The Wealthy Barber – David Chilton

10 Responses

  1. A must read for anyone interested in finance!
    Sarah De Diego recently posted…Experience the Arts at a @ShawTheatre Play #HamOnt #NiagaraMy Profile

  2. Leo T. Ly says:

    I was fortunate enough to have read this book in my mid twenties and applied the knowledge from this book to save about 15% of my income on an annual basis. After I got married, I encouraged my wife to do the same.

    We directed all of our savings to our RRSP accounts first to get a tax break and then use the tax refund to maximize our TFSA accounts. Pay yourself first is definitely a great way to save. It gets easier if you start this early and only spend what’s left after you pay yourself. After ten years, you’ll see a sizeable amount in your accounts.
    Leo T. Ly recently posted…Basic Investment ConceptsMy Profile

  3. Pellrider says:

    I like David Chilton’s style of writing. Both the books are interesting.

  4. Nice review PCI. I completely agree that you spend more when your checking account is high as that’s a problem I’m trying to break. If I have easy access to money I’m just going to spend it.

    Pay yourself first was a huge change in mindset st behavior for me and I think a powerful idea to adopt for building wealth. I used to live paycheck to paycheck without being able to save for anything. But once I started paying myself first, it made life a little less stressful.

    One suggestion if possible is that it also helps to have money sent to an account directly from your paycheck without it even arriving in your checking account. That’s ideal as you learn to love without that money.

    Again great review.
    Dividend Portfolio recently posted…How I Tackle DebtMy Profile

    • The automatic deposits are definally a good option. I personally dont do it. I like to decide what accounts to fund each paycheck. Ie if i throw 500$ in my sons resp i like to see the govt match 20% before adding another 5! =) haha

  5. Once Burnt says:

    Back in 1989, an investment adviser (Anyone could call themselves that back then) gave me the original version of The Wealthy Barber published in 1989. The book unequivocally stated 15% annual rates of return would be the norm going forward. Your RRSP should double every 7 years even at a “conservative” 10%/yr.
    I was young and na├»ve. 30 years later I am sadder, wiser and much poorer. It turned out Mr. Chilton was very young and had essentially no investment expertise at the time he wrote the book. I did see him in an interview years later, they asked him if he was rich and he said he was. From following his own advice? “No, from writing my book! Haw, haw!”

    Do yourself a favour and find a copy of the 1989 original. Read it, compare his predictions to what has actually transpired. Then make an informed decision if this man knows anything about investing.

    • Rob says:

      hey burnt

      Sorry to hear. Those do sound like high rates of return.

      Did he emphasize paying yourself first? If he did and you were saving 10% of your income what were you investing in?

      Sounds like you should be richer today if you took that advice and got returns half of what he stated.

      Ill try to find the 1989 one and give it a read.

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