The Barefoot Investor Summary: The Barefoot Investor is a personal finance book, which focuses on being happy, healthy and financially free.
Title: The Barefoot Investor
Author: Scott Pape
Publisher: Warner Books Ed
Date Published: 2004
Subject: Personal Finance
About the author: Scott Pape is an Australian author and financial advisor who lives in rural Victoria. Scott has had a long career in many large financial institutions and turned to financial advice and planning as this was his passion and enjoyment. Scott goes by the name of Barefoot Investor as depicted in his weekly articles in a variety of newspapers including the Courier Mail, Herald Sun and Adelaide Advertiser. Scott is an advocate for living within your means and living a lifestyle full of fun, family and enjoyment and not one of obscene wealth, lavish dinners and fancy bottles of wine.
The Barefoot Investor PDF: No this book is not available for free download, you will be required to purchase the book.
Part 1: Plant
Step 1: Schedule a Monthly Barefoot Date Night
Step 2: Set Up Your Buckets
Step 3: Domino Your Debts
Part 2: Grow
Step 4: Buy Your Own Home
Step 5: Supercharge Your Wealth
Step 6: Boost Your Mojo to Three Months
Part 3: Harvest
Step 7: Get the Banker off Your Back
Step 8: Nail Your Retirement Number
Step 9: Leave a Legacy
The Barefoot Investor Review:
The Barefoot Investor is his first book in which establishes the following steps:
- Schedule a monthly barefoot date night
- Set up your buckets
- Domino your debts
- Buy your home
- Supercharge your wealth
- Boost your mojo to three months
- Get the banker of your back
- Nail your retirement number
- Leave a legacy
There are some key takeaways from the The Barefoot Investor book, which I implemented myself.
The first was to look at your superannuation situation. There are some seriously dodgy superannuation funds out their charging ridiculous fees and not really providing any additional service or return to substantiate the high fees charged, you need to avoid these super funds. There is a few funds which are highlighted being low fee and good return which are not affiliated to Scott in any way. He just sees them as good products and recommends them with a strong justification. If you have your super in other accounts you can easily change the funds across to these new super funds and Scott shows you how to do so.
The next is to assess the banks which you hold your money with, a lot of people stick to the same bank their entire life and Scott explains how much of a market there is for banks to attend primary schools and force their products onto these kids who are very unlikely to ever change there bank. There are several banks which offer very good services and their fees are much lower than the main four banks.
The next takeaway I got from this book was the establishing the buckets, which is very similar to Robert Kyobashi’s Rich Dad Poor Dad where he says to pay yourself first. By setting up multiple accounts and establishing automatic transfers between the accounts when you get paid the entire saving process can be effortless. As soon as you get paid the money is split up across the various accounts and all of the stress is taken out of it.
For those people with debt, there is a relatively easy and effective debt reduction strategy, which can really help a lot of people out.
And lastly relating to passive income there is example of share investing and real estate investing, which are very clear and detailed that even the dullest tool in the shed can understand.
Overall this book is very broad and sets the scene for financial freedom and really does set the tone required to be a passive income. It does not have very many detailed strategies of passive income however it is a must read for those interested in the topic.
Scotts book was so popular that he came out with an updated version for families shortly after which I have not read yet but judging by the quality of the first it will be an excellent read.
Make sure you grab a copy and check out the Barefoot Investor Scott Pape.