The Wealthy Barber

The Fully Updated All-Time Canadian Classic

It’s 36 years since David Chilton released his Canadian classic Common-Sense Guide to Successful Financial Planning.  He’s just released an updated version.  I’ve just finished reading it, and it’s as relevant now as it was then.

While it’s built around the same storyline, with Roy the barber and his buddies explaining financial planning to five people in the 20-30 are range, it is indeed fully updated to today’s reality, touching on Tiktok and the changes in US policy.

The updated young characters cover a decent cross-section of today’s population:

·         Matt, the teacher

·         His pregnant wife Maddie, an interior designer

·         Jess, the single, successful entrepreneur

·         Kyle, the single ‘idiot-savant’

·         Sourov, the single immigrant working 3 jobs

Each chapter is set as a discussion between Roy and the young characters, with Roy’s buddies James, Jimmy and Clyde chiming in with context and sarcasm.  There’s a good amount of trash talk between the characters as they travel through their learning experience.

Once the storyline is set up, each chapter builds on the previous, bringing focus on a specific subject area:

·         Budget

·         Save 10%

·         Investing wisdom and the power of compounding

·         Protection through insurance and wills

·         Home buying and debt management

·         Manage your spending habits and live within your means

·         Stories about consumption, credit cards and status

Throughout, Chilton ensures the information is current to today.  There’s significant discussion on the challenges Canadian youth face in trying to make ends meet let alone trying to afford a house.  Investing discussion includes RRSPs and RESPs from the original book’s publishing in 1989, and goes on to tackle TFSAs, First Home Savings Accounts (FHSAs), Index funds and ETFs to name a few.

This book is aimed at the 20-40 age group, which includes our boys.  They are each getting a book for Christmas and I’d suggest you consider doing the same for your children, grandchildren, cousins and siblings in this age range.

Chilton also started The Wealthy Barber Podcast this past year.  It includes many high caliber guests covering not only the books’ age group but also many topics applicable to late career and retirees.  Well worth looking through the topics and listening to those relevant to your situation.

Invest in yourself with financial education.  Be Prepared.