Barefoot Investor: Book some time to invest in yourself

From learning to control your attention span to what Bill Gates calls the best business book he’s ever read, these books will beef up your brain.

Barefoot Investor Scott Pape. Picture: Jason Edwards

It’s been a helluva week. We’re in lockdown. We’re homeschooling. All six of us have really bad bronchitis, which in a pandemic makes us about as welcome as a wet dog in a clean house. Oh, and the baby is teething.

So on Tuesday my wife announced she’d booked me in for a telehealth doctor appointment.

The doctor’s first comment surprised me: “You don’t sound like your normal self.”

“But … you’ve never met me before. How would you know?” I asked.

“Oh, I’m listening to your audiobook at the moment ... it’s actually very engaging.”

Right.

If I’d had a voice, I would have screamed, “Just give me some antibiotics so I can hide under my blanket for the next week!” Yet I could only manage to squeak out a feeble “thank you”.

Still, the good doctor gave me an idea: after bingeing on my usual diet of podcasts, I decided to get more beef by tucking into some audiobooks. Here are three that got me through my week from hell.

BILLION DOLLAR LOSER

by Reeves Wiedeman

This is the story of Adam Neumann, a young, egotistical entrepreneur who thought he was the Jesus of business.

Billion Dollar Loser.

It explains how he convinced some of the largest investors in the world to worship his creation. What was it? Well, he called it “a tech-enabled physical social network”. Otherwise known as WeWork, a company that takes large office buildings and rents out desks to freelancers.

In 2019 WeWork was haemorrhaging cash, with annual losses of $US1.9 billion per year. Neumann and his Wall Street bankers tried to sell it to the general public (via a stock market listing) for a ridiculous $US47 billion. Just six weeks later it would be fending off bankruptcy. Billion Dollar Loser is a beautifully bonkers business story.

BUSINESS ADVENTURES
by John Brooks

Bill Gates says this is the best business book he’s ever read. (OK, so Bill has been in the weeds lately, yet, as long as he’s not recommending romance books, I’m in.) This audio actually felt like a podcast, in that it tells 12 fascinating business stories. While the book was first published in 1969, the brilliance is they could have been written today. My favourite? “When Piggly Wiggly Tried to Stick it to the Short-sellers on Wall Street.”

INDISTRACTABLE

by Nir Eyal

Nir Eyal wrote the “bible” for Silicon Valley – Hooked: How to Build Habit-Forming Products. Perhaps he was looking for a shot of redemption, but he followed it up with an equally powerful book that I’ve been listening to this week: Indistractable: How to Control Your Attention and Choose Your Life.

Indistractable.

He argues that people have always been distracted: once it was television rotting our brains, and before that parents were worried their kids were glued to the gramophone. In other words, it’s not the device but your own internal hardwiring that needs to be mastered. The ability to stay focused is a competitive advantage, and the book lays out a framework for being – as he calls it – indistractable.

Oh, and for the kids, the audiobook of Tashi has been in high rotation. Tashi goes on epic adventures and overcomes all sorts of foes (but nothing like facing off against four bored, sick kids in lockdown).

Tread Your Own Path!

One way to rebuild trust is do monthly Barefoot date nights.

My husband’s secret

Dear Scott,

I’m a 48-year-old pharmacist. I have three children and a wonderful husband. All was rosy, or so I thought. My husband, who works in the finance game, has always taken care of our money. The day before his 50th birthday last week, he dropped a bombshell. Unbeknown to me, he had several credit cards and had not paid our taxes since 2017! The tax bill is now being determined by our new accountant (I fired the old one). And, thanks to our Mojo, we’ve knocked over the credit cards. But it has left me feeling angry and betrayed. My husband is extremely remorseful – he honestly thought he could handle the situation and didn’t want to worry me. Any advice?

Claudia

Hi Claudia,

I have a couple of thoughts.

First, check to see where the money has been going – has he been gambling? (Don’t take his word for it. Check the statements yourself. If he has been, he has an illness, and you need to talk to Gambling Help pronto on 1800 858 858.)

As far as the tax debt goes, you’ll be able to enter a payment plan without too much trouble. (You can even do it online via MyGov. Your new accountant can help with this.)

Finally, will you be able to trust him with your money again?

Well, only you can answer that.

However, bear in mind that I doubt he did this to intentionally hurt you ... it just got away from him.

And he’s obviously been living with the stress of this for a long time, hoping to get back in the black.

One way to rebuild trust is to do monthly Barefoot Date Nights, and another is to share the same transaction account.

These two things help Liz and I stay on the same page financially (while drinking wine and eating garlic bread no less!). It works for us, it may work for you.

Good luck!

Our Friends Are Rich from Online Marketing

Scott,

What are your thoughts on online marketing? A friend has introduced me to what is called high ticket affiliate marketing”. She and her husband have quit their 9 to 5 jobs to spend more quality time with their children while working at their own pace, and have travelled extensively. This has got me thinking – should I take a leap of faith and sign up?

Gemma

Hi Gemma,

So this sounds a little like ... a pyramid scheme.

Now, affiliate marketing is selling other people’s products to your customers and getting paid a commission.

And do you know what some of the most lucrative “high ticket” affiliate marketing products are?

Expensive courses on “how to make millions doing affiliate marketing”!

My tip: buy a $30 book, not a $3000 course, and go from there.

My view?

Trying your hand at this is a little like buying a pair of Air Jordans then sauntering up to the Chicago Bulls and saying “I hear you guys make a lot of dough doing this dribbling thing. I think I’ll give it a go.”

If you do, prepare to be dunked!

Good things happen when you connect with a human.

My Fear of Phones

Scott,

I suffer from a strange disorder – a fear of talking on the phone. I am an email, text, Messenger type of person.

But this was costing me money, because our home loan rate was above 3 per cent and negotiating it down would require me to call the bank.

Well, after reading your column recently, I finally found the courage to pick up that phone! I was prepared to follow your script but chickened out and just said, “Hey, I’m looking at my home loan rate, I don’t think it’s competitive, could it be reduced at all?”

A few minutes on hold (while I was prepping myself to be a bit tougher) and they agreed to drop it to 2.19 per cent. Almost a whole per cent off what I would have continued to pay if I didn’t just ask!

Thank you, Chris

Hi Chris

Far out, that’s the softest negotiation I’ve ever heard of! (Us Barefooters must be wearing them down.)

Now Chris, I’m sorry to burst your bubble, but your fear of phones is not unique.

I used to employ a couple of highly educated Millennials who were ABSOLUTELY TERRIFIED of making calls.

I’d get charged too much for something and I’d say, “Ring ’em up and dispute it!”

“Can’t I just email?” they’d plead.

No! Good things happen when you connect with a human.

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.