Category: Saving Money

Do These Things?

Sometimes we wait and wait for stuff to happen when instead that is the last thing we are designed to do. If you are waiting around for things to happen, you can be assured they will happen anyway and it’s pure chance if it will be of benefit to you. Fact is most people spend their lives drifting from one financial crisis to another – from one bad relationship to another. Still spending one of the two main resources (money) on stuff – shizzle.

These are things you need to focus on if you really want your life to change.

 

 

 

 

Action – what are the ten percent of things you do that bring the most reward. Think, financial, emotional and spiritual. Go do them and them only.

Meditation/Mindfulness – don’t have time for five minutes of this. Go do an hour.

Gratitude – what you have is what you have – be grateful, express gratitude for this day, your clothes, where you are, you ain’t dead – which means things must be better than they can be.

Focus – bit like Brexit we have a whole load of politicians that can tell you what they don’t want but none that can tell us what they don’t want. The quicker your work out what you want the quicker things will change. What you don’t want  – won’t give you what you want.

Spending your time and money on stuff will not have the impact you think it will. It’s all about  making the inside right, then the outside will follow.

Stop spending hard earned on shizzle.

When you’re ready for more, get on the email list – you will thank me for it.

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MoneyTrainers – January 2018 Podcast

As always – parental guidance – there maybe some naughty words up ahead.

Show notes – January 2019  Audio is linked below.

For many people – not having any money is the default position. JAM’s – just about managing, those living on the streets, relying on benefits – people moaning in the office, at the pub – never having enough, moaning about the rich – how unfair it is that they have all the money – you know, the ‘never enough to go around because…’ story that is often told.

The oldest books we have access to all talk about the issues around money.  The problem with that is we end up with a whole series of negative thoughts around money and I know the reason we have these negative thoughts is because people don’t understand the science around money. They don’t know how to make it grow and how to multiply it. Those that do understand the money is just a resource, like having food in the cupboard or wood for the fire.

Money only solves the problem that is caused by not having any money. It doesn’t solve any other problems.

Money is an amplifier, if you are in a bad marriage with no money. Having more money will not make your marriage any better. but it sure is likely to increase the strain within the relationship.

Having money inside a good marriage makes everything better. It’s like a massive boost, couple getting on OK money kicking around and do the things and by the things I want to do. Surely a perfect scenario great relationship plenty of cash.

For some reason money is the one thing that nearly everybody you meet struggles with. There are few people for some reason, that really get this money stuff. We have all sorts of words and sayings for it, money doesn’t grow on trees, I’d love to afford it but, there is never enough, money is evil.

One of the reasons I do the things I do, it’s not only because I understand how this whole money thing works but large sections of my community seem to struggle with this whole money issue, of course there are plenty of myths and misunderstandings around money and this is part of the problem. The other part of the problem is the lack of a decent money education. people think that this whole making it growing it allowing it to work for you money thing is just far too the reality is it snow harder than learning to drive the reality is it’s no harder than learning to drive a car or ride a bike or to cook a Sunday roast. But it is more akin to making a cake, see if you get all of the ingredients in the right order and use the right chemistry making a cake is really quite easy. getting things in the right order with the right chemistry around your money is an incredibly successful strategy and it’s possible for everyone to learn.

So what are the fundamentals around money.

Spend less than you earn.
Invest the rest.
Always invest for income.
Spread your investment risk.
Never invest solely for tax reasons.
Check, tweak and adjust.
Provided you follow these few steps you’ll be doing better than average.

It is just something that you can use.

Money doesn’t care it has no emotions it’s not interested in who owns it or who owns it. Yet it is a measure of success. I don’t think it’s a very good one because I’ve met plenty of miserable wealthy people. And surely having a successful life means a happy one. Just a thought not a debate.

There also seems to be a widely held belief that money is difficult to come by, difficult to manage and difficult to invest. This perception is pervasive, it’s all around us just ask members of family or the people you work with ask them tell you how hard it is to get and hold on to how to manage.

But that’s not the truth is it, plenty of people have managed to acquire a big pile of cash and use it to fund extremely happy lives. And provided you follow a few basic principles – what I call the science of money  You can enjoy the warm cosy glow of having enough coming in and enough money to live a life.

Before you go on, the next time you are out shopping try this. Find an item you were going to buy, before you drop it in basket, look around, is there are bog off available, a discount for two, an own-brand option – just being mindful about spending often shows up as a ten or sometimes twenty percent saving – you now have some money spare that you were not expecting to have – put that in a safe place – you can invest that at a later date.

Surprisingly there are a very low number of skills that are required in order to provide for a successful financial future.

Simple things.

Invest for income using low charge funds – charges are important.

Use the likes of Peer to Peer lending for some of your cash – returns from Funding Circle can be as 12%.

Invest in Government bonds and company bonds – these work like a loan, you make to a company or to Government

Always have some cash to invest – never ever be fully invested.

 

Learn how to trade your knowledge – if you are in a full-time job – then part-time.

Be careful with pensions – these are only tax-deferred not tax-free, charges eat up all of  any tax relief (get hold of my pension review letter if you are not sure)

Retail arbitrage – new to this one myself – basically means buying an item for a large retailer and selling it online for a profit. I’ve done a couple of sales recently – it’s an interesting model that I’m still learning.

In summary

Spend less than you earn

Remember that once a pound is spent it never comes back to you somebody else now has access to that pound and if they use it correctly it will work for them forever.

Only ever invest for income.

Always focus on the level of charges.

Always invest on the dips – you don’t have to buy that investment now, wait until it goes down in value.

Always make sure you manage your tax liabilities and use your allowances carefully. Note I said “use” not ignore.

If we start to consider carefully the difference between science and a belief, for example, you’ll quickly start to understand that a belief is simply an opinion that is held by an individual or a group of individuals that is not based on any scientific fact. Examples of this are the immunisation debate, whether or not childhood diseases are caused by immunisation and that the earth is flat.

I’m not saying that the belief in either is wrong but the belief is not supported by the evidence. Anti-vaxxers and flat-earthers are entitled to their opinion, and their belief but that does not make them right. The truth is that the world is in fact round like every other planet in the universe and vaccinations do save lives.

When it comes to money there is also a clear science behind making it and managing it. Without a doubt making money is rules-based and provided you adhere to the rules your money will continue to grow. There is an obvious science of money, provided you apply the rules of money science to your money you will get a result. It doesn’t matter who you are or how much money you have if you stick to the scientific rules of money you will end up with a result based on those rules.

Managing your money is a simple science. It’s based on facts and very specific rules. Quite simply apply the rules to your money and your life and you will end up with the result based on the science.

The reason many people on this planet live in poverty is because they don’t use the rules of the science in order to improve their financial situation. I know, that you will provide me with a whole load of comments and narrative in relation to this statement. Explain to me the reasons why poor people are poor, however, the evidence again seems to prove otherwise. There are plenty of people that have been born into abject poverty but have somehow managed to improve their financial situation.

The science behind improving your financial situation is very straightforward. It revolves around education, action and self-discipline. Provided you stick to the rules you will end up with a science-based result.

Money, like nature, doesn’t care about you or any other individual it has no biases quite simply provided you follow the rules of money you will end up with more than you need. Money will flow towards those people that follow the rules. this is the reason why we have a 1% population on the planet that is 1% of the population controls a large proportion of the overall wealth on the planet. Sure some of these people and companies have exploited their position, however, they has all applied the science of money in order to magnify whatever money they have had.

Money science tells us that we should get her money working for us rather than us working for it. Having your money working in the background whilst you do other things is money science. And a bit like every other form of science, it is ignored by many. If you want you can call these poor people. They ignore the basic principles of money. I spent a large chunk of my working life not understanding the principles, my parents never understood the principles. none of them ever had any money, and neither did I until I started to apply the money science.

if you are a bit of a cynic and you don’t believe me go have a look at your own personal financial situation, there is a good chance that you do not have sufficient money. That you do not have enough. this is all the evidence you need that you don’t have an understanding of the silence around money. You have not bothered to learn what is required and take the appropriate action. This is not complicated period this is science.


science /ˈsʌɪəns/ noun

the intellectual and practical activity encompassing the systematic study of the structure and behaviour of the physical and natural world through observation and experiment.


The last two lines of this simple explanation kind of sum up exactly what I mean. Observation and experiment, the great thing about these two is that all of the observing and experimenting has been done for you. you don’t have to learn and carry out these experiments they’ve all been done by somebody else in the distant past all you need to do is to copy them. Really it’s that straightforward.

All of the effort, all of the study, all of the observing has all been done for you period all you need to do is apply to your own circumstances and make the science work for you. It is now 2019, we have many hundreds of years of knowledge and experience behind us. We know what works.

In the same way we all know that not exercising and eating rubbish food along with smoking cigarettes and drinking alcohol will shorten our life. We know these things, they are facts. If you do any of these you all live a shorter life than those. Facts.

Money is no different, we know exactly how it’s made and how it works. for the same reason you wouldn’t feed your pedigree dog or champion horse on rubbish food, you shouldn’t feed yourself it either. Managing and growing your money is based on the same thinking, once you know what works you just do more of the same. you apply the rules in the same way you would apply the rules of food and healthy living to your pedigree pet.

Most people seem to be in an abusive relationship with their money, I think there is always more to come, I think it will all end up ok. the fact is it will if you plan for it and manage it properly once you understand the rules, the science you know what to do next.

These are the things that money trainers is about. When you are ready, get on my email list and I’ll update you with some further information and also the 2019 training dates. this is where we spend 2 to 3 months working together in order for me to educate you on the basic money facts, The science and you can start to do the same with your own money. Anti-vaxxers and flat-earthers need not apply.

You can find out some more on https://www.moneytrainers.co.uk/about or directly on https://www.moneytrainers.co.uk 

Contact me here >>

Update – Pensions – Deposit Accounts – Pensions Select Commitee

Christmas is close – however, there is an interesting shift in spending patterns with a lot of retailers seeing sales down and discounts starting early – I don’t think anyone should be surprised by that given the political situation – that just seems to be getting messier and messier.  Keep your eyes open for a bargain.

Meanwhile  I am speaking to clients that are giving…
Homemade gifts – pickles/oils and sauces.
Waiting for the sales to start
Gifting second hand/recycled items

All of these make sense for the environment and of course, save money. As we all know, once a pound is spent, that’s it gone, it never comes back and is not able to be used again by us.  If you get in the game of preserving pounds, one at a time your financial life will soon change.

Pension select committee links
Earlier in the year, I submitted my response to a Pension Select Committee. For some reason it rattled big chunks of the advice industry, mainly because I asked for clarity over pension charges. Especially over the disclosure of the true costs.

Remember this – if you have smaller than average pension fund (£30k) and charges of just 2% – lucky you – many pension contracts are far higher, the amount deducted from your pension fund will be £600 per year or £50 per month. Double that to £60k and the costs become close to that of the average UK council tax, treble that to £120k and your charges will be £1800 every year – roughly the lease cost of a new Suzuki Swift .

Go do the maths on your own fund, you’ll be surprised I’m sure.

The link to my response on the subject of pension charges – on the  Government portal is here.
http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/work-and-pensions-committee/pension-costs-and-transparency/written/88360.html – the link is not https – I have no idea why.

Pension review offer
If you’d like a review of your existing pension(s) I have a done for you service.https://www.thefinancezone.co.uk/product/pension-finder-and-review-service/ you can order online, it normally takes around four weeks to complete – most pension providers take three weeks to produce the information  – this review could be worth thousands of pounds and is currently discounted – until the end of December.

If you would like to do the whole thing yourself I have a template letter, usually £5.99 but at no charge to you. If you want it, drop me an email to richard@thefinancezone.co.uk  and I’ll send it back.

Link to previous newsletter covering interest rates 

Interest rates continue to be low, for those that missed my comments in the last email it’s linked below.

https://www.moneytrainers.co.uk?newsletters_method=newsletter&id=2

Rule of Seventy Two
I’m sure some of you will have heard of this before, once you start to get your head around how this works for you, you can immediately look at a potential investment and work out how good or how bad it is likely to be – roughly.

All you need do is take the number 72 and divide it by the potential return of any investment and you will end up with a rough number of years it will take for your investment to double.

Compounding interest is a wonderful thing and it is for that reason that I only ever recommend that any investment you make provides an income. Capital growth is never guaranteed and once income is paid it’s yours forever and can never be taken away. Unlike capital growth which will be removed as soon as the market falls.

This just leaves me to wish you a wonderful Christmas break, watch your money – no one else will.

Richard
www.moneytrainers.co.uk

PS there are a number of industry professionals on this list – I’ll be honest, no problems at all with that – but if you use any content without permission I will come knocking  – my bots are watching.

 

Financial Services – What’s Changed Since 1988

 

I started working for the Prudential assurance company at the Holloway Road office, I thought that we were indeed living in very modern times. We didn’t quite have the level of technology you see nowadays, for example the office only had one computer. And that was kept covered most of the time.

There were no self invested personal pensions nor were there any form of peer to peer lending or borrowing – and we certainly didn’t have any of the more creative mortgages that are around today. Sure things were far simpler then, that said the overall thinking was exactly the same. Save some of your hard earned cash in an investment area that made sense and hopefully at some stage in the future you would be substantially better off.

There was no buy-to-let market, personal pensions had only just been introduced and we were right in the middle of a property market crash. Margaret Thatcher was the leader of the Conservative Party and therefore our Prime Minister we also had the satirical TV show Spitting Images every Sunday.

The Prudential was one of a number home service companies that had survived ever since the beginning of the century. Nearly every working class person had access to a trusted advisor that collected 4 weekly cash premiums on the doorstep. These were not loan collections – these were savings.

All of those that wanted it had access to someone that could provide them with financial advice and guidance. Sure the industry will hate me for saying that, however the system worked perfectly. The man from the PRU, or the Liverpool Vic or the Pearl were trusted and respected individuals the were all known locally.

So what happened? The marketplace moved on and most of these insurance companies were replaced by electronic and automated systems. Which meant the man from the PRU was no longer needed.

Ok, the products that sold then were never particularly competitive and certainly wouldn’t be considered in today’s world as being an ideal plan. But for many millions of people these savings meant that they had some cash available at some point in their lives which paid for children’s driving lessons and important birthdays, along with making sure that money was available for funerals and at various intervals holidays and high days. Unlike today’s enforced savings, money was made available at important intervals instead of a of at retirement.

The enforced savings we have available now – auto enrolment pensions, mean that payments are tied up until retirement date and can’t be accessed before age 55. And – certainly not the kind of investment you would make if you were looking to achieve financial independence before then, and certainly not making any sense when you consider it in light of the FIRE movement we have today.

The FIRE movement is a movement whose goal is financial independence and retiring early. The model is particularly popular among millennials, gaining traction through online communities via information shared in blogs, podcasts, and online discussion forums. From Wikepedia https://en.wikipedia.org/wiki/FIRE_movement

My working area for the PRU was concentrated in a tiny part of North London, the bulk of which was a handful of large council estates. I would guess that at least half of the residents had some form of arrangement with an industrial branch company. Which meant that at least half of the people living there had some form of long-term savings. Importantly at least half of the residents had access to a trusted advisor somebody that had financial experience and was able to assist with financial and technical expertise. Sure, there was always an element of sales. There always is.

Home Service
The home service model served the British Public for many years. I guess it just became too expensive to maintain and the contracts that were available started to look a little out of place in the modern world. And things move on, insurance companies needed to evolve just because it had worked for the previous 70 or 80 years didn’t mean it was going to work looking forward.

Advice on the doorstep.
I get the fact that times have changed however making sure that individuals could get access to financial advice in their own homes on a weekly or monthly basis just makes perfect sense.

Even if they had a particularly simple enquiry it could be answered, I had many clients that made notes and stuck them on the mantelpiece or inside the payment books. To make sure by asked the question when I arrived. If you compare that with what’s available now, you can pop over to Money Advice or even the main regulator site and if you are lucky they will be able to answer the question, the reality is any of the government sponsored sites are limited in terms of the explanation and of course are not interactive. Advice, on the doorstep may seem quaint now but for many it was extremely valuable.

Everybody who wanted it had access and in their homes.

Industrial Branch
The policies and plans that were arranged under industrial branch regulations were very simple, simple savings and investment products and simple life assurance products which paid sufficient for working-class customers and their circumstances. Many of these products had been available for decades and met the needs of most. There was never any need for complexity nor is there now. In fact the industry overcomplicates what are very simple matters.

What happens when you die? What happens if you live too long? All of these questions were answered by simple industrial branch policies and the man from the PRU.

When I first came into the financial industry, in 1988.

I  started working for the Prudential assurance company at the Holloway Road office, I thought that we were indeed living in very modern times. We didn’t quite have the level of technology you see nowadays, for example the office only had one computer. And that was kept covered most of the time.

There were no self invested personal pensions nor were there any form of peer to peer lending or borrowing – and we certainly didn’t have any of the more creative mortgages that are around today. Sure things were far simpler then, that said the overall thinking was exactly the same. Save some of your hard earned cash in an investment area that made sense and hopefully at some stage in the future you would be substantially better off.

There was no buy-to-let market, personal pensions had only just been introduced and we were right in the middle of a property market crash. Margaret Thatcher was the leader of the Conservative Party and therefore our Prime Minister we also had the satirical TV show Spitting Images every Sunday.

The Prudential was one of a number home service companies that had survived ever since the beginning of the century. Nearly every working class person had access to a trusted advisor that collected 4 weekly cash premiums on the doorstep. These were not loan collections – these were savings.  

All of those that wanted it had access to someone that could provide them with financial advice and guidance. Sure the industry will hate me for saying that, however the system worked perfectly. The man from the PRU, or the Liverpool Vic or the Pearl were trusted and respected individuals the were all  known locally.

So what happened? The marketplace moved on and most of these insurance companies were replaced by electronic and automated systems. Which meant the man from the PRU was no longer needed.

Ok, the products that sold where never  particularly competitive and certainly wouldn’t be considered in today’s world as being an ideal plan. But for many millions of people these savings meant that they had some cash available at some point in their lives which paid for children’s driving lessons and important birthdays, along with making sure that money was available for funerals and at various intervals holidays and high days. Unlike today’s enforced savings, money was made available at important intervals instead of a of at retirement.

The enforced savings we have available now  – auto enrolment pensions, mean that payments are tied up until retirement date and can’t be accessed before age 55. And –  certainly not the kind of investment you would make if you was looking to achieve financial independence before then, and certainly not making any sense when you consider it in light of the FIRE movement we have today.

The FIRE movement is a movement whose goal is financial independence and retiring early. The model is particularly popular among among millennials, gaining traction through online communities via information shared in blogs, podcasts, and online discussion forums. From Wikepedia https://en.wikipedia.org/wiki/FIRE_movement

My working area for the PRU was concentrated in a tiny part of North London, the bulk of which was a handful of large council estates. I would guess that at least half of the residents had some form of arrangement with an industrial branch company. Which meant that at least half of the people living there had some form of long-term savings. Importantly at least half of the residents had access to a trusted advisor somebody that had financial experience and was able to assist with financial and technical expertise. Sure, there was always an element of sales. There always is.

Home Service

The home service model served the British Public for many years. I guess it just became too expensive to maintain and the contracts that were available started to look a little out of place in the modern world. And things move on,  insurance companies needed to evolve just because it had worked for the previous 70 or 80 years didn’t mean it was going to work looking forward.

Advice on the doorstep.

I get the fact that times have changed however making sure that individuals could get access to financial advice in their own homes on a weekly or monthly basis just makes perfect sense.

Even if they had a particularly simple enquiry it could be answered, I had many clients that made notes and stuck them on the mantelpiece or inside the payment books. To make sure by asked the  question when I arrived. If you compare that with what’s available now, you can pop over to Money Advice or even the main regulator site and if you are lucky they will be able to answer the question, the reality is any of the government sponsored sites are limited in terms of the explanation and of course are not interactive. Advice, on the doorstep may seem quaint now but for many it was extremely valuable.

Everybody who wanted it had access and in their homes.

Industrial Branch

The policies and plans that were arranged under industrial branch regulations were very simple, simple savings and investment products and simple life assurance products which paid sufficient for working class customers and their circumstances. Many of these products had been available for decades and met the needs of most. There was never any need for complexity nor is there now.  In fact the industry overcomplicates what are very simple matters.

What happens when you die? What happens if you live too long? All of these questions were answered by simple industrial branch policies and the man from the PRU.

Regulation

When regulation first arrived in 1988 and the industry was forced to separate into tied and independent advisors, there was a flurry of activity. And the likes of Abbey life and Allied Dunbar continued to promote their high priced and expensive products to support a BMW/Mercedes driving sales force. both of these companies should have been regulated out of existence –  that said they still exist but under a more modern look. Consumer choice is one thing…

Cost of regulation

Despite years and years of regulation we have seen mass mis-selling still continue in fact the level of Consumer Protection now seems to be not much more than it was in 1988. the costs of regulation are met by the product providers, these are funded by the profit from the sale of products, therefore it is the consumer that ultimately pays for its own regulation.

There is a perception that the financial regulators are good at what they do  – the reality is much of the work from the various regulators that has overseen more and more bad stuff going on.

For some reason they seem powerless to stop it. even advisors that were fully regulated and authorised by modern regulators have mis-sold on a massive scale. Along with fraudulent activity.

That’s more than a bit mad it is not acceptable and should never happen in a modern regulated financial services industry.

Old School Stuff

There are  any number of aged principles when it comes to managing money. None of this is taught in schools, none of it forms part of a curriculum in any educational establishment. There is no GCSE in Money Management.  It seems that a financial education can only be learnt once you are outside of the mainstream schools – sure I get that fact that money items are on on some curriculums.

There are a number of principles in relation to money and money management and these will probably be reduced down to 8 or 9 separate points in  a Moneytrainers seminar or workshops.

I work with these financial principles which crossover, or as I prefer – dovetail. By making sure you work with and adhere to these principles you will be able to leverage your money so that it works for you rather than it working for everyone else.  Simple things like comparing Building Society accounts on a regular basis make so much sense yet so few actually do the work.

It’s for these reasons that I work with people to make sure they understand what it is that makes the difference and how to ensure that your money works for you.

What’s Changed

In this modern life, this modern world we live in, access to information is everywhere.  What used to be made privy to just a few is now available to everyone. The changes we have  seen in the last 5 years have been dramatic with information and high quality guidance along with low-cost products on widely available — being your own financial advisor is now so easy and so straightforward.

And in support of the DIY approach we have information coming out of the financial independence movement (see FIRE above)  which is starting to transform the lives of those working with it. Being financially independent at age 35 or 40 he is now possible for everyone, sure you might need to do a little bit of work in order to get there. But it’s certainly achievable.

This financial Independence was not really achievable as a DIY option 20 or 30 years ago but it’s certainly available now and using money as a leverage tool to improve your personal financial situation is a must-do. Even if you don’t attain independence in your 20s and 30s being financially independent in your 40s or early 50s is something to aspire to.

Can you imagine not having to go to work from age 40 to 43, can you imagine having sufficient income from your investments in order to be able to live the life of your dreams and only  work 1 or 2 days per week? Hold on to that thought for a moment.

It really is achievable and many hundreds of thousands of people are already doing it.

If you are ready  get moving on this, get in touch and I’ll explain how you can do it and how easy it is.

 

Is this just real life or is it just fantasy…

In this article,  a big apology for stealing Freddie’s lines from Bohemian Rhapsody and some comment which I originally provided for my private group of Ninja – Money Makers. It’s a short story about life and the shizzle we all live through.

Meanwhile – Itunes has signed off the Moneytrainers Podcast – no mean feat given that podcasts are now an ‘in’ medium.

Here it is.

Sorry Fred.

So here we are, another Friday night has arrived and you’re pleased the week is finally behind you. Tomorrow is Saturday – a day off . You are feeling really pleased about that. The job is driving you absolutely mad and the weekend is far too short. On Friday you’ll have a few beers too many.

And on Saturday, you’ll wake up slightly hungover, to the point of you having a lay in for a few hours. On Sunday you spend the whole day mithering and dreading what’s going to happen on Monday when you return back to the office, only to find that nothing has changed, and you have an entire week ahead of you.

Next week is going to be very much like the last week and the week before that and the week before that. Let me ask you how many weeks has it actually been like that? Perhaps there’s even a better question to ask and that’s how many weeks are you going to let it continue, how many weeks months or years are you prepared to wait for it to change?

One of the hardest lessons I’ve learned is that actually it never changes, well not for the better. It just continues, and feels like it’s working against you. I always thought that working hard learning some new skills keeping my nose clean, doing the right thing will always serve me well. Well that’s what I was told by my parents and my grandparents, it seemed to work for them.

The truth. Just look around – just look at your life, just look at how you spend your money, the things you do. Just think about it for a few minutes, consider carefully exactly what is going on and try and observe in a mindful way how your life really is, what’s actually changing. What’s actually going on. If you are anything like many people out there including your friends and work colleagues you’ll find that nothing really changes week in week out and you end up doing the same things time after time. Visiting the same pubs, with the same people, to the same restaurants the same local park.

We are creatures of habit, we like doing the same things at roughly the same time. That is the human way. the problem is our brain makes us do that on autopilot, we rarely stop to think about all of our actions and end up just going through the motions mindlessly not really noticing.

Of course if that’s the life you want then that’s fine. Problem is, change is coming whether you like it or not and if this is not change that you want then it will of course be negative. It will have a negative impact on your life because it is not what you wanted. That is what happens when change comes.

And the important thing for you to note is this, you can either accept the changes that are put on you by everyone else – not having your own plan. Or you can take control of the changes and make them for yourself.

I have to remind you you are not a tree you can move and change and adapt. You really don’t have to accept what is put in front of you, you can say no, you can reject it you can make your own plan. Lots of you can in there which of course does not mean you will it just means you have the option.

It was the great Richard Wilkins that reminded me one of the most important things to remember about life is this. Given the background we now have with levels of depression far higher than ever and anxiety causing more and more stresses on the human mind and body we need to be aware of number of different things.

This idea from Richard Wilkins is something that just makes sense.
He explained…

Life really is like a beach, the tide comes in the tide goes out and that is life. Sometimes we’re on a high, and the tide is in life is good, things are plentiful and at other time’s the tide is out and things have changed. These things don’t last forever, because the tide is out it doesn’t mean you shouldn’t be content. Whether the tide is in or the tide is out this is life, you have to live it and accept it for what it is and make the changes and adapt accordingly.

The the tide coming in or out who is not targeting you personally it just is it’s the tide. Bad things in life don’t happen to you, they happen to all of us. That doesn’t mean you should feel unhappy or depressed about that you just need to accept it and acknowledge the fact that this is the way life is and be content and happy. And look for the positive stuff.

Because life on the beach, is still life on the beach. No matter if the tide is out or the tide is in, no matter whether the sun is shining or it’s raining. You can’t have every day of positive blessings and sunshine, everything is a cycle and if you try and upset that cycle it ends up as a mess which is why accepting the tide in or the tide out is such an important tool to have in your armoury.

Contentment, just being, living at this moment in time means you are incredibly lucky. Tide in or tide out just live it for what it is.

Let me ask if you’re in your 20s or 30s now and you’ve just read the above? If you even remotely feel anything like the first couple of paragraphs – you’ve got a fairly serious problem. If you don’t solve that you are going to face the next 40 or more years dealing with that same shit. There is also the grave danger that if you do nothing about it, you’ll end up hating yourself, which means drinking more than you should, numbing your senses in some other way either way you’ll not be living the life that you deserve.

Sure it’ll be inter-spaced by the purchase of a house you can’t afford, with the spare bedroom and garage that you’ll never use. The new relationship perhaps even marriage and children. You may even have a few expensive toys and a couple of weeks off in the summer along with a couple of city breaks if you’re lucky.

There’s a good chance you’re going to end up drinking too much and you’re going to be 40 something, and you going to be overweight, you’re going to be up to your neck in debt with credit cards and short term borrowing and you gonna have a pile of shit they call the pension.

I’ve had both of my in laws in nursing homes. When you visit, all you see is sad regret on their faces.

Fact is it comes all too quickly, but here is another side to the story, what happens traditionally is the financial services industry and your employer will convince you that you need to be paying as much money as you can into your pension, yet you know you’re going to be close to death before you can get anything from it. So let me ask you the question

Do you really want to trade the best bit of your life for the poxy Monday to Friday grind in return for a pension you can’t get until three quarters of your life is over?

If that’s what you want that’s fine I can’t help you all I can say is the best of British.

But you know what there are alternatives. There are options, it’s 2018 for fuck sake it’s not 1955. You don’t have to put up with the shit, you don’t have to put up with the grind you can actually start to make things work for you rather than you having to trade your life for a promise for something that may never deliver and if it does you’re likely to be half dead. You will certainly be very close to death.

I’m on a mission to make sure that my kids don’t live a life like this. I’m on a mission to make sure that everyone I meet knows that there is an alternative and then at least then you’ll have a choice. If you know that something else is out there and you still decide to carry on as you are that’s up to you. But don’t let ignorance of the alternatives, of the options hold you where you are.

The internet has not delivered fully for us yet, sure we have a few handy apps and we have one or two social media platforms – but the truth is the internet is something that is so fantastic. And had it been available in the past our parents would have led vastly different lives. Indeed the lives we lead now could be so fantastic if we decided to use the internet and the social platforms for our own goals. Instead of watching pictures of cats and puppies.

This whole thing- financial independence can’t be done using old school thinking and old school methods – these are history the world has changed dramatically you might not feel it yet, but I can assure you it really has.

As I keep saying, for some strange reason the investment professionals the financial services industry is not keen to talk about most of these subjects because they want things to stay the same. The reality is the world has changed and changed dramatically in recent years.

The key from your point of view is this. Do you want to sit back and be fucked over by the rest of the world, by the pensions industry, by your employer or do you want to take your life by the scruff of the neck, vigorously shake It learn some new stuff and end up financially independent and free of the man who has his foot on your neck. See the world is changing whether you like it or not, whether you want to be a part of it or not it is changing.

Back to this man who has his foot on your neck, you know the guy, the one that does your personal review once every 3 months, reminding you – you must try harder, you must be better, with you always saying – fuck you under your breath. The man has always been there, the man will always be there, and the key from your point of view is how long do you want to continue with his foot on your neck?

I’ll be honest with you I’m just working through the final answers to all of this, but I am trying to grow a team of money Ninjas that are looking to use everything they can to leverage a lifestyle to leverage their money to leverage what they know and to live very different lives. It is based on the thinking that here is no point in waiting until you are half dead before you start to enjoy it

Financial freedom, personal freedom is to be enjoyed now not later.

So come over and join me join me on this journey let me show you some tools that you can use, things you can do to make your life, your finances far better than they have ever been before.

More importantly let me show you how you can get these things working for you.

As I’ve said before, you do have a choice with these things, you can either sit back and hope that things will get better, hope that things will pan out, hope that you inherit some money win the lottery.

Good luck but the chances are it won’t happen and I know for sure that with the stuff I’m doing you’ll have a far better chance of success , if not you’re at least learn some stuff and know how to begin the process of leveraging what you have and what you know but for your benefit not for the benefit of others.

If that sounds a little selfish, on one hand it is meant to be, on the other having time freedom, having some leverage means you will at least have a good deal more time to solve some of the other problems this planet is facing, like the political and environmental issues we are going to have to deal with.

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Money and 1998 – Advice Has Changed A Lot

When I first came into the financial industry, in 1988.

I started working for the Prudential assurance company at the Holloway Road office, I thought that we were indeed living in very modern times. We didn’t quite have the level of technology you see nowadays, for example the office only had one computer. And that was kept covered most of the time.

There were no self invested personal pensions nor were there any form of peer to peer lending or borrowing – and we certainly didn’t have any of the more creative mortgages that are around today. Sure things were far simpler then, that said the overall thinking was exactly the same. Save some of your hard earned cash in an investment area that made sense and hopefully at some stage in the future you would be substantially better off.

There was no buy-to-let market, personal pensions had only just been introduced and we were right in the middle of a property market crash. Margaret Thatcher was the leader of the Conservative Party and therefore our Prime Minister we also had the satirical TV show Spitting Images every Sunday.

The Prudential was one of a number home service companies that had survived ever since the beginning of the century. Nearly every working class person had access to a trusted advisor that collected 4 weekly cash premiums on the doorstep. These were not loan collections – these were savings.

All of those that wanted it had access to someone that could provide them with financial advice and guidance. Sure the industry will hate me for saying that, however the system worked perfectly. The man from the PRU, or the Liverpool Vic or the Pearl were trusted and respected individuals the wereall known locally.

So what happened? The marketplace moved on and most of these insurance companies were replaced by electronic and automated systems. Which meant the man from the PRU was no longer needed.

Ok, the products that was sold where never particularly competitive and certainly wouldn’t be considered in today’s world as being an ideal plan. But for many millions of people these savings meant that they had some cash available at some point in their lives which paid for children’s driving lessons and important birthdays, along with making sure that money was available for funerals and at various intervals holidays and high days. Unlike today’s enforced savings, money was made available at important intervals instead of a of at retirement.

The enforced savings we have available now – auto enrolment pensions, mean that payments are tied up until retirement date and can’t be accessed before age 55. And – certainly not the kind of investment you would make if you was looking to achieve financial independence before then, and certainly not making any sense when you consider it in light of the FIRE movement we have today.

The FIRE movement is a movement whose goal is financial independence and retiring early. The model is particularly popular among among millennial’s, gaining traction through online communities via information shared in blogs, podcasts, and online discussion forums. From Wikepedia https://en.wikipedia.org/wiki/FIRE_movement

My working area for the PRU was concentrated in a tiny part of North London, the bulk of which was a handful of large council estates. I would guess that at least half of the residents had some form of arrangement with an industrial branch company. Which meant that at least half of the people living there had some form of long-term savings. Importantly at least half of the residents had access to a trusted advisor somebody that had financial experience and was able to assist with financial and technical expertise. Sure, there was always an element of sales. There always is.

Home Service
The home service model served the British Public for many years. I guess it just became too expensive to maintain and the contracts that were available started to look a little out of place in the modern world. And things move on, insurance companies needed to evolve just because it had worked for the previous 70 or 80 years didn’t mean it was going to work looking forward.

Advice on the doorstep.
I get the fact that times have changed however making sure that individuals could get access to financial advice in their own homes on a weekly or monthly basis just makes perfect sense.

Even if they had a particularly simple enquiry it could be answered, I had many clients that made notes and stuck them on the mantelpiece or inside the payment books. To make sure by asked the question when I arrived. If you compare that with what’s available now, you can pop over to Money Advice or even the main regulator site and if you are lucky they will be able to answer the question, the reality is any of the government sponsored sites are limited in terms of the explanation and of course are not interactive. Advice, on the doorstep may seem quaint now but for many it was extremely valuable.

Everybody who wanted it had access and in their homes.

Industrial Branch
The policies and plans that were arranged under industrial branch regulations were very simple, simple savings and investment products and simple life assurance products which paid sufficient for working class customers and their circumstances. Many of these products had been available for decades and met the needs of most. There was never any need for complexity nor is there now. In fact the industry overcomplicates what are very simple matters.

What happens when you die? What happens if you live too long? All of these questions were answered by simple industrial branch policies and the man from the PRU.

Regulation
When regulation first arrived in 1988 and the industry was forced to separate into tied and independent advisors, there was a flurry of activity. And the likes of Abbey life and Allied Dunbar continued to promote their high priced and expensive products to support a BMW/Mercedes driving sales force. both of these companies should have been regulated out of existence – that said they still exist but under a more modern look. Consumer choice is one thing…

Cost of regulation
Despite years and years of regulation we have seen mass mis-selling still continue in fact the level of Consumer Protection now seems to be not much more than it was in 1988. the costs of regulation are met by the product providers, these are funded by the profit from the sale of products, therefore it is the consumer that ultimately pays for its own regulation.

There is a perception that the financial regulators are good at what they do – the reality is much of the work from the various regulators that has overseen more and more bad stuff going on.

For some reason they seem powerless to stop it. even advisors that were fully regulated and authorised by modern regulators have mis-sold on a massive scale. Along with fraudulent activity.

That’s more than a bit mad it is not acceptable and should never happen in a modern regulated financial services industry.

Old School Stuff
There are any number of aged principles when it comes to managing money. None of this is taught in schools, none of it forms part of a curriculum in any educational establishment. There is no GCSE in Money Management. It seems that a financial education can only be learnt once you are outside of the mainstream schools – sure I get that fact that money items are on on some curriculum’s.

There are a number of principles in relation to money and money management and these will probably be reduced down to 8 or 9 separate points in a Moneytrainers seminar or workshops.

I work with these financial principles which crossover, or as I prefer – dovetail. By making sure you work with and adhere to these principles you will be able to leverage your money so that it works for you rather than it working for everyone else. Simple things like comparing Building Society accounts on a regular basis make so much sense yet so few actually do the work.

It’s for these reasons that I work with people to make sure they understand what it is that makes the difference and how to ensure that your money works for you.

What’s Changed
In this modern life, this modern world we live in, access to information is everywhere. What used to be made privy to just a few is now available to everyone. The changes we have seen in the last 5 years have been dramatic with information and high quality guidance along with low-cost products on widely available — being your own financial advisor is now so easy and so straightforward.

And in support of the DIY approach we have information coming out of the financial independence movement (see FIRE above) which is starting to transform the lives of those working with it. Being financially independent at age 35 or 40 he is now possible for everyone, sure you might need to do a little bit of work in order to get there. But it’s certainly achievable.

This financial Independence was not really achievable as a DIY option 20 or 30 years ago but it’s certainly available now and using money as a leverage tool to improve your personal financial situation is a must-do. Even if you don’t attain independence in your 20s and 30s being financially independent in your 40s or early 50s is something to aspire to.

Can you imagine not having to go to work from age 40 to 43, can you imagine having sufficient income from your investments in order to be able to live the life of your dreams and only work 1 or 2 days per week? Hold on to that thought for a moment.

It really is achievable and many hundreds of thousands of people are already doing it.

If you are ready get to moving on this, get in touch and I’ll explain how you can do it and how easy it is.

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Money – Making It Is Not In Our DNA

 

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Since 1930, when it was kind of first possible for an ordinary person to get access to the information needed in order to invest successfully, there has been lots of attempts by many to make it work for them, or at least get their money working for them.

Sure, some start and give up, thinking it’s all far to difficult and others get lost in their own minds and stop. Others end up with a modicum of financial independence.

Before 1930, it was only really the wealthy that were able to make money – make money.  Everyone else was struggling to make ends meet or to have more than enough so they didn’t need anymore.  Certainly, a large proportion of the population were stuck in ordinary ‘just over broke’ jobs that didn’t really allow for the investment of spare cash – if there is no spare cash – there is no way of finding any to invest.

It should be no surprise then, that knowing just how to make money work for you is not clearly understood, firstly not everyone needs the skill if you don’t have any money spare there is no need for investment knowledge. Secondly, it’s only since 1930 or so that it’s been an option.

It takes many thousands of years for us humans to adapt to a new way of doing things. Wealth and money management is a relatively new thing to wrap into our DNA. It always used to be about hoarding (or saving) money, depositing it as cash in banks and building societies and leaving it there until it was required, back in the forties and fifties most of what was available  – cash deposits, would have paid a far higher rate of interest than now. An example of this was 1957 (source ONS) when interest rates hit 7% with inflation running at around 4%, giving real rate of return before tax of around 3% – having money in the bank wasn’t as bad as it is now with – effectively negative returns after inflation.

Therefore, even if there was spare cash, learning a new skill – that of money management was not really required.

It’s interesting to note that just before 1930,  there was a stock market crash that started a depression, that in turn is credited with causing the right circumstances for the start of World War Two and the rise of Hitler and his group of freaks.

After the war, there was the introduction of various state systems in the UK. Called the Welfare State – these started to appear in 1942 or so, this included a benefits system that covered both in work and retirement benefits — along with the NHS. For the first time, a State Pension was made available of ‘a penny a week’ at age 65 for men. Given that life expectancy was still only 65 it was a bit of a one-sided bet.

I’m sure it had the effect of making most people consider the ‘what ifs’ in relation to their personal circumstances – it was really only after 1950 that there were widely available company pension arrangements along with a number of personal pension plans on the marketplace. By the late 1960’s there were a good number of these plans around

In this short period of time, many people started to become more money savvy and certainly many high street banks started to provide ‘stockbroker’ services and investment funds started to appear from the likes of the Prudential and other Home Service Insurance providers. All of a sudden people could invest in the stock markets and start to stake a claim on a brighter future, leveraging money – making it work for you rather than you working for it.

There were other changes, notably more women in work, more married couples with two incomes. All of these provided a bit more cash in the system, a bit more spare. This, of course, fuelled the savings markets, with doorstep advice being available and banks being more adventurous with consumer investment products.

This meant that people started to think more and more about their options but still didn’t start to really apply leverage to their investment funds – – sure it’s a changed world today, yet people are still, in the main spending nearly all of the money they earn and saving a lot less than our grandparents did (on average) yet, more and more information exists.

As I write this in 2018 it’s clear that just having the information available does not make it possible for investment decisions to be made nor does it make people want to invest. Given that money invested now, will produce income for years to come. Income that can be used to provide a better lifestyle, a working less lifestyle it’s amazing that more and more people don’t want to learn what’s required or to understand the principles.

A pound saved today – invested for the future could be ten or twenty pounds at some future stage, income from that pound could be a further one or two pounds every year. It’s not particularly complicated but does need to be done.

Financial independence within a lifetime is possible.

You can download the Seven Rules of Money from over at the Financezone.co.uk

Pension Charges

Investing 

Video Updates

 

Personal Finances have never been so complex or so easy –  that’s the conundrum. Once you know how they work, they are easy – being in the dark is being in the dark – welcome to some light on the subject.

Financial Independence –  A Worthy Goal but it needs work.

 

Fifteen Minutes – for free

 

 

 

 

Money, Pensions, Investment Mindset

Planning Your Finances – Two Important Things.

 

Money is a resource – – use it wisely.

 

Financial Independence – FIRE — Why it matters.

 

Pension Select Committee

 

When Should You Invest

 

A Money Education

 

Personal Wealth Creation

 

Pension Charges – Are You A Cash Cow For Your Pension Provider

 

Money Trainers – Divorce and Your Finances

 

Pension Peformance and Investment Returns

 

Buy On The Dips

 

I’m sure you have heard this  before, that you should only invest your money in stocks and shares when the price is right.

The problem is no one fully explains exactly what that means.

So, let me explain in a little more detail about how this works in practice. And provided you follow the steps laid out in the money trainers training you will be aware that you need to secure any investments in cash first,  and then allocate this cash across a range of investments – when the time is right.

The problem being, when is the time right?

We know that the markets fluctuate on a daily basis and very often you’ll find the markets on a roll upwards over a period of weeks and then dip slightly, the market never continues to go up it always levels out,  consolidates and/or often falls slightly.

Falls in any market; of any share price of one or two percent are very common, falls of 3% or 4% on less common but do happen on a regular basis.

Buy on the dips – moneytrainers investment training.

Larger falls in the price of the market happen less frequently but nonetheless arrive with a reasonable amount of regularity.

Therefore it makes perfect sense for you to invest when the markets are lower than they were yesterday rather than the highs of today, quite simply we know full well, and can state with some certainty that the price in the market today of a given share or stock index will different tomorrow, or the day after, or stay the same.

Provided you have cash in your portfolio you have no need to invest today and you can time your investment to suit you, if we use a different analogy.

Let’s say you need to purchase oranges, you don’t need them immediately but it would be nice to have some in the house at some point in the future you can  – simply wait until the price of oranges falls.

You have no need to invest today or tomorrow or the next day but simply wait for the market dips and let the market come to you rather than you chasing the market. Provided you allocate your funds correctly you can simply invest when the market suits you, or at least when the price suits you.

This kind of market timing can improve your investment returns by 10 or 20% per year dependent on market conditions.

Just one simple method can improve your returns exponentially. Sure it’s a bit fiddly, but making money it’s always been fiddly.

when you’re ready to get some more information on this don’t forget to subscribe the box is on the right-hand side of this post, or drop me an email via the contact form

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Financial Independence – Making your money work hard.

 

March 2018 Money Trainers – what is it you have to do in order to become wealthy?

 

Try sitting down in front of a financial advisor let them make a plan for you and sit back and wait for the riches to arrive.  If that was how it worked, we’d all will be doing it.

 

Of course that’s not the case, that is now how it works.  There is no way that a simple meeting or many meetings with any financial advisor can either make you wealthy.  

 

Sure they may add some value over the longer term but the reality is you need to be better at money than the adviser. Look, who cares  more about your money them or you.

 

There is a whole science that goes on around money and it’s a science that most financial advisors just don’t understand.  See if you know how to make money based on your own knowledge, your own skills – your own ability it’s possible for you to effectively own a  money making machine that you switch on and off whenever you want. Or as the wealthy do, keep it running.

 

Of course it’s not that easy, if it was we’d all be doing it but with a few skills and the use of modern tools it’s possible for you to get your money working for you today and tomorrow and the day after. That’s what rich people do, in order to become wealthy or as I like to say financially independent they get their money working for them and then it starts to become a fully working,  money machine.

 

People become wealthy because no matter what they do with their lives – their  money is working for them in the background. What happens with most people is they trade their time for money – you give your time up to a business or do to a job in order to get money. You then take some surplus cash – savings and then put it in a bank or a building society.

 

Your money then works hard for the bank and does little for you.

 

If you want to know how hard it’s working for them, take a look at these recent rates.

Deposit interest rates of .15%

Loan rate – lending your money to their customers.

In this short article, you now now know that Santander are making more than 22 x times more lending your money, than they are paying you.  Let me know how that feels.

Of course, you can do something about it.  Get in touch today and I’ll send you a couple of my recent reports. No obligation, your information is not shared.

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