Skip to main content

The Barefoot guide to happiness

Image
By
There are three things that happy people have. Is more money one of them? Nope. Once your basic needs are met, extra money doesn't really make you happier. The three things are purpose, relationships and financial control, says author Scott Pape.

I've just finished his popular book The Barefoot Investor (2018 Update): The Only Money Guide You'll Ever Need. I expected mainly tips on saving, investing and the sharemarket. Those topics are covered, but a lot of his advice is
1. Don't buy so much stuff,
2. Buy the basic stuff not the flashy stuff, and
3. Don't get sucked in by advertising and salespeople.

He says millionaires drive average cars. People with flashy cars are generally not doing as well. ("All show and no dough")

Stop making the bankers rich

Credit cards don't help you get ahead or buy more. In fact they lock us in to a lifetime of debt and often people pay more in interest than they spend on the purchases. This mean our pay packet doesn't go as far because part of every pay goes to the credit card bill.

Buy a home not a property

Houses. Many people are trying to climb the property ladder - constantly trading up from one house to the next in search of the exclusive postcode. Instead of joy, all this brings is financial stress. They end up no happier than people in a standard house in an normal suburb.

Don't buy until it makes sense

Still on houses, he reckons we are over-obsessed with owning our own house. We're either scared that we have to buy now before prices go up, forced into it by social pressure, or worried that 'rent money is dead money'. He points out that paying interest on a mortgage is also dead money. So are the stamp duty, legal fees, rates and maintenance that come with purchasing a house.

He seems to advocate waiting until you find you place you want to live in "forever" and only to buy it if you can easily afford it.

More from Scott...

He also has something to say about health insurance and on how losing everything in a fire taught him about clutter.
Read more about:

Comments

Post a Comment

Popular posts from this blog

The real cost of owning a car

By
It's been about 10 years since I've owned a car. My wife doesn't own one either. "You must save a lot in petrol" That's one of the frequent reactions when someone discovers we don't own a car. "Of course, but it's just the tip of the iceberg" is the usual theme of my reply. Many people I've talked to just aren't fully aware of the real cost of owning a car. Or even that there are six different costs of owning a car. Six? Really? Yes. Occasionally a work colleague or friend will boast their car only costs $X per week. Of course it turns out only some factors have been counted. Sometimes it's just petrol alone. To some people, that feels like the only cost they pay each week. Why does this matter? You might be questioning the need for a second car in the household (or even having one at all). Or you might just be choosing which car to get next. Either way, to make an informed decision we need proper information. So let's look at...
2 comments
Read more

Man Down

By
How is it possible for a book to be depressing, supportive and hopeful all at once? Man Down looks at the problems men have today and how it managed to get this way. What price 'success'? It seems so many of the problems come from the external pressure to be a 'success' - whatever that means. Over time this pressure becomes internal and drives us to make decisions to satisfy that pressure, but which are detrimental in so many other ways. It can be the pressure to take a 'successful' career, though it's one we don't want or aren't suited for. Or to take a promotion, because salary is apparently success - or at least it buys all the things that signal success to others.  The promotion only means more pressure, less sleep, and poorer health. At the same time the extra responsibility takes away from our ability to exercise, take care of our health and form social connections. The lack of social connections means that retiring is one of the most dangerou...
Post a Comment
Read more

Colour me happy

By
One of the great things about reducing possessions is thing called 'helper's high' . It's that fuzzy feeling you get from helping someone else out. I got one recently by helping an old man lift heavy groceries into his car boot when he was struggling. But this is not about that. I was about to put some watercolour paints online for anyone who wanted them. Then I remembered a local community group where people do art therapy. I gave the paints to a contact who passed them on to the group. The next day my contact called me to say how much they were appreciated. One of the participants wanted to do some watercolour painting, but couldn't afford the paints. When my contact walked in with free paints the participant was overjoyed to be able to do her art. As far as 'helper's highs' go, this was a slightly removed one - I never met the actual person I helped. But still it was a buzz.
Post a Comment
Read more