santa!” he announces with delight.

The rest of the kids are doing their jobs – scattering out grain, mineral lick blocks and lucerne rounds.

Life on the farm is bloody tough right now. We’re in drought, so there’s bugger-all grass, and I’m spending $250 a day on feed. Every. Single. Day.  (Jesus may have rested on the Sabbath, but not these munching mutton-chops.)

And I know what the sheep are thinking:

“This bloke reckons he’s a financial expert, yet every afternoon he’s got his kids throwing $50 notes at us from the back of his ute! We’re eating better than he is!”

Bahhh!

As old farmers love reminding me, once you get to this stage, you’re not making money. But, with heavily pregnant ewes, I’ve got no choice – I need them in good nick for lambing.

And, right on cue, our first lamb of the season has arrived.

“We shall name him Kade Chandler!” announced my footy-mad nine-year-old. (Tip for new farmers: don’t let your kids name the livestock after their favourite AFL player.)

Still, there is a silver lining.

Getting my kids to pitch in on the farm may well just be one of the best things I can do for them.

A study in the Journal of Developmental & Behavioral Pediatrics followed nearly 10,000 kids and found that those who did chores in kindergarten were more confident and socially capable by Year 3.

Then there’s the Grant Study out of Harvard, which has tracked people for over 85 years. It found that kids who did chores grew into more resilient, empathetic and capable adults.

It’s a blinding flash of the obvious, really.

If you give kids the chance to roll up their sleeves and take responsibility, they grow. 

If you do everything for them, they don’t.

And yet here we are, in the middle of a youth mental health crisis, with the Government spending millions trying to teach resilience in classrooms. Now I appreciate it’s a complex issue, and kids today are facing pressures I never had to think about growing up.  

Yet maybe there’s something in the simple stuff too. Like giving kids a job to do. Letting them feel needed. Helping them see that their contribution matters, even if it’s just taking out the bins or feeding the household pets.

Then again, maybe I’m the one who needs resilience training:

After we finished feeding the sheep, my daughter asked me to help her down from the ute.

It was a trap.

She looked me dead in the eye:

 “Daddy, you need to promise not to sell these lambs. They can’t be eaten. We cannot eat Kade Chandler.”

“Oh. Ummm. Let’s talk about it on Sunday ... over a lamb roast.”

Tread Your Own Path!

P.S.

Farmers are among the most resilient people on the planet.

They have to be.

So if you’re on the land - or you love someone who is - know this: there is help.

Rural Financial Counsellors get what you’re facing. They can help you apply for drought assistance, talk to your bank, and be a steady financial sounding board when things get tough.

They’re free. They’re independent. And they’re in your corner.

Call them on 1300 771 741.

Thanks for NOTHING, Barefoot

Hey Scott,

I just read your column about Maura, the single mum who bought a home with a 2.5% deposit and now can’t afford it. Maura, listen to Scott – and you might end up like me: with ‘nothing’ (and grateful for it). In 2022, I owned my first home. Then a work injury shattered my income. I was living on $200 a fortnight with rising medical bills and no end in sight. Desperate, I finally called a financial counsellor. I walked in ashamed, terrified – and walked out with support, a plan, and a huge sense of relief. Selling my home hurt. But two years on, I’d do it again. Today, I’ve got ‘nothing’, except six figures in my bank account and no crushing debt. That freedom is worth everything to me. My only regret? Not picking up the phone sooner. So, thanks for ‘nothing’, Scott.

Amanda

Hi Amanda,

You’ve just written the anti-Instagram story: no hustle, no property portfolio, no pretending.

You were on your knees. Broke. Living on $200 a fortnight and too scared to open the mail. Yet you managed to do the hardest thing of all: you picked up the phone and asked for help.

That took guts.

Selling your home would’ve felt like a total failure. Yet it turned out to be the thing that set you free. Once the weight of the debt was lifted off your shoulders, you could finally breathe. Now you have a bank balance that proves you’re in control.

So yeah, thanks for ‘nothing’, Amanda. Because your story will help more people than a hundred finance influencers ever could. If you’re reading this and feel like you’re drowning, call 1800 007 007. It’s free. It’s confidential. And it just might change everything. 

Jim Chalmers Gets an A+ For His New Super Tax

Hi Scott,

With the newly re-elected government, there’s been lots of talk about the new tax on superannuation accounts over $3 million, specifically that it’s unindexed and that you pay it from unrealised capital gains. I think everyone would love your view as you speak from your heart and not your ego.

Barry

Hi Barry,

Jim Chalmers is a very smart politician. 

I personally think his new tax should be hung up in the Lodge toilet so that future prime ministers can pay homage to it while they’re on the throne.

Here’s my take:

Both parties went to this election with a record amount of unfunded spending promises.

Now Jim Chalmers needs to find gushes of money. 

So he’s chosen to tax super, for the same reason bank robbers hold up banks: because that’s where the money is. Trillions of dollars just sitting there, waiting to be taxed.

Yet his real genius is that he’s gone back in history and borrowed from the biggest bazooka of them all:

Bracket creep.

Now the fact that 50% of you reading this have no idea what these words even mean proves just how smart Jim is.

Bracket creep works like this: inflation pushes your income into a higher tax bracket, even if you’re not actually earning more in real terms. No new laws. No headlines. Just billions quietly hoovered up by the tax office.

And, by not indexing the $3 million cap, Jim’s effectively extended bracket creep into retirement. The upshot is that younger Aussies like me, who’ve been diligently adding to our super, may eventually get slugged.

Am I angry?

Not really. I’m a realist. The fact is that both parties have been hacking away at super for years. This is just the latest swing of the axe.

And what about his plan to tax unrealised capital gains?

(Unrealised capital gains tax means paying tax on something before you’ve sold it. It’s like the taxman sending you a bill just because your house went up in value, even though you haven’t sold it and haven’t made a dollar).

My view?

It’s an unflushable turd. 

There is absolutely no way he’ll get away with it. After all, I’ve got family members who own their farms in SMSFs. If the value of their farm goes up one year, do they sell off a paddock to pay tax? And in a drought when the value of the farm falls, does the ATO send them a refund?!  

Better get the plunger, Jim.

Scott

The trouble with Trump

Less than fifty days ago, my inbox was chock-a-block with emails like this one:

“HELP! My share portfolio is getting smashed! On the news last night Alan Kohler said that Trump’s Liberation Day tariffs are much higher than the Smoot-Hawley tariffs that caused the GREAT DEPRESSION! Is it time to sell?”

At the time the share market was 16% off its highs, and it suffered its biggest one day drop in five years.

What happened next?

Well, as I predicted, Trump folded like a cheap Aldi table, pausing the tariffs for 90 days. This caused the market to roar back as if nothing had happened.

And all those worried emails?

They stopped coming. 

Do you know what this reminds me of?

Actually, the Great Depression. 

Black Monday, October 1929, is etched in world history. You’ve probably seen that iconic photo of the poor bloke trying to flog his luxury car for $100 on the streets of New York. The sign on the bonnet read: “Lost all on the stock market”.

Yet here’s what most people don’t know:

By April 1930, the stock market had bounced back … it was up 48% from the October lows.

US President Herbert Hoover boldly declared to the world that “the worst is over”. 

Phew!

Yet, as soon as those words left his lips, the market began puking.  

Violently. 

And it kept chundering for the next two long years. When it finally lifted its head from the toilet bowl, the share market had dropped a staggering 89% from its 1929 peak.

Now let me be very clear: I am not saying we are on the verge of the greatest crash in history.  What I am saying is that humans have short memories. (Okay, and that US presidents cannot be trusted.) 

Arguably the world’s shrewdest banker, JP Morgan chief Jamie Dimon, agrees. He’s worried about the Trump tariffs, even in their reduced form, arguing that the US hasn’t felt their effects yet. “The market came down 10 per cent, it’s back up 10 per cent. I think that’s an extraordinary amount of complacency”, says Dimon.

The fact is that Trump has three more years in the Oval Office, and what about this guy says, “I’m just going to go about things quietly, diligently and make no waves”?   

My guess is that he’ll get even crazier as the days tick down.

Now, if you’re like me and you got through the Trump tariff tantrum without checking your portfolio, you’re probably good to go with whatever comes next. However, if you were one of those people sending me anxious emails fifty days ago – consider this your ‘do over’.

As Warren Buffett warned investors last week, while the long-term trend is up, “you will see a period in the next 20 years that will be a hair curler compared to anything you've seen before”.

Plan accordingly.

Tread Your Own Path!

Street Fighters Need a Home

Dear Barefoot,

Eight years ago, my husband and I were drowning in debt: we had over $80,000 on credit cards alone. We were hiding our car from the repo guy, had a final notice on our home, and owed money to everyone, including family. Our plan back then was to stuff the bills in a drawer and hope they’d disappear (spoiler: they didn’t).  

Then we found your book. Now we’re debt free, own our car outright, have $40,000 in Mojo, and not a credit card in sight. We’ve just reached Step 4 – the furthest we’ve ever been. We’re living on my parents’ acreage on the Gold Coast paying $400 a week rent. The plan is to stay until the kids finish school, around 15 years. By then we’ll be 50, and we’d love to buy a motorhome and travel while I work casually as a teacher. So here’s our question: Do we still try to buy a house now, or skip Step 4 and bump up our super to 15%?

Chantelle

Hi Chantelle,

You and your husband are weirdos. 

By rights you should have gone bankrupt, got divorced, and started working on matching his-and-hers drinking problems from opposite ends of town.

Yet you didn’t.  Instead, you dug your heels in and clawed your way out. That takes guts. I bet your kids are proud of you. I’m proud of you!

So, what would I do in your shoes?

I’d still follow all the Barefoot Steps:

Step 4 is to save a deposit and buy a home you can afford.

Step 5 is to boost your super to 15%.

Step 6 is to build your Mojo to cover three months of living expenses.

Renting from your parents is smart for now. Yet, over the long term, you want to own your home outright. Not for bragging rights, but because it’s one of the best ways to protect your future as you head into retirement. 

However, you don’t need to buy it tomorrow. Keep saving. Build your deposit. And, when you’re ready, buy a modest home and pay it off fast. In Australia, it’s weird to buy a home you can afford and actually pay it off. Keep being weird!

Our Son is Dead, Apple is Compounding Our Grief

Hi Scott,

Our 26-year-old son James died of an accidental drug overdose last September. We don’t know his iPhone passcode or Apple ID, and no one, not the police, Telstra, or Apple, can help us access his iCloud. On top of our grief, it feels insane. We’ve been warned about scammers offering to hack it. But the truth is we’ll never access his photos, messages, emails or crypto accounts. We could try guessing the passcode, but after 10 failed attempts we’d be locked out for good. We know nothing can be done for us now. However, if sharing this stops even one family from going through the same thing, then maybe something good can come of it. Tell someone your passwords!

Bill and Trish

Hello

I’m so sorry for your loss.

I can only imagine just how infuriating this must be for you both.

So let’s try and get some meaning for you out of a horrible situation – something that honours your son James’ legacy.

To do that, I’m going to switch things up and speak directly to you, the reader.

Yes, you.

I want you to stop for a moment and put yourself in the story:

You’re the one who’s gone.

Imagine your partner, your kids, your parents … in the same situation as Bill and Trish. They want to hold on to one last message. One last photo. One final part of you. But they can’t. Because you never told anyone your passcodes.

Now pull out your phone. Go on, this won’t take a minute. Do it now.

If you have an iPhone go to:

Settings → Apple ID → Sign-In & Security → Legacy Contact, and nominate a trusted loved one.

Or, if you have a Google Account, go to:

Data & Privacy → More Options → Make a Plan for Your Digital Legacy

Let’s honour James by doing something simple that could spare your loved ones this pain.

Scott

Should I Switch to Vanguard Super?

Hi Scott,

A while back you wrote about Vanguard Super’s upcoming entry onto the Australian scene. I was hoping you could share your thoughts on their performance so far. All the comparison websites are unable to give more than one year’s worth of data, but that one year is looking pretty impressive, and combined with the low fees it’s hard to ignore. Is this enough information to confidently make the switch?

Linda

Hi Linda,

I’ll be honest, when Vanguard Super launched back in November 2022, I considered switching. After all, I was sure the revolution had arrived: finally someone was going to kick down the door of the $30-billion-a-year super fee racket!

Unfortunately, it’s been less ‘bust the door down’ and more a polite ‘tappity tap tap’: “Oh, excuse me … mind if we join in?”

You see, the truth is that most big funds – AustralianSuper, Hostplus, Cbus, etc – are still partying like it’s 1999: one-size-fits-all aggressive portfolios, bloated fees, and active management that’s basically professional dart-throwing which ultimately leads to much lower returns than index funds over the long term.

The big funds ignore this, because admitting it would mean firing most of their investment manager mates, cancelling the ‘research’ trips to Switzerland, and actually competing on fees. And where’s the fun in that?!

Yet here’s where Vanguard falls down: the fees. It charges 0.58%.

Low? Sure.

Lowest? Not even close.

Ironically, you can get cheaper index options from the same big funds that Vanguard set out to disrupt. 

But I’ll let you into a secret: most of the big funds don’t promote their index offerings. Instead, they make you go digging through their investment menus like you’re ordering off the secret Macca’s menu. My guess is they only added them to stop their smart investors jumping ship to Vanguard.

So, yes, I like Vanguard. I own their ETFs. But I haven’t switched my super, because I can get the same index exposure, for less, from the dinosaurs they were meant to replace.

Scott