This approach to finance changed my life - The Barefoot Approach!

want to Achieve Financial Independence and live life on your own terms well look no further I'm going to take you through what changed my life in terms of financial education and that was adopting the Barefoot investor approach what I'll do is I will reveal five key powerful tips that I learned from Reading Scott hiips book The Barefoot investor it looks at setting those build blocks in place and then moving you through a number of different steps to see you eliminate debt build an emergency fund and start saving and investing and then enjoying whatever Financial Independence means to you welcome back to the channel and if you're new here hi I'm Mark of Desperately Seeking F so who is Scott pip he is an Australian author and financial advisor who has written a book called The Barefoot investor and many derivatives teaching your kids how to adopt the Barefoot investor approach as well he gained lots of popularity when he brought out this really practical and straightforward approach to personal finance it is I suppose it is quite an Australian Focus book but there are lots of things within it that you could take away and Implement into your own approach towards Financial IND independent and Scott pip isn't the only person out there talking about this kind of approach the UK has got Martin Lewis the US has got Dave Ramsey so there are lots of people talking similar kinds of approaches but I just loved the way that Scott pip actually brought the whole thing to life with his I've listened to the book on Audible and I've also read it and it is it is really really good I did read this book a few years ago and took on board an awful lot of what he was talking about I did tweak it a little bit because I um in the UK and some of the things that he was talking about were very Australian focused in how do you deal with pensions Etc and their their super annuation approach but I just flipped that across and did exactly the same thing in a UK context I will take you through some of the probably the top five things that I took away from the book that completely changed my life got rid of about 20,000 worth of debt and has allowed me to build up not just an emergency fund but also build up a dividend and ETF portfolio worth over £40,000 over the last few years as I've said I have both read and listen to the Barefoot investor and if you want to grab a copy of it I will drop a link down below um where you can go and get your hands on either a audio book of it or a hard copy of the book so why not go and it is the best viewon that I have invested into any of my financial journey to dat what are we looking at within the book he has got three different chapters and he breaks those chapters down into his Barefoot steps I'll check those up on the screen but he he brings it together in a really easy way to move through this whole process it may take you years to do but he gives you stepping stones and ideas and it all kicks off with a Barefoot day at night so you go out with your partner or if you don't have a partner just go out with yourself have a nice mail and start to set up your financial Independence journey and get your finances under control he then takes you through a number of different steps sorting out how are you going to pay for everything setting up different bank accounts setting up your emergency fund looking at how do you maximize wherever you live your pension contributions and then looking at things like paying your house off and then the very final step is that generational wealth and leaving a legacy for your kids and your grand kids he then goes into a bucket system he is giving you a practical method of how do you bring all your money together and organize your money into different buckets and these basically include what you are spending what your daily expenses are and in reality you're looking at things like your house cost your food and other bills that you have and you will be looking at spending probably somewhere in around 50 to 60% of your wage on that bucket you then put about 10% of your wage away into a Splurge bucket so you can spend this on things like eating out and going and doing some shopping you then have smiles I put about 10% away into a separate account that just sits there for holidays you then have your fire extinguisher which you use to put out all the fires of all of those debts get rid of that and then you have your mojo and this is basically the emergency fund that everybody should have and he's suggesting somewhere between 3 to 6 months and I'm sort of sat on that 3 month at the lower end because I feel that I've got a reasonably secure job at the moment and I'm happy enough with just that sat in the emergency fund to cover those essential bills if you're getting some kind of value lless content I would love it if you could hit the like button and think of subscribing one of the key things that lots of people talk about and so does Scott is that need to automate your finances you want to make this as simple as possible so you have a number of different bank accounts set up and it depends on how you wish to do that but you have your wage comes in into one and then you split off into different accounts potentially looking at all of those expenses all your direct deits come out of one account you have your smile account for your holidays Etc set in another one and you have your emergency fund preferably somewhere locked away where you cannot get your hands on it that easily unless you have an emergency and you need to draw that money done in a few days I currently have my emergency fund sat in premium bonds one of the key things that we need to do and everybody should be looking at doing this and I know it's really really difficult to set on and try and figure out how to reduce that but let's take the bull by the horns and do what he is talking about you want to figure out first of all what debts do you have and then start a negotiation potentially to try and get those interest rates reduced on and then you sort to eliminate them I've done a video on Snowball versus Avalanche uh method but the one that Scott pip talks about more is that debt snowball where you start knocking away at the highest interest debts that you've got no matter what the value of those are so you get rid of those hideous credit card uh debts that you may have that are 29 30% APR get re lose first and then start knocking your way down through and then you are looking at going after getting the banker off your back as he calls it and get rid of your mortgage and start to knock that away You're then looking at investing for the future lots and lots of the videos that I do on this channel are about investing into lowcost index funds so why don't you go and have a look at a video like that but that is basically what he also uh States you should be doing investing into lowcost ETFs Diversified funds and building up an Investment Portfolio that will start to pay you money in the future and also part of that investing into the future is looking at investing into a pension whether that is through a workplace pension or whether you have to do a self- invested personal pension side of things but make sure you are maximizing any workplace pensions that you've got or uh taking advantage of that tax relief that you get on the the sips the you can do in the UK all of this comes together to start to lift some of that weight off your shoulders and as I was talking about ETFs are a great way once you've got rid of all of these other things your debts Etc so why don't you go and have a look at this video where I talk about a number of different ETFs that you can invest into thanks very much for watching and I will see you in the next one cheers bye