Scott Pape - The Barefoot Investor (The Updated 2020 Edition)

Gday!

In 2019 I had a major life change.

I decided to go back to school and study to become a not-for-profit financial counsellor. That means I now volunteer my time helping vulnerable Aussies in financial hardship.

My first role was helping bushfire victims and then came COVID-19.

Ive updated this book to take into account what Ive learned in the financial trenches helping people whove lost their homes, jobs or small businesses get back on their feet.

As I write this, were officially in a recession, and its shaping up to be the deepest economic downturn in our lifetime.

Australia has just come off the longest economic boom in history lasting almost 30 years. As a result, most people are not prepared for what comes next. Australians are drowning in debt we are some of the most heavily indebted households on the planet.

Yet theres one group of people who are financially confident despite the deepest economic downturn in living memory:

My Barefoot community (which has been described as the biggest financial cult in Australia by the media).

Whats their secret?

Its not that theyre earning more money than you.

Its not that theyre in safe jobs many have had their hours cut, or lost their jobs in this crisis.

Yet, almost without fail, theyre staring down this crisis and saying: Ive got this.

What gives?

Youre about to find out.

Four years ago, when I first sat down to write this book, I expected to sell a few thousand copies at best.

So, I wrote it the same way Id talk to a mate if we were at a pub (remember those days?):

I talked about my simple bucket strategy the exact bank accounts I use even the pillow I bought that I couldnt shut up about!

After reading the manuscript, my editor boldly proclaimed: I predict this will sell at least 20 000 copies!

And then all hell broke loose.

We sold 100 000 copies.

Then 500 000 copies.

Then 1 000 000 copies.

Then 1 500 000 copies.

Now were closing in on 2 000 000 copies.

For a few years now, people across the country have been signing up to ING and buying Dunlopillo pillows and now banks are piggybacking off the popularity of my book with multimillion-dollar ad campaigns about buckets!

For a guy living on a farm, its all a little strange.

In the barstool chat spirit of the original book, in this update Ive kept those references to many of the products I use myself.

But the truth is, Im not a rate tart: I dont go through the switching rigmarole each year to earn an extra $8 in interest.

There are now better deals on offer than the ones I use. Case in point: today there are several index fund offerings in super that are just as cheap as (or cheaper than) the Hostplus fund I mention in this book!

So before you sign up for the same accounts as me, you should do a quick Google to see if there are any better deals on the market right now.

Welcome to the cult.

Scott Pape
Family Farm
October 2020

Praise for The Barefoot Investor

This book will help you protect the people you love.

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.

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.

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.

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.

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.

The information in this book is general in nature and for educational purposes only. It should not replace individual, independent, personal financial advice, tailored to your specific needs.

Neither Scott Pape nor anyone associated with Barefoot Investor or the making of this book has received any kickbacks, commissions or fees or even so much as an invite to a corporate box at the footy for mentioning anything contained herein. We never have, and we never will.

We are fiercely independent.

The bottom line: youre reading the same information that Id give to my mum, God love her.

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

Reprinted with updates October 2020

Typeset in 9.75/14 pt Caecilia LT Std

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.