You’ve probably heard of ‘The Barefoot Investor', and for good reason. Scott Pape was voted ‘Australia’s most trusted finance expert’, he’s the finance guy on Channel 7 and radio station Triple M.
He has his own show on CNBC, which gets to 12 million viewers worldwide and he helps AFL and rugby league team understand wealth-creation.
Needless to say, his achievements are impressive.
But do his investment strategies work in the real world? We decided to take a look at one popular strategy, relating to saving.
This strategy is about distributing your income in a smarter way. It looks like this:
We like the practicality of Scott Pape’s income distribution strategy a lot. It takes into account the human element of saving, which is something many strategies overlook.
Putting away 35% of your income for ‘anything you want’ is an excellent example of this. How many times have you felt guilty for dining out when you’re supposed to be saving for that big trip? Using this method, you’re able to allow for impulse buys in a measureable way.
Scott Pape started working in the finance sector because he wanted financial freedom. To him, that meant not having to worry about the bills, the banks or whether he could afford a real holiday. Instead of ‘get-rich-quick’ schemes, he advocates a commonsense approach to investing, which is designed to achieve success over time.
* Financial Advice Disclaimer: This information is general in nature. Mortgage brokers do not provide financial advice. Clients seeking financial advice will be referred to a qualified financial planner.