…… but first a favour.
Now I appreciate industry awards are a bit lame. But Wealthlab has been nominated as an Impact Finalist as Boutique Advice Firm of the Year and I’d really appreciate it if you could also throw in a vote.
The voting’s a bit difficult but once you add your email and company you work at, just scroll down and you’ll be able to select Wealthlab and then you can hit submit!
Ok on with the newsletter.
From Barefoot to Barebone: When Financial Heroes Lose Their Sole
Scotty Pape, has undergone a transformation that many of his long-time followers such as myself have noticed. Basically if its gotten to a point where my mum is commenting and SO I think it’s worth to highlight in this month’s newsletter. This is a guy who was hailed as a financial maverick offering cutting-edge advice and who’s evolution has left some of us scratching their heads and others reaching for the unsubscribe button. This journey from a fresh voice in finance to a somewhat mellow gen x figure offers an intriguing case study in how financial gurus evolve over time, and how our heroes can sometimes disappoint us with enough time…
The Glory Days
In the beginning, Pape’s advice was fresh and revolutionary. He burst onto the scene in the early 2000s with a no-nonsense approach to personal finance that was a breath of fresh air in a field often clouded by jargon and complexity. Pape introduced concepts like the “bucket system” for managing money and emphasised the importance of talking about money over the dinner table. Challenging traditional wisdom and generally being accountable. His straight-talking approach resonated with everyday Australians, particularly millennials and Gen X, who found his style more relatable than traditional financial books and talking heads before. Pape was the cool, rebellious voice in finance, and his followers were eager to embrace his unconventional wisdom. His books were everywhere including being added to the most stolen item in bookstores. (remember those!)
The Shift
As time passed, Pape’s focus began to shift. He expanded his empire, writing books for families and children, and founding the Barefoot Money Movement. His book “The Barefoot Investor” became a runaway success, selling over 1.3 million copies. However, with this expansion came a change in tone and focus.
The Current State
Now, Pape’s newsletters often feature responses to reader questions that some might perceive as unnecessarily harsh or out of touch. His advice has become more repetitive, often boiling down to “earn more” or “spend less” without addressing the nuances of individual situations. This evolution mirrors a pattern we often see in our heroes as they age: the firebrand becomes the curmudgeon, the revolutionary becomes the establishment.
The Gen X Whinge
Perhaps the most striking change in Pape’s content is its gradual shift from innovative financial strategies to what some might call “Gen X whinging.” Where once he offered cutting-edge advice, now he often seems more interested in complaining about the state of the world or admonishing his readers for not following his advice to the letter. Telling people to stop smoking and telling them to read a book on not smoking was what sparked me to write this column. My reacting was “ok cool man, but I think you’re clutching at straws here..”
This transformation is a stark reminder that our heroes are human too. As they age, they can become jaded, out of touch, or simply tired of fighting the same battles. The rebel of yesterday becomes the grumpy old man of today, railing against a world that’s moved on without them. …. Whilst using a star link connection on a hobby Farm in middle Victoria.
The Irony
Ironically, while Pape criticises readers for their financial choices, he casually mentions his own European trips with his four children or his expansive rural property. This disconnect between his advice and his lifestyle has not gone unnoticed by his audience on Reddit, and further highlighting the gap between the relatable guru of the past and the seemingly out-of-touch figure of today.
The Legacy and Lesson
Despite the changes in his approach, Pape’s core financial principles remain sound, and his impact on Australian financial literacy is undeniable. However, his evolution serves as a poignant reminder of the dangers of hero worship, especially in the realm of guru advice.
As we watch Pape transition from a barefoot revolutionary to a more conventional (and sometimes cranky) voice, we’re reminded that no guru stays cutting-edge forever. It’s a natural progression: the voice of a generation often struggles to remain relevant as that generation ages and new challenges emerge.
The Bottom Line
Pape’s journey from barefoot to barebone serves as a reminder that even the most revolutionary voices can lose their edge if they don’t evolve with their audience. It’s a cautionary tale for both financial advisors and their followers: always be ready to adapt, or risk becoming irrelevant.
More broadly, it’s a lesson in the impermanence of heroism. Today’s financial maverick may be tomorrow’s out-of-touch commentator. As consumers and producers of financial advice, we must be prepared to outgrow our heroes, to take the best of what they offered in their prime while recognising when it’s time to seek new voices and fresh perspectives.
In the end, perhaps the most valuable lesson from Pape’s evolution is not about finance at all, but about the nature of advice and authority. It reminds us to think critically, to question even our most trusted sources, and to be prepared for the day when we might need to thank our heroes for their past wisdom and move on to find new inspiration.
Hanna’s Money Magic: The Secret Sauce to Financial Happiness
Well, who knew the recipe for financial happiness could be as simple as a four-square grid? In my recent podcast chat with Hanna, she dropped this gem of wisdom:
“If you were to think about your money in a 4 quadrant diagram and you’ve got needs, likes, wants, and loves, and you try and align your money with the needs and the loves and strip back on the wants and the likes, I think that’s the way to happiness.”
Simple but elegant.
Here’s Hannah’s the magical money mix:
Needs: The must-haves (roof over your head, food in your belly)
Likes: The “meh, it’s nice” stuff
Wants: The “ooh, shiny!” impulse buys
Loves: The things that make your heart sing
Watch our most viral short of the month
Hannah’s secret sauce? Focus on the ‘needs’ and ‘loves’, and ease up on the rest. It’s like Marie Kondo for your wallet, but instead of asking if it sparks joy, ask if it’s a need or a love!
Want to play along? Jot down your recent splurges and see which quadrant they fall into. Are you living your best ‘needs and loves’ life, or is the ‘likes and wants’ monster eating your cash?
No judgment here – we’re all on this wild money ride together. But hey, if this little quadrant trick helps you squeeze more joy out of your dollars, why not give it a whirl?
Get the full episode here:
Here’s her website:
Catch you on the ‘loves’ side of the quadrant!
❤ Scott, Phil, and the Wealthlab Team
