The Barefoot Investor. Scott Pape
area, It is too late to leave. You must take shelter now to protect yourself.
Bugger.
When you're in the thick of a bushfire, it's too late to start thinking about what to do. You just need to be executing your plan like a patriotic North Korean soldier.
Here's how the CFA explains it:
A Bushfire Can Be a Terrifying Situation
Strong gusty winds, intense heat and flames will make you tired quickly. Thick heavy smoke will sting your eyes and choke your lungs. It will be difficult to see and breathe.
The roaring sound of the fire approaching could be frightening. Embers will rain down, causing spot fires around you. Power and water may be cut off. You may be isolated, and it will be dark, noisy and extremely demanding both mentally and physically.
This is not the time to be making major decisions.
Preparing your fire plan allows you to make major decisions in advance, and will help keep you focused and make better decisions in the event of a threat.
And you know what?
The same rules apply when it comes to facing your financial fire: when you lose your job, or lose your partner or retire — it's too late to be making major decisions.
This book will make you financially fireproof — you will be totally prepared. You'll have made your major decisions in advance. You'll have everything on autopilot. You won't need to panic. You won't second-guess yourself. You'll know exactly what to do.
And the result is that you'll be able to say, ‘I've got this’.
The secret is …
At this point, after all the talk of alpacas, sheep and farms, you may be forgiven for thinking you've picked up a country and western novel. My editor had similar concerns: ‘Scott, I'd like to see more sunshine and positivity … and less fire, devastation and dead animals’.
Okay, so this is not your typical finance book.
Hell knows my publisher would have liked me to be a bit more ‘self-helpy’. You see, one of the bestselling books of the past couple of decades was The Secret. The guts of its message was that to achieve success all you need to do is picture something in your mind, and you'll achieve it.
Well, let's all get out a guitar, sit in a circle, hold hands and start strumming.
This book — and the solid-as-a-rock steps it gives you — is built on values that have stood the test of time. I learned a lot about life and money from my grandparents — they were part of the so-called Silent Generation who lived (and thrived) through the not-so-Great Depression.
What did that mean in a practical sense?
Well, they paid their bills on time … with cash.
They saved their money … rather than relying on credit cards.
They didn't expect handouts … being on the dole was something to be ashamed of.
They lived in modest homes — not McMansions — and they celebrated when they paid them off.
And they created a real legacy, which — ultimately — is what this book is all about.
Introducing the Barefoot Steps
Some finance books are wishy-washy on what you should do. They say things like, ‘Write down your dreams’.
Others are written by weirdos who have colour-coded spreadsheets for their undies drawer and whose idea of a holiday is the Bendigo caravan park (communal toilet option). They give you a laundry list of things you should be doing, culminating with:
‘You need to follow a strict written budget every single day.’
The truth?
I've never been able to stick to something as rigid as a budget, and I don't expect you to either.
For most people, budgets don't work. They're like surviving on a grapefruit diet.
Budgets set you up to fail. You feel like a loser with no willpower.
You're not. You are normal.
Here's the deal: the Barefoot Steps are not a cute way to organise a book.
They are nine specific steps that you complete in order, one by one.
The power of the Barefoot Steps is that they focus on you doing just one thing at a time.
You won't get overwhelmed.
You and I are going to plant your wealth tree, and get it growing.
Part 1 PLANT
It's time to get your hands dirty.
By the time we've finished the ‘Plant’ part of this book, you'll have built your entire financial infrastructure, and as a result you'll be tens, or even hundreds, of thousands of dollars better off.
See, this book isn't for flicking — it's for doing (preferably while eating garlic bread and drinking wine, as you'll see in a moment).
I'm not going to throw a bunch of generic tips at you.
Instead, I'm going to be super specific about the first three Barefoot Steps that I want you to follow to plant the seeds of your future wealth.
And if you've just read this and thought to yourself, ‘Dude, my seeds are already planted’, well I've got a few surprises in store for you.
I'm going to:
show you how I manage my money in around 10 minutes a week, including the exact accounts I used at the time of writing
detail how you can live — and spend — like a multimillionaire, even on a below-average income
explain why I shut down my self-managed super fund (SMSF) … and introduce you to the cheapest super funds in the world
give you a specific script that you can follow to get ‘wholesale’ deals on your insurance
show you how to turn dumping your debts into a game you'll enjoy playing — and winning.
Plus we'll sketch out the only financial plan you'll ever need — a plan so simple that it fits on the back of a serviette.
Let's dig in.
STEP 1 SCHEDULE A MONTHLY BAREFOOT DATE NIGHT
You love going out and eating nice food, right? And you've never seen a $50 note you didn't like, right?
Well, we're going to combine the two and have a Barefoot Date Night — once a week for the next five weeks (to get you up and running with the Barefoot Steps), and then monthly thereafter.