How to earn money and invest successfully the rich barber method?
How can a hairdresser give us important advice on investing, financial success, and making money? In fact, this is what David Shelton, the genius writer, gave us in his book The Rich Barber.
The book, “The Wealthy Barber,” by David Chilton, is one of the most important books that provide important advice in the field of investment and savings. Shelton presents in this book a summary of his experience in the field of finance and business, as it is presented to us by “Roy”, a wealthy barber, whom people visit from all sides only to listen to his advice in investing, making money and achieving wealth.
The writer provided his advice in an interesting and attractive story style. Keen to present the summary of this valuable book, we worked in this article to collect the most important advice that Shelton and his hero Roy gave us to serve as an important guide to making money and successful investment as a basis for wealth and financial success.
Here are these tips:
1- Save at least 10% of your monthly income
According to Roy Barber, the key to getting rid of debt and starting to achieve wealth and financial success is saving. For example, Roy saves 10% of his income on a monthly basis, to then invest the amount that he collects, either in investment funds or through the purchase of real estate and investing in them in the long term.
Whatever your monthly income, if you do not save a part of it, it will only go to spending without any significant interest, but if you save, the small amount that you will deduct monthly will multiply greatly if you put it in a successful investment instead of hoarding it or spending it on luxury goods, for example. .
2- Create a retirement plan
Once you become at retirement age, it means that you will start working less if you do not stop working permanently, and this means that you will lose one of your biggest sources of income. Of course, retirement does not at all mean poverty, on the contrary, it means that the years of rest in which you will reap the fruits of your labor throughout your life actually begin.
Remember the first tip about saving? Well, during these years you will discover the benefits of this saving.
You must have saved enough money to invest in your own business, which will be your main source of income during the retirement period. In fact, you must have enough wisdom to develop a clear plan for this stage, a thoughtful plan to insure your life and even enjoy it.
3- Choose successful savings methods
In fact, if you are determined to save you must master the art of saving, because it is not always that easy.
Spending is the first thing that you must control to ensure that you make a successful investment. You need to differentiate and set clear boundaries between spending on basic goods and spending on luxury goods. We all want to spend, enjoy our lives and live in luxury, but we have to be careful enough to think about a clear plan for our lives for the long term.
You must first avoid bad financial habits, and the most important bad habit that you may suffer from is your shopping habits. You may be shopping with the aim of buying a specific commodity, but you will notice that you have purchased several other items without having an essential need for them. This habit is considered the most important reason for your inability to save, and even into debt.
You should also set a specific budget for your spending that is commensurate with your monthly income, and it is preferable that you divide it within the same month to prevent yourself from spending more than your income. And you have to stay away from everything that calls for love of appearances and luxury without meaning, otherwise you will be drawn into spending huge sums of money that you need without extravagance.
Of course, this does not mean being a stingy, but it simply means being wise, avoiding extravagance, and always keeping your investment goals in mind.
4- Pay with cash and avoid paying with credit cards
Speaking of bad financial habits, one of the most important tips that a rich barber gives us is to pay with cash and avoid paying with credit cards.
Paying with cash helps you focus more on what you are spending, and it will also make you feel more about how much you spent, especially since you will see the money evaporate in your wallet. But if you pay with credit cards, you never feel until you’ve spent all your balance and started spending even more!
5- Don’t rent a house, buy it
In fact, the most important reason leading to the loss of young people’s money, especially, is their spending huge sums of money on the rents of the house, and if we collect the sums they paid as rent, we will see that they are buying a suitable house while saving a good amount of money even.
The most important advice here is to buy a house in installments, that is, instead of paying money monthly as rent, then pay it in installments to buy the house.
It is not necessary for you to apply all of these tips at once to start your journey towards wealth and financial success, but rather to be convinced of the necessity of taking them and try to gradually apply one or two advice from them to see your financial life have improved significantly. All of these tips have long-term benefits that you will not realize until after a while, but you must be aware of their importance from now. Never think it’s too late, start from this moment and notice the difference!
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