Some of his advice is a bit questionable. Does one really need 6 bank accounts? probably not. Is it wise to put all your money in joint bank accounts with your partner? Definitely not. Private health insurance is a rip off, I’d rather pay the Medicare levy surcharge because putting my money into the public health system is a better investment than private health funds which are profit based and further fleece me when I try to use them. However, what most Australians are really worried about – and what the media have jumped on – is whether this move by the Government is the ‘thin edge of the wedge’. If you only ever read one personal finance book, make sure it is this one. Scott Pape once again blows every expectation out of the water with his latest book, a definitive introduction to personal finance. The key to building long-term wealth is to spread your money around: property and shares (through super).

And, so long as he’s invested in decent, low-cost products (no expensive actively managed funds), he’ll be fine. Thankfully, in last year’s budget the Government announced they’re building a new comparison tool called ‘YourSuper’ which is slated to be available by 1 July this year. So the beginning of this was a bit 'rah rah' motivational for me... with lots about the author's personal scenarios on his farm (there was a fire) and more to do with alpacas and planting trees. Once we got past the metaphorical though, this book got extremely useful, very practical, and it got there fast. It works like this: our 17-year-old apprentice would start out aggressively invested in shares to build her nest egg, and then throughout her working life the fund would gradually – and automatically – become more conservative to protect her nest egg by beefing up her defensive assets like cash and fixed interest as she nears retirement. That all seems fair enough, but I don’t know how little Benny’s braces would apply to any of these.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. Jenny, it’s come to my attention that I’m a jerk. I’ve underperformed for so many years that I’m writing to you today to suggest you go on Tinder and find someone who can truly listen, get along with your mother, and meet your needs without being passive aggressive.” I’m writing on behalf of my mum, who is distressed about the upcoming changes to superannuation. She is a widower who has worked hard all her life, saving like crazy to ensure she had a secure retirement (believing it was her responsibility not to be a burden to society via the pension) and to leave a tidy nest egg for her kids. He's big on people freelancing and giving up massive amounts of their time to try and pull in some extra money and very dismissive of the criticisms that not everybody can or should freelance. I work in healthcare, I can't exactly start running a clinic out of my garage now can I? and why would I want to? Money is awesome and all but honestly, living within your means and having free time to spend with friends and family is more awesome. Anyway, the gist of the person’s question was this: he didn’t want his super to be funding war criminals (or Windows 97).

Pape has also hosted and produced the shows Money School and Money Movement for Foxtel. [6] Newspaper column [ edit ] So let’s hope the top-performing funds – who collectively invest for millions of Aussies both young and old – take heed of this new type of offering and build something even better for their members.I also couldn't stand all his hypothetical 'this is me, this is you' dialogue throughout, and I'm unconvinced about using Tinder as a metaphor for the best approach for finding a financial advisor. And Barefoot 'date night' as a single person? Taking yourself out for dinner to look at your own bank accounts and superannuation and calling it a 'date' is kinda just sad - although, granted, it is probably a more exciting way to spend an evening than going on a date with Scott Pape himself.

With house prices at a record high the year the book came out, should young people even try and enter the housing market? “I meet a lot of people in their 60s, 70s and 80s and if you don’t own a home then, life is really tough,” he says. “So: yes. Just get a mortgage that you can manage.” Personally, as a strictly low-cost index fund investor, I have very little sympathy for super funds that underperform the benchmarks over the long term. Even so-called ethical funds like Christian Super. Fact is, there are low-cost index funds that will screen out unethical companies. Use them instead. Then donate the extra money you make to causes that you’re passionate about. Only insure against things that can kill you financially, choose a higher excess and don't automatically pay your premium each year (try and finagle a better deal or threaten to leave...or leave). You probably don't need private health insurance if you're under 31. Your greatest financial asset is your ability to earn an income so you should get income protection insurance for about 10 to 12 times your annual income.He doesn't half like to waffle on about himself and make crap jokes. I really don't care that he shops at Harvey Norman, what kind of pillow he has or that he didn't care for his wife's first oven. Is is a finance book or a biography? Second, the people who calculate the ASFA figure are … the super fund lobby. It’s a bit like asking old Dr Kellogg, “What’s the most important meal of the day?” (Breakfast, of course!) Yet what’s also true is that your mother is not “an ordinary Australian” and she does not have a “little nest egg”. She’s got more cheese stuffed in her super than 99.5% of the population! OnePath was joined in veggie maths by BT Funds Management, Colonial First State, Auscol (Mine Super), Perpetual Super, MLC Super – whose report cards revealed “significantly poor performance”.

Just understand a couple of things: first, the term ‘ethical’ is about as loose as an over-28s nightclub, so you need to dig in and see what they’re actually investing in, and whether it fits with your worldview. One thing I disagreed with him on was he believes that paying off the smallest debt is always the best way. This might work on people with mounds of debt that feel hopeless and need a confidence boost on paying off one of the debts and cutting up the credit card. BUT... rationally and logically it's always best to pay off the debt with the highest interest rate first...

The Sydney Morning Herald

Regular Guests – Hot Breakfast with Eddie McGuire – Triple M Melbourne". Archived from the original on 18 February 2011 . Retrieved 24 June 2010. 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. This book is amazing. It's clear, practical, effective and an easy read. After reading Unshakeable and MONEY Master the Game: 7 Simple Steps to Financial Freedom, this was a bit more easy to implement as it is specifically targeted towards Australia, where the above two books are targeted towards the American economy. Additionally, Scott provides advice that is easy to action. Well, the Government just released a (long, confusing, boring) report card on your super fund card - it’s called the APRA External Report ( www.apra.gov.au), and the worst super funds are hoping that you never read the report.