“I started Plain English Finance in January 2011 with one over-arching goal:
To improve the financial affairs of as many people as possible.
Below I explain why...”
Reading time: ~ 10 minutes
1) The reason so many people struggle financially is, very simply, because they have never learnt enough about money or financial markets.
2) People on low incomes who do understand financial markets, can realistically expect to become millionaires – and very often do.
3) People on huge incomes who never learn about finance often end up bankrupt.
Wealth is less about income than it is about knowledge.
“No one cares more about your money than you do. With a basic understanding of the investment process and a bit of discipline, you’re perfectly capable of managing your own money… By managing your own money, you’ll be able to earn higher returns and save many thousands ... in investment costs over your lifetime…”
Andrew started his career in the late nineties at a leading investment bank in the city of London. One of the things he realised very early in his career was how few people understand investment in any real sense.
To some extent this might seem like a statement of the glaringly obvious. Andrew’s contention, however, is that - although we all intuitively “get” the idea that most people don’t really understand finance - the sheer scale and reach of this problem and what it means for our society is far worse than nearly anyone realises.
Why? Because this is the reason that:
That's the bad news.
The good news is that understanding finance is truly a kind of silver bullet. This bears repeating.
The reason so many people struggle financially is, quite simply, because they don't understand finance and / or they get bad financial advice.
This has created a real problem in the last few decades:
NO! The UK state pension was introduced in 1909 for over seventies when hardly anyone lived past fifty!
The good news, however, is that we can all do something about this if we learn a little about investment. Even someone on a relatively modest income can aspire to saving a million pounds IF THEY LEARN A LITTLE ABOUT FINANCE!
“Compound interest is the Eighth Wonder of the World...”
What follows is for the purpose of illustration…
You can see this graphically below.