The only finance book you need to read? Maybe. Its good place to start.
Scott Pape has labeled The Barefoot Investor as the only finance book you will ever need. I have to agree with the statement to a degree, it helps you get out of debt, save, invest and look ahead to the future. However, you should use it as a base upon where you build your knowledge from. However, it only works if you do the work.
The book is a step-by-step guide, where Scott runs you through all the little things you should do to clear your debt, save and invest your money in and why. He has done a brilliant job of simplifying finance so a single mum can clear her debt and start saving for an initial down payment on a home. The book is littered with feel-good stories of people like you and me showing you that the principles Pape employs himself work, and you don’t have to be a financial wizard to become financially stable.
The book, however, revolves around couples who go out on date nights, and that between the two of you, you have to be making at least 1000 and month. Of course, this is great for those that can achieve that. However, if you are a struggling uni student who is single it’s a bit harder. Yes, that is only a very small minority of people, but none the less I believe that everyone should at least read the first 6 steps of the book as they will set you up quite well. For everyone else who can make the collective $1000/month, this book is a must.
Pape also lets you know you don’t have to be a tight-arse to do all these things, he doesn’t even want you to budget. He gets you setting up an autonomous banking system each account with different names like ‘splurge’ and ‘daily expenses’ also the names that you write on your bank cards to make sure that you don’t mistake the cards.
I will say that the book will help you get out of debt, save money, and invest your savings, however, you must implement the strategies put forth by Pape, as he won’t be setting up your bank accounts. Well, he might if you ask him nice enough. Furthermore, you should read other books that will broaden your understanding of finances. I enjoyed ‘The Richest Man in Babylon’ which follows a similar outline of Pape’s book, but more Laws that you should abide by regarding money.
Overall ‘The Barefoot Investor’ is a great finance book that is easy to follow and understand, Scott Pape lays it all out in layman terms in a step-by-step format. However, the process will only work if you put it in place! I will post an update on how my finances are going once I have implemented the content for a longer period of time.
If you liked my 5 takeaways and want to pick up the book for yourself, consider buying through my affiliate link. If you do, I will receive a small commission.
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