Scott Pape tells wife not to resent husband for earning less

BUILDING a life together and building a family together requires a team effort. So cut your partner some slack, writes Barefoot Investor.

A couple’s income may differ now but that could change significantly.

BUILDING a life together and building a family together requires a team effort. So cut your partner some slack.

LISA ASKS: I currently earn a good salary, save around 35 per cent of my pay, do not have any debt (other than HECS), and am a long way into saving for a deposit for a house. My husband is a second-year apprentice who earns less than half what I do. We split most expenses 50/50, though I pay a bit more rent. I feel like I have to save for the two of us, and this stresses me out. I also feel resentful that he is not in the same position to save for our future as I am. How would you handle this situation?

BAREFOOT REPLIES: Here’s a refresher for you: “I, Lisa, take this (poor young up-and-coming apprentice) to be my lawfully wedded husband, to have and to hold, from this day forward, for better, for worse, for RICHER, for POORER, in sickness and in health, until death do us part.”

That’s what this is about. You’re building a life together — you’re building a family together — that requires a team effort. So stop being a ball-breaker and cut your husband some slack: apprentices get paid bugger-all while they’re learning their trade — but at least he’s not incurring a HECS-HELP debt. Yet if he’s a hard worker, his income will jump in the years after he gets his ticket. Now, before you blow your stack and write me an angry reply, let me share this with you this little titbit: I can chart my increasing income back to the day that I met my wife. Since we met, she’s been my biggest cheerleader.

 

DROP IT LIKE IT’S HOT

WILL ASKS: I got caught up in the mining boom and bought an investment property in Karratha, WA, at the peak. While the economy was booming it was great, but now rent is just 25 per cent of what I used to get and the property has halved in value. I have to fork out $200 a week to cover the interest-only loan, on top of rent, insurance, rates, et cetera. It is crippling. Luckily, I had paid off the mortgage on my home. I am thinking my only option is to ride it out, hoping it will eventually go up again. What else can I do?

BAREFOOT REPLIES: No, you have another option … you can sell, cop the loss, move on, and focus on the future. Truth is you bought the financial equivalent of a Beanie Baby when everyone was losing their … beans. As a result, you’ve anchored yourself to a price that may not be seen for decades, even though the mining sector is picking up. If you think you were given poor advice, or believe you were given a loan you shouldn’t have entered into, you can make a complaint to the Financial Ombudsman Service (FOS) — a lot of the mining town investments were sold by sleazy seminar spruikers — but it’s a slim chance. Look, the only thing you can have some control over is your out-of-pocket costs — and the longer you hold on to this turkey, the more it’ll cost you. In all the years I’ve been doing this, I’ve never seen time turn a bad investment into a good one. Having said that, only you can make the decision on when it’s time to sell.

GAMBLING ON FUTURE

HELEN ASKS: I knew my mum had debt, but when she finally ’fessed up, I was absolutely shocked. She owes $90,000 in credit cards and personal loans due to gambling and spending. She is aged 60, has $120,000 in super and earns $2000 a fortnight. She lives with my brother and pays no bills. She has now agreed to turn things around and has given gave her credit cards to me. Please help.

BAREFOOT REPLIES: You should congratulate your mum for admitting the extent of her financial problems — that’s a really big step. No doubt she feels a lot of shame about her situation. Now, you both need to be realistic about the hole she’s in: gambling addiction is a horrible disease that takes a lot of time and a lot of effort to treat. Having your mum hand over her credit cards is a symbolic step — kind of like an alcoholic tipping their booze down the sink — but it doesn’t stop her from going out and poking the pokies when she gets a craving. Here’s my thinking: if your mum doesn’t have any assets, she could look at declaring bankruptcy. Reason being, after you’re declared bankrupt, you can earn up to $54,736.50 per annum before having to make repayments to your trustee — and your mum earns under that. In other words, she could stiff her creditors, wipe out her consumer debts, and keep all her income. Just writing that makes me feel physically ill — but that’s the dollars and cents of it. Once she’s got that sorted, she has an even bigger hurdle to face: she has reached her preservation age, and she’ll be able to access all her super in five years. If she’s not on top of her gambling addiction, there’s a chance she’ll blow it. Then she’ll be the one who gets stiffed ... by the casino.

KEEP YOUR MONEY

BEC ASKS: I am a 30-something single renting — and I have saved up a $25,000 deposit towards a home. My dear dad is an expat on a whopping wage overseas but has just lost half his retirement money to his very predictable ex-girlfriend. He wants to retire next year at 60, and his super is good but he will only have $250,000 to buy a place when he returns from overseas. I am thinking of putting my deposit into a loan to go halves with him in a property for him to live in. Am I silly?

BAREFOOT REPLIES: Yes, that is a silly idea. Your old man is actually in a very fortunate position: he’s still got a decade of work ahead earning a “whopping wage”. So all he has to do is keep his hands to himself and keep working until he can afford to actually retire. If only every question was this easy! Keep saving for your own joint.

Read more Barefoot: 

Financial advice for when your spouse is terminally ill

The heartache of being a small business owner

Following the Barefoot Steps puts victim on right path to financial security

Why gifting first-home buyers cash is bad

Wife exposed financially as philandering husband uses up any trust

The Barefoot Investor holds an Australian Financial Services Licence (302081). This is general advice only. It should not replace individual, independent, personal financial advice

 

The Barefoot Investor: the only money guide you’ll ever need (Wiley $29.95). heraldsun.com.au/shop