The Wealthy Barber: A great introduction to personal money managment


I remember in high school, I took a business class for my grade 10 elective.  I went into it with a pretty bad attitude, I just wanted an easy class that I didn’t have to think too much in.  My teacher probably realized that this is why most of us were in the class (aside from the one or two who actually liked “business” type stuff), so she didn’t really give us a lot of work.  Instead, our first day in the class we were handed a book titled….

You guessed it.  The Wealthy Barber by David Chilton.

This book was probably the best thing that happened to my grade 10 self.  With financial information told through the eyes of a barber, David Chilton makes sound financial knowledge not only interesting… but understandable.  And from a teen’s point of view, this is really important!  So if you don’t already have a copy of this great business class aid, then you should probably check out the local bookstore and give it a try.

David Chilton’s popular The Wealthy Barber is a good starting point for anyone who wants to construct a personal financial plan. Many people are so scared of dealing with their money that they don’t do anything at all–only to suffer for it over the long haul. Chilton shows that planning is simple and you don’t have be a whiz kid to set yourself on the route to financial security. “When I finally learned the basics of financial planning, I couldn’t believe how straightforward they were. It’s just common sense,” is the overarching message.

The Wealthy Barber takes the form of a novel, though it wouldn’t win many awards for plot, setting, or characterization. The narrator, Dave, a 28-year-old school teacher and expectant father, his 30-year-old sister, Cathy, who runs a small business, and his buddy, Tom, who works in a refinery, sit around a barber shop in Sarnia, Ontario, and listen as Ray Miller, the well-to-do barber, teaches them how to get rich. The friends are at the age when most people start thinking about their future stability; among the three of them, they face almost every broad situation that can influence a financial plan. Ray, the Socrates of personal finance, isn’t a pin-striped Bay Street wizard. He is a simple, down-to-earth barber dispensing homespun wisdom while he lops a little off the top. Ray’s barbershop isn’t the place to learn strategies for trading options and commodities. Instead, his advice covers the basics of RRSPs, mutual funds, real estate, insurance, and the like. His first and most important rule is “pay yourself first.” Take 10 per cent off every pay cheque as it comes in and invest it in safe interest-bearing instruments. Through the magic of compound interest, this 10 per cent will turn into a substantial nest egg over time. This book isn’t about how to get rich quick. It’s about how to get rich slowly and stay that way.

– Amazon reviewer, Edward Trapunski

 

More Boring But Important Info:

Reading Time: 4 hours (to absorb all the info and highlight cool tips)

Rating: 4.5/5

Re-Readability: 5/5 (I read this once a year)

Price: Chapters – $16.95 / Amazon.ca – $9.85 USD

Another great book for students first beginning to learn how to handle their own finances is  Start Late, Finish Rich: A No-Fail Plan for Gaining Financial Freedom at Any Age by David Bach.  I love his Latte Factor!  Plus, his website is full of great resources.

What are some of your favourite financial help books?

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