Single mum's heartbreaking plea to Barefoot Investor about inheritance

What Scott Pape told the mum to do with the substantial payment was surprising.

There are so many freedoms that come with being a single mum (speaking from experience), but occasionally, things get overwhelming, and we need some advice from someone we can rely on.

One single mum recently found herself in such a position, regarding her budget and cost-of-living situation; so she reached out to finance guru Scott Pape, aka The Barefoot Investor, for his take on things.

What he told her was most unexpected, because it goes against what many might think should be done. 

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"I don't know where to turn"

The mum writes:

"Scott, I’m a university-educated freelance graphic designer. I’m also a single mum, with a 10-year-old.

"My rent is 85 per cent of my income and there are no housing solutions in sight. I receive no financial support from my family or my son’s father. We have moved 11 times since my son was born."

Sarah then admits her situation is at breaking point.

"I’m depressed, defeated, tired.

"I have $8,000 in debt, and a $10,000 inheritance I’m scared to accept – because I can’t do much with it except spend it on food and rent, and then it’s gone.

"I just don’t know where to turn or how to begin finding security for my son. I want off this rollercoaster. I go day by day, meal by meal, always seeming to find a way to feed my child but never getting ahead.

"With my massive living costs, and high debt repayments (I’ve already talked to the various hardship departments), my question is what should I do with the $10,000?"

It's a situation many can relate to in 2024, even without the inheritance.

Image: iStock/supplied

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The Barefoot Investor answers inheritance question

Pape, who's always been ready to help anyone struggling, especially single mothers, replies:

"Sarah, you’re doing an awesome job to just get through each day. In years from now your son will be proud of the sacrifices you’ve made for him."

He continues with a hard truth: "However, the truth is that if 85 per cent of your income is going towards rent, you can’t survive long term. The numbers just don’t stack up.

"You need to either earn more money or find cheaper accommodation – or both. (Which is very easy for me to say, as I’m not the one who’s had to move 11 times in the past decade.)"

And while Pape knows it's tempting to use the inheritance to pay down her $8000 debt as it's presumably accruing interest, he offers unexpected sage and supportive advice instead.

"As for the $10,000, I’d suggest you spend it on survival," he says, clearly prioritising alleviating the daily pressure on the mum.

"Don’t spend it repaying any of your outstanding debts. In fact, right now you shouldn’t be making any repayments.

"The only thing you should spend your money on is essentials: A roof over your head. Power. Food on the table. Clothes. Medicine."

Pape's personal offer to the single mum

Knowing that Sarah is struggling, he encourages her to reach out for financial counselling - but there's a hitch.

"What you do need to do is see a financial counsellor (1800 007 007). However, this week it’s going to be me who calls you, and I’ll do my best to help."

Pape also points out the wider value in Sarah's request for support.

"Finally, thank you for writing to me. There are well over one million people who have just read your question, and hopefully it’s given them a window into the world of a low-income single parent trying to survive in the richest country on Earth."

As an advocate for sole adult families myself, I thank Pape for his understanding.

DISCLAIMER: Information and opinions provided in the 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 Single mum's heartbreaking plea to Barefoot Investor about inheritance