I recently picked up this book on a trip to Kmart. It’s a finance book that brags about it being ‘the only money guide you’ll ever need’, and naturally when I saw that tagline, I rolled my eyes.
I can confidently say that that cocky tagline was right. It is the only money guide I’ll ever need. The Barefoot Investor is a fantastic book that explains to you in REAL words exactly what to do with your money.
I know that sounds like bullshit, but it’s true. The author, Scott Pape, tells you what he’s done with his money and hints that you should do the same. I admit that once reading this book, I did my own research on the bank websites and through finder.com.au which is ideal for finding what bank and what product is best for you.
Anyway, I soon discovered that Pape was correct in telling me that (I’m paraphrasing here because I gave the book to my mate) ‘the Big Four are probably screwing me over’.
Okay, so he didn’t say it like that. But it’s true. They are. The Big Four (also known as the Commonwealth Bank, ANZ, NAB and Westpac) rely on your unwillingness to switch it up. As humans, we are creatures of habit and safety. If these big banks have been around for ages, they’re probably going to stay that way. Correct?
Yes. But you’re not going to make any money off the money that you give them. I had a Netbank saver account with the Commonwealth Bank and guess what my rate of return was on the money I put in there.
Just guess. I can guarentee you’re guessing higher than what it is.
It was 0.07%. HOW PATHETIC IS THAT.
Pape manages to give you as the reader all the tools you need and yet still allows you to come to your own conclusions. He simply says ‘here’s what I know, it’s up to you what you do with it’, which is a mentality I found really refreshing. The book is easy to understand, everything is laid out in simple terms (although, some chapters do require reading more than once), and it’s so liberating to be in control of your own money.
If you’re interested in finding more about it, either buy his book and get ready to have your entire financial life changed or go to his blog, which you can find here. Let me know if you’ve read it!