Meet Robbo, Barefoot Investor’s best worker

Barefoot Investor has invested in a robot mower which has given him awesome bowling green-like lawns and more time to spend with his kids.

Today I want to introduce you to the best worker I’ve ever had.

His name is Robbo, and he started working for me about six months ago.

Each morning I get up at 5am and head over to the barn to start work … yet I’m always beaten by Robbo, who’s already well into his workday, quietly getting the job done.

Robbo is the nickname I’ve given to my robot mower.

When I first got Robbo, a landscaper mate of mine mocked me:

“You paid a grand for that thing? Geez, they saw you coming!”

Today he’s the one eating grass. My lawns look like a freaking bowling green.

In fact, they’re actually a little too good. People either think we have a full-time gardener, or that I’m that manic neighbour who edges his path and keeps plastic bottles on his lawn to ward off weeing dogs (you know the guy).

If you read the reviews on robot mowers they’re almost universally positive. “Why didn’t I get one of these years ago?” they say.

Probably because they weren’t invented. They’ve been around since the nineties, but they really took off a few years ago, mainly in Europe, where there are millions of them.

My prediction?

Jim’s Mowing needs to sharpen up their offering.

But don’t weed-whack me, Jim! It’s just that I can foresee that robot mowers will gradually fall in price … and in a few years you’ll have one.

Barefoot Investor expects robot mowers will gradually fall in price.

That’s because they’re essentially a plastic Tonka truck (about the size of a vacuum) with a $6 cutting blade, powered by the same 20-volt battery that goes into your cordless drill.

All you need to do is lay down guidewire around the perimeter of your yard (or not – the latest robots do this automatically via GPS). It’s all hooked up to an app on your phone which assesses rainfall and calculates the growth rate of different sections of the grass (via artificial intelligence). Then it works throughout the night cutting a few millimetres off your grass with each turn (which acts like a fertiliser), before it heads back to its charging base.

For me, it means I can spend more time with my kids (who really should be mowing the bloody lawn themselves!). In fact, I’ve just now hired ‘Rodney’ – a robot vacuum – to work night shift at the barn.

Tread Your Own Path!

I Was On FIRE and Now I Just Want Out!

Hi Scott,

I am 21 and got sucked in by the FIRE movement. I put $50,000 (my life savings!) into diversified high-growth index funds last year when values were reaching historic highs. Now everything’s starting to crash, and my parents have been encouraging me to sell my shares and move the funds into a savings account before it drops further (in doing so, I would make a loss of at least $7000). I had originally invested this money for the long term, with the aim of selling the shares in five to ten years’ time. Do you think my parents have the right idea?

Sarah

The FIRE (Financial Independence Retire Early) movement involves living frugally in your 20s and 30s and investing up to 70% of your income into low-cost index funds so you can retire in your 40s or earlier.

Hi Sarah,

No, I do not think your parents have the right idea.

I think your parents love you, and they want to cocoon you from the risks of the big bad world.

(And as a parent myself I totally understand their motivation.)

Now, this is important: the really important life lessons – the ones that shape you – happen when things don’t turn out as you planned.

And, Sarah, you’re having one right now.

The FIRE (Financial Independence Retire Early) movement involves living frugally in your 20s and 30s and investing up to 70% of your income into low-cost index funds so you can retire in your 40s (or earlier).

For me it’s the financial equivalent of the grapefruit diet. It gets impressive results, but it’s incredibly hard to sustain over the long run. It’s just too hardcore for most young people.

However, its underlying principles – save hard, and invest long term in low-cost index funds – is absolutely, positively the right way for you to go.

With that said, here are three things for you to think about:

First, you say you plan on selling your shares in “five to ten years’ time”. That’s not enough time to benefit from the power of compound interest. Ideally you want to hold your shares throughout your life, reinvesting the dividends along the way.

Second, even though it seems bad, the share market actually isn’t down that much right now. There’s every likelihood that you’ll suffer a 50% drop in the value of your shares at some stage. That’s the price you pay for getting high long-term returns. So shop for shares the same way you do clothes: if you work out prices are down and shares are on sale, get excited and buy more.

Finally, if the reason you’re wanting to sell is to buy a house, DON’T SAVE IN THE SHARE MARKET. Instead park that money in an online saver or term deposit.

Know this: there are millions of people reading these words, wishing they were you: a young intelligent woman at the start of her adult life with a well-stocked share portfolio, and loving parents.

You Got This!

Hiding My Savings From My Hubby

Hi Scott,

My hubby racked up debt under both of our names from a repeatedly failed business idea. I’ve told him it’s risky and not to do it anymore, but he just resents me for ‘not supporting him’. He’s a financial bully. I have now left work and had a baby, so he can’t get money from me at the moment (he always tells me to give him money). Yet I secretly saved lots of cash before I left work. I keep it in a UBank USaver, but is it still best kept there? Do you have advice for people like me who have a financially reckless spouse?

Lisa

‘Financial bully’ is another name for ‘abuser’.

Hi Lisa,

‘Financial bully’ is another name for ‘abuser’.

You absolutely did the right thing saving up a secret stash before you went on maternity leave – without it you’d be in a very vulnerable position.

What advice do I have?

First, being married doesn’t mean you should have to put up with being bullied.

Second, I’d suggest you both see a relationship counsellor to get to the bottom of these issues. Unless you confront it head on, things are unlikely to change.

Finally, if he refuses to get counselling, you should go and see a financial counsellor yourself (1800 007 007) and get some strategies to help build up that potential getaway fund … which is okay in UBank or any other account that he doesn’t have access to.

Save My Mum, Please!

Scott,

Help, Help, Help please. I need to save my mum from certain death! I know this sounds dramatic but the situation is dramatic. Last June, my parent’s house was damaged by a storm and it’s still not fixed. My elderly mother’s been suffering massive panic attacks since this enormous tree fell on their house and then in January my father suddenly passed away, adding to her stress. Do you have any advice on how to get RACV Insurance to deliver the service my parent’s have paid for? My siblings and I fear the stress will kill her and soon!

Cathy

After storm damage, your insurers should assign you an assessor, a claim number and contact details.

Hi Cathy,

I understand.

The RACV should have assigned your mother an assessor, a claim number, and contact details.

I would take what you’ve written to me – though put it in her words – and have her email it to the RACV, and request an urgent review and response within ten business days.

If she doesn’t get an adequate response, email me back, and I’ll take it on for her.

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.

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

(HarperCollins)RRP $29.99

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