Not a week goes by where we aren’t asked about our views on the book Barefoot Investor. I personally have only read snippets of the book, so I won’t comment on the specifics of his advice and product recommendations (which I am certain he caveats with a ‘general advice’ warning), but I have a good idea of the topics which he covers.
So, let’s start with the positives. I think the best thing to come from this book is that it has people eager to learn more about the world of money. Research shows that the financial literacy of Australians generally isn’t great, and if in reading this book you learn something new, then it’s done its job.
Secondly, the fact the people are buying this book tells me that they are looking to do better things with their money, which is also positive.
On the downside, it’s no different to any other self-help book. It lacks in two areas;
Accounting for human behaviour
Similar to a new diet, or exercise plan, where people are not made accountable to achieve their goals, the enthusiasm and energy usually wanes within a short period of time. And unlike the instant gratification of losing a few kilos within the first week, or being able to run the extra kilometre, building wealth is more of a slow burner and it takes patience and accountability to keep on track.
So arguably, building wealth and making smart decisions with money is one of life’s biggest challenges.
Human beings in general are not rationale, particularly when it comes to money and financial decision. It’s not that we don’t know what to do, as there are plenty of available resources to tell us what to do. It’s that little voice in the back of your head which casts doubt over the decisions you make.
Life is not a straight line, there are ups and downs, and a book cannot prepare you mentally for the certainty of uncertainty. Which is where having a Financial Coach has its benefits.
If you have any questions about financial concepts discussed in the book, feel free to get in touch. If after reading this book you want to be made accountable to achieve your goals one of our Financial Coaches is here to help.
Disclaimer: The information provided in this presentation is of a general nature only. It does not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements before making any financial decisions. Please seek personal financial advice prior to acting on this information.