The Barefoot Investor (Five Steps To Financial Freedom):

Pluto Press (Published 2004)

Written by Scott Pape

Australia

Review 3 Stars – Good Read

How the blurb describes the book:

Tread your own path with the barefoot investor.

Barefoot Investor is more than a catchy title. It’s about learning about money and using it in a way that brings you the most pleasure. It can be fun and exciting.

The first edition was a sell-out.

Young author Scott Pape is now an acclaimed media commentator on financial matters with a weekly column in Australia’s highest selling newspaper, the Saturday Herald Sun and also Brisbane’s The Courier Mail. He appears regularly on television and radio.

In this updated edition, Scott delivers nifty streetwise strategies to help you achieve your financial goals, allowing you to tread your own path in life – something much more important than money.

“The Barefoot Investor makes finance fun” – Sir Richard Branson

“Scott is a young, enthusiastic financial guru, who has a simple, humorous, honest, and logical approach to the financial industry which is rare to find” Janine Allis, Boost Juice

“This is rare in good investment writing and Scott Pape has covered so much ground in a clear- sighted and comprehensive way.” – Tim Fischer, former deputy Prime Minister

“Laugh out loud, streetwise advice that will lead you to financial success” - Martin King, A Current Affair, Channel Nine

Mr Home Budget’s Review: Scott Pape has been an Australian investment and money guru for a few years now. He has appeared on The 7pm Project, Today Tonight, A Current Affair, and his own show on Channel Ten. He knows his stuff about money and home budgets, but does he practice what he preaches?

As Scott says on page 39 of his book, “Truth, or dare? OK, truth! I’ve never ever stuck to a budget ...ever! I have more important things to do than spending an afternoon budgeting out every last cent of my pay cheque, and I certainly don’t waste my time fretting over every little purchase that I make. The thought of adhering to the typically anal retentive budget that I’ve seen espoused elsewhere is something I’ve never had the discipline or patience to stick to. I promised the Barefoot Plan wouldn’t require much willpower and I meant it. The only way to control your spending is to get excited about spending more of it on things you really want.”

Right away Scott and I have some big disagreements in how household budgets should be run. If you have read my book or Scott’s book, you are probably looking to turn your budget around. However, my book waves a big red flag right away telling you it will be hard, takes discipline, is a slow process and you will have to track every dollar. Scott believes he has found a way where you won’t need discipline; you won’t need to track every dollar and your willpower— you can leave that at the door! This reminds me of those old Danoz direct adverts for the belt which would magically lose your weight. If you remember it, you would strap it on and it would do push-ups for you; melting the fat off your stomach as you slept.

This is not to say Scott doesn’t offer some interesting ideas or good money advice. But no one has ever turned their budget around by forgetting about willpower. It is just a claim which no matter which way you slice it, can be true. Forgetting about your willpower probably got you in a bad money situation in the first place.

He does go through products like store cards, credit cards and personal loans. He lays out the bare facts on why not to use them. Plus he tries to explain why humans go into debt, and one of the main reasons is because we are human. Like he says, we want to fit in with other humans leading to purchasing things we don’t need.

The book does lend itself to the name investor. If you’re looking for just a home budgeting book you have come to the wrong place. He will get you to try and get your money working for you by investing it wisely. He has charts from shares, housing, and cash which back up his reasons to invest.

But the book is clearly aimed at people in their 20s and 30s with an entrepreneurial spirit. Towards the end of the book, he even interviews several young, successful business people. The general feeling I got as I was reading the book is, “How is this information meant to help a mum at home with kids at her feet.” He seems to write for the excitement of investing, starting a business and international travel, rather than balancing and growing wealth slowly.

An interesting book which won’t appeal to everyone.

Pros: He does run through the different ways people get into debt and why you should avoid this at all costs.
The book is simple and easy to read.
Some people who want to start their own business will appreciate the book.

Cons: He almost sets this book up as the microwave budget. Quick and simple with very little thought or willpower needed.
If you in your late 30s or onwards, a lot of information is just not written for you.
Don’t expect a hold your hand way to get you to save your money.