Scott Pape’s cracked the Christmas shopping code

Books on financial speculation, the private thoughts of the wisest Roman emperor in history and the best way to change your habits are in Scott Pape’s Santa sack this year.

Christmas shopping sucks, right?

Not for me. Years ago, I cracked the Christmas shopping code: I buy people books.

They’re the ultimate present — they cost under $30, they don’t need a separate card (I simply scribble a Merry Christmas message on the inside cover), and my local bookstore will even gift wrap them for me.

Job done!

Here are the books I’ve got in my Santa sack this year:

Devil Take the Hindmost: A History of Financial Speculation

Edward Chancellor

This is probably the best book on financial speculation ever written.

Devil Take the Hindmost finds that most speculative booms over the past 400 years have followed the same script: It begins with a breakthrough technology that promises to revolutionise the world and deliver untold riches to investors.

The early investors make a fortune, which attracts novice investors (who often gamble with borrowed money). And then, when least expected, prices begin to wobble. The true believers see it as a blip, and buy the dip.

And then comes Black (Insert Day), when prices plunge and everyone loses their mind, and their shirt. This book is a great gift for anyone who holds Dogecoin.

Meditations

Marcus Aurelius

It’s been said that the majority of the stuff we consume on our phones was created within the last 24 hours.

We snack on clickbait headlines, mean tweets and skin shots like sugary junk food designed to hit our dopamine receptors. And it leaves us feeling empty, insecure and unsatisfied.

My view? It’s time to get a bit more fibre in your information diet.

A book is the ultimate Christmas present.

Tweets can be fired off on the toilet. Clickbait articles are spun out in media sweatshops solely for eyeballs. Writing a book, on the other hand, takes hundreds of hours of labour, deep thought and craft. And the very best stand the test of time – some literally for thousands of years – like Meditations, by Marcus Aurelias.

It’s called that because that’s what you’re reading: the private thoughts and meditations from the wisest Roman emperor in history, who is riffing on how to be a strong, stoic person … and not totally freak out and rock in a corner with crippling anxiety when you’re surrounded by war and disease.

“When you arise in the morning, think of what a privilege it is to be alive, to think, to enjoy, to love ...” (but presumably not to scroll mindlessly through Insta).

A great gift for anyone face down in their newsfeed over Christmas lunch.

Atomic Habits

James Clear

This is easily the best book on habit change I’ve ever read.

Let’s say you want to develop the habit of going to the gym. Rather than relying on willpower, or positive affirmations, or flogging yourself, Atomic Habits will get you to break the habit down as small as possible, like putting on your runners and showing up at the gym but not forcing yourself to go in and work out.

What’s all that about?

What you’re doing is proving to yourself that you’re the type of person who turns up at the gym. “Every action you take is a vote for the type of person you wish to become. No single instance will transform your beliefs, but as the votes build up, so does the evidence of your new identity”, says Clear.

A great gift after the trainwreck of the last few years. I mean, who doesn’t want to make a few changes in 2022?

Tread Your Own Path!

My Son is a TikTok Star

Hi Scott,

My 15 year old son owes a lot to homeschooling. He became super creative and started a TikTok profile @tcezy uploading weird, dark and mysterious content. He has amassed a huge 5.7 million followers in just over a year.

We get daily emails from all sorts of companies wanting him to promote something but so far he has only agreed to one and it made him a staggering $10,000. Now that could be it. But for the moment what should he do with it?

Jackie

Hi Jackie

So I just spent way, way, way too long watching your son’s videos.

Then again, that’s the point right?

He’s got more engagement than any prime-time television show, and unlike the idiot box, his ads won’t be a signal to duck off to the dunny.

In other words, this is a genuine business (though his business partner is a super creepy Chinese Artificial Intelligence company that is manipulating its users).

Still, if your son can continue creating great content he’ll have hit the jackpot: a well-paid job he’d gladly do for free!

TikTok stars should think about their saving goals.

As for what to do with the $10,000, I’d ask him to think about his saving goals:

Will he want a car in a few years?

If so, he’s better off saving it in an online saver.

However, I’d encourage him to invest the bulk of it in shares (there’s plenty of apps that can do it at a low cost), and only check the price every few years.

What an adventure. You should be proud!

Help Me Get My Hubby’s Money

Hi Scott,

Two weeks ago, my husband had a workplace injury that left him with a shattered skull and in an induced coma. He is now in an acquired brain injury unit. He is making progress each day but the long-term impacts on him, his work and our life have yet to be discussed. I only work two days a week as we have two young children. The question is, as we have separate bank accounts, how do I gain access to his account? And what do you suggest I do to support my family financially?

Kelly

Hi Kelly,

What an absolute disaster. I can’t imagine how stressful this would be for you … so I’m going to be very specific on what you should do.

First, you need to lawyer up.

Provided your husband was not a contractor, his employer must, by law, have Workers Compensation insurance.

Here’s the dance: you want the maximum payout, whereas the insurer wants the minimum. That’s why you need a workplace compensation lawyer to provide you counsel.

Second, hopefully your husband has both a medical and financial power of attorney (POA), so you can act on his behalf, and if not, get them written up. That’ll allow you to access his bank accounts.

Get your lawyer to look over your ‘breathing room’ letter.

Finally, after you’ve put the kids to bed, pour yourself a cuppa and write this five-part ‘breathing room’ letter:

1. Explain what has happened to your husband.

2. Write emotionally about the effect his accident has had on you and your kids.

3. Describe what the loss of income has meant for you so close to Christmas.

4. Ask for a minimum three-month moratorium on your payments (so you won’t have to pay anything till February 2022). That will give you breathing room while you explore compensation arrangements and apply for any Centrelink payments you may be entitled to.

5. Attach any workplace or medical reports.

Bring this letter when you see your lawyer and let them look over it.

Then send it to your bank, your insurer, your utilities providers, and any other companies that will be charging you big bills in the next few months. (If you’re not sure where to send them, Google the provider’s name and ‘hardship department email’).

If any of your creditors give you any pushback, email me back and I’ll sort it out for you.

The Scented Candle

Dear Scott,

Three years ago I bought your book when I could least afford it, with six-figure debts written on my fridge door. I took you and the book to dinner every week as I was dying inside and out.

Today I buy your book as a gift for everyone I know. It’s my standard go-to, like a scented candle, but with a brighter flame when ignited. I can see the black line fast approaching, and I answer private calls these days. The red line is in my rear vision mirror.

I just wanted to say thank you for literally saving my financial life. I didn’t go bankrupt. I made the calls. I cried with you. And screamed at you and learned from you. And formed a great relationship with my creditors. And survived. I began to live again. I educated myself and found a new kind of personal wealth. Thank you.

Jasmine

Hi Jasmine,

That’s one of the nicest emails I’ve received this year, and a fitting one to end 2021 on.

Merry Christmas to you and your family.

You Got This!

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

If you have a money question, email [e-mail] .

Originally published as Scott Pape’s cracked the Christmas shopping code