Barefoot investor Scott Pape’s advice for coping with financial stress during a lifestyle crisis

Barefoot investor Scott Pape's advice for coping with financial stress during a lifestyle crisis

Barefoot investors’ surprising advice for stressed-out Australians coping with ‘shock’ of lifestyle crisis: ‘Have a latte, a glass of wine’

Scott Pape gives new financial advice He says cut what you don’t like, spend on what you do

Barefoot investor Scott Pape shares his surprising secret to surviving a life crisis.

Pep, Australia’s best-known financial adviser for 20 years, recommends cutting out the things you no longer need so you can spend more on the things you love.

‘I’d rather have my leg amputated than not be in limbo,’ Pape told the Courier Mail on Saturday.

‘I find these kinds of money-saving tips insulting and stupid… when you’re stressed you want to feel like you can treat yourself a bit.

‘If you want a latte and you’re a single mom and you work two jobs, have a latte and drink wine.’

He said one red flag he’s noticed when talking to Aussies is that many expect the current high interest rates to eventually come down.

Barefoot investor Scott Pape (above) advises Aussies to spend on things they enjoy but ‘wickedly’ that they don’t from their budgets.

‘People don’t realize that this is potentially the new normal, that interest rates will be at this level, if not higher, and I think we have to adjust to that,’ he said.

‘What I try and say is that you should spend liberally on things you like but cut back badly on things you don’t like.

‘I’m looking [finding] New household insurance, car insurance, all the bank fees I’m paying.

‘I’ll be looking at all the bills I don’t care about.’

Pape advised Australians to avoid two key mistakes when reviewing their finances: treating money as a ‘taboo’ subject and under-preparing for the worst.

He said one group sure to feel the pressure with the new interest rates, which have risen 12 times in just over a year, are young people who bought a home at record-low rates during the pandemic.

‘If you find yourself stressing about money, you’re worried about being able to pay off your debt and you’re worried about the interest rate, when you stop talking about it with your partner, stop communicating with your bank or your creditors, that’s the bad thing. happens,’ he said.

He recommends seeking help from a financial advisor as soon as your finances seem to be spiraling out of control.

Pap says: ‘If you want a latte, and you’re a single mom and you work two jobs, you have a latte and drink wine’

‘Financial advisers are people who will stand by you, negotiate with your bank and get you back on your feet,’ he said.

She adds it’s essential to keep people close to you in the loop, like your partner.

“I want to make sure you cover your bases, and if you don’t, the best thing you can do is see a financial advisor or go on a date night and start planning,” she said.

Five Barefoot Investor Signs You’re in Financial Trouble

1. Missing home loan payments

2. Using pay-letter services for requirements

3. Can’t afford your bills

4. Stress about money

5. Stop talking about money

Source: Courier Mail

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