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Investing/Strategies / Retirement Investing
|Subject: Re: The Wealthy Barber||Date: 12/10/1998 9:25 AM|
|Author: TMFPixy||Number: 7151 of 79997|
Greetings, Tom, and welcome. You wrote:
<<I have read close to 5 books on various methods of investing. Ranging from the simple to the bar/graph to roll the die.
Then I read the book, "The Wealthy Barber". It's a fictional account of 3 persons looking toward their future financial security.
The book discusses the "pay yourself" approach, wills, life insurance, home purchases and a few other important topics.
Now, of the other books I've read; Peter Lynch, Robert Sheards, Matt Ceto's and a few others I feel that The Wealthy Barber has hit the nail on the head. Because it deals specifically with the basics, at least what I perceive the basics to be.
However this book hasn't changed my first step toward financial freedom, it has just confirmed it.
The pay yourself approach is an excellent method. The philosophy is to pay yourself 10% of your earnings and have it automatically invested in either a stock or mutual fund.
I am going to take this method and start with 7% and open a ROTH IRA and have the money invested into a mutual fund.
This is money that I will initially miss, however I'm sure that I can get along without sacrificing much.
My next step will be to purchase a term life insurance policy to protect my family and to take care of their needs.
Any input is welcome.>>
I liked "The Wealthy Barber" when I first read it in 1991. I think it explains some basics in very understandable terms. The idea of "pay yourself first" has been around since antiquity, though, and isn't unique to Mr. Chilton. He just had a very entertaining and folksy way of explaining it.
I think it's g