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A review by mischief_in_the_library
The Barefoot Investor: The Only Money Guide You'll Ever Need by Scott Pape
2.0
Look. I've only just finished reading it and haven't tried much of his advice yet, so I can't comment on how helpful the actual advice is - some of it seems good, and there are some steps that I am likely to implement. That said, overall, the advice seems particularly helpful for a certain type of person. This book should be marketed for that certain type of person: someone who is in a financial black hole and desperately needs help to get out of it. As a psychologist, I will tell you that people who are in crisis mode need clear, directive advice. This is clear and directive. People who are not in crisis and just want a bit of help to make their lives better do not need directives, they need guidance and support to make their own decisions. I did not like him telling me which brand of pillow to go out buy, or to chop up my credit cards (which have so far been an extremely neutral accessory), or to go have sex with my partner instead of getting dessert(??). Telling someone who is overwhelmed by money issues which bank to open an account can be helpful, but a bit condescending to someone who has more financial competence than he thinks you could possibly have, particularly as he - for some reason - thinks that anyone who has the time to research good bank rates must live at home and have their mum do their ironing.
Scott frequently mentions the average Australian salary (around $78,000) as evidence of how good we have it, as a country. It frustrates me quite a bit when people imply that the average Australian salary is what the average Australian earns. The median salary of full-time workers - what 50% of people earn over - is only $66,000. And that's only full-time workers. When including part-time and casual workers, it gets lower. This is not to say you can't follow the Barefoot steps on lower salaries, but I think it's important to recognise.
Some of his advice borders on unethical and possibly dangerous - likely just because he hasn't quite thought it through from another perspective. Putting your money in shares of the biggest companies is probably very profitable, but not necessarily the most ethical place to invest. Telling married people that they should have one joint account and no separate ones ignores the fact that women are in a much more financially dangerous position if they do this. Simultaneously telling people to get in control of their money so they can spend time with their kids and also get a side-hustle and work more hours on top of your main job seems like a rehash of Joe Hockey's advice on saving money for a house - "get a better a job".
Overall, if you're in a lot of debt or otherwise very concerned about your financial situation, this could be a good book for you. If you are not, this book may have a few useful nuggets but be prepared to swallow it with a bit of condescension.
Scott frequently mentions the average Australian salary (around $78,000) as evidence of how good we have it, as a country. It frustrates me quite a bit when people imply that the average Australian salary is what the average Australian earns. The median salary of full-time workers - what 50% of people earn over - is only $66,000. And that's only full-time workers. When including part-time and casual workers, it gets lower. This is not to say you can't follow the Barefoot steps on lower salaries, but I think it's important to recognise.
Some of his advice borders on unethical and possibly dangerous - likely just because he hasn't quite thought it through from another perspective. Putting your money in shares of the biggest companies is probably very profitable, but not necessarily the most ethical place to invest. Telling married people that they should have one joint account and no separate ones ignores the fact that women are in a much more financially dangerous position if they do this. Simultaneously telling people to get in control of their money so they can spend time with their kids and also get a side-hustle and work more hours on top of your main job seems like a rehash of Joe Hockey's advice on saving money for a house - "get a better a job".
Overall, if you're in a lot of debt or otherwise very concerned about your financial situation, this could be a good book for you. If you are not, this book may have a few useful nuggets but be prepared to swallow it with a bit of condescension.