The Barefoot Investor

The Barefoot Investor, Audible edition — Supplementary material

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The $226 484 difference

In this graph, ‘your fund’ is the higher fee one, and the ‘alternative fund’ is the
lower fee one.

Source: ASIC MoneySmart Managed Fund Fees Calculator. This is not a typical managed fund scenario and should
be used for the purpose of comparing the impact of fees in a hypothetical situation only.

The Barefoot Investor, Audible edition — Supplementary material

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The Blow Bucket

The Barefoot Investor, Audible edition — Supplementary material

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The Mojo Bucket

The Barefoot Investor, Audible edition — Supplementary material

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 The Barefoot Investor

The Grow Bucket

The Barefoot Investor, Audible edition — Supplementary material

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Putting it all together

The Barefoot Investor, Audible edition — Supplementary material

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Put in your numbers, name your accounts, and actually see where your money
is going.

Now you have a simple, visual plan.

Now you are in control.

The Barefoot Investor, Audible edition — Supplementary material

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Domino 1: Calculate
Write down all your debts—credit cards, car loans, parking fines, money you owe
to friends.

The Barefoot Investor, Audible edition — Supplementary material

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Domino 4: Detonate
Rearrange your list of debts from smallest to largest. (Yes, it’s the same table you
used to calculate your debt, but this time you’re ranking the debts by size.)

The Barefoot Investor, Audible edition — Supplementary material

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Leave your emotions at the door

This chart from one of the world’s biggest fund managers, BlackRock, nails how
most investors behave.

Sources: BlackRock; Informa Investment Solutions. The information provided is for illustrative
purposes only.

The Barefoot Investor, Audible edition — Supplementary material

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As this table shows, the longer you invest, the longer your money has to grow
through the magic of compound interest (remember: this is when you reinvest
your earnings so you earn interest on your interest).

The Barefoot Investor, Audible edition — Supplementary material

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Faceplanting on a treadmill
Have a look at this ‘shopping list’ and see how prices have increased since the
1970s.

The Barefoot Investor, Audible edition — Supplementary material

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The future is going to be expensive

Look at this new ‘shopping list’ and pick the decade you’re likely to die in. (So I
don’t completely freak you out, I’ve used a conservative 3 per cent inflation, not
the historical 5.5 per cent.)

The Barefoot Investor, Audible edition — Supplementary material

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The property investor

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Lower income earners

When you get your dividend reinvestment plan (DRP) letter in the mail, tick ‘full
participation’.

The Barefoot Investor, Audible edition — Supplementary material

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The miracle of
compound interest
This chart tells the story of yours and
your mate’s investment.

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