The Wealthy Barber Returns : Dramatically Older and Marginally Wiser, David Chilton Offers His Unique Perspectives on the World of Money by David Barr Chilton (2011-01-01)

The "The Wealthy Barber Returns" is written in a relaxed, humorous, conversational style that I found very appealing. It begins with some sage advice on the pitfalls of over-borrowing, describing the forces that draw us into debt traps and the basic human weaknesses that drive us to keep up with others in the quest to accumulate things that, in the end, are of little enduring value. I agree that the false sense of security provided by an abundance of available credit forms a dangerous mindset that can lead to disaster, especially when that credit line is represented by a mortgage on the home. For most people the concept of a Home Equity Line of Credit is too much of a temptation, leading to the illusion of short term gain followed by the reality of long term pain. Dave even takes a couple of refreshing swings at the banks for their tendency to want to lend us up to our rooftops. He recounts one story where a woman he sent to the bank to get a very modest secured line of credit was immediately up sold to the max despite her history of debt accumulation. I'm sorry to report that this is not uncommon. I was a consumer lender for 25 years and it was my job to maximize profit within a consumer loan portfolio. I was paid to lend as much as possible at the highest possible rate without causing losses and not to share that philosophy with my customers. My paycheque depended on it. Until recently, I believed I would never write another personal-finance book. Luck played such a huge role in The Wealthy Barber’s success that I didn’t want to tempt fate.So what changed my mind?Frustration.After watching Canadians’ savings rates plunge, debt levels skyrocket and investment returns consistently disappoint over the last decade, I was pulling my hair out. I wondered, “How can I help?”I’m hopeful that The Wealthy Barber Returns will answer that question.Although it doesn’t use its predecessor’s novel format (yes, that’s a generous use of the word “novel”), this, too, is an unusual financial-planning book.There are no checklists, no graphs and almost no charts. Heck, there’s hardly any math.Essentially, it’s just me chatting casually about the world of money. It’s almost as though I’m in your living room except better because, well, I’m not.I’ll admit that The Wealthy Barber Returns is certainly not comprehensive. Neither my knowledge nor a mere 200 pages would allow for that. And by no means is it the definitive word on how to manage your finances. (Sadly, that doesn’t exist.) In fact, you might disagree with some of my opinions — I’m sure that many in the industry will. But I’m confident that what follows will make you think differently and more wisely about your saving, spending, borrowing and investment decisions. In a way, I’ve been writing this book for more than 20 years. I really hope you enjoy and benefit from its ideas.Even if you don’t, though, please tell others that you did. DaveP.S. Yes, I know The Wealthy Barber Returns isn’t the most creative title. My daughter asked, “What’s next, Dad? The Wealthy Barber Goes to Hawaii? It’s like the old Gidget series.” I closed her RESP. "If you've always thought of money as a dry and dusty subject, let Dave show you just how interesting it can be. While you're at it, learn a thing or two about your personal motivation and how to point it in the right direction. And laugh your socks off, too! I thoroughly enjoyed this book!" Gail Vaz-Oxlade, TV Host of Til Debt Do Us Part and Financial Author "The Task Force on Financial Literacy can stop dithering. All it has to do is distribute Dave Chilton's long-awaited The Wealthy Barber Returns." Jonathan Chevreau National Post Columnist and Author of Findependence "Very funny. Very smart. This fast-paced journey through the world of personal finance will help a lot of people. I loved it!" Amanda Lang, CBC Senior Business Correspondent "A simple plan for a better financial future: Read this book. It's down to earth, fun to read and wise to all the mistakes people make in managing money." Rob Carrick, Personal Finance Columnist, The Globe and Mail