Barefoot investor sticks the boot in...

Linky

The third article (Gemma) TBFI lays into the writer yet the 4th is the opposite.

 

need to subscribe???

 

Premium article... what's the title?

 

It sits under

"A suddenly single pregnant woman faces financial challenges for herself and her children"

And called "it's decision time"

From the barefoot investor.

 

As much as he doesn't rate mortgage brokers, I like that guy.

 

I quite like the book and recommend it to people from all wakes of life. Even though he isn't a big fan for property investing, his lessons to set up the buckets, super, shares and reducing unnecessary expenses are all sound. I've personally bought a number of his books to give to people I know.

 

Extract:

 

Not suprised he got a bit miffed. My bed broke? Sleep on a mattress for a while if you really want to get rid of a loan

 

"I can only assume you are wanting me to: a) Listen empathetically as you vent about your first-world problems, while I gently stroke your hair and whisper “it’ll be okay, honey”. Or, b) Give you a kick up the backside. I’m going with option B."

That's gold!

 

Something I Said I’d Never Do
Hi Scott,

I am 28 and and earning $70,000 a year. I am also $10,000 in debt because I did something I said I would never do: took out a personal loan. I have been desperately trying to pay it off, but it seems with every fortnight’s pay something comes up -- my car needed servicing, my bed broke, and now I have to buy an expensive bridesmaid’s dress. I feel overwhelmed, like I am never going to get out of debt.

Gemma



Hi Gemma,

You haven’t actually asked me a question, so I can only assume you are wanting me to:

a) Listen empathetically as you vent about your first world problems, while I gently stroke your hair and whisper “it’ll be okay, honey”.

Or,

b) Give you a kick up the backside.

I’m going with option B.

You say you’re “desperately” trying to get out of debt, but I’m calling your bulldust.

Make a freaking decision!

You’re either totally committed to getting out of debt, or you’re not. It’s this indecision that’s causing your overwhelm.

Once you’ve made the decision that you absolutely, positively will get out of debt, the rest is a cakewalk:

If your bed breaks (not a bad problem to have in your 20s by the way!), all you do is lay the mattress on the floor until you can afford to buy a new one. Simple!

If you’re asked to be a bridesmaid, you tell the bride that you can’t afford it. Or tell her that it’s such an honour that you’ve decided to work overtime for the next 12 weeks to pay for it (and make your additional extra debt repayments).

Here’s the thing that no one tells you about getting out of debt: it’ll build a confidence in you that will change the course of your life. Just ask Chris (below).

 

Getting rid of "bad" debt is one of the hardest things you can do...It takes a lot of strength!

 

One of the great things about being an advisor is that it is easier to advise than it is to do.

Maybe this poor girl needs some small strategies that would have made an incremental difference. She is a single mum with another on the way at age 28 - their is a lot of pain in that statement.

I think the fact she is genuinely interested in getting better is to be applauded.

 

Just to clarify something - the extract I posted (the topic of the thread) is the third part of four in a Q&A session-type post. The first question - and the title of the landing page - is re the 28yo single mum, which was a separate problem. $70k-per-year Gemma's question is third section down the page.

 

I assume that people in the PC community are good money managers but wonder how many people actually have credit card/s here. Personally for me, I have one but thinking of getting rid of it. I guess BF reinforced some of my previous knowledge but opened up the gateway to consider LIC shares, cutting costs, buying a Duniopillio pillow, super and creating an ING account.

 

What's wrong with credit cards if used properly? IP loans come with a card, keep it clean and use it only for IP expenses.

Personal cc, use and pay off religiously without incurring interest.

It ain't rocket surgery.

 

Well BF/ Scott Pape reckons that having a credit card will temp mortals to spend it on unncessary expenses and the bank fees to hold the privilege is an unnecessary cost.

To each to their own but for me I am inclined on getting rid of my credit card because normally I pay for any expenses on the IP through my savings anyway.

 

@jins13 - some of us aren't mere, others not mortal. Many loans come with compulsory cards.

 

Fair enough. I've received debit cards but not credit cards for any of my loans.