Barefoot Investor Scott Pape’s advice for families trapped by uncertain financial futures

Being rejected doesn’t have to be a blow, in fact those looking to improve their lives should seek it out, writes Barefoot Investor.

You would think that, being a well-known person, I’d have an easy time hitting people up for money.

Especially when I’m doing it in my own little country town.

You’d be wrong.

For the past few weeks I’ve been walking up and down the main street of Romsey, armed with the following pitch:

“Hello, I’m from the Romsey Lancefield United Junior Basketball Club, and we’re looking for local businesses like yours to sponsor our club.”

What comes next is almost always awkward.

Generally it’s silence. Sometimes it’s a mercy kill, shooting me down with a quick “no thanks”. Other times they respond like Kate, the girl I asked to my Year 10 formal: “Oh, that sounds … interesting. Can I get back to you?”

But I keep at it. After all, resilience is the new buzzword – especially for kids.

Asking for money is often met with rejection.

As screens have come to dominate our lives, we’ve not only lost the art of small talk, we’ve also outsourced our rejection to unread DMs. Perhaps that’s why ‘rejection therapy’ has gone viral on TikTok. Mostly it’s annoying extroverts filming themselves asking a barista for a 10 per cent discount on their latte #brave.

It’s cringe-worthy, but not in the way they think. Anyone who films themselves ambushing a stranger just trying to steam milk at 7am reeks of … TikTok.

Still, they’re onto something.

Rejection is a muscle. The more you use it, the stronger – and less awkward – it becomes.

And it pays off. Literally. (I’ve got my kids onto it. My 11-year-old is currently negotiating the purchase of a caravan for me. True story. The salesman told me my son knows more about the van than he does. And he’s not wrong.)

Yet don’t film yourself traumatising a barista. Channel that energy into terrorising your telco.

Call your electricity provider, bank or insurer and say: “I’m looking for a better deal – what can you do for me?” They don’t care. You don’t care. It’s low stakes. But it’ll build your confidence.

Every rejection trains you to be bolder, clearer, and more specific with what you want – skills that spill into your career, your investing, and even your kids’ basketball team.

So pick up the phone. Ask for a better deal. Get rejected.

Then go again.

Tread Your Own Path!

Buy a House, or Get Screwed?

Hi Scott,

A few years ago, my husband and I lost a lot of money in a housing downturn. We’ve since saved over $400,000 and are ready to buy again, but the market is crazy. Should we invest in shares, buy now and flip in 12 months while prices are booming, or hold off, knowing property in our regional town can crash hard and fast? We’re keen to make a smarter move this time. What would you do?

Terri

Terri,

Here’s a little Barefoot cheat code for you. Whenever someone asks me a money question, the first thing I do is throw it right back at them and say:

“What do you think you should do?”

Because most of the time they already know. They really just want someone to stand there clapping while they set fire to their own eyebrows.

And right now you’re flicking the lighter so close I can smell your monobrow starting to sizzle. That four hundred grand is about to light up your whole face. You’re tossing up buying shares, flipping a house, or sitting around waiting for a crash.

I don’t love any of those ideas.

So let’s flip this around. You’re not really looking for a quick win. You’re chasing financial security after getting your fingers burnt last time.

So why not keep it simple?

Buy a home you can afford in a place you’d be happy to stay for the next 10 years. Boost your super contributions to 15 per cent and enjoy the tax deduction while you’re at it. Then start chipping away at building yourself a nice Mojo account with three months’ worth of living expenses.

Boring? Sure. But boring is beautiful when it comes to money. It’s what lets you sleep through the night instead of lying there at 2am panic-refreshing house prices like a gambler feeding a pokie machine.

Good luck.

Mouldy, Desperate Parents

Hi Scott,

We’ve spent the last seven years stuck in a financial and emotional loop, paralysed by fear of making the wrong decision for our family. Here’s our situation: we have five young kids, two of whom have special needs. The only school that caters to their needs is a two-hour drive in the morning and up to four hours in the afternoon – every single day. We’re barely managing with jobs, kids and constant driving. Meanwhile, our house is nearly paid off, but it has mould, making it a health hazard. It’s also worth only a third of homes near the school.

We’ve inherited $900,000, but it’s tied up in property – meaning we can’t use it to ease day-to-day stress or invest elsewhere. If we sell and buy closer to the school, we risk losing all our financial security. If we stay, we continue to struggle. If we rent, we burn cash but get closer. If we knock down our house and rebuild, we risk sinking into debt. Every option feels like a mistake, so we’ve done nothing for seven years. Meanwhile, property prices keep rising. Scott, how can we break free from this paralysis and make the right move for our family’s future? We’re desperate!

Linda

The property market has been challenging for buyers.

Hey there Linda,

Ever heard of the boiling frog analogy?

Well, you and your husband have been simmering away in that pot for seven years! You’ve got five kids (two with special needs), a six-hour daily commute, and you’re returning to a mouldy home?

You must be ready to croak!

Here’s my take:

You’ve already set yourself up well: your house is nearly paid off, and you’ve got $900,000 to work with. So, why are you still stuck in this pot?

It’s time to jump.

Here’s what I’d do:

First, sell the house.

Second, rent near the school for now – even if it’s for the next 12 months. Think of it this way: you’re buying back 1200 hours of your time each year. Six hours a day, all for your family and your mental health. That’s the most important investment you can make.

Should you buy in the new area?

Maybe. But don’t stress about it right now. Renting buys you time to decide. You can always make the long-term decision when the time’s right.

Don’t get stuck obsessing over the price of rentals. Think of it this way: the price of your rent is worth every hour you’re getting back with your family. And that is the smartest investment you can make right now.

Finally, I want to tell you this: I have a huge amount of respect for you both. You’re holding it all together for your kids, and that’s no small feat. You’re tough. But remember, kids grow up fast, and the time to invest in them is right now. Don’t waste another minute.

Eat the frog!

Good job Odin!

Barefoot Bubbles

My son Odin absolutely loves Barefoot Kids – he’s followed every single step over the past year. He’s even started his own little business making and selling bubble kits! Would you be willing to check out his video and let us know what you think?

Thanks so much,

Proud Parent

Hello Proud Parent,

Because I am fiercely independent, I cannot endorse products. However, I showed my kids Odin’s video and now they are pestering me to buy one of his bubble kits!

He’s a natural salesman, congrats!

DISCLAIMER: 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.

Originally published as Barefoot Investor Scott Pape’s advice for families trapped by uncertain financial futures