Scott Pape - The Barefoot Investor: The Only Money Guide You’ll Ever Need

Praise forThe Barefoot Investor

This book will help you protect the people you love.

Melissa Doyle, host ofSunday Night

Scott is one of the best communicators on financial matters in Australia in fact, one of the best communicators full stop. More importantly, what he writes not only makes common sense, its correct and has integrity. Hes a commentator with no axe to grind (apart from the one at his farm), and there arent many of us.

Alan Kohler, ABC Finance Presenter,Constant Investor

In this book you will read true accounts from a divorcee road train driver, a young widow and a returned defence officer all of whom have gone Barefoot and are massively better for the experience. They join thousands who are following the Barefoot strategies and are happier, more confident and, importantly, wealthier.

Tim Fischer, Former Deputy Prime Minister

I have always enjoyed reading and listening to Scott talk about money. He is my sort of money guy as he talks in a language we can all understand. More importantly he speaks the truth about money. There are, barring a miracle Lotto win, few shortcuts to wealth, it takes time and effort. This book can really help you to take control of your money. Scotts no-nonsense style is easy to read and he provides a step-by-step guide that will give readers a path to financial security.

Paul Clitheroe AM, Chairman Australian Government Financial Literacy Board

Why is this the #1 book I recommend to anyone who wants to invest in financial freedom? Because it is much more than just another money book. Scott provides a framework, great ideas and compelling writing to bring to life practical strategies that will truly allow the reader to tread their own path to achieve financial security, live a purposeful life and leave a lasting legacy.

Arun Abey, co-author of How Much Is Enough?

Scott Pape has delivered on a promise often made but rarely kept: this is useful, inspiring and practical advice. His story about the apple tree is worth the entire cost of the book.

Seth Godin, bestselling author of Linchpin: Are You Indispensable?

First published in 2017 by John Wiley & Sons Australia, Ltd
42 McDougall St, Milton Qld 4064
Ofce also in Melbourne

Barefoot Investment Management Pty Ltd 2017

Illustrations Jeffrey D Phillips 2017

The moral rights of the author have been asserted

National Library of Australia Cataloguing-in-Publication data:

All rights reserved. Except as permitted under the Australian Copyright Act 1968 (for example, a fair dealing for the purposes of study, research, criticism or review), no part of this book may be reproduced, stored in a retrieval system, communicated or transmitted in any form or by any means without prior written permission. All inquiries should be made to the publisher at the address above.

Cover design by Hyungtak Jun
Cover image by Isamu Sawa

The author and publisher would like to thank the following copyright holders, organisations and individuals for their permission to reproduce copyright material in this book: ING Bank: p.18; Australian Securities and Investments Commission: p.27; Rob Hill / Getty Images Australia: p.51; piranka / Getty Images: p.51; Pacific Brands: p.55 & p.56; champja / Getty Images: p.62; AAP Image/Dan Peled: p.138; Australian Foundation Investment Company Limited: p.174; Pacific International Music / Lyrics by Garry Koehler: p.242.

Disclaimer

The material in this publication is of the nature of general comment only, and does not represent professional advice. It is not intended to provide specific guidance for particular circumstances and it should not be relied on as the basis for any decision to take action or not take action on any matter which it covers. Readers should obtain professional advice where appropriate, before making any such decision. To the maximum extent permitted by law, the author and publisher disclaim all responsibility and liability to any person, arising directly or indirectly from any person taking or not taking action based on the information in this publication.

The author is not affiliated with and does not endorse any of the corporate entities mentioned in or involved in the distribution of this work, or any third party entities whose trademarks and logos may appear on this work.

For Liz.
Home is wherever Im with you.

She leaned in, gently put her hand on mine, and said, Honey, I know it will be difficult for you, but youre going to need to let people help you. Youve got a young wife, a little baby and youve just lost everything you own. Im a financial counsellor. I help people in crisis. Let me help you.

10 per cent of all author royalties are donated to the not-for-profit financial counselling peak body, Financial Counselling Australia.

Gday!

Welcome to the 2018 update of The Barefoot Investor: The Only Money Guide Youll Ever Need.

This little book began life on my family farm, and morphed into a monster

Its now sold 1 million copies ... and its become one of the bestselling Australian books of all time.

(My English teacher is still shaking his head in disbelief.)

Along the way its attracted attention as high up as the Prime Minister.

(I gave him a copy to pass on to the Treasurer he needs all the help he can get.)

Journalist Monique Bowley described it as The Biggest Finance Cult in Australia. Heres how she put it on Mamamia:

As I pulled my bank card out of my wallet and scanned the PayPass, the cashier gave me a knowing smile.

Youre one of them, she said. Barefoot.

I nodded back, slightly embarrassed.

My cult status wasexposed. Im on it too, she confided. And I see it almost every day.

Right now, thousands of Australians are flashing orange bank cards with mantras penned on with sharpies and stickers. Splurge, they read. Daily Expenses, read others.

And they all signal one thing: that youre following the biggest finance cult in Australia.

Of course one persons cult is anothers persons community but whatever you call it, were certainly making an impact.

So why am I updating the book?

Well, I plan on doing it each year. See, while the wealth-building principles I write about never change, each year the politicians (and banks) meddle with things.

So Ive updated for tax changes, Kim Kardashians net worth, and retirement figures for the coming financial year.

Youre in for a real treat. Kick off your shoes, and welcome to the cult.

Scott Pape