Monthly Archives: October 2015

Why you should invest in an ISA before a Personal Pension Scheme!

Many financial advisors will tell you to invest in a Personal Pension Scheme (Stakeholder Pensions) before an Individual Savings Account (ISA). Whilst your financial advisor may have your best interests at heart, this move may not be right for your finances. I am of the opinion that by opening and investing in an ISA first, you are in greater control and much more aware of your finances. read on to find out why. A personal pension, sometimes also referred to as a private pension involves a person making regular or lump sum contributions to a regulated financial organisation that invests the money on your behalf. Don’t mistake this with a […]

Why you feel poor earning £30k a year!

Many people earning between £20,000 – £30,000 a year feel as though they are not earning enough and would classify themselves as being poor. But according to the world economics forum, the global average wage stands at $17,760 or £11,597.So whilst the average person in the UK earning £30,000 a year is evidently not poor, many people in this situation certainly feel as though they are. So why is this so? People, especially in the western world, don’t compare themselves with other countries, but rather compare themselves to their neighbours. So it really sucks when you live in an average neighbourhood and drive one mile past a £1 million mansion. What we […]

Don’t treat Dividend Paying Stocks like Bonds! 3

A generation ago, income seeking investors looked to bonds for safe and stable income payments. This made sense as investors could easily get a safe yield of 8% or higher. But in todays low interest rate environment, bonds are not attractive for income seeking investors. This is especially true for retirees who traditionally tend to hold the majority of their portfolios in bonds as they need the income today. 10 year bond yields are currently yielding about 2%. This means that you need to have £2,000,000 invested just to generate an income of £40,000 a year. As you already know, this is a huge problem. Most retired investors don’t have […]

Secret of the Scammers – reviewing the scams shown on the TV show.

The just aired Channel 5 Secret of the Scammers program just showed how easy it is for fraudsters to get their hands on other people money.The TV show covered new forms of financial fraud, met the people who have lost money, and examined the clever tricks fraudsters use. Many of us are for potential scams by post, online, on the phone or face to face. Below is a list of scams uncovered in season 1 episode 1. (As new episodes air, I will add the new scams to this page so be sure to bookmark this page).   Computer Hackers holding us to ransom Cyber crime is growing by the […]

Why Am I not Rich? Here’s a clue!

When many people think of why they are not rich, the first thought that comes to their mind is that they simply do not earn enough money. But whilst your earning power is an important factor in becoming rich,  it is not the only way. Many millionaires alive today have instead chose a difference path – to spend less. According to the best seller, the Millionaire Next Door by Thomas J Stanley, many millionaires became millionaires because they lived frugally. When most people hear the word frugal, many assume this to mean cheap. But these millionaires are by no means cheap, they are economical about how they spend their money. […]

45 Life Lessons We Can All Learn from a 90 Year Old

As the saying goes, “with age comes wisdom.” That certainly holds true for Regina Brett, a 90 years old lady from Cleveland Ohio.  She recently gave 45 lessons she has learnt from her long life and these lessons should resonate with you no matter your walk of life. It certainly worth a read. Life Lessons 1. Life isn’t fair, but it’s still good. 2. When in doubt, just take the next small step. 3. Life is too short not to enjoy it. 4. Your job won’t take care of you when you are sick. Your friends and family will. 5. Don’t buy stuff you don’t need.     6. You […]

The reasons why young people are afraid of investing!

The question I always seem to ask myself is why young people are not investing any money. If you ask any of your friends in their 20’s about how much they have invested, you are bound to get responses like “what?” or “ I don’t earn enough to invest!”. A lot of people will follow this up by saying something like “I don”t have a clue on how to pick stocks” and that’s the irony because successful investing is not about picking stocks; especially at a young age. Although it is true that some twenty somethings may now be participating in their pensions (with the new work place pension scheme), […]

Key Lessons from Secrets of The Millionaire Mind – T.Harv Eker

If you’re looking to get rich, the best place to start is in your head. Napoleon Hill, author of the best seller ‘Think and Grow Rich‘ emphasised that accumulating wealth is more about mentality than anything else. T. Harv Eker — who not only studied incredibly wealthy people, but worked his way up from nothing to millionaire status — noticed that the difference between wealthy people and average people is mental.  Average people make the same sorts of crippling choices over and over agin that leave them in the same position and not able to get ahead financially.   Stop complaining — out loud and in your head — if […]

The Irony of Having Money

many people say that if they had money they wouldn’t change who they are. Whilst most people say this with the best of intentions, money does actually change people. Sometimes the changes may be small but Man O Man does money change people. Here are just a few ways money changes you. Have a read, have a laugh and enjoy. When without money, a person eats vegetables at home. When the person has money, eats the same vegetables in a fine restaurant. When without money, a person rides their bicycle everywhere. When the person has money rides the same ‘exercise machine’. When without money, a person walks to earn food […]

Should I Save or Invest Money?

Saving and investing both form an integral part of your financial plan. It is important to have some money set aside in cash (savings) as this is very useful for unforeseen events. A portion of your money should also be put away for investment purposes as you want to make your money work for you and grow over time. My personal rule of thumb is that you should save at least 8 month worth of expenses in cash and then invest the rest. Your apportionment may be different as it will dependent on many factors such as what your goals are, your attitude towards risk and when you need the money. With Savings […]