Struggling financially? Read 'The Wealthy Barber Returns'

I'm 47 years old, and if you're around my age or older you've probably heard of or read David Chilton's book 'The Wealthy Barber'.  I'm certain that Mr. Chilton is at least partly responsible for the boon in mutual fund investing that occurred during the nineties and early into this century.  "The Wealthy Barber" (TWB) was written in 1989 and it was a monster success selling somewhere around two million copies.

But TWB was written in a different era, before the internet, before TFSAs, before the great financial crisis and before Canadians went from a nation of savers to a country that has gorged itself on debt.  

The author's first book harped on the theme of 'pay yourself first', taking roughly 10% of your income and putting it toward long term saving.  He extolled the virtues of dollar cost averaging, buying equity investments with a fixed amount on a regular basis so as to even out the ups and downs that come with the equity markets.  Dollar cost averaging means buying more when prices correct and less when valuations soar.  

Over the long haul (20 years or more) equity markets have outperformed just about every other investment vehicle; savings accounts, government bonds etc, but its not a ride that goes straight up, there are many bumps along the way.

The Wealthy Barber Returns is true to the original in this sense, the need for long term retirement saving, but David Chilton bemoans the fact that Canada has become a nation of spendthrifts.

The original book centred around a rich barber who dispensed financial wisdom to his customers in a narrative form.  The author has abandoned that device in this book however, and speaks directly to the reader, and its a wise choice.  Too many people are struggling and need to be spoken to directly, not via a kindly older gentleman cutting hair.  Our problems typically boil down to hedonistic desires trumping simple common sense.  'The Wealthy Barber Returns' has one key theme that is obvious and simple.  

You can't spend more than you earn.  

If you think saving is impossible, read the book.  If you're convinced you can't spare a single dime to put toward an RRSP, RESP or TFSA, read the book.  If you don't understand what those acronyms even mean, definitely READ THE BOOK.  

I'm lucky, I didn't even have to buy the book.  In fact I have two copies, one in English the other in French. My financial institution was giving them away, and living in Québec they only had French copies the first time I saw it available, so I struggled through.  On a later visit they gave me the English version.

Mr. Chilton, if you ever chance to read this, votre français c'est excellent.  

Don't sweat it Pope Francis, Jesus pissed off the rich and powerful too...

Pope Francis has recently been harshly criticized for bemoaning the imbalance that exists in our world, an imbalance between the rich and the poor.  Some, like Rush Limbaugh, have accused the Pope of being a Marxist, while demonstrating a total lack of understanding of what Marxism even is.

Good for the Pope.  I'm not a Roman Catholic, and some would say I'm not even a Christian because I don't swallow hook line and sinker every word printed in the Bible.  But I do consider myself a Christian, and I do believe there was a guy named Jesus walking around present day Palestine a couple thousand of years back who stirred things up.  Jesus rattled the apple cart, and undermined his society's power structure.  He spoke of the kingdom of God, he said there was a better way of doing things.  Things like us being our brother's keeper, loving others as ourselves.

We all know what happened to Jesus.  I would argue his message was warped and perverted to entrench the inequality he preached against.  We were told to worship Him, and to obey the dictates of those who wrapped themselves in his mantle.  

Nice to see a Pope returning to the message instead of just glorifying the messenger.   

No statue for victims of Canadian Capitalism in Bangladesh?

Our federal government, suddenly flush with cash it seems, has earmarked $1.5 million for a group called Tribute to Liberty so they can build a statue to honour victims of communism.  (Story Here)

As mentioned in the linked article, a twitter row ensued between the Green Party's Elizabeth May and Conservative cabinet minister Jason Kenney.  May wanted to know if there were plans to build a statue to honour victims of capitalism.  Kenney responded by saying that "Perhaps that's because no one was shot in the back while risking their lives to flee eastward over the Iron Curtain ".

No, perhaps not, but more than 1,100 people (including children) died six months ago when the factory they worked in for slave labour wages collapsed on them in Bangladesh.  The factory was making clothing for, among other companies, Canada's own Loblaws.  You can read about the tragedy HERE.  

Why are people...again, including children, working in conditions like this for wages equivalent to roughly $2 per day or less?  Well, that's unabashed capitalism for you.  The market is a competitive place, and a store that's able to sell things like t-shirts at a better price than its competitors is going to be rewarded with a higher market share and a better bottom line.  Consumers like it, shareholders like it and so we're all in some way responsible.  

So why are we spending money to build a statue for victims of a system Canadians didn't create while ignoring victims of a system we actually endorse?  Simple, its all about optics and feeling good about ourselves.  Its kind of like the millions being wasted on the Economic Action Plan ads, they don't do anything other than boost our self image. 

There have been victims of communism and victims of capitalism. But you don't get a statue if your cause makes people think and reflect, at least not in today's Canada it seems.     

Québec's values charter, starting to win me over

Like anyone I can be prone to knee jerk reactions, its normal. When Québec proposed values charter was first put forth I was opposed.  I cheered when I saw an Ontario ad seeking to attract employees of the Islamic faith to Lakeridge health centre in Oshawa with the tag line:  

"We don't care about what's on your head, but with what's in your head"...or words very close to that effect.

The charter struck me as xenophobic and intolerant.  My view however is changing.

Religious extremists are anything but tolerant.  Men who insist their wives cover their faces, and in some cases their entire bodies, are not viewed as models of inclusion and open mindedness...quite the contrary. Religious extremists of any faith seek to subjugate anyone who doesn't adhere to their interpretation of the almighty's will.  

I still can foresee a myriad of problems with enforcing such a charter, but the debate it has created is very much worth while.  Bravo to my home province and to the Parti Québecois for having the cajones to put something like this out there for public discourse.  Other parts of Canada I think would be too timid for fear of offending.

Debate is a positive thing, and only cowards run from controversy.  

For those who can read French here's an excellent article from LaPresse, wondering what is the opinion of Liberal MNA Fatima Houda-Pépin, the only Muslim member of the Québec National Assembly.  Unfortunately while she has spoken out against extremism in the past, on the charter she is silent.

On aimerait vous entendre, Fatima Houda-Pépin