Book Review: "The Wealthy Barber"

What's my rating for "The Wealthy Barber"?

I gave the book a 4 out of 5 Rockstar rating.

In this work of fiction, author David Chilton chose a small town barber shop as the setting for his characters’ much needed discussions about money.

The bottom line is simply this… fancy tax shelters, straddle-option strategies and future contracts on gold all make for great conversation at cocktail parties. Forced savings, dollar cost averaging, and compound interest simply make for great cocktail parties.
— David Chilton, The Wealthy Barber, p. 196.

Roy, the shop’s owner, has become known around town as the man to talk to when it comes to personal finance and that’s where David, the story’s protagonist, goes to get his hair cut and his financial mind sharpened every month, along with his sister Cathy and his best friend Tom.

Over a seven-month period, Roy teaches the trio seven important lessons:

  1. Put 10% of your income in long-term investments
  2. Take care of your dependents with the proper amount of insurance and estate planning
  3. Put another 10% in retirement savings accounts
  4. Homeownership is not for everyone
  5. Forced savings beats budgeting
  6. Debt repayment offers the best return
  7. Minimizing taxation matters

Whether someone is well versed in personal finance or a mere novice, this book has something to offer because it not only addresses the ins and outs of how we should manage our money and our personal responsibilities around it, it also addresses the very human fears, concerns and even delusions associated with managing it.

To find out more about the book, read my full review here.