Scott Pape - The Barefoot Investor: The Barefoot Investors Step-By-Step Guide to Financial Freedom

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 Australiain 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 officerall 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 pathto achieve financial security, live a purposeful life and leave a lasting legacy.

Arun Abey, co-author ofHow 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 ofLinchpin: Are You Indispensable?

The Barefoot Investor holds an Australian Financial Services Licence (AFSL no. 302081). This book outlines general advice only. It should not replace individual, independent, personal financial advice.

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

We are fiercely independent.

The bottom line: youre reading the same advice 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 June 2019

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.

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.140; Australian Foundation Investment Company Limited: p.176; Pacific International Music / Lyrics by Garry Koehler: p.244.

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.

Date: 12 February 2014

Location: Romsey Emergency Evacuations Centre

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 2019 update of The Barefoot Investor: The Only Money Guide Youll Ever Need.

Its been a busy 12 months:

House prices across the country are now falling at the fastest pace on record (something I predicted when I first wrote the book in 2016).

And the Royal Commission into Banking Misconduct was held and revealed a lot of stuff I warn about in this book.

Yet the final outcome was a fizzer: the banks were basically flogged with a wet lettuce leaf on a billion-dollar bun!

Heres how the Financial Review reported it:

Shareholders in the big four banks celebrated a record day of gains as the Hayne royal commission recommendations left the structure of the banking sector intact, triggering a historic relief rally in financial industry stocks. The surge in major bank stocks triggered the single biggest increase in their combined market capitalisation in history as almost $20 billion was added to the value of the four biggest banks.

Wait. What?

Yes, for all the shocking revelationsthe charging dead people for advice, the fees for no service, the fraud and deceptionnothing has really changed.