The Wealthy Barber Book Summary - The Wealthy Barber Book explained in key points

The Wealthy Barber summary

David Chilton

Brief summary

The Wealthy Barber by David Chilton is a personal finance book that offers simple and effective advice on how to build wealth. Through a compelling story, it provides valuable financial lessons for anyone looking to secure their financial future.

Give Feedback
Table of Contents

    The Wealthy Barber
    Summary of key ideas

    The Importance of Financial Planning

    In The Wealthy Barber by David Chilton, we are introduced to three young adults, Diane, Cathy, and Tom, who are struggling with their finances. They seek advice from their local barber, Roy, who is surprisingly wealthy despite his modest income. Roy agrees to help them by sharing his financial wisdom, and the story unfolds as a series of lessons on personal finance.

    One of the first lessons Roy imparts is the importance of financial planning. He emphasizes the need to save and invest a portion of one's income, no matter how small. He introduces the concept of paying oneself first, which means setting aside a portion of one's income before paying any bills or expenses. This simple habit, Roy explains, can lead to significant wealth accumulation over time.

    The Power of Compound Interest

    Roy then introduces the concept of compound interest, which he calls the 'eighth wonder of the world.' He explains that by investing early and consistently, individuals can benefit from the compounding effect, where the interest earned on an investment is added to the principal, resulting in exponential growth. This lesson highlights the importance of starting to save and invest as early as possible.

    He also stresses the need to be cautious with debt, advising the trio to avoid high-interest consumer debt and to pay off their credit card balances in full each month. Roy explains that while compound interest can work in one's favor when investing, it can work against them when dealing with debt.

    Investing in the Stock Market

    As the story progresses, Roy introduces Diane, Cathy, and Tom to the world of investing. He explains the basics of the stock market and mutual funds, emphasizing the importance of diversification and long-term investing. He also encourages them to seek professional financial advice and to be wary of get-rich-quick schemes.

    Roy shares his own investment strategy, which is simple and conservative. He advises them to invest in a diversified portfolio of low-cost index funds and to avoid trying to time the market or pick individual stocks. This approach, he argues, minimizes risk and maximizes returns over the long run.

    Planning for Retirement

    Another key lesson in The Wealthy Barber is the importance of planning for retirement. Roy explains the benefits of contributing to tax-advantaged retirement accounts, such as 401(k)s and IRAs, and the power of employer-matching contributions. He also discusses the concept of asset allocation and the need to adjust one's investment strategy as they approach retirement age.

    Throughout the book, Roy emphasizes the importance of living within one's means, avoiding unnecessary expenses, and maintaining a healthy balance between spending and saving. He encourages Diane, Cathy, and Tom to set specific financial goals and to regularly review and adjust their financial plan as their circumstances change.


    In conclusion, The Wealthy Barber is a timeless guide to personal finance, presented in the form of an engaging story. Through the character of Roy, David Chilton imparts valuable lessons on saving, investing, and planning for the future. The book's simple, no-nonsense approach to financial management makes it accessible to readers of all ages and income levels, and its core principles remain as relevant today as when it was first published.

    Give Feedback
    How do we create content on this page?
    More knowledge in less time
    Read or listen
    Read or listen
    Get the key ideas from nonfiction bestsellers in minutes, not hours.
    Find your next read
    Find your next read
    Get book lists curated by experts and personalized recommendations.
    Shortcasts New
    We’ve teamed up with podcast creators to bring you key insights from podcasts.

    What is The Wealthy Barber about?

    The Wealthy Barber by David Chilton is a personal finance book that offers practical advice on how to build wealth and secure your financial future. Through a fictional story about a barber who shares his financial wisdom with his clients, Chilton presents key principles such as saving, investing, and planning for retirement in an easy-to-understand and relatable way.

    The Wealthy Barber Review

    The Wealthy Barber (1989) is a timeless guide to achieving financial security and building wealth. Here's why this book is definitely worth reading:

    • Full of practical financial advice, it provides actionable steps for managing money and ensuring a comfortable future.
    • With its engaging storytelling and relatable examples, the book simplifies complex financial concepts, making it accessible to all readers.
    • The book's emphasis on long-term financial planning and frugality challenges conventional thinking and helps readers develop a healthy relationship with money.

    Who should read The Wealthy Barber?

    • Individuals who want to improve their financial literacy
    • People who are looking for practical advice on saving and investing
    • Anyone interested in building long-term wealth and financial security

    About the Author

    David Chilton is a Canadian author and entrepreneur known for his book, "The Wealthy Barber." Chilton's book provides practical and easy-to-understand financial advice, using a storytelling approach to engage readers. He emphasizes the importance of saving and investing for the long term. "The Wealthy Barber" became a bestseller and has been widely acclaimed for its timeless wisdom on personal finance.

    Categories with The Wealthy Barber

    People ❤️ Blinkist 
    Sven O.

    It's highly addictive to get core insights on personally relevant topics without repetition or triviality. Added to that the apps ability to suggest kindred interests opens up a foundation of knowledge.

    Thi Viet Quynh N.

    Great app. Good selection of book summaries you can read or listen to while commuting. Instead of scrolling through your social media news feed, this is a much better way to spend your spare time in my opinion.

    Jonathan A.

    Life changing. The concept of being able to grasp a book's main point in such a short time truly opens multiple opportunities to grow every area of your life at a faster rate.

    Renee D.

    Great app. Addicting. Perfect for wait times, morning coffee, evening before bed. Extremely well written, thorough, easy to use.

    4.7 Stars
    Average ratings on iOS and Google Play
    31 Million
    Downloads on all platforms
    10+ years
    Experience igniting personal growth
    Powerful ideas from top nonfiction

    Try Blinkist to get the key ideas from 7,000+ bestselling nonfiction titles and podcasts. Listen or read in just 15 minutes.

    Start your free trial

    The Wealthy Barber FAQs 

    What is the main message of The Wealthy Barber?

    The main message of The Wealthy Barber is to prioritize saving and investing for a financially secure future.

    How long does it take to read The Wealthy Barber?

    The reading time for The Wealthy Barber varies, but it typically takes several hours. The Blinkist summary can be read in just a few minutes.

    Is The Wealthy Barber a good book? Is it worth reading?

    The Wealthy Barber is worth reading as it provides practical financial advice in an engaging story format.

    Who is the author of The Wealthy Barber?

    The author of The Wealthy Barber is David Chilton.

    How many chapters are in The Wealthy Barber?

    There are multiple chapters in The Wealthy Barber. Unfortunately, the book does not provide titles for the chapters.

    How many pages are in The Wealthy Barber?

    The Wealthy Barber contains 288 pages.

    When was The Wealthy Barber published?

    The Wealthy Barber was published in 1989.

    What to read after The Wealthy Barber?

    If you're wondering what to read next after The Wealthy Barber, here are some recommendations we suggest:
    • Basic Economics by Thomas Sowell
    • The Ascent of Money by Niall Ferguson
    • Think and Grow Rich by Napoleon Hill
    • The 4-Hour Workweek by Tim Ferriss
    • Rich Dad, Poor Dad by Robert T. Kiyosaki
    • Secrets of the Millionaire Mind by T. Harv Eker
    • Liar's Poker by Michael Lewis
    • Flash Boys* by Michael Lewis
    • The Richest Man in Babylon by George S. Clason
    • Business Adventures by John Brooks