The Story of a Wealthy Barber

The Wealthy Barber is a great personal finance book written by David Chilton. More than 2 million copies of this book have been sold.

This book is very interesting and it is written like a novel.This book narrates a very interesting story of a barber who is very rich. One day a lot of people of his town came to ask him how he became so rich.

People of his town wanted to know how a person with the salary of a barber can become so wealthy. Roy is the name of barber in this story and he explains that he has followed some basic financial rules to become wealthy.

The Simple Rules That The Barber Has Followed To Become Wealthy Are The Knowledge Of -

• Savings


• Life insurance


• Housing


• Investing


• Retirement


• Taxing

The Ten Percent Solution

The Barber explains that anyone can become wealthy by following this simple rule. Simply invest the 10 % of your income each month for the long term.

Maybe you have heard this advice before but the only reason you find it once again here is because it really works. 10% is the minimum amount you should invest; the more you can invest; the earlier you may become wealthy.

Start investing when you are young and invest 10% of your income each month in well-selected mutual funds or ETFs. Select these investment options carefully; look for the consistency in the performance. Invest each month regularly; don’t worry about the market if it is low or high.

“Wealth beyond your wildest dreams is possible if you follow the golden rule: invest ten percent of all you make for long-term growth. If you follow that one simple guideline, someday you will be a very rich man.”

Some Of The Other Key Points Are Following:

• You need to make a will and update that will regularly. According to the author everyone should have a will.



• You should invest money to buy a home but you should not pay more money than the house is worth. He says renting an apartment is also a good option in the initial days of one’s career.



• You should not buy the house when the prices of real-estate are very high instead you should rent an apartment for the short term till you find a good bargain house.



• Life insurance is good only if you have dependents but if you don’t have any dependents you don’t need life insurance. The life insurance should be enough to cover all the expenses of the family for at least next 10 years.



• Budget is useful if one can stick to it. You should adopt frugal habits to save money because one euro saved is equal to 2 euro earned.



• Whenever you get bonus you should not increase your expenses instead you should pay your debt with that bonus.



• It’s better to pay off your debt if you are paying 15% interest instead of putting that money in other investments. If you have two loans, at first you should pay the loan that has higher interest rate.

Final Thoughts On This Book

This book is really very inspiring and interesting. Bottom line is that it tells you to save 10 % of your monthly income and invest that money in low cost index mutual funds for the long-term.

“By saving ten percent of your pay now, you virtually guarantee yourself financial freedom later in life. Only a fool would say no to that. So, Start now and don’t stop”.

About the Author

The Story of a Wealthy Barber