Barefoot Investor - Is It Worth The Hype ?

So a few of my friends regularly post about how reading the Barefoot Investor book has changed their life dramatically. For example one posted basically that because of the book they saved $200 a month on internet and mobile plans and another $200 a month on shopping around on insurance policies …..

I mean that's all well and good for them, but don't people shop around anyway ? I know that I shop around anytime I am out of contract or if I get a insurance renewal I never take just run with it….I shop around for every thing basically !!

Are his money saving principals really that basic ?

(I'm ready for all the loves of Barefoot to shoot me down which is ok but I really don't get what the hype is ?)

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Comments

  •  

    I thought the same, untill I actually read the book… I think you need to borrow it from your friend even for 1 night and have a flick through. It's in easy to read sections and not over whelming. I feel that you will have a better understanding.

  • +6 votes

    Alright I might get shot down but here we go.

    A lot of the advice that Barefoot gave is common sense, yes, but it provides a basic building blocks in sorting out your financial mess.

    His basic mantra is set and forget. The easier it is for you to manage your finances, the more likely you will want to adopt the strategy. It's not that we don't know that we should spend less, or that we should budget. It's just how much part that we normally struggle. Barefoot recommends as a basic:

    60% of your monthly income for daily expenses.
    10% of your monthly income for your personal spending.
    10% of your monthly income for your short-term savings.
    20% of your monthly income for what I say, "flexible" money.

    The "flexible" money is used to either finishing down your debt, paying off mortgage, topping up your long-term savings.

    To be completely honest, during our last holiday overseas for about 3 weeks, we only used whatever we have in the short-term savings, without dipping to any of the other buckets.

    I wouldn't go as far as "This book is 10/10 and is better than a slice of bread", but it does change the way you think about money.

    •  

      60% of your monthly salary for daily expenses? Really? No way man.

      • +3 votes

        Depends how much your on. $50k per year, add kids, you would be lucky with 10% left imo.

      • +2 votes

        I think that includes rent/ mortgage payments. If you’re living in a state capitol thats at least 25%

        •  

          Should've mentioned, but yes.

          Mortgage/rent payments, groceries, etc. Basically fixed expenses you occur every month.

          Eating out etc goes under personal spend/splurge.

        •  

          Yes the 60% daily expenses include rent/mortgage payments, bills. I’ve labelled mine as “living expenses”.

  •  

    Read the book and found to be useful information. I was already doing most of it.

    So gave it to people whom I know need this basic information. It helped them to set a few things straight (friends and family).

    Signed up to the blueprint. Paid like $400 annual subscription which was refundable.
    Found it pretty underwhelming for that price. Similar to motley fool may be?? So got the refund back. Not an education source, just a subscription based guidance where only Scott is the real winner. The bigger the community the better money he is on.

  • +1 vote

    Would say that I am more financially savvy than average. Grabbed the audiobook as a freebie on Audible. Didn't learn a lot, but enjoyed his attitude and did actually make a few changes (namely investing in shares (ETFs) monthly). Absolutely worth my time investment.

  • +3 votes

    I am a qualified accountant. I flipped through the book and found it as a canned advice with basic financial good habits with really weird terminology. I would highly recommend going to moneysmart website instead. This book is not for everyone.

  • +9 votes

    I have this book! I found a copy at the Australian Open 30 years ago left behind probably by one of the spectators.

  • +1 vote

    Its essentially a book fur the financially challenged debt ridden simpletons that blow their money on mindless unaccountable consumption. We all have friends like this, the ones you have tried to educate in the past but simply don't get it. Then they read this book because its popular and they sudden have their epiphany.

  • +2 votes

    That book makes ppl to hunt bargain and cause economics issues apparently

    • +1 vote

      there are levels of wealth for the low-average person whos dream is to own there own home look after there family, maybe go on a holiday now and then and retiree with enough money to be comfortable. Its good enough.

      If you are in the next level or even the level above that where you want the new Mercedes AMG, the pent house apartment or mansion, the beach our in Rye etc i dare say have the barefoot investor wont get you there.

      Everything is about risk and how much you are willing to lose - i know ppl who made a truck load on bitcoin and I know people who lost a truck load on bitcoin - the barefoot investor is say bitcoin (or more so the block-chain movement) is not a good investment though he does concede block chain is the future it is hard to know which cryptocurrency is future. - if you made a tone of money on bitcoin sure you would be like the barefoot investor who have no clue and if you lost you would be like where was this advice before i lost my house….

  •  

    Totally irrelevant but I run a food review business and eat out almost everyday.
    Recently I had to do a major tooth operation. I'm inclined to think that it's definitely tax-deductible. Anyone thinking the same, ATO?

    • +3 votes

      Seems like you're trying to bite off more than you can chew…
      Well,if it's not a deductible you're just going to have to bite the bullet.

  •  

    Not too much info in the book that I didn't already know

  • +1 vote

    This is an excellent book for anyone with outstanding debts (excluding HECS).

  •  

    General consensus is it's fine for a complete noob to personal finance, other than that, it's just a collection of the most basic PF and FI tips and knowledge. If you've already done a bit of research don't waste your money. If you're a dope who can't manage your own money - yes buy it and sort your life out.

  • +3 votes

    Here is some sound financial advice.

    Don't get married and then get divorced. That will cost you a lot.

    Don't pay for things that you don't need to please people you don't like.

    Don't have the fear of missing out on bargains and again buy on impulse.

    Plan your spending and your earnings and track them.

    Set achievable goals both in savings and in life.

    Pay for things with your own money instead of someone else's.

    Take a risk or 2 with your spare money tgat you can totally lose and maybe something might happen like you win on a poker machine or the stock market.

  • +2 votes

    I think this is an excellent book for people to read, especially in their early twenties. It's really nice that some people just know this stuff and see it as common sense, but there's a lot of people out there who grow up in an environment where common sense is not the norm and this book really helps reset their thinking. My parents, as much as I love them, were useless with money, I grew up in a single parent family, my Dad blew all his money before he died - so when I moved out of home on my own, I had a vague idea of what I didn't want to happen, and I knew that I needed to keep money in my saivngs account so my bankcard would never get cut up, but beyond that I truly had no idea. This book set me on such a good path and I don't think it's right to belittle people who find value from it - now that I think about it, why would you belittle anyone who improves their knowledge or common sense on a topic?!

    Read the book, you might learn something. Of course, since you know it all, it might be a complete waste of time for you but you'll never know unless you dive in.

  •  

    Is the 2017 version wildly different than the most up-to-date version, anyone?

  •  

    It is useful for people who have little if any common sense.

  •  

    I read it and felt like I do most of the things, but thought it would be a great read for others in my family. Sadly though, the ebook version from Google Play Store isn't eligible for family sharing.

  • +1 vote

    I thought the book was a bit condescending..and I find his attitude to be the same to any one that questions his methods..

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