The Barefoot Investor has encouraged an Australian teacher to move to a regional area to reduce his cost of living.
Jim, a 37-year-old teacher, asked Scott Pape how to transition to another career without taking a major pay cut.
‘I love teaching. I love the sparkle in a student’s eye when they get it. “I love being a stable and constant cheerleader in their lives,” Jim wrote.
Barefoot investor Scott Pape (pictured) has encouraged an Australian teacher looking to make more money to “move regionally” to combat the cost of living crisis.
‘However, things have changed in the last five years – the challenges arising with students not receiving the support they needed during lockdown.
“And the challenges of screen kids: a generation that spends too much time on TikTok and doesn’t have enough time to socialize, imagine, read or be outdoors.”
‘We can’t ask for a pay rise annually as your book suggests. We have a teacher shortage and a looming education crisis: three in four teachers have considered a career change in the last five years.
“So my question is: How can a highly qualified and experienced teacher transition to another career without taking a huge pay cut?”
In response to Jim’s email, Mr. Pape asked how much more money Jim wanted to make.
‘Let’s say you could earn an extra $60,000 a year. “That would give him an extra $3,000 a month after taxes, which, if he invested it, would make a big difference at his age,” Mr. Pape explained.
‘However, it would also mean giving up your calling in life, something that clearly gives you a deep sense of meaning and purpose. You have to put a value on that, and I think it’s worth much more than $3,000 a month.
‘If I were in your shoes, I would consider your costs and perhaps consider moving to a regional area where you can live cheaper.
‘I would also think about how you could increase your income through tutoring. Remember, the grass is not always greener. Sometimes it’s just artificial grass.
Jim asked barefoot investor Scott Pape (left) how he could transition to a different career without taking a major pay cut.
Pape slams government’s plan for more young Australians to gain university degrees
In his column, Pape also encouraged young Australians to gain a TAFE qualification rather than a university degree.
Pape said TAFE and vocational qualifications are not only more practical than university degrees, they are also shorter and “generally much cheaper”.
“It is said that university is for learning and vocational training is for making money,” said Pape.
“I think it’s a very rational choice for a lot of teenagers who have no idea what they’re going to be when they grow up.”
Pape, who has a bachelor’s degree and TAFE qualifications, said he disagrees with people who believe TAFE is inferior to university.
He argued it made no sense for a young person to spend “$40,000 on a degree they might never use” and have to struggle to pay off an ever-increasing HECS debt.
Pape added that there is an “absolute need” for quality tertiary education, especially for doctors, but called the institutes “highly profitable diploma mills.”
‘Do not misunderstand. I don’t want my doctor to have a “Diploma in Appendix Removal” from Broadmeadows TAFE. There is an absolute need for quality tertiary education.’ Pape wrote.
‘However, it is also true that many universities have become highly profitable diploma mills: rapidly raising their fees, attracting full-tuition paying Chinese students, and all too often offering a Zoom-like learning experience.
‘That’s why I was surprised when this week the Government published the Australian Universities Deal Report, which set out the ambitious goal of doubling the number of university places over the next 25 years.
‘Does it really make sense to spend $40,000 on a title you may never use?