The all-Canadian personal finance classic book is back – updated and modernized for a younger generation of savers and investors although there is something small for every generation in The Wealthy Barber.
Although lots has changed across the personal finance sphere since the original book was published some 36 years ago, many things have not – so this book is personal finance 101 aimly mostly at younger Canadians aged 25 to 40-something who need some important primers to accelerate their wealth-building journey.
Here is our review and some quick takeaways on this book before we raffle off an autographed copy of the updated The Wealthy Barber to one lucky reader!
The Wealthy Barber Review and Giveaway
Once again, like the original, author David Chilton uses sets of conversations amongst a cast of characters to get his personal financial points across. Here are some subjects you might find interesting in this book: The pay yourself first mantra remains best practice.
Consistent with the first book, in this edition one of the book’s characters says “Save first, spend the rest, good. Spend first, save the rest, bad.”
Yup. There is beauty in saving simplicity.
This theme was clear 36 years ago and this mantra remains at the heart of any personal finance practice for long-term success.
Both of us at Cashflows & Portfolios have been practicing this approach in our lives long before reading The Wealthy Barber and I suspect we’ll continue to live within our means as we age too.
Index investing remains a great approach to follow whenever in investing doubt.
Chilton is no longer a fan of (expensive) mutual funds like the 1989 edition suggested but instead, low-cost all-in-one asset allocation Exchange Traded Funds (ETFs).
We like those too!
These are some of the best ETFs to build wealth in Canada.
Chilton suggests from the book: “These funds also do all the rebalancing for you.”
Remember that investing containers are different than investments themselves.
Chilton reminds his audience on this subject: “You don’t invest in an RRSP, you contribute to one.”
Indeed.
Chilton covers the benefits of using RRSPs, TFSAs and the new First Home Savings Account (FHSA) as the maintain containers to invest in, to generate some wealth-building using low-cost ETFs.
There is quite a bit of dedication in the book to clarifying the TFSA and RRSP containers in a few instances, essentially in a dead-heat in terms of taxation benefits – this assumes your tax rate is the same when you contributed to these accounts as when you withdraw it.
The reality is though, most Canadians will likely be in a lower-tax bracket in retirement than their working years. That said, RRSPs/RRIFs are still a tax liability to navigate.
Chilton on Bitcoin
Surprisingly, he is a bit of a fan it seems but potentially that’s because this book is trying to appeal to a younger audience.
Neither of us at Cashflows & Portfolios own any Bitcoin.
We prefer owning common stocks for dividend income along with low-cost ETFs for extra diversification. We’ve invested this way for years and this hybrid investing approach has helped us reach financial independence sooner than most.
You might be interested in learning how we manage our respective 7-figure portfolios.
How We Manage Our Money – Including Our Seven Figure Portfolios!
Chilton on Real Estate
Not surprisingly, the author notes that real estate is priced sky-high and so he takes lots of opportunities in the book to share some tactics for younger Canadians to try and afford a home including making a case for a 30-year amortization, paying more mortage interest in the process, over the more common 25-year term. We wouldn’t do that personally but we get his reasoning.
The Wealthy Barber Review and Giveaway
Younger Canadians will benefit from reading this book and older Canadians might want to take advantage of a few chapeters related to updating their Wills and determining if they have the right level of insurance.
Any Canadian who needs an overview on the principles of creating a budget, saving, and investing using various registered investment “containers” would be well-served to check out the updated Canadian classic that is The Wealthy Barber to navigate the modern financial era.
Now it’s your turn to win an autographed copy of The Wealthy Barber!
The raffle terms and conditions are:
- Please leave a comment on this site, tell us why you want this book!
- Enter the giveaway via the comment link below.
- The raffle is open to only Canadian residents, age 21+. No purchase is necessary.
- One lucky entrant / reader name will be drawn at random and we will contact the winner after the giveaway is over. The giveaway will end on March 21 at midnight. Good luck!
The giveaway is now over and congratulations to our winner!
Other Reading:
Here are 7 Essential Items that need to be in your Retirement Planning Checklist.
Mark and Joe.
I would like Dave’s book because I am not a wealthy teacher!
Ha. Good luck!
This book is a classic. I bought three more copies of the old version and gave one to each of my kids. I should update their copies to the new version right away. I would love to own a signed version of David’s book. Thankyou for highlighting this book so anyone who doesn’t know about it will now. Steve
Yes, David’s personal finance basics are essential learning for everyone. Good luck!
I would like the updated book as I have the original book and would like to share the ideas of this new book with my daughters.
Great stuff, John. Good luck!
I have read the original versions of The Wealthy Barber and The Wealthy Barber Returns several times and have shared many of the core ideas with my children. As you mention, much has changed since the original version came out. I would really like to read the updated version to see how Dave incorporates ETFs, TFSAs, etc. into the advice in the story. I gave each of my children a copy of the new book, but still need to get a copy for myself!
Great stuff, David continues to be a big fan of the new FHSA and existing TFSA for young adults. Rightly so! Good luck!
Love it! Read the original book and continue to keep it as a reference – especially when I’m talking to my kids about financial matters. Would love to read the updated version – now that there’s a few more things to consider in our ever-evolving financial product space.
Yes, things do evolve and have evolved including the FHSA and use of TFSA for your young adults. Good luck!
I read Dave’s first book when I was younger, now I’m comfortable in my retirement…thanks Dave! I want to read this book and pass it on to my children, so they too can retire comfortably.
Excellent, Joyce. Congrats in your retirement. Good luck!
Thanks for a great review! I would love a copy of Dave’s new book. I’m a huge fan of his work and his podcast. He’a a great communicator and expresses ideas in a way most people can understand and find interesting. Thanks, Nachelle
Nice to hear from you, Nachelle. Good luck!
I would like to get a copy of this book to gift to a friend who is clueless when it comes to personal finance. Thank you!
Ha, good stuff. Good luck!
Only in the past few years, have I begun to learn about personal finance and stopped living pay cheque to pay cheque. As part of my journey (and steep learning curve!) , I’ve also started DIY investing. I’d like a copy of this book to further my knowledge in hopes of making smart money decisions and building a portfolio that I can comfortably retire on.
Yes, it can be a learning curve but if you can do the basics well, you will be rewarded. Good luck!
Never read the book and could benefit greatly as I plan for retirement
Great, Nish. Good luck!
I have listened to David Chilton for years and would love to share his thoughts and book with my children
Yes, David Chilton offers a lot of common sense to many! Good luck!
I would love to share this book with my kids. Learning about personal finances early and making good decisions from the start really helps set you up for the future.
Excellent, Melanie. Good luck!
I would really appreciate owning this book to share with my 24 year old granddaughter who has taken an interest in investing. I started her off when she turned 18 with a tfsa. She has since opened a fsha and is excited about how her portfolios are growing. I’m really happy for her. She works 10 hour shifts in a restaurant,( as there are no openings in the job she wants to do )to earn enough for investing.
Good luck! Great stuff about the FHSA. :)