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The Wealthy Barber Returns

In Books on January 9, 2012 by letusbenefityou.com

I enjoyed some R&R over the holiday season.  Some time away (Dominican Republic) gave me an opportunity to reflect.  Not a bad thing to do every once in a while…

Between swimming, surfing, tanning, playing baseball (with the locals) I managed to read a book.

For Christmas, I was given a copy of  The Wealthy Barber Returns.  Similar to his first book The Wealthy Barber, David Chilton still advocates paying yourself first (IE. saving 10% of your income).  The sooner we do this the sooner we can take advantage of compounding interest.

Some other points I found enlightening/refreshing were:

Track your money:  Watch where you’re spending.  Keep track of every dollar spent for 2-3 months.  Though tedious, this helps to shed light on habits and can lead to better ways of allocating and saving.

Rule of 72:  (72 divided by yearly interest rate) determines how long it will take to double your money.  For example if you invest $10,000 at 6%/year it will take 12 years for it to turn into $20,000.

The best things in life aren’t things:  Canadians have taken on sky-rocketing amounts of debt (LOC- Lines of Credit) in the last 2 decades.  Live within your means and spend less than you make.  It’s better to spend your money on experiences that can be cherished forever versus things that lose their lustre and cause us to want to buy more to replace them.

Overall it’s a decent read and relatively quick for those wanting to do some financial thinking.  It serves as an index or “potpourri” of ideas;  Is it better to put money into your RRSP or TFSA? How should you be investing?  Should you pay off debt first?

Watch David Chilton on The Hour w/ George Stroumboulopoulos.

Let me know if you’ve read the book or have any thoughts on it.