Barefoot Investor’s top 10 tips to less stress

With interest rates on the rise things are looking a bit gloomy but you can sleep easier at night if you follow Barefoot Investor’s top ten tips to stress less.

Scott Pape is The Barefoot Investor.

Good lord, things are looking gloomy!

Some experts are predicting that interest rates will hit 3.5 per cent by next year … which would be thirteen additional hikes in almost as many months.

Yikes!

That explains why I have so many people writing to me right now who are really stressed out.

However – and this is important – I’ve come to understand that most people stress out about the wrong things: about things they can’t control. Bugger that. So today let me give you 10 productive things you can do right now to stress less.

1: Schedule a Monthly Barefoot Date Night

Seriously. I know you’ve probably read my book (I’m not being a wanker, I’ve just sold more than two million copies so there’s a very good chance there’s one on your shelf). The big takeaway from that book, and the entire Barefoot Steps and plan, is to do a monthly Barefoot Date Night. If you’ve fallen out of the habit, now is a great excuse to start again. Comb your hair, grab your phone, and let’s do these tips together.

Schedule a monthly date night.

2: Crunch Your Numbers

Pick up your phone and google MoneySmart’s “Net Worth Calculator”. In five minutes you’ll have a number that represents how much you are worth (or at least a good estimate if you haven’t had too many wines, which you shouldn’t have because it’s only Tip 2).

3. Bitch, Don’t Switch!

I’m sorry to break it to you, but if you haven’t switched lenders in three years there’s a good chance you’re getting screwed on your home loan rate. If you have more than 20 per cent equity in your home, the next step (while you wait for your calamari rings) is to call up your bank and bitch (rather than go through the hassle of switching). A good variable rate to demand is 2.09 per cent. Bitch.

4. Give Yourself a Stress Test

The regulator is scared witless that the banks have lent you too much money. You know that, right? So every so often they make the banks do a financial ‘stress test’ to see if you’d end up on the streets if rates went north. Don’t wait to find out: tonight, we’re going to do our own ‘mortgage stress test’. Pick up your phone and google MoneySmart’s “Mortgage Calculator” and see what your repayments would be if interest rates went up 0.5 per cent, then 1 per cent, and maybe 2 per cent. If what you find makes you wheeze, keep reading …

5. Get a 5 per cent Pay Rise (At Least)

You need to hit your boss up for a raise. Seriously. She’s expecting it anyway. With inflation burning through 5 per cent of your wallet each year, you need to get at least a 5 per cent payrise this year, or you’ll be going backwards. You have two choices: make sure you’re getting paid your market rate (google what jobs are advertising) or send an email and have a chat with your boss.

6: Empty Your Financial Closet

You have at least one financial skeleton in the closet. I know you do. Everyone does. It could be that non-performing investment property you bought at a seminar, or your brother-in-law’s dodgy stock tip. We’re coming into tougher economic times and you need to carefully – and openly – assess all your commitments. More time sitting on these decisions won’t make it any better. “Pee or get off the pot”, as my grandmother would say.

7. Live Like a Millionaire (Even if You’re Not)

Most money-saving tips are relentlessly boring, embarrassingly obvious or eye-rollingly lame. (If you decide to wash your windows with potatoes, you’ve got bigger problems than I can handle!) I have a different approach. You should spend money on things that make you happy, and viciously cut costs on things that don’t (like interest paid to a bank). And, if all else fails, buy yourself a Dunlopillo. It’s the pillow of billionaires, and will at least give you a good night’s sleep. You’ll thank me for it later.

Spend money on things that make you happy.

8: Cover Your Bases

I guarantee you that one of the biggest financial risks is the one you’re not thinking about. Namely, what would happen if your house got broken into, flooded or burnt down? (It’s really not that uncommon – all three have happened to me!) Well, if you’re normal, you won’t have enough insurance to cover it. About 80 per cent of homeowners are underinsured, according to the Australian Securities and Investments Commission (ASIC). So bust out all your insurance policies and make sure you have enough cover.

9. Stop Listening to Experts (Including Me!)

A few years ago I got in trouble for writing a column where I asked Australia’s leading financial experts for predictions on the share market. What they didn’t know was I also asked my golden retriever the same questions (he answered by how many times he shook my hand). The experts were furious to be made fun of. Yet they were really in the dog kennel 12 months later when my dog licked their chops.

The lesson: don’t listen to experts’ predictions (including me). Stop focusing on clickbait headlines and start focusing on the things you can control. Like these tips.

Focus on things you can control.

10. Ask For Help

Here’s the truth: feeling terrified is not conducive to making good decisions. It’s time to stop the terror and get back in control. If you’re really in trouble, call the National Debt Helpline on 1800 007 007. They’ll put you in contact with someone like me — a free, independent, not-for-profit financial counsellor.

The Government has also set up the Small Business Debt Helpline, which is run by Financial Counselling Australia. If you know someone who’s struggling in their own small business — and there are plenty of them right now — let them know they’re not alone. Call the helpline on 1800 413 828 or visit sbdh.org.au.

So there you have it.

Ten things you can do that will put you back in control for whatever life throws at you — all with a glass of wine in your hand!

Originally published as Barefoot Investor’s top 10 tips to less stress