Finance expert Scott Pape is urging Australians to buy a $69 safe from Bunnings to store their personal documents in their home.
Mr Pape, who is also known as the Barefoot Investor for his best-selling financial advice books, lost all of his possessions and his home when it was razed to the ground during a 2014 bushfire.
But his personal documents – like his will, bank details, login details and anything of significance – were saved because they were stored in a fireproof safe.
Bunnings is selling a small fireproof and waterproof safe which is easily transportable and small enough to carry in emergencies, Mr Pape said in a Herald Sun column.
Mr Pape, who is also known as the Barefoot Investor for his best-selling financial advice books, lost all of his possessions and his home when it was razed to the ground during a 2014 bushfire
Bunnings is selling a small fireproof and waterproof safe which is easily transportable and small enough to carry in emergencies
‘We lost everything when our house burned to the ground except our important documents,’ he said.
‘Having all those docs made the process of rebuilding our financial lives that much easier.’
Mr Pape said there was no need to fork out on an expensive or huge safe, revealing he had been forced to hire a locksmith after his son left the keys locked inside one.
But his family has now returned to the company Bunnings safe, and urged his readers to invest in the same one.
Mr Pape regularly offers his readers advice on how to become financially literate and navigate tricky topics like investing, saving and spending.
Most recently, he assessed the 2020 Federal Budget and urged people against following the advice offered by the Treasurer.
The budget included tax cuts for 11 million Australian workers of all income levels backdated by two years to July 2020 and cash bonuses up to $500 for five million welfare recipients.
The average, full-time worker earning $89,000 a year stands to receive $2,160 cash back while families with dual incomes can pocket up to $5,490.
The Treasurer hopes those fortunate enough to still have a job after the Covid downturn will spend their tax cuts to help create jobs and pull the country out of its first recession in almost three decades.
‘Australians will have more of their own money to spend on what matters to them, generating billions of dollars of economic activity and creating 50,000 new jobs,’ Mr Frydenberg told Parliament last month.
Mr Pape is also known as the Barefoot Investor for his best-selling financial advice books
But Mr Pape had other ideas and urged people to be prudent with their money.
He admitted he was not on ‘team Australia’ in reference to a slogan previously deployed by former Liberal prime minister Tony Abbott.
‘The centrepiece of the government’s budget are tax cuts that encourage us to ‘spend, spend, spend,’ he said in a News Corp Australia column.
‘Yet after poring over the budget papers, the message I’m giving you is to ‘save, save, save.’
Mr Pape said cash was king in an uncertain economy despite returns on term deposits and savings accounts at all-time lows.
‘As this budget sets out quite clearly – we’re heading into the deepest economic downturn in our lifetime – so having a bit of padding is a bloody good thing,’ he said.
During a time of crisis, governments from both sides of politics resort to stimulus spending, based on past evidence that money in the hands of citizens will be spent, creating demand for goods and services as part of a ‘multiplier effect’.
British economist John Maynard Keynes’ approach has been deployed since the 1930s after an earlier focus on paying down debt during a crisis worsened the Great Depression.
Mr Frydenberg – who in 2010 complained ‘our government is too big’ – has embraced Keynesianism by delivering a budget deficit of $213.7billion for 2020-21.
This will comprise 11 per cent of gross domestic product – a level unseen since World War II – as backdated tax cuts cost the budget $12.5billion for 2020-21 alone.
By the middle of 2022, gross government debt is set to surpass the $1trillion mark for the first time ever.
Mr Frydenberg declared efforts would not be made to rein in government spending until unemployment was ‘comfortably’ below six per cent.
Tax cuts for 11million Australian workers of all income levels have been backdated by two years to July 2020 – giving average-income earners relief of $2,160