The Wealthy Barber
The Christmas and New Year’s season is a special time. A time of celebration, family gatherings, too much food, lazy days, and time spent thinking about the past year and looking forward to the next. As I sit here writing this, we are looking forward to the roaring twenties: 2020!
After yet another amazing Christmas feast, I was vegging in my home office and pulled out David Chilton’s book The Wealthy Barber. Chilton’s Canadian bestseller book on finance is one that every Canadian should read. As I flipped through The Wealthy Barber, I was reminded of the time we brought Chilton out to speak and share with our eXimus clients. While he was sharing his insights, I was reminded of all the incredible financial advice Chilton penned in his book, as well as Chilton’s easy to read writing style. His writing style makes financial content accessible to everyone.
I was introduced to The Wealthy Barber in 1992 by Terry, our office-managing broker. I had just received my real estate license. Part of my initial real estate training was to read and watch Chilton’s video alongside a few other books and videos. One of the motivators/instructors suggested that as a real estate professional, you should buy a minimum of one investment property every year. I thought that was excellent advice and followed through with that advice to today. But as great as that advice was, it was Chilton’s book that resonated with me in all areas of my investing and professional life. The chapter titles of The Wealthy Barber show just how impactful this book has been in my life:
Chapter 1: “The Financial Illiterate” – This chapter was packed full of content that I did not learn in high school or college and was very insightful.
Chapter 2: “A Surprising Referral” – Being introduced to the right people is a game changer; never pass up an introduction.
Chapter 3: “The Wealthy Barber” – When you hear someone else’s story, it has the power to change your perspective. Whose story has changed your perspective? Over the years, I have heard many stories that have inspired me.
Chapter 4: “The Ten Percent Solution” – A number like 10% seems small and insignificant, but the impact that 10% has can change one’s financial trajectory.
Chapter 5: “Wills, Life Insurance, and Responsibility” – Do you have a will and life insurance? Is your will and life insurance current? If not, do it now.
Chapter 6: “Planning for Retirement” – There are many ways to save for retirement. I highly recommend that you seek advice and put a plan together. Brad, my financial advisor, put together an excellent plan, as well as my real estate portfolio and business succession plan.
Chapter 7: “Home Sweet Home” – To me, this is a no brainer. Our personal homes are the best investments that we can own. They are also a tax haven, since the equity is tax free.
Chapter 8: “Saving Savvy” – This one can be tricky… Look at your spending habits: are you a big item spender (pair of high-end skis) or a little item spender (daily special coffees at Starbucks)? We all fall into one or both of these categories. Once you know what kind of a spender you are, you need to find discipline to be savvy about spending.
Chapter 9: “Insights into Investments and Income Tax” – Surrounding yourself with the right professionals is so important. Early on, I was introduced to extremely bright and helpful individuals that set me up for financial security through investments, but maybe even more importantly, incredible tax advice.
Chapter 10: “Graduation” – Helping your children through post-secondary schooling is a kind and meaningful thing to do for them. However, also making sure that you do not leave your estate a financial mess is another version of graduation. Fortunately, my wife and I have been able to plan and do both.
As we enter a New Year and new decade, I encourage you to put Chilton’s financial thoughts into practice. He has given us simple concepts, common sense, and a plan for our financial future while still enjoying life. I encourage you not to set a goal, but to get goals.
Wow, it is a new year, a new decade, and a new market when comparing December 2019 to December 2018. All property types and areas have seen a significant improvement in the market year over year. STR (Sell Through Rate) numbers are up across the board. In most cases, inventory levels are down and sales volume is up making for an optimistic start to 2020. The fall/winter sales momentum coupled with continued low-interest rates certainly boasts well for our spring market.
I am anxiously waiting for the federal government to review and change the mortgage stress-test policy for non-insured mortgages or at the very least increase the amortization period to 30 years for new mortgages. Either of these two policy changes would have a huge impact on the market. In essence, it would be like discounting the entire Canadian real estate market by 20-25%. Who doesn’t like a discount!
A quick note about David Chilton and his Wealthy Barber presentation. He made sure to talk and greet everyone at our eXimus client event and everyone went home feeling thrilled about their finances and more importantly about themselves. A true tribute to the way David related to our clients and his excellent presentation. David is such a generous and down to earth good guy and he gave every one of our clients a copy of his book.
Please reach out to our team for more information or help with all your real estate needs.
Click Below To See The Fraser Valley Stats:
Click Below To See The Vancouver Stats:
STR (Sell Through Rate) Formula = Sales ÷ Active Listings + Failed Listings + Sales
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