Scott Pape: Money does not always bring you happiness but it secures your future

Saving money can be one of the toughest things to do — and it may not always bring you happiness. It’s what you do with it that counts.

For the past few weeks I’ve had a Billy Joel song in my head:

“You may be right … I may be crazy … But it just may be a lunatic you’re looking for.”

You see, I’m writing this to you hunched over in the back of a motorhome that’s currently parked in the seaside town of Tin Can Bay, Queensland.

Liz and I have embarked on an epic family adventure: a 3,500-kilometre road trip that has taken us from the family farm in Romsey, Victoria, all the way up to Cooktown, Queensland. For three (or four) months. In a Winnebago. With our four kids.

“Turn out the lights, don’t try to save me!” as Billy sings.

We actually took off a month earlier than we planned … we made the snap decision to make our getaway a few weeks ago, sensing that the borders may close.

In truth it only added to the sense of adventure. After all, this was months in the making; earlier this year I went to the post office and bought a huge map of Australia and sprawled it out on the kitchen table.

Planning out the trip — pinning lots of thumbtacks on the map and googling interesting places — is almost as much fun as going. We’re going to the Big Banana, the Big Mango, heck we’re even going to the Big Bloody Prawn!

I’ve never seen the kids so excited … well, until last night anyway.

Late last night my eight-year-old stirred from his sleep and noticed the glow of my laptop.

“What are you doing, Dad?” he whispered.

“I’m writing my column … and responding to a heap of emails”, I sighed.

“Oh”, he said.

Silence.

“You work really hard, Dad. So I guess you can’t take the time off and spend it with us.”

I closed my laptop and stared into the darkness. He snuggled up and gave me a hug.

I realised that for almost 18 years I’ve ended every column with the tagline “Tread Your Own Path!”

This morning I’ve decided it’s time to actually live it. I’ll be taking a break from these columns for a while, and investing in my kids. I’ll catch you on the flip side.

Scott Pape

My Friend’s Husband Wants To Murder Her

Scott

I have a young friend who is married and has three young children. She has an AVO against her violent husband, who threatens to kill her. The AVO has been breached. She is NOT divorced and no financial settlement has been agreed to yet. The husband has the children three days a week, and the court date to sort this out is soon. I see that under the Superannuation Industry (Supervision) Act a “spouse and ex-spouse” can get all their partner’s super, plus death benefit. What happens to my friend’s super payout should her husband kill her? How can she protect her super so that all funds would go to her children? Also, if the house is owned as joint tenants, my understanding is that the title passes on death to the survivor, is that right? I hope you can shed some light on this serious matter.

Susan

Hi Susan,

This is a very serious matter, so let me shed some light on it for you:

Her financial affairs won’t matter much if she’s dead.

The ONLY thing that matters right now is her safety (and the safety of her three young kids).

Susan, now is not the time to fret about her finances, but to stop her from being murdered.

Each week, on average, in Australia, a woman is killed by her current or former partner.

All too often women in this situation feel trapped and helpless. They are not. There are people who will help her and look after her, and they’re available 24/7 by calling 1800 RESPECT (1800 737 732).

We can — and will — sort out her finances later. Part of the value of this column is showing people each week that they are capable of moving monetary mountains.

For the moment, though, do whatever you can to keep her safe.

You Ruined My Life, Barefoot

Scott,

I read your book on a holiday at the age of 18. Now at 22 I have had full-time employment for nearly two years, am earning $45,000 a year, and have saved up $60,000 (a lot of hard work and sacrifice in that). But I feel lost. This money has brought me no happiness, just a burden in the back of my head that has stopped me living my life to the fullest while young. And it’s you who got me into this mess.

Matt

Hi Matt

I got you into this mess?

Well I plead guilty to that charge, Your Honour!

Still, steady up, cobber. You’re talking like you’re a washed-up author with four kids about to get trapped in a Winnebago for months.

Who are you comparing yourself to?

If I popped sixty thousand clams in the pocket of an average 22-year-old, they’d think they’d won the lottery.

Yet I’d argue that you’re actually luckier than any lotto winner. That’s because you’ve spent the last few years developing what I call ‘million dollar habits’. You may dismiss what you’ve achieved, but I won’t: developing a strong work ethic and a savings habit will serve you well for the rest of your very long life.

Yet what’s even more impressive is that, at your tender age, you’ve worked out something that 50-year-old coked-up lawyers haven’t:

Money doesn’t make you happy.

(Though a severe lack of it can make you very unhappy.)

So now — while you’re still just 22 — it’s time to develop a new set of habits:

Having fun!

The best things in your twenties don’t cost much: camping, sport, pashing random people at parties … and reading good books. What really helped me when I was in my twenties was reading about people who’d lived their life and worked out what was important. It’s only by studying the past that you can prepare for the future.

And trust me, Matt, your future is incredibly bright.

A Brighter Flame

Dear Scott,

September three years ago I bought your book, when I could least afford it. At the time I was burdened by six-figure debt (posted on the fridge door so I was aware of it every day). I did as I was directed — I took you and the book to dinner every week. I didn’t go bankrupt. I made the calls. I cried with you. And screamed at you. And learned from you. And survived.

Today I buy your book as a gift for my friends, like a scented candle but with a brighter flame when ignited. I can see the black line fast approaching — the red line is in my rear vision mirror. I answer private calls these days. I wanted to say thank you for literally saving my financial life, and please thank your darling family for loaning you to me while I was dying inside and outside a shambles.

Janine

Hi Janine,

This is probably the nicest letter I’ve ever received … and a fitting one to end on.

Thank you. You Got This!

If you have a money question, go to barefootinvestor.com and #askbarefoot

Information and opinions provided in this column are general in nature and have been prepared for educational purposes only. Always seek personal financial advice tailored to your specific needs before making financial and investment decisions

The Barefoot Investor for Families: The Only Kids’ Money Guide You’ll Ever Need

(HarperCollins) RRP $29.99

Originally published as Scott Pape: Money does not always bring you happiness but it secures your future