Chilton has probably motivated more people to take actual control of their personal financial lives than any other speaker or writer has in this decade.” — Your Money The main idea is to accept that one cannot have everything and avoid impulse buying by removing temptations which trigger overspending. This may be achieved through analysis and modification of one's personal behaviour (if you overspend on clothes, stop going to the mall and reading fashion blogs), and avoiding bad debt in the form of credit cards which carry very high interest charges, though some debt may be necessary (mortgages for example). Ultimately, wealth depends more on savings than income. Chilton's bottom line, which is emphasized in his first book as well, is that we should all save 10-15% of our earnings. When it comes to managing personal finances, it can often feel overwhelming and anxiety-inducing to even begin getting a grip on all the terms, strategies, and options out there. The Internet obviously offers a plethora of information, but it can be nice to have everything gathered in one spot. That’s where you might be tempted to reach for an old-fashioned book. But just a brief walk down the personal finance section of any bookstore will reveal hundreds of titles. As someone with limited time and limited patience, you want to know what book to go for. That’s where we come in. We’ve looked at some of the most popular personal finance books on the market, and reviewed them to make the decision a bit easier for you. First up: The Wealthy Barber by David Chilton. Wealthsimple offers an automated way to grow your money like the world's most sophisticated investors. Get started and we'll build you a personalized investment portfolio in a matter of minutes. What The Wealthy Barber is about The Wealthy Barber is the best book of its type that I have ever read. In fact, for many Americans, it is possibly the only book they need. I wish I had written it.” —Jerry Mason, director of Education, Interanational Association of Financial Planners I was pulled in by the book’s authentic, downhome tone. . . . I had trouble putting The Wealthy Barber down.” —Sandy Naiman, Toronto Star

This book has a cult-following amongst Canadians, and now that I've read it, I know why. It was first published in 1989, and is written like a "novel", except with more dialogue than any book I've ever read. Here's the set-up: 3 twenty-somethings go to a barber for financial advice. They go eight times (there are each time is a chapter), and have seven lessons with the Wealthy Barber, Ron, who gives them financial advice. This was recommended to me when I said "I know nothing about finances or investing and I want to learn" but I'm honestly not sure why because it's SO dated. Even I know the maximum annual contribution to an IRA has changed since 1998. This book could be shorter than it sounds. A few Google searches about the summaries would be good enough. The Wealthy Barber] is a complete success in terms of being clear, easy-to-read, and interesting.” — Chicago Sun-TimesInvestment and income tax. If you have debt, pay off the loan with the highest interest rate first. Credit cards before mortgages. Investing is hard. The book is structured around a story of three people in their late 20s visiting Roy, the title character, for lessons in financial planning. Each chapter of the book describes a different visit and a different element of financial planning. Each month along with their lessons the three students are required to start carrying out the actions prescribed by Roy. In addition to these individuals, Roy also shares his financial knowledge with the customers of his barber shop. The Wealthy Barber is, indeed, an able teacher of those personal-finance habits which lead to wealth and happiness.” —John Templeton, founder of the Templeton Group of Mutual Funds The basis of the book is Roy's advice to "save 10 per cent of all that you earn and invest it for long-term growth." In that, it draws from the advice first set forth in The Richest Man in Babylon. Subsequent chapters discuss wills and life insurance, RRSPs, buying a home, income tax and saving and spending. David goes with his sister named Cathy and Cathy's husband, Tom to visit Roy. He tells them how they handle their income and assets will determine their success. To ensure this, he tells them they must manage their cash flow. He promises by the end of 7 months all of them will be on the road to prosperity.

Save for your retirement. Put as much into your RRSPs as you can-- this is, of course, in addition to your 10%. Start young, so you can take advantage of compounding interest. The Wealthy Barber: The Common Sense Guide to Successful Financial Planning. Toronto: Stoddart. 1989. ISBN 0-7737-5318-4. Think about buying a home. I loved this chapter. I'm in no position to buy a home, but I so often feel pressured to, even though it's not the right decision for me. Chilton writes: "Let me start by saying that whoever the ubiquitous 'they' are who say 'renting is like throwing your money away' aren't accurate. I've read that opinion in several well-known financial planning guides, and I just don't know where the authors are coming from." The Wealthy Barber (full title: The Wealthy Barber: The Common Sense Guide to Successful Financial Planning) is a financial planning book franchise by Canadian author David Chilton. The first book in the series was in the business fable genre, using the story of fictional characters to convey financial advice.

RESPs. I don't remember too much of this, because I don't have kids. But there was some other advice in the chapter: emergency funds, disability insurance, and staying informed. This is the first personal finance book I've ever read, and I'm really, really happy to have done it. By presenting a boring topic in a conversational format--including lots of baseball chiding--Chilton makes personal finance accessible to anyone and everyone. That's right. He later describes home ownership (and paying a mortgage) as "the ultimate forced-savings program", and talks more about mortgages, but I appreciated that he wasn't like: "Buy, buy, buy!" Roy tells them his story of becoming wealthy and he says an old man once told him to "Invest ten percent of all you make for long term growth." Roy goes on to tell them that if they saved 30 dollars a month from age 18 to age 65 at 15% annual return, they would end up with 2 million dollars.

Happily, I can report that David Chilton's Canadian classic, The Wealthy Barber, has done what financial lectures, slide shows, and personal experience would never have provided: understanding. I like to think I'm a halfway intelligent human being, but an understanding of the financial world has evaded me for longer than I would have liked. I cringe at government paperwork, nod and agree with suggestions at bank meetings, and hand over bank statements to my more money-savvy wife. My brother, an accountant, has tried to break down some key facts for me, but it's always come out as too jargon-filled or has made it seem like excessive effort would be required. The eldritch and arcane world of finance just didn't seem like anything I'd ever master.I might have continued along with my financial ignorance were it not for my pediatric mentor handing me the slim volume and proclaiming that it had changed his life. The guy hasn't let me down with much before, and I figured another swing wouldn't hurt my chances at understanding what goes on with my bank account. Overall, The Wealthy Barber is lauded for its straightforward, jargon-free language and ability to break down financial subjects without talking over its audiences’ head, while also not talking down to them. The book’s novelistic form provides just enough character development, plot, and dialogue to keep things moving while not distracting from its primary purpose: Dispensing financial advice. Unlike many other popular personal finance books, The Wealthy Barber takes the form of a novel. The basic plot centers around Dave, who’s an expecting father who realizes he doesn’t feel financially prepared, his sister Cathy, who has a successful business but doesn’t know a lot about investing, and their friend Tom. All of them are in their late 20s to early 30s, and they periodically go to visit a barber in Sarnia, Ontario, who they’ve heard has become quite wealthy. The three friends wonder how this man, named Roy, has gotten so wealthy on a barber’s salary, and end up visiting him frequently as he dishes out financial advice while cutting hair. The author gives a description of what he enjoys and what he likes to do in his spare time. For example, he enjoys the month of April for 4 reasons: the NBA playoffs, NHL playoffs, the start of MLB season, and April is the start of the Golf season. He then introduces his wife, and the fact she is expecting a baby soon. Both of them are excited for the delivery. The author admits that he is completely clueless when it comes to managing money. With a wife and a baby on the way, David needs to make himself a very literate financial individual. And fast.