The Barefoot Investor Scott Pape’s one piece of financial advice that will change your life

Barefoot investor Scott Pape praised the simple financial advice of an Aussie.

The man, named Darren, wrote to Mr Pape and said he struggled to relate to struggling Aussies, despite earning more than $100,000 a year.

Darren revealed that he is lucky enough to earn half that amount in a year, but was still able to save a 20 percent down payment and buy a house.

This despite being a single earner and having five young children who all depend on him.

A clearly impressed Mr. Pape told Darren that he had discovered how being in debt “enslaves you.” He also said to him, “You got this!”

Darren revealed how he and his family, including five young children, travel across the country in a caravan

Darren wrote, “What kind of expensive neighborhood and lifestyle do your readers live in?

“We travel across the country in a small pop-top caravan, homeschooling our kids while I work online. I don’t believe in sponging the government either, so we don’t put our hand out for social benefits.

“You don’t have to make a lot of money to have a worthwhile life in this country, and kids don’t have to go to a posh school or after-school care to get an education or be successful.”

Mr. Pape told him, “You’ve discovered what many people eventually find out when it’s too late: debt enslaves you.

And if you can avoid being in too much debt, you’ll be happier. Life is short and the time you have with your children is even shorter.”

In another “Ask Barefoot” article, Pape warned Aussies to think twice before buying a home with only a two percent down payment.

He revealed a letter from a woman who managed to buy a unit as a low-income single mother who is also a caregiver and sends money to a parent living abroad.

Jane said she made a two percent deposit when interest rates were low, with help from the then-coalition government’s First Home Loan Deposit Scheme.

But with her fixed rate coming to an end, her mortgage nearly tripling, she’s “terrified” and wants advice on switching banks to keep her costs down.

Mr Pape was blunt in his reply, saying ‘Jane is about as likely to move banks as Peter Dutton is to become Prime Minister’.

Scott Pape (pictured left with his wife Liz), better known as the Barefoot Investor, has given a double thumbs up to the idea of ​​buying a home with just a two percent down payment

Mr Pape was blunt, saying ‘Jane is about as likely to move banks as Peter Dutton is to become Prime Minister’. The picture shows a house for sale

“She had virtually no equity in the joint to begin with, and things went wrong from there,” he said.

“So not only is she deep in the red, but more importantly, her interest rate is about to triple, and her repayments could take her food off the table.”

Jane had admitted to him in her e-mail that she went “against what you recommended” because “the government said they were helping me buy a unit.”

Mr Pape said it was her mistake to put her trust in politicians.

“I don’t blame her for wanting to buy her house,” he said.

“The problem is that she trusted the politicians to act in her best interests, not theirs.”

Mr Pape said he had put Jane in touch with a financial adviser who will work with her and her bank to try to find a way forward.

“But it won’t be easy,” he said, adding that just a two percent down payment is nowhere near his limit.

“I believe if you can only save a five percent down payment… you really can’t afford a house.”