The Barefoot Investor: The Only Money Guide You'll Ever Need
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- Type：Epub+TxT+PDF+Mobi
- Create Date：2021-03-22 17:11:37
- Update Date：2025-09-06
- Status：finish
- Author：Scott Pape
- ISBN：0730324214
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Summary
** Reviewed and updated for the 2020-2021 financial year**
This is the only money guide you'll ever need
That's a bold claim， given there are already thousands of finance books on the shelves。
So what makes this one different？
Well， you won't be overwhelmed with a bunch of 'tips' 。。。 or a strict budget （that youwon't follow）。
You'll get a step-by-step formula: open this account， then do this; call this person， and say this; invest money here， and not there。 All with a glass of wine in your hand。
This book will show you how to create an entire financial plan that is so simple you can sketch it on the back of a serviette 。。。 and you'll be able to manage your money in 10 minutes a week。
You'll also get the skinny on:
Saving up a six-figure house deposit in 20 months
Doubling your income using the 'Trapeze Strategy'
Saving $78，173 on your mortgage and wiping out 7 years of payments
Finding a financial advisor who won't rip you off
Handing your kids （or grandkids） a $140，000 cheque on their 21st birthday
Why you don't need $1 million to retire 。。。 with the 'Donald Bradman Retirement Strategy'
Sound too good to be true？ It's not。
This book is full of stories from everyday Aussies -- single people， young families， empty nesters， retirees -- who have applied the simple steps in this book and achieved amazing， life-changing results。
And you're next。
This is the only money guide you'll ever need
That's a bold claim， given there are already thousands of finance books on the shelves。
So what makes this one different？
Well， you won't be overwhelmed with a bunch of 'tips' 。。。 or a strict budget （that youwon't follow）。
You'll get a step-by-step formula: open this account， then do this; call this person， and say this; invest money here， and not there。 All with a glass of wine in your hand。
This book will show you how to create an entire financial plan that is so simple you can sketch it on the back of a serviette 。。。 and you'll be able to manage your money in 10 minutes a week。
You'll also get the skinny on:
Saving up a six-figure house deposit in 20 months
Doubling your income using the 'Trapeze Strategy'
Saving $78，173 on your mortgage and wiping out 7 years of payments
Finding a financial advisor who won't rip you off
Handing your kids （or grandkids） a $140，000 cheque on their 21st birthday
Why you don't need $1 million to retire 。。。 with the 'Donald Bradman Retirement Strategy'
Sound too good to be true？ It's not。
This book is full of stories from everyday Aussies -- single people， young families， empty nesters， retirees -- who have applied the simple steps in this book and achieved amazing， life-changing results。
And you're next。
Reviews
Arzu
，
Review to come
Maaz Ahmed
，
The only book self-help book that arguable comes true on the promise it makes in the sub-heading。
Shlomi Almoslinos
，
A must read
Emma Bothwell
，
Reassuring to know I don't have to be a financial expert to manage my finances。However。 A good friend of mine pointed out there is a great deal of focus on couples - specifically， safe relationships where money is easily discussed。 My response to that was that it was a very bare bones guide and was probably trying to be as generic as possible， but she correctly countered that bare bones guides in a world filled with different life paths should include some reference to abuse and fear。 What if a Reassuring to know I don't have to be a financial expert to manage my finances。However。 A good friend of mine pointed out there is a great deal of focus on couples - specifically， safe relationships where money is easily discussed。 My response to that was that it was a very bare bones guide and was probably trying to be as generic as possible， but she correctly countered that bare bones guides in a world filled with different life paths should include some reference to abuse and fear。 What if a woman needs her own bank account because that's the only way she can survive， leave， etc。？ What are some ways to walk away， or get out？ What about elder abuse？There were a few other areas that felt presumptuous 。。。 the part about being able to increase your income by doing more work and volunteering your time sounded particularly white-male-privilege-y。 Also the line where he says realizing he'd never talked to his parents about their retirement plan made him feel like "a plastic surgeon who's wife has saggy boobs。" Come on， man。 I will recognize that while he doesn't build intersectionality into the book's advice， single women with kids who have left relationships make up a large chunk of the 'the real people， real life examples of success' he gives at the end of each chapter。 But you'd think that 。。。 given the number of examples these women make up， he'd want to cater to a greater variety of people？ I suppose if you ignore the complete disregard for intersectionality that accompanies Pape's suggestions， then 。。。the advice is good。 But should you ignore such a gaping void？ 。。。more
MikiRei
，
It's a very easy read and did reveal a couple of useful information that I didn't know about e。g。 cash-back mortgage broker， investment bonds for kids。 If anything， it also provided affirmation on things I'm already doing。The one thing I didn't quite like is the book is still fairly "white Australian centric" if that makes sense。 There's no examples in there from migrant Australians。 For example， I don't quite agree with the advice he provided for people to look further out into the countryside It's a very easy read and did reveal a couple of useful information that I didn't know about e。g。 cash-back mortgage broker， investment bonds for kids。 If anything， it also provided affirmation on things I'm already doing。The one thing I didn't quite like is the book is still fairly "white Australian centric" if that makes sense。 There's no examples in there from migrant Australians。 For example， I don't quite agree with the advice he provided for people to look further out into the countryside to find a cheaper house rather than staying in the city。 As an Asian Australian， country Australia is not exactly a welcoming place for me to live in。 It's great to visit but if I said I've never received one or two stink eye from some people in the outback because of my Asian apperance， I'd be lying。 To me， that advice ONLY works for Anglo-Australians。 It's impractical for virtually any other Australians as you'd be too far away from a familiar support network。 I suppose that section of the book is really him saying， instead of being hell bent on buying in the more "desirable" suburbs that's more expensive， open your mind a bit further in compromising so you could have a forever home quicker。 Other than that， I felt this was a solid advice book that's quick to read and easy to implement and would still recommend for others to read - particularly if you're not that financially savvy - just to get a quick 101。 。。。more
Kadi
，
This book is more relevant to Australians， but there are still some important things to learn from this book。 There is a big difference in salaries and living costs in Australia and Estonia， but with time and effort， I believe that all is possible。 As Scott said "。。。 this book isn't for flicking - it's for doing。。。"。The Barefoot Investor is meant to give you control over your money and your life。 To get financial freedom， you need to take charge。 It's much more important to start than it is to b This book is more relevant to Australians， but there are still some important things to learn from this book。 There is a big difference in salaries and living costs in Australia and Estonia， but with time and effort， I believe that all is possible。 As Scott said "。。。 this book isn't for flicking - it's for doing。。。"。The Barefoot Investor is meant to give you control over your money and your life。 To get financial freedom， you need to take charge。 It's much more important to start than it is to be smart。 This book focuses on feeling secure with being debt-free and the money you have managed to put aside。 Nine Barefoot Steps to follow:1。 Schedule a monthly barefoot date night。Once a week， for the next five weeks， and after that once a month you'll be going on a money talk with your partner， friend or by yourself。 Week 1 - Banking Bank fees - how much are you paying and can you avoid them？ Maybe it's best to look for another bank。 Look also into international fees and interest rates。 Set up two transaction accounts - everyday expenses and splurge。 Set up two savings accounts - smile and fire extinguisher。Set up a completely separate account in another bank as an emergency fund that is hard to reach and spend from - mojo。Scott has the same account with his wife and they each have a card for that account。 They have an agreement that they can each spend 400$ without asking permission。 Spending over that amount needs to be discussed。 Week 2 - SuperannuationHow much are you paying for fees and should you change your fund？ Changing funds may also cost， is it worth it？ Should you be making extra contributions to your super？Week 3 - InsuranceHouse burning down or getting robbed， car accident， travelling， hospital， death or permanent disablement， being unable to work。 "I am thinking of switching。" are the words to lower insurance costs。2。 Set up your buckets。Divide your money into three buckets:1。 blow （expenses and some splurge money） - 10% splurge （short-term， e。g。 shopping， alcohol， coffee）， 10% smile （long-term， e。g。 holidays， weddings）， 20% fire extinguisher （e。g。 debt， home deposit， mortgage） and 60% daily expenses。2。 mojo （safety money） - fill it up with $2000 as fast as possible （work overtime， sell staff etc）。 Use it only in an emergency like job loss， healthcare or your house burning down。3。 grow （long-term growth） - property investments， super that is paid by your employer and rolled over super funds。 Week 4 - Set up your bucketsCalculate your spendings and income。 Look for ways to cut costs。 Draw down the buckets for a visual plan with numbers suitable to you。 3。 Domino your debts。How did you learn about money？Credit card = debt card。Week 5 - Depts1。 Calculate your debts （exclude mortgage） - name of debt， total amount， interest rate and monthly minimum。 2。 Negotiate - call your bank about credit card debt， tell them how long you have been a loyal customer and that your debt is stressing you out。 Tell them that you have an offer from another bank and can they match that offer or offer something else。 3。 Eliminate - cut up your credit cards。4。 Detonate - make the same table from first point but this time write them down from smallest to largest。 Start by getting rid of the smallest debts from fire extinguisher account。 But after that keep on using daily expenses account。 5。 Celebrate。Earn more money by making a commitment （and possibly getting a raise or a bonus）。1。 Make a commitment。2。 Do your homework - go through your job description， what does your position give to the company， write down your three fundamental tasks and set yourself ambitious goals for each task over the next 12 months。 3。 Take control of your performance review - present your list of prioritised tasks and goals， and genuinely ask your boss for feedback。 4。 Put your goals on the calendar - goal is to do little every day， and tracking your progress。 5。 Casually follow up with your boss over the next 12 months。 You could also take part in projects for free to learn about that field and get useful contacts。 Freelance， start doing something besides your job - tutor， write articles etc。 4。 Buy your home。Save a 20% deposit - fire extinguisher account。Month 1 - Buying your forever homeHow many months it would take to save up the deposit？ 1。 How can you pay less rent to save up for deposit？ Move， downsizing， negotiate or share housing。 2。 What can you do to earn extra money？3。 How can you live off one wage？ When you have a partner。5。 Increase your super to 15%。You can invest through your super or do it separately。 Over the long term the sharemarket has never failed to outpace the rise of inflation。 If you stash your money under the bed or keep it still on your account， it will be standing still while inflation is running forward， slowly eating the power of your money。 By diverting money to super you may be able to slash your marginal tax rate。 Month 2 - Boost your super to 15%Add another 5。5% to the 9。5% that your employer pays for your super。 For kids you can have three jars to make the learning visual - splurge， smile and give （to support those in need）。 Older kids can have three accounts。 Children should help with tasks around the house etc。 to earn money。 6。 Boost your mojo to three months。Month 3 - Save up 3 months of mojoEnough money on the side gives you a feeling of security。 Boost your mojo up to three months。 3x your monthly income。 Instead of 20% going into your fire extinguisher account， it will now go into your mojo。 7。 Get the banker off your back。Mortgage - an agreement till death。 Month 4 - Get the banker off your backCall your mortgage bank and ask for a discount。 Say that you are a loyal customer， that you could get a better interest rate elsewhere but wanted to check with them first given your longstanding relationship。In addition to minimum payments from your daily expenses account you will be using fire extinguisher account。 8。 Nail your retirement number。You can't retire until you've nailed your retirement number as a minimum and the more money is better。 In Aus $250 000 for couples （$36 301。20 a year） and $170 000 for singles。 Even in your retirement keep on working as it is believed to make you happier and less depressed。 Month 5 - Nail your numberWork out how much you currently have in super。 Work out what will be your income when you retire - there are plenty of online calculators where you can add your age， expected retirement age， annual income， current super balance， investment choice， and extra repayments from your fire extinguisher account。You never know when something will happen to you or your loved ones。 You should keep a folder of the following information:1。 Advisors - your accountants， lawyer， financial planner， stockbroker or other professionals。2。 Bank accounts - account details and passwords for every account that has money in it。 Details about your loans。3。 Investments - print off your latest share portfolio including share registry details， your managed fund holdings， your superannuation account details and titles to any properties you hold。 4。 Insurance policies - policy numbers and relevant telephone numbers。5。 Funeral instructions。6。 Personal documents - birth certificate， marriage certificate， copies of your driver's licence， passport and any other important things。7。 Passwords。8。 Up-to-date will - include the name of your executor and your enduring power of attorney。9。 Make a memorable video of your parents （and of yourselves） - how did you meet， what does being a parent mean to you， what are you most proud of， what advice can you share with me about money， life， and happiness， how would you like to be remembered。9。 Leave a legacy。How will you be remembered？ 。。。more
Greta
，
Overall this was really good and probably the best financial book you’ll read。 The only reason I’ve given it 3 stars is because a lot of it doesn’t apply to me at this point in time。 Once I start a career and do all the adult things like getting a home loan， then I’ll definitely refer back to this。
Maslin Amir
，
This review has been hidden because it contains spoilers。 To view it， click here。 Most relevant to Australians but there are some strategies for newbies。
Lauren W Tuiavi'I
，
Well worth the read！ Not just a boring finance book， Scott shares his on real life experiences and others' of hitting rock bottom and growing to become financially free Well worth the read！ Not just a boring finance book， Scott shares his on real life experiences and others' of hitting rock bottom and growing to become financially free 。。。more
Benji Sky
，
Great basics for all。 Better suited to readers in later stages of life。
Merryn
，
I am now one of ~those middle class millennials who has this book， albeit a bit late。 Don't worry， I'm not about to smack you over the head with my orange ING cards and force it down your throat。The good:* The Australian perspective。 Some money rules are universal （money in > money out） for example， but things like super， tax， credit scores etc are a bit different in Australia than in the America focused wider internet。 It's really helpful to see these things in context for how they actually are I am now one of ~those middle class millennials who has this book， albeit a bit late。 Don't worry， I'm not about to smack you over the head with my orange ING cards and force it down your throat。The good:* The Australian perspective。 Some money rules are universal （money in > money out） for example， but things like super， tax， credit scores etc are a bit different in Australia than in the America focused wider internet。 It's really helpful to see these things in context for how they actually are for us， especially if （like me） you're a bit out of your depth with your financial literacy。* I actually love the bucket system。 Having the splurge account in an entirely separate account with a separate debit card is genius to me！* The general uptick of financial literacy。 Scott makes a fantastic point that it's suss that a lot of Australian children get their financial education from the country's biggest provider of credit cards。 Although， that somewhat leads me to。。。。The bad* Is it not slightly hypocritical that he condemns Commbank and Dollarmites for this and yet was apparently （in his own words here） partially responsible for bringing Virgin Money （at least partially a credit card provider） to Australia， and is also financially educating us？ To be fair， he does educate on the dangers of credit cards like he says Commbank are unlikely to， so that's not a very fair criticism。 * My big criticism， however; I don't vibe with the general undertone of "pulling yourself up by your bootstraps。" There's a comment at the beginning that particularly irked me。 Talking about how many of our grandparents successfully navigated the Depression without credit cards and thus we should too - he says part of their success was because， quote: "They didn't expect handouts - being on the dole was something to be ashamed of。" This completely neglects to cover the many people who became destitute and their families starved during the Depression， *regardless* of how much they scrimped and saved， and how important and valuable welfare and support are now as much as then。 It also puts welfare in a negative light - something to "be ashamed of，" which is a stigma that perpetuates falsities about the "type" of people on welfare。 It perpetuates the view that "our" money shouldn't go to "freeloaders who clearly aren't following Barefoot*'s advice correctly and are in this situation through their own fault。" *or other personal finance guru of your choosing。That particular view didn't sit well with me， and may have coloured my understanding of other parts of the book， such as most of section 2 "Grow" where he advises you should work unpaid overtime to get a promotion in order to earn an apparently impactful extra $5000 a year。 How about we pay people a decent living wage that's inline with the work they do， without forcing people into labour so they can simply thrive。 He suggests teachers take up tutoring for additional money - perhaps one of the most under-appreciated jobs in this country， who surely deserve more pay， not more work。All in all though， socialist rant aside， I think this was a good book。 Useful advice （particularly in Section 1， focusing on getting control of your spending and any debts）， and well communicated in a way that clearly resonates with a lot of Australians。 I'm glad I read it， especially given my own lack of financial literacy， and I've definitely taken away a few key points。 I wouldn't recommend anyone join *any* cult， least of all a grind-hustle-werk culture finance cult， so I'd say to take it with a grain of salt， but I would say it's worth reading。 。。。more
Itamar Junior
，
Easy to digest lessons for people who already save and want to adapt their strategy to Australia and those who don't even know where to start。 Easy to digest lessons for people who already save and want to adapt their strategy to Australia and those who don't even know where to start。 。。。more
Shayne Albert
，
It's okay。 If you've read any forum， article or books about financial freedom it does repeat the same （golden） advice to save what you earn， invest what you have， and increase what you take in。 It's Australian focused approach is both a positive （if you live in Australia） and a negative （if you do not）， as it talks specifically about retirement plans here。 The author does provide some actionable transcripts e。g。 how to negotiate your mortgage。 There's an odd/unique play on how to move between th It's okay。 If you've read any forum， article or books about financial freedom it does repeat the same （golden） advice to save what you earn， invest what you have， and increase what you take in。 It's Australian focused approach is both a positive （if you live in Australia） and a negative （if you do not）， as it talks specifically about retirement plans here。 The author does provide some actionable transcripts e。g。 how to negotiate your mortgage。 There's an odd/unique play on how to move between the stages of clueless to financially free with dinner date conversations on your current status and the next step。 This could be good， if done in action can help the reader take action。 。。。more
Kristoffer Kjær
，
Mere eller mindre bygget på de samme principper som The Total Money Makeover - så derfor en rigtig solid bog。 Dog tager den meget udgangspunkt i at man skal bo i Australien， så det tager lige toppen。 Men ellers rigtig fin bog， men jeg vil nok hellere kigge på TMM end denne bog。
Denis
，
This book is mainly focused on Australians but as an European I had a few things to learn from it。 I definitely recommend it to anyone， since it's short and easy to read。 This book is mainly focused on Australians but as an European I had a few things to learn from it。 I definitely recommend it to anyone， since it's short and easy to read。 。。。more
Caitlin
，
definitely a book to come back to when I have a real job。 heaps of great savings tips that I'd like to implement but the stuff about debt and mortgages weren't applicable to my situation。 definitely a book to come back to when I have a real job。 heaps of great savings tips that I'd like to implement but the stuff about debt and mortgages weren't applicable to my situation。 。。。more
Thomas
，
Good read on achieving FIRE， a little different for Americans since this is Australian based， LOVED his buckets BLOW-GROW-MOJO！
Leigh
，
Step 1Schedule a Monthly Barefoot Date NightStep 2Set Up Your BucketsStep 3Domino Your Debts Step 4Buy Your HomeStep 5Increase Your Super to 15 Per Cent Step 6Boost Your Mojo to Three MonthsStep 7Get the Banker Off Your BackStep 8Nail Your Retirement NumberStep 9Leave a Legacy
Ebony Lord
，
Ok as much as I appreciated an easy financial read， I am stripping stars off my initial rating as I discovered the specific advice Scott gives does not consider the environmental consequences of the financial institutions he invests in。 For example， the bank he tells us all to use ING Orange due to its next to zero fees is a dirty fossil fuel supporting entity。 Despite the bank's heavy marketing purporting their support of renewable energies， it scores dirty on the Market Forces bank comparison Ok as much as I appreciated an easy financial read， I am stripping stars off my initial rating as I discovered the specific advice Scott gives does not consider the environmental consequences of the financial institutions he invests in。 For example， the bank he tells us all to use ING Orange due to its next to zero fees is a dirty fossil fuel supporting entity。 Despite the bank's heavy marketing purporting their support of renewable energies， it scores dirty on the Market Forces bank comparison table， funding fossil fuel projects。 So for all the talk about investing in your kid's future， it falls flat when your advice operates in a financial bubble， which is fueling the climate crisis。 。。。more
Alex
，
Good system， no nonsense tone， clear advice and analysis of concepts
Melroy Menezes
，
Great book by Scott。 It gives a good insight to build your savings over a long period of time。 It touches on planning for your retirement which we all often tend to forget。 Anyone getting a citizenship or graduating school/college must read and understand the concepts。
Tenisha
，
Super helpful for getting a handle on my finances
Desmond Knipe
，
Everyone will say， "why didn't I read this book earlier"。 A must-read for anybody who would like a road map on surviving financially in our world。 Everyone will say， "why didn't I read this book earlier"。 A must-read for anybody who would like a road map on surviving financially in our world。 。。。more
Jai Evans
，
trash
Sandeep Gupta
，
Game changer for my money habits。 Credit card and debts are now gone and feeling way more positive。
Ash’s Books
，
Wow， this was the easiest and most fun non-fiction I’ve read。 I loved how it was written， so I could actually understand what he was talking about with the buckets！ 🪣😂 It was a lot of information， but it was also really funny and made me laugh a lot！ Loved it！
Kirsty
，
3。5
Emma
，
So I purchased this book because it came recommended by several friends and it's a bit of a cult hit in Australia where I live。 Plus I am currently in the middle of a massive life organizing spree so it seemed a good time to up my financial literacy。 However I only managed to get about 1。5 chapters in when the obnoxious， entitled， judgmental， over simplified world view of the author annoyed me so much I just could not handle one more chapter！ Basically I agree with him on these （obvious） points: So I purchased this book because it came recommended by several friends and it's a bit of a cult hit in Australia where I live。 Plus I am currently in the middle of a massive life organizing spree so it seemed a good time to up my financial literacy。 However I only managed to get about 1。5 chapters in when the obnoxious， entitled， judgmental， over simplified world view of the author annoyed me so much I just could not handle one more chapter！ Basically I agree with him on these （obvious） points:* Many people struggle financially because of a lack of financial literacy。 * Greater financial literacy and more time actually thinking about your money can usually help improve your situation。 What I COMPLETLEY disagree with him about is:* Rich people are smart and hard working。 * Poor people are lazy and stupid。 * Everyone has an equal chance to become reasonably well off。 If you don't manage it， it's your fault。 Frankly in the year 2021 I am sort of amazed that a book like this has not been called out！ I mean I totally agree that those who are less financially privileged can still better their lot with better knowledge （the whole reason people buy this book）。 But what is glaring absent is an acknowledgment of his own privilege and of the simple fact that some people （health white men like himself） have a MASSIVE head start on other people （women， disabled people， ethnic minorities， Indigenous Australians， etc。）。 And to infer that the reason some people are financially struggling is because they are stupid and lazy is one of the most offensive white male attitudes I have ever heard！ Returned this book to audible！ Would prefer to learn about money from a nicer person！ Next I am going to try 'Mindful Money'， By: Canna Campbell。 。。。more
Heather Browning
，
I read this every couple of years， or when my situation changes， to make sure I'm still on track。 It's such a calming feeling， to feel like I've got this， I'm in control of my finances and my future。 Recommend to anyone。 I read this every couple of years， or when my situation changes， to make sure I'm still on track。 It's such a calming feeling， to feel like I've got this， I'm in control of my finances and my future。 Recommend to anyone。 。。。more
Kertu Meldre
，