Preview

Analysis of the Wealthy Barber

Good Essays
Open Document
Open Document
644 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Analysis of the Wealthy Barber
Paying Yourself First:
A Reflection on David Chilton’s “The Wealthy Barber”

Money management and financial planning is an aspect of life that everyone encounters. Despite one’s income or financial status, every adult and child has a concept of money and how to manage finances. Learning effective tips for financial success is very important to ensure future prosperity. For students especially, it is vital to be exposed to money management advice to learn and adopt good spending and saving practices early in life.

In his book “The Wealthy Barber”, David Chilton tells the story of how he and his siblings learned about financial management from Roy, a local barber who achieved financial success through following simple planning concepts. Chilton provides his readers with straightforward, realistic guidelines and strategies for planning financially and real-life examples.

From all of the lessons Chilton’s book teaches, one financial planning tool I learned about is called the ten percent solution strategy. “Wealth beyond your wildest dreams is possible if you learn the golden secret: Invest ten percent of all you make for long term growth,” writes Chilton in chapter four of “The Wealthy Barber”. It is recommended that this strategy is set up by automatically having ten percent deducted from your earnings and invested in a form of growth savings such as mutual funds or real estate. By automatically transferring funds and ‘paying yourself first’, it is suggested that you do not begin to miss ten percent of your pay when you begin this program but rather do not notice the difference after a few months of committing to this strategy. As Chilton shares, the ten percent solution strategy can ensure future financial comfort as it transforms small amounts of money into substantial savings over an extended period of time. To describe the financial tool of investing ten percent, Chilton uses the tagline “pay yourself first”. By this, he reminds readers that the ten

You May Also Find These Documents Helpful

  • Powerful Essays

    Fin252

    • 884 Words
    • 4 Pages

    Revised Tutorial/Seminar/Workshop Times Please note that tutorial times on the timetable are subject to change. You will be notified of any changes. Tutorial/Seminar/Workshop Program Tutorial Date Topics Covered Readings and Activities Chapter 1 Questions (Q): 1, 3 1 Week 3 The Financial Planning Environment 13 May 2013 Taylor and Juchau – Chapters 1 & 2 Chapter 2 Questions (Q): 1, 8 Chapter 3 Q: 2, 7 2 Week 5 Constructing a Statement of Advice Taylor and Juchau – Chapters 3 to 5 Chapter 4 Q: 1, 2 Chapter 5 Q: 1, 3, 8 Problems (P): 2, 7…

    • 884 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    David Chilton’s The Wealthy Barber Returns is a delightful take on dealing with common financial concerns. With the incorporation of wit, humour, and financial relevance, Chilton is able to engage the reader in an easy-to-follow discussion. Unlike the original The Wealthy Barber, this book does not follow a fictional voice; it is Chilton himself who does the explaining. One does not need to be a financial expert to follow the advice given – the logic speaks for itself. The first half of the book discusses the importance of “living within your means”, while the second half touches on a variety of different personal finance matters.…

    • 1830 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    This course provides an overview of the elements necessary for effective personal financial planning and the opportunity to apply the techniques and strategies essential to this understanding. Primary areas of study include creating and managing a personal budget, understanding and paying taxes, working with financial institutions, wise use of credit cards and consumer loans, financing automobiles and homes, and the use of insurance for protecting one’s family and property.…

    • 1875 Words
    • 8 Pages
    Satisfactory Essays
  • Satisfactory Essays

    1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points)…

    • 512 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    assignment brief

    • 1185 Words
    • 7 Pages

    The purpose of this assignment is to: enable learners to 1) know ways to manage personal finance 2) know common financial products and services 3) be able to produce a personal budget that takes account of personal remuneration…

    • 1185 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Understanding how to balance a check book, save for retirement, and establish good credit is essential for students before entering into the world right out of high school. Without this knowledge we would be lost with an almost guaranteed to financial disaster. There are so many things we need to understand like recurring interest, fixed interest, and how to invest money properly.…

    • 416 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    In today’s capitalist society, no one is spared from the constraints of fulfilling one’s financial needs and obligations. Whatever your profession may be, whether you’re a doctor, lawyer, businessman, industry professional, artist, politician, whatever you are, there will always be some financial issue that needs to be addressed. Wouldn’t it be great to be able to get rid of these issues and move on to what you really want to do in life? Unfortunately, we cannot get rid of these financial obligations, however, there are ways to conquer them, all of which can be learned in the often neglected but mind bogglingly essential realm of personal finance.…

    • 2114 Words
    • 9 Pages
    Better Essays
  • Best Essays

    Team D1 Case 3

    • 3739 Words
    • 32 Pages

    References: Brigham, E. F., & Ehrhardt, M. C. (2014). Financial Management: Theory & Practice . Mason, Ohio: South-Western.…

    • 3739 Words
    • 32 Pages
    Best Essays
  • Good Essays

    Mgt 12

    • 1472 Words
    • 6 Pages

    This course is intended to give students a foundation in personal financial planning, budgeting and money management. Upon completion of the course, students should have an understanding of associated terminology and possess basic skills in personal finance and money management.…

    • 1472 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Debt Free Prosperity

    • 490 Words
    • 2 Pages

    The object of this book is to teach people how to manage their money in order to stay out of debt and plan ahead for the future. This book goes over several suggestions or "laws" but focuses on four main ones.…

    • 490 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Inelastic demand

    • 630 Words
    • 3 Pages

    The percentage change in the price of plastic surgery is less than the percentage change in quantity demanded…

    • 630 Words
    • 3 Pages
    Good Essays
  • Good Essays

    If you are looking for a path to take for a career or you are considering changing careers, you should give some thought to becoming a barber. The following are four reasons this may be the right choice for you.…

    • 458 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Wealth Creation

    • 665 Words
    • 3 Pages

    -Set a schedule for wealth creation by determining when you want the money you desire, when you the need the money to pay for life expenses and meet investment goals, and when you want to achieve ultimate financial freedom.…

    • 665 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    the richest man in babylon

    • 1410 Words
    • 5 Pages

    This book touches on the fundamentals of personal finance and reminds us of the simplicity and discipline that have proven successful…

    • 1410 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Guide to Choosing Career

    • 9441 Words
    • 38 Pages

    Job vs career........................................................... 2 Identify your skills .................................................. 4 Weighing your values.............................................. 6 Options for work experience ................................... 8…

    • 9441 Words
    • 38 Pages
    Good Essays