The Business World

To Think Like A Millionaire

Plan That Works

Read The Market Like A Professional

Powerful Investment Vehicle

Your Plan

And Continuous Support

Make It

Make It

Every person in our world shares many common goals.

We all want to be healthy and we all want to be happy. We all want to be

successful and we all want to have great relationships.

One other goal that all of us share which is what this whole book revolves

around, is:

We all want to become financially independent.

The actual amount of money that we need to take away the worry is a different

amount for each and every one of us.

However, we are all chasing this same common goal. We all want it, some more

badly than others and so the burning question must be:

Is it really possible for you to achieve it?

The answer is “yes” absolutely.

I don’t know anything about your present financial situation but I can still say

with certainty: yes, of course you can achieve it. It’s simply a matter of learning

how.

Anybody who says that money doesn’t matter obviously doesn’t know where to

shop.

I mean come on, who are those people trying to kid?

In fact we all know that those people who say money doesn’t matter will lie

about other things too.

Of course money matters. Money is probably one of the most important

subjects of your entire life and it’s essential that all of us commit to mastering it.

will soon begin to find out.

Why is money important?

that money gives you more options in life. It gives you vastly more freedom and

that’s what you want, isn’t it?

Money on a very basic level helps to feed and clothe us. It helps put a roof over

our heads, pay the bills and can help us to get around from one place to another

much faster. On the next level it can pay for more luxurious items such as a

bigger home, nice furniture, a sports car, good food and great service.

It can help us to enjoy our leisure time better, too.

Money can help us to travel in style to faraway exotic places.

It can also help us make a difference. We can use it to aid others who

desperately need our help and support.

When we have enough money, it can take away all those worries and thus

improve our health. It can help us to feel free, secure and ultimately give us

peace of mind.

Earlier I said that we are all capable of achieving financial independence.

This is true.

However, statistics show that out of every one hundred people, there are only

That means that each of us has a 20 to 1 chance of making it.

They’re not good odds.

Why then is there only a small number who make it?

After hearing what we have to say, all should become clear. You’ll discover the

real reasons why most people are not winning with their finances and why for

many people the mere subject of money is totally taboo and very uncomfortable

to talk about.

After you’ve completed reading this book, we promise, you’ll have developed a

completely different mindset that will help you to make better choices and

decisions when it comes to money and investing. You’ll have a completely new

awareness and this new paradigm of thinking is going to help you make you

your fortune!

After reading this book, you can hope for the certainty that you will achieve your

financial goal and because of that certainty and a brand new way of thinking,

you’ll immediately feel more in control of your financial life.

And the more you feel in control, the happier you become.

Let’s now tell you about the material we’ll be sharing with you.

We’ll be taking you through this book in an easy step-by-step process. We

advise that to get the best out of the material, you are best reading it in its

logical sequence starting at the front and continuing right through until the end.

We also believe that the more times you read it, the richer you will become and

so schedule time to re-read it again and again and again until it becomes part of

your mindset.

financially independent.

answers to the most common questions that make the subject of money such a

mystery.

Questions such as:

everything?

And one of the most common of all is:

all go?

After discovering all the mysteries that surround money we’ll quickly move on to

you’ll learn what compounding is and discover how easy it is to harness this

financial independence.

You’ll be both excited and amazed when you see how very small amounts of your

money can grow into huge ones over time.

In this superb chapter, you’ll learn that money doubles every five years if you

can get it to grow at 15%. That means £10,000 becomes £20,000 in five years

and the £20,000 becomes £40,000 in ten. That means that after 40 years, a

starting amount of just £10,000 would grow into a staggering £2.56 million

pounds!

You’ll also discover that to get to financial independence, it doesn’t matter how

much money you currently have. You’ll find it hard to believe when you learn

that even people who are in deep debt right now can still get to financial

independence, if they follow this fantastic proven system.

I don’t think you’ll believe your eyes when you see how by investing just £5,000,

you could help make your children worth over £40 million pounds!

we’re sure that your greed glands may start to swell rather large!

After completing this chapter, you’ll have hard evidence that it’s possible for

money to grow into enormous amounts over time. Your job is to find a way to

get your money to grow at powerful rates of return.

If you could manage that, there would be nothing that could stop you becoming

financially independent.

But what can you use to grow your money at powerful rates of return?

as you may think. The stock market is the way you can get your money to grow

at the rates of return needed to attain financial independence.

You’ll learn that even though the stock market has and always will have

correction periods (periods where the market will fall), it will forever keep

going higher and higher just as it has done since the market first began. You’ll

hear how the market has grown at an astounding 13.6% on average over a recent

50 year period.

History in the market repeats itself, which means that this excellent growth

trend will continue in the future and most probably accelerate. This means

you’ll be able to get even higher growth rates on your money, which in turn

means you’ll get to your goal even faster!

You’ll also learn the secrets of how the professionals reduce, and take the risk

out of, investing in the stock market.

Ok, if the stock market has grown at 13.6% over a recent 50 year period and is

likely to continue this growth in the future, imagine if you could find investment

vehicles that are linked to the stock market but they constantly beat it.

How great would that be?

investment vehicles out there that will grow your money at powerful rates of

return such as 15%, 20%, 25%, 30% and even more!

After completing this outstanding chapter, any scepticism you may have had

previously will have completely disappeared. You’ll be at the stage where you

now start to believe it is really possible for you to become financially

independent.

By the way, it’s OK to be a little sceptical. As human beings, we all have that in

common too.

It is, however, important though that you want to believe it’s possible for you to

achieve financial independence, right from the outset.

It’s perfectly ok if at this moment you are not sure whether it’s possible or even

in a worse case, you don’t believe you can make it to financial independence.

However, as a strong word of caution: if you are serious about creating your

When you see the evidence, you’ll believe, we promise.

trouble sleeping at night.

Yes I’m sorry to say that you may have the pleasure of having trouble sleeping

for many nights.

Notice how I said the “pleasure” of not sleeping and not the “pain” of not

sleeping. That’s because you’ll have trouble because of your excitement!

Each day you’ll start to wake with a feeling that you’ve just won the jackpot on

the National Lottery.

You’ll feel as though you’ve found the key to Aladdin’s cave full of treasure and

the contents are all yours.

I’d like to bring you down off the roof for a moment if I may. Before we move

on, could I ask you to make this mental note:

There are going to be times whilst reading this book where you may get slightly

impatient because you desperately want us to quickly get on to the actual

strategies of making money.

Please try to simmer down because we’ll eventually get there.

say something like “come on, enough with all this about attitude and beliefs”.

In fact you may even want to shout out loud: “Come on; show me how to make

the money!”

If you find yourself agitated at any stage, please try to relax and realise that

at the time.

Do you know what you want financially?

Did you know that if you can write down what it is that you want on a piece of

paper, it means that you are capable of achieving it?

It’s true.

So what is the secret to attaining financial independence?

We’ll tell you the secret.

If you want to get to financial independence the FAST TRACK way, all you need

let me take this opportunity to introduce them to you.

That stage in your life is when you can celebrate the fact that you’ve made it to

financial independence.

You’ll discover that this unique method is not just any old method of how to get

to financial independence.

you how to do that and in a very safe way.

And just for good measure, this method shows you how, if you feel it is right,

This material presented is the business! You are going to love it.

We reckon you’ll start to wake up every morning and start the day with a James

Brown impersonation:

“I Feel Good!”

where you never have to worry about money again.

Sounds good?

We’ll start with:

Let’s take a look at why this ingredient will help you to get to financial

independence.

You’ll learn in this chapter how to think like a millionaire so you can become

one!

By adopting a new awareness, you’ll soon start to make, save and invest more

money.

about money and investing, your financial life will improve almost immediately.

And the best thing I think you’ll like about this chapter is this. You’ll discover

“Did you say guarantee?” I hear you ask.

“Yes, I certainly did.”

This means you can enjoy today whilst securing for tomorrow.

Come on and join the carnival. It’s time to party!

Next we have a financial plan that really works:

Let’s take a look at why this ingredient will help you to get to financial

independence.

A plan can help to take you from any given place to a destination of your choice.

When you find out where you are right now financially and where you want to

go, with the simple guidelines provided, you can start to plot your course to

ensure your success.

But where do you start?

And how do you make a plan?

Hey and what about inflation? How will that affect your plan?

All these questions and many more will be answered in this mouth-watering

chapter.

There’s a great saying that goes “It doesn’t matter where you are or what you

have done in your life as long as you know where you are going.”

Wherever you are now financially is irrelevant. With the help of some carefully

worded questions, you’ll discover how much you’ll need to live your dream

lifestyle. That will be your focus from this point onwards.

You’ll also realise that you’ll be able to get to your financial goal much sooner if

you follow and stick to your plan.

A good plan plots the course or route to your chosen destination. With a sound

plan you’ll be able to clearly see what steps you need to take to achieve your

financial dream. If you stick to your plan, you will win. It’s that simple.

This chapter is followed by:

Let’s take a look at why this ingredient will help you to get to financial

independence.

Would you like that?

83.09% two-day gain.

As well as understanding how the market works, we used leverage (borrowed

money) to help create such an enormous two-day gain (In Chapter 10 ‘FAST

TRACK Your Plan’ you’ll learn about how you can use leverage to make some

enormous gains).

Reading the market and the wise use of leverage also helped us to make a threemonth

gain (in the bear market rally of October 2001 to the beginning of

January 2002) on our portfolio of an incredible 145.29%.

And in October 2002, our portfolio advanced £40,099.49 or 43.83%, in just the

first five days after we entered the market. That made us a very tidy profit.

I’m sure you can see that attaining this skill will give you a serious edge over

other less well informed investors and of course, you will be able to capitalise on

that advantage greatly.

The indicators we use to read and time the market are not 100% reliable;

however they do have a 75%-80% success rate.

How will this skill of reading the market help you?

When you are invested in the stock market, you’ll be able to determine when the

stock market has topped (overvalued and ready to start heading down), when it

is going to crash and how to tell when a market has finally bottomed and is

ready to start a new run northwards.

Do you think you could make some money with that kind of skill?

For starters you’ll have to get the joiners into your home to start making some

bigger drawers and cupboards; after all, where are you going to put all the extra

money?

Before you get on the phone to order the solid gold suit, cane and matching

Ferraris, take a look at the next essential ingredient.

Next we have:

Let’s take a look at why this ingredient will help you to get to financial

independence.

What exactly is this Safe but Powerful investment vehicle?

I’m sworn to secrecy so you’ll just have to wait to find out. What I can tell you

now is that this type of investment vehicle can and will grow your money at the

powerful rate needed to ensure you make it to financial independence.

a doubt the true champion, the Gold Medallist, the Number #1 in investment

vehicles in the world.

We therefore crown you:

You’ll also learn that there are thousands of these vehicles to choose from and so

with all the information flying around, how do you pick the best?

Easy: we’ve devised a simple checklist that can help you to quickly find not just a

And of course we’ll take you all the way through the process of how to buy it.

And then we move on to:

Let’s take a look at why this ingredient will help you to get to financial

independence.

Money is important but not nearly as important as things such as your health,

your family and your relationships.

What we all want is a life where we have more than enough money but also have

the time to enjoy it. The last thing most of us want to be doing is to be stuck in

front of a computer screen every day checking minute-by-minute movements on

the stock market.

That’s why you’ll love this ingredient. Time friendly means exactly what it says.

The beauty of the investment vehicle you choose is that it won’t need much of

your time to manage.

How would you like to have a world-class money manager growing and

controlling your money while you spend your time doing what you want to do?

Believe it or not, by following this method, you’ll have one of the very best

professional money managers in the world looking over your basket of golden

eggs.

Their primary job will be to look after, nurture and grow your money into an

amount big enough so that you never have to worry about money again!

And guess what?

You’ll learn the skills of how to manage your money manager!

That’s right; you’ll learn how to monitor the performance of a world-class

money manager and what to do if they ever falter.

Wow! Getting someone else to help make you rich. That’s my kind of way of

becoming wealthy and I’m sure yours too!

What a great way to make a ton of money!

We’ll then swiftly move on to:

Let’s take a look at why this ingredient will help you to get to financial

independence.

Having to wait twenty to thirty years to achieve your financial dream might not

sound too appealing to you. In this dynamic chapter, you’ll discover dozens of

ways to accelerate your plan to help get you to your goal in a fraction of the time.

How does fifteen years sound?

Too long?

What about ten?

Still too long?

OK, if you are serious about getting to financial independence fast and are

prepared to put in the hours of study and take the necessary risks, you’ll find in

this juicy chapter how you could get to your goal starting from scratch in less

than ten years.

It won’t be easy but it is possible, I promise.

The great thing about this method is that you control the length of time on your

plan. You’ll have all the tools, skill and knowledge to make your own decisions

of whether you want to get there slowly or get there fast.

The choice will be yours. To have that sort of control over your financial destiny

is going to make you one happy bunny.

And so why wait thirty or forty years when you have the option of getting to your

ideal lifestyle faster?

Let’s take a look at why this ingredient will help you to get to financial

independence.

To guarantee you get to your goal and you follow through with your plan, you

are going to need at some point, some professional financial advice.

How can you find the very best professional advisors who aren’t going to rip you

off and ensure they help you achieve your goal?

What’s the best way to interview them to help you find the very best?

How will you know you are making all the right decisions on your journey?

In this exciting chapter, you’ll discover the answers to all these questions so

you’ll slowly be able to build up your mastermind team.

Imagine how great you are going to feel surrounded by a team of winners with

your best interests at heart.

And they’re damn hot if you don’t mind me saying.

You’ll find hundreds of other books teaching similar principles but there is

something about this book that is unique:

You may find one, two or if you are lucky three or four.

you can become rich beyond your wildest dreams. Commit to mastering them

and you’ll create a masterpiece with your life.

Let me ask you. Why do you want to become financially independent?

This is a key question that needs to be looked at in some detail.

To get to any goal in life it helps if you have “emotional” things that we can use

If you have ever studied psychology you may have come across this before as

Freud’s theory of psychoanalysis. It’s the Pain Pleasure principle.

What we’ll do first in Part Three is something that may be a little uncomfortable

for you but you’ll need to feel uncomfortable for a really good reason.

make it to financial independence.

I know. You don’t even want to go there!

However, in this vital chapter, you’ll be asking yourself certain key questions.

You’ll actually feel the emotional pain connected with not having enough money

in the future and how your life would suffer for both you and your family and

friends.

You’ll discover what sort of lifestyle you’d probably have and what decisions and

sacrifices you’d then be forced to make because you’d failed to get your financial

act together.

I know it doesn’t sound pleasant but it is very effective and we hope you will

endure enough pain to enable you to resolve 100% to take immediate action and

follow your plan through to completion.

To help with this, you’ll then move on to a chapter I know you are going to love.

We move from the pain of failure to the pleasure of success.

you’ll experience the pleasure of succeeding. You’ll discover many reasons why

we believe you must make it a number one priority to become financially

independent.

You’ll see how money will give you more freedom, more options, security and

peace of mind.

You’ll see how money can make you more powerful, more popular and increase

your overall status.

You’ll see that you’ll be able to do more of what you really want to do, go where

you really want to go and see what you really want to see.

You’ll discover how you’ll be able to buy things without ever again worrying

about the cost.

You’ll see how you’ll never be concerned about bills and future expenses.

You’ll learn how you can contribute so much more to the things that matter

most to you.

You’ll hear about the travel, the adventure and the fun money can bring.

But the best thing about it all has got to be how you will feel every single day.

You’ll feel more certain, more in control and definitely happier.

You’ll feel free and yet at the same time more secure.

Doesn’t that sound fantastic?

In this chapter, we are not going to be preaching to you about whether you must

do this with your money or must do that.

You’ll discover that when you are spending your time making a difference, that’s

when you feel at your best and feel most rewarded.

You’ll quickly discover ways that you can make a difference, which is something

that again as human beings we all want and need for us to be happy and

fulfilled.

Of course you can donate money but there are many ways other than donating

cash and these will be explored in this last short but very important chapter.

One thing we would like to leave you with, that will help you get to your goal

faster is this.

will listen to you.

If you are married or co-habitant, teach your partner and teach your children.

By the way, the format of this book is a little different. What we have done

and every subject we cover. The questions will appear and then we’ll proceed

with the answer.

you the answer.

And lastly, let us finish this introduction with one key point.

One last very, very, very important point that we want to make is:

There are going to be times whilst reading this book where you will be hearing

things that conflict with many of your core beliefs about money, investing and

what’s possible.

Careful if you start to say to yourself, “What a load of …”

Try to ignore your ego because we’ve found that a big egos don’t succeed with

money and investing. You may at times think that you know more or you know

best.

That may be true however; it may also be false.

Hmmm, that’s an interesting thought. You may not always be right.

All we ask from you is just one thing. Please keep your mind open.

Have you ever heard the saying that our minds are like parachutes?

They work best when they are open!

Be a great student. Become a sponge and try to take in as many ideas and new

concepts as you possibly can. You paid good money for this book and you

bought it to learn some new ideas so please, please, please don’t let your ego get

in the way of ensuring that you achieve the ideal lifestyle that you dream of.

Thank you for being so understanding.

Would you like to know the reasons why some people win and some people lose

with their finances?

Would you like to know how you can start winning with yours?

You’ll soon find out as we move swiftly on to…

good ones.

into money often spend it all.

their fingers before they retire.

Money means different things to different people. For some, when they think of

money, what it is and what it can do, they see it as something positive.

Others when they think of money, they see it as being negative.

It seems then, that money can be both positive and negative, which means that

money is neutral. Money can be good or bad depending how you view or think

about it.

In its most basic definition, money is something that we use as a medium of

exchange.

This is a great question. I don’t know about every country in the world, but I do

know that in the UK, the topic of money and personal finances is almost taboo.

Why?

Many of us look at how we are doing financially as a measurement tool of our

own success or failure in life.

Shocking isn’t it? But true. It’s a fact that vastly more people are losing with

money than winning. It doesn’t matter how intelligent you are, what university

you attended, how old you are or what advantages you were born with.

If you have never been taught how money works and how to make money, how

to invest money, how to manage money and how to protect your money,

chances are you are doing pretty poorly with your financial scorecard.

The answer is simple. Most of us were all taught about money, saving and

investing by our parents.

Before you go jump on your parents, please hear the rest of what we have to say.

Most of us were educated about money around the kitchen table so to speak.

None of us were taught how money works when we attended school and so as

well as what we learned from our parents, we also picked up knowledge on

money as we were growing up from various media sources such as the TV,

newspapers, radio and magazines.

Let’s first examine these sources.

When we are babies, we have no idea what money is. As we start to develop, at

some stage in our life, we are introduced to money and it’s usually by our

parents. Our parents or whoever gives us our first lesson, then share with us

beliefs about money and investing that our parents pass on to us, could be in

reality totally false.

beliefs that they pass on also could stop you in the future achieving the financial

them to be true.

be so strong that they could say something like “It’s not something I believe, it’s

something I know!”

see any different. At this stage, the person will usually get frustrated and even

angry if you challenge them.

person is likely to become angry when that belief is ever challenged, so beware!

Here’s one quick example of how parents’ beliefs about money are passed on to

their children:

Imagine this. As you are growing up, you hear the term “The stock market.”

You say to your Mum or Dad, “What is the stock market?”

Let’s say that your parents at some time in their lives had had a very bad

experience with the stock market. Let’s also imagine they had lost quite a bit of

money that they had taken many years to save.

Let’s also imagine they were incorrectly advised about what to invest in and they

didn’t really know what they were doing. Let’s say that because of this lack of

knowledge they were both badly burned when the stock market took a nosedive

at some stage in their lives.

And, let’s finally imagine that now, because of this terrible incident that hurt

them not just financially but also emotionally, they have very negative

associations with the stock market.

So as we said before, imagine you asked your Dad, “Dad, what is the stock

market?”

Does Dad reply, “Well Son, the stock market is something that we don’t

understand, but one day me and your Mum got persuaded to part with our hard

earned money”?

“Why, Dad?”

“Because we got really greedy, son, that’s why.”

“We decided to try to double our money in a short space of time. A professional

advisor who we hadn’t checked out how he was doing with his finances, told us

to put our money into an investment and we couldn’t lose. We lost and lost big.

Aren’t we stupid?”

No, nobody would answer in this way. We would be telling our children that we

made a big mistake and we don’t want our children to think less of us, do we?

And so, what the parents really would say in this situation when asked about

“The stock market” is probably something like this: “The stock market is very

risky. It’s like gambling. Don’t ever invest any money into it. It could ruin your

life.”

Wow, what a difference in the two replies.

Do you think that our parents, who most of us see as God when we are little,

saying this to us, is going to have an impact on us and the way that we view the

stock market as we get older?

Damn right it is. And the more they say to us things like “The stock market is

people whenever the subject of the stock market arises.

Imagine this. You have been brought up with the belief that “The stock market

is risky.” You have just finished your school education, you find a job and one

day in work, one of your colleagues is telling you that they are going to be

investing in the stock market.

You reply because you like them and don’t want them to lose money, “Oh, I

don’t know if that’s a good idea.”

They say, “Why?”

You say, “Well, it’s very risky. You could lose all your money.”

They say, “Is that right. Why?”

Then all of a sudden, you have become an expert on the subject of the stock

market just because you had a strong opinion or unhealthy belief about it that

was passed down from your parents.

Now you have to act out your expertise to save face. The person, because they

have no experience, may even believe you if you are convincing enough.

This is very scary stuff.

Do you know what is happening out there in the big financial world?

different mediums. We’ve found that there are lots and lots and lots of false

around from person to person. Is it really a wonder why not many people are

doing well financially?

What is the solution?

You’ll find the solution within the pages of this book you are reading but as

previously mentioned, it may take you more than one reading to grasp each

concept but when you do, you’ll be on fire!

our parents.

Let’s take a young girl called Jane whose father Bill is a very successful investor.

Bill has been successfully investing in the stock market for over 25 years.

Will Bill believe that the stock market is risky?

Will Bill believe that you should never invest in the stock market?

Will Bill believe that if you invest in the stock market, it will ruin your life?

first example. Bill’s daughter, Jane, will grow up with similar if not the very

she would also become very successful at investing in the stock market.

Do you agree?

about money and investing that are not serving us.

The key question that shines the most light on this point is:

We all want it and most of us have had enough time to get there so why have you

not reached it yet?

The answer is twofold.

stopped you.

financial independence.

There is no shame in any of this. The answer to the whole money mystery is

simple.

The solution lies within the pages of this book:

Learn about key life subjects such as money and investing from people who are

succeeding at it.

Is that it?

Yes, that’s it. Simple isn’t it?

If you can find somebody who is producing the result that you desire, in this

case financial independence, ask how they did it. Ask them what strategy they

used and what do they believe about money and investing. Lastly ask them

what their attitude to risk is. All you have to do is to copy what they did and by

some miracle you’ll end up with the same result.

This is not rocket science.

Studies have shown that wealthy people do the same things over and over to

create the result that they desire. Studies also show that poor people also do the

Wealthy people think about money in a positive way all the time. They think

about success and affluence and abundance. They think about how they can

make more money so they can upgrade their lifestyle and contribute more to

Poor people on the other hand think about money in a negative way. They think

about bills and expenses and debt and lack of money and scarcity all the time.

They worry about not having enough and what money they do have, they don’t

want to share with anyone and so they rarely think about contributing.

They think about lack of money and poverty all of the time.

the things that we want and not on the things that we don’t want.

We also need to make sure that we ask ourselves positive questions rather than

negative ones.

Even if we are not where we want to be financially at this moment in time and

we have lots of bills and debts to sort out, rather than focusing on questions like

“How the hell did I get myself into this mess?” we can focus on better questions

like “How can I get myself out of this mess?”

Quality questions always result in quality answers.

These “things” that wealthy people do that poor people don’t do are things that

The poor people will also be doing “things” on a regular basis. These things that

The difference is that the wealthy people have good financial habits and poor

people have bad financial habits.

involve money and investing.

Therefore it makes sense that if you can adopt a healthy new set of financial

beliefs, and a proven strategy of how to become financially independent, you’ve

cracked it!

independent.

It is very important where that education comes from. If it is from somebody

who is not winning with their own finances, then the information is going to be

a waste of time, full of unhealthy beliefs and assumptions.

The key: is to get educated by people who are succeeding. Let’s get our

information from the most successful people!

Do you think that the most successful people will have some healthy financial

beliefs?

Of course they will.

Listed below are some more reasons why more people aren’t financially

independent. Some may be frustrations that relate to you. You’ll see that we

have included the solution to each problem.

Here’s the solution:

Simply define what being financially independent really means for you. How

much is it? Make it a specific amount.

Here’s the solution:

Believe that you can achieve it or starting right now, believe that you’ll be able to

achieve it after you have the knowledge from this book. Understand that

without belief, you are not destined to succeed.

Here’s the solution:

Make becoming financially independent a high priority in your life, starting

right now!

Here’s the solution:

Create a sound financial plan based on what you learn in chapter 6 of this book.

Here’s the solution:

Develop a purpose that is much bigger than you are. Create compelling reasons

why you must achieve financial independence. Take things one step at a time.

doing something every single day towards your goal.

Here’s the solution:

Take charge so that you can create your ideal financial destiny. It is not your

advisors or your accountant’s, or your employer’s, or your spouse’s job to make

sure you make it financially. It is your job and no one else’s. There is no way

you can wriggle out of it.

When you finally make the decision that you are now taking control, you will be

able to quickly accelerate towards your financial goals.

Here’s the solution:

See solution to number 6.

Here’s the solution:

Develop good habits of managing your finances. Focus on detail when it comes

to monitoring your capital.

spend money, and stick to them.

Here’s the solution:

Get yourself a financial coach who is doing better than you financially. You

want someone who will hold you to the actions that you need to take to get to

your goal. Have monthly sessions to make sure that you are on track to hit your

target. Get the best support money can buy. Make sure the support that you

hire helps to make you richer.

Here’s the solution:

Find a system that has been thoroughly tested. Ensure that the speaker or

author is financially successful and has used this system themselves. Follow the

very best and settle for nothing less.

Here’s the solution:

Start to think five, ten and fifteen years - or even longer - into the future when

you make key decisions in your life and especially when you spend money.

When you buy something, ask yourself what the item will be worth in ten years’

time. Ask yourself: will buying this item help me to get to financial

independence?

Maybe by now you’ve got a good idea why some people who make money or

come into money or win money end up blowing it all.

It’s simply because they don’t understand how money works. They are

They have some unhealthy beliefs about money and some bad habits in their

They have no proven strategy for managing and controlling their wealth and so

they blow it all.

Do you think it’s possible for somebody to blow £350 million pounds and end

up with £9 million pounds’ worth of debt?

If you said no, you’d be mistaken.

Who has this really happened to?

pounds; they also stated he had debts of up to £9 million pounds.

This case should show you that even when you have millions, you can still blow

it all if you don’t know how to look after it.

We are right back to bad habits once again. What happens in this country, and

probably many others around the world, is that most of us spend every penny

we make and then some, like Tyson. This is of course a bad habit.

Why do we do this?

Well, as well as being a bad habit, there are always things that we can spend our

money on especially when we are bombarded every day with thousands of

marketing messages that say buy me, buy me, buy me. What doesn’t help is

when we try to “keep up with the Joneses” which in case you’re not familiar with

the term means trying to “materially” keep up with or compete with the people

around us such as our family, relations, friends or neighbours.

If they get a new car then we have to get a new car. If they get new garden

furniture then we have to get new garden furniture.

If they go for an around-the-world holiday, we have to go for an around-theworld

holiday.

It happens because some of us don’t like being outdone by somebody else but

other people. It’s difficult to do but when you realise that what these other

people are doing is financial suicide, you’ll soon stop doing it.

Unless that is, you really want to get poorer and poorer each year?

No? We didn’t think so.

The other financial trap is when people spend all their money on things that go

Cars, designer clothes, fancy furniture, boats, big screen TVs are classic

examples of things that make other people think that we are doing very well

financially but in reality, because these things depreciate in value every single

day, they are actually making us poorer.

upgrade our lifestyle as soon as we can afford to. We get a raise or bonus and so

we upgrade our lifestyle.

We think we are being smart when we upgrade to a bigger new home when we

change our job or have a substantial salary increase but what we forget to

that is going to make us poorer.

Yes it’s your home, which most people class as an asset, but we don’t. If you

think about it, you are never going to really benefit from the equity or money

you make in your own home unless you end up downgrading to a smaller house

or a home in not as nice an area.

Another bad habit and another financial trap that we can really relate to is that

most of us have some sort of set amount fixed in our minds and as soon as we

manage to save up that amount, the urge is so strong that we always spend it.

For some it may be when their bank balance shows an extra £500 on top of what

they normally have in to pay the bills.

For some it may be when they have £1000.00.

For others it may be £5000.00, but whatever the amount is, most of us have this

threshold that stops us from saving any more than this amount.

The solution to this challenge is easy. As soon as you have a good solid plan in

It’s when you can’t afford to buy something outright so you decide to buy it on

credit thinking that you’re being really smart.

I (Stephen) have done it myself when I was 17 with a video recorder from the

electrical super store “Comet” and after that event I swore never to do it never

again. I have kept my promise.

Borrowing money to buy things that go down in value is a bad habit. If this is

something that you currently do, then as part of your plan, you must commit to

refrain from doing this and pay off all your outstanding debt as soon as you can,

that is, if you are serious about getting to financial independence.

is a key point and we will be talking about borrowing in much further detail in

other chapters throughout this book.

Where people go wrong is that they buy the liabilities first before acquiring

enough assets to pay for them.

All of us can be wealthy and as Jim Rohn says:

Let me give you an imaginary example of why we all have the money.

David Smith lives in the UK and receives an average wage of £18,512 *(gross)

per year and works in total for approximately 47 years before retiring.

After tax and national insurance contributions, David has a net wage of

approximately £14,300.

This means that over a working lifetime a person such as David, on an average

weekly wage, has over £670,000 pass through his fingers.

Wow, that’s a lot of money.

From the day they received their first wage to the day they received their last

one, people like David have had the choice of what to do with it.

1) Saving/Investing it

2) Spending it

If a person ends up retiring with no money whatsoever to their name, whose

fault is it?

Is it their bosses’?

Is it the government?

Is it the person’s spouse or children’s fault?

Nobody really likes this part because it can make people feel very uncomfortable

Some of us, who have been wisely educated, make intelligent financial decisions

of what to do with it, while others don’t.

There is one thing I can say in these people’s defence and that is this. Nobody

taught these people who spend, spend, spend about money and investing.

They simply do the same thing as everybody else.

And so, because you now know what is really going on out there, you now have

from this point on no excuses whatsoever.

It doesn’t matter where you are at this moment in time. You may be in debt.

You may have no savings. This is irrelevant. If you have some savings or

investments already, then congratulate yourself. You are one of the very few

people in the world who has at least something put away.

All that matters now is where you are going. The past is dead. Forget it and get

over it. Now is the time for a new start. We promise that you are going to make

There are three ways:

2) Marry someone who would make you financially independent.

3) Earn enough money to become wealthy & financially independent.

There is only one way that we suggest you become wealthy & financially

independent. That is to play the lottery every week or marry a millionaire or

millionairess…

…Just kidding.

You must earn your way to wealth & financial independence and we will share

lots of ideas how you can.

Let me share with you the key to financial abundance. Are you ready?

You can’t achieve financial abundance unless you learn and consistently apply

this simple formula:

So now, the whole subject of money shouldn’t be as much of a mystery to you.

Now for a summary of the key points learned.

as a measurement tool of our own success or failure in life.

parents.

could in reality be totally false.

serving us.

and beliefs have stopped us and we haven’t been taught a proven

strategy of how to get to financial independence.

people who are succeeding at it.

in this case financial independence, and then ask them how they did

it, what strategy they used, what they believe about money and

investing and what is their attitude to risk.

over again to create the result that they desire.

over again to get the result they do not desire.

They think about success and affluence and abundance. They think

about how they can make more money so they can upgrade their

their reality.

They think about bills and expenses and debt and lack of money and

scarcity all the time. They worry about not having enough, and what

money they do have, they don’t want to share with anyone and so

they don’t think about contributing. They think about lack of money

and poverty all the time.

about most.”

financial habits.

you have cracked it.

independent.

end up blowing it all because they are financially illiterate.

financial habit.

make us look wealthy but in reality, each year they are making us

poorer and poorer.

classic examples of things that make other people think that we are

doing very well financially but in reality, because these things

depreciate in value every single day, they simply make us poorer.

constantly upgrade our lifestyles as soon as we can afford to.

make in your own home unless you end up downgrading to a smaller

house or a home in not as nice an area.

soon as we manage to save up that amount, the urge is so strong that

trap.

habit.

it that counts.

£670,000 pass through their fingers.

We may be in debt. We may have no savings whatsoever. This is

irrelevant. If you already have some savings or investments, then

congratulate yourself. You are one of the very few people in the world

who has at least something put away.

it and get over it. Now is the time for a new start. We promise that

1) Inherit wealth – From parents, relations, or things such as the

lottery.

2) Marry into money.

3) Earn money.

wisely invest the difference.

What was he talking about? Congratulations if you said “compound interest.” If

not you’ll soon find out why he made such a statement as you learn all about

children become multi-millionaires.

Compound interest, or compounding, is without a doubt the most powerful

money principle that you are ever going to come across.

Firstly, let’s start with the basics.

2002 and the interest rate for the year was 5%, over the year you left the money

January 2003, your bank balance would read £105.00.

In year two, you would start with £105.00 and then receive another 5% interest

Notice what happened here in year one. You started with £100.00 pounds and

5%, the same as year one.

This then is how compound interest works.

Before we move on to exploring the importance of valuing every single pound,

let me make this key point:

Throughout this chapter I will be showing you illustrations of money growing at

normal.

All I ask is that you keep your mind open.

Let’s now explore why it’s so important to value every pound.

When you know the value of each pound coin that passes through your fingers

every single day you’ll never waste another ever again.

I (Paul) learned about compounding for the very first time in 1998 in Robert

Allen’s famous seminar “The Road to Wealth”.

Let me give you some examples of how money compounds at different rates of

return over a long period of time.

Just imagine your parents decided to save £1.00 a day as soon as you were born

and every single day thereafter until you retired at the age of 65.

They decided to invest £1.00 a day at 4% interest per year.

Over a 65 year period, you’d have accumulated £108,475.58 (Figure 1. 1)

If your parents invested the same £1.00 per day, but invested in a building

society account, you may have been able to return about 7% a year. Over 65

years, you’d have accumulated £428,323.28 (See Figure 1. 2)

If your parents were financially wiser than the average person, with the same

£1.00 per day invested over the long term in the stock market, you would be

looking at returns of up to 12% a year and that would give you a whopping £5

million pounds; hard to believe, but true. (See Figure 1. 3)

If your parents studied the stock market and managed to get your £1.00 per day

to grow at 15% per year. That would give you a gigantic amount of over £22

million pounds! (See Figure 1. 4)

So it would be true to say that financial independence starts with saving a single

pound coin a day. The value you place on every single pound coin is critical to

your success in becoming financially independent.

Can you now see the possibilities if you decide to invest just £1.00 per day?

Later we will be looking at your budgets and looking at ways to redivert some of

your hard earned income into a carefully chosen investment.

What this means is your investment money comes out of your bank account

The real secret is to get money working for you, instead of you working for

money, so it’s multiplying and producing 24 hours a day.

The Duke of Westminster, who is one of richest men in Britain with a net worth

He’s a master at knowing and applying this one money skill. The Duke has

properties all over London which he rents out; he will never sell his properties

because they are in prime areas and they are compounding at high rates of

return.

It works best with a combination of three factors, which are:

1) Time – Having a long-term financial perspective (The longer the better).

2) Discipline – Having the discipline to invest in accordance with your

financial plan irrelevant of unexpected events arising.

3) Money – A set amount of allocated money every day, week, month or year

in accordance with your financial independence goal.

A nurse called Jane, who is 21 years of age, received £7,500 pounds from a

divorce settlement in 1955. Jane used the full amount to invest in stocks with an

experienced stockbroker.

Over the years this money grew without any more additions through good and

bad times at an average of 15 percent per year. Today (end of year 2002) Jane is

retired and very happy with her investment, worth over £5 million pounds just

through this one decision many years ago. (See Figure 1. 5)

John invested just £100 per month from the age of 20 through to the age of 65

and earned a compounded rate of 10 percent over that time; John retired with a

net worth of over 1 million pounds (£1,000,871.77) (See Figure 1. 6).

You may have realised that compounding works with property values, too. As

you may or may not know, some of the properties in England and Wales have

grown and compounded over the years. Take a look at Figure 1. 7 to see how

property prices have increased over the last seven years.

It’s incredible because once you know how it works you can then calculate how

much money you need to save per month to get to your goal.

You’ll discover this monthly amount by looking at a compounding table to see

how much, different amounts grow at different rates of return. You’ll soon see

that it is not that difficult for you to reach financial independence.

This gives you total clarity when planning.

The key is: once you know how much money you need for your ideal lifestyle,

then with our help, you can create a plan to save that amount of money each

month.

This will give you the confidence and peace of mind to know that you will

eventually be financially independent.

Absolutely.

From an early age or as soon as your child is born, this is the time to put away a

small amount which will grow into a fortune. Let me show you how.

First let me ask you a question. Did you know that money doubles every five

years if invested at a growth rate of 15% each year?

OK that might not sound too impressive, but look at what happens if you could

afford to invest £5,000 pounds in an investment for your child that grew at 15%

each year (See Figure 1. 8).

This illustration would work if you had the discipline to leave the money alone

until your child had retired at the age of sixty-five.

When your child is born, you invest £5,000 into an investment that grows at

15% a year. (This is without adding any other money to your original £5,000.)

When your son or daughter is five years old the investment would be worth

£10,000. (This is without adding any other money to your original £5,000.)

When your son or daughter is ten years old the investment would be worth

£20,000. (This is without adding any other money to your original £5,000.)

When your son or daughter is fifteen years old the investment would be worth

£40,000. (This is without adding any other money to your original £5,000.)

When your son or daughter is twenty years old the investment would be worth

£80,000. (This is without adding any other money to your original £5,000.)

When your son or daughter is twenty five years old the investment would be

worth £160,000. (This is without adding any other money to your original

£5,000.)

When your son or daughter is thirty years old the investment would be worth

£320,000. (This is without adding any other money to your original £5,000.)

When your son or daughter is thirty five years old the investment would be

worth £640,000. (This is without adding any other money to your original

£5,000.)

When your son or daughter is forty years old the investment would be worth

£1,280,000. (This is without adding any other money to your original £5,000.)

When your son or daughter is forty five years old the investment would be worth

£2,560,000. (This is without adding any other money to your original £5,000.)

When your son or daughter is fifty years old the investment would be worth

£5,120,000. (This is without adding any other money to your original £5,000.)

When your son or daughter is fifty five years old the investment would be worth

£10,240,000. (This is without adding any other money to your original £5000.)

When your son or daughter is sixty years old the investment would be worth

£20,480,000. (This is without adding any other money to your original

£5,000.)

When your son or daughter is sixty five years old the investment would be worth

£40,960,000. (This is without adding any other money to your original

£5,000.)

The amazing thing about this is that your son or daughter would be a millionaire

at forty but if they left the money until they were sixty-five they would have close

to forty-one million pounds and that’s without adding a single penny to your

original investment of £5,000.

And if you taught your son or daughter to do this with their children, then your

family would eventually become billionaires over a few generations!

That’s right and you would be a hero! You would be talked about for

generations. This may seem totally unreal because its so mind blowing, but it’s

true, so please stay with me.

Let’s look at Table 1. 1 to Table 1. 12, to demonstrate how money grows at 5%,

10% 15%, 20% & 30% a year, so we can see clearly what is possible in your

lifetime using compound interest.

50 £3,404.50 £7,749.60 £13,295.18 £20,372.89

100 £6,809.00 £15,499.21 £26,590.35 £40,745.78

150 £10,213.50 £23,248.81 £39,885.53 £61,118.67

200 £13,618.00 £30,998.41 £53,180.70 £81,491.56

250 £17,022.50 £38,748.01 £66,475.88 £101,864.45

300 £20,427.01 £46,497.62 £79,771.06 £122,237.33

350 £23,831.51 £54,247.22 £93,066.23 £142,610.22

400 £27,236.01 £61,996.82 £106,361.41 £162,983.11

450 £30,640.51 £69,746.43 £119,656.59 £183,356.00

500 £34,045.01 £77,496.03 £132,951.76 £203,728.89

550 £37,449.51 £85,245.63 £146,246.94 £224,101.78

600 £40,854.01 £92,995.23 £159,542.11 £244,474.67

650 £44,258.51 £100,744.84 £172,837.29 £264,847.56

700 £47,663.01 £108,494.44 £186,132.47 £285,220.45

750 £51,067.51 £116,244.04 £199,427.64 £305,593.34

800 £54,472.02 £123,993.64 £212,722.82 £325,966.23

850 £57,876.52 £131,743.25 £226,017.99 £346,339.12

900 £61,281.02 £139,492.85 £239,313.17 £366,712.00

950 £64,685.52 £147,242.45 £252,608.35 £387,084.89

1000 £68,090.02 £154,992.06 £265,903.52 £407,457.78

1050 £71,494.52 £162,741.66 £279,198.70 £427,830.67

1100 £74,899.02 £170,491.26 £292,493.88 £448,203.56

1150 £78,303.52 £178,240.86 £305,789.05 £468,576.45

1200 £81,708.02 £185,990.47 £319,084.23 £488,949.34

1250 £85,112.52 £193,740.07 £332,379.40 £509,322.23

1300 £88,517.03 £201,489.67 £345,674.58 £529,695.12

1350 £91,921.53 £209,239.28 £358,969.76 £550,068.01

1400 £95,326.03 £216,988.88 £372,264.93 £570,440.90

1450 £98,730.53 £224,738.48 £385,560.11 £590,813.79

1500 £102,135.03 £232,488.08 £398,855.28 £611,186.67

1550 £105,539.53 £240,237.69 £412,150.46 £631,559.56

1600 £108,944.03 £247,987.29 £425,445.64 £651,932.45

1650 £112,348.53 £255,736.89 £438,740.81 £672,305.34

1700 £115,753.03 £263,486.50 £452,035.99 £692,678.23

100 £58,812.09 £81,869.78 £111,297.90 £148,856.46

150 £88,218.13 £122,804.68 £166,946.85 £223,284.69

200 £117,624.18 £163,739.57 £222,595.80 £297,712.92

250 £147,030.22 £204,674.46 £278,244.75 £372,141.15

300 £176,436.26 £245,609.35 £333,893.70 £446,569.38

350 £205,842.31 £286,544.25 £389,542.65 £520,997.60

400 £235,248.35 £327,479.14 £445,191.60 £595,425.83

450 £264,654.39 £368,414.03 £500,840.55 £669,854.06

500 £294,060.44 £409,348.92 £556,489.49 £744,282.29

550 £323,466.48 £450,283.82 £612,138.44 £818,710.52

600 £352,872.53 £491,218.71 £667,787.39 £893,138.75

650 £382,278.57 £532,153.60 £723,436.34 £967,566.98

700 £411,684.61 £573,088.49 £779,085.29 £1,041,995.21

750 £441,090.66 £614,023.39 £834,734.24 £1,116,423.44

800 £470,496.70 £654,958.28 £890,383.19 £1,190,851.67

850 £499,902.74 £695,893.17 £946,032.14 £1,265,279.90

900 £529,308.79 £736,828.06 £1,001,681.09 £1,339,708.13

950 £558,714.83 £777,762.96 £1,057,330.04 £1,414,136.35

1000 £588,120.88 £818,697.85 £1,112,978.99 £1,488,564.58

1050 £617,526.92 £859,632.74 £1,168,627.94 £1,562,992.81

1100 £646,932.96 £900,567.63 £1,224,276.89 £1,637,421.04

1150 £676,339.01 £941,502.53 £1,279,925.84 £1,711,849.27

1200 £705,745.05 £982,437.42 £1,335,574.79 £1,786,277.50

1250 £735,151.09 £1,023,372.31 £1,391,223.74 £1,860,705.73

1300 £764,557.14 £1,064,307.20 £1,446,872.69 £1,935,133.96

1350 £793,963.18 £1,105,242.10 £1,502,521.64 £2,009,562.19

1400 £823,369.23 £1,146,176.99 £1,558,170.59 £2,083,990.42

1450 £852,775.27 £1,187,111.88 £1,613,819.54 £2,158,418.65

1500 £882,181.31 £1,228,046.77 £1,669,468.48 £2,232,846.88

1550 £911,587.36 £1,268,981.67 £1,725,117.43 £2,307,275.10

1600 £940,993.40 £1,309,916.56 £1,780,766.38 £2,381,703.33

1650 £970,399.44 £1,350,851.45 £1,836,415.33 £2,456,131.56

1700 £999,805.49 £1,391,786.34 £1,892,064.28 £2,530,559.79

50 £3,858.59 £10,072.88 £20,081.06 £36,199.34

100 £7,717.17 £20,145.76 £40,162.12 £72,398.67

150 £11,575.76 £30,218.64 £60,243.18 £108,598.01

200 £15,434.35 £40,291.52 £80,324.24 £144,797.35

250 £19,292.94 £50,364.40 £100,405.30 £180,996.68

300 £23,151.52 £60,437.28 £120,486.37 £217,196.02

350 £27,010.11 £70,510.16 £140,567.43 £253,395.35

400 £30,868.70 £80,583.04 £160,648.49 £289,594.69

450 £34,727.28 £90,655.92 £180,729.55 £325,794.03

500 £38,585.87 £100,728.80 £200,810.61 £361,993.36

550 £42,444.46 £110,801.68 £220,891.67 £398,192.70

600 £46,303.04 £120,874.56 £240,972.73 £434,392.04

650 £50,161.63 £130,947.44 £261,053.79 £470,591.37

700 £54,020.22 £141,020.32 £281,134.85 £506,790.71

750 £57,878.81 £151,093.20 £301,215.91 £542,990.05

800 £61,737.39 £161,166.08 £321,296.97 £579,189.38

850 £65,595.98 £171,238.96 £341,378.04 £615,388.72

900 £69,454.57 £181,311.84 £361,459.10 £651,588.06

950 £73,313.15 £191,384.72 £381,540.16 £687,787.39

1000 £77,171.74 £201,457.60 £401,621.22 £723,986.73

1050 £81,030.33 £211,530.48 £421,702.28 £760,186.06

1100 £84,888.91 £221,603.36 £441,783.34 £796,385.40

1150 £88,747.50 £231,676.24 £461,864.40 £832,584.74

1200 £92,606.09 £241,749.12 £481,945.46 £868,784.07

1250 £96,464.68 £251,822.00 £502,026.52 £904,983.41

1300 £100,323.26 £261,894.88 £522,107.58 £941,182.75

1350 £104,181.85 £271,967.76 £542,188.64 £977,382.08

1400 £108,040.44 £282,040.64 £562,269.71 £1,013,581.42

1450 £111,899.02 £292,113.52 £582,350.77 £1,049,780.76

1500 £115,757.61 £302,186.40 £602,431.83 £1,085,980.09

1550 £119,616.20 £312,259.28 £622,512.89 £1,122,179.43

1600 £123,474.78 £322,332.16 £642,593.95 £1,158,378.76

1650 £127,333.37 £332,405.04 £662,675.01 £1,194,578.10

1700 £131,191.96 £342,477.92 £682,756.07 £1,230,777.44

100 £124,315.96 £207,929.27 £342,589.35 £559,460.74

150 £186,473.94 £311,893.91 £513,884.02 £839,191.11

200 £248,631.92 £415,858.54 £685,178.69 £1,118,921.48

250 £310,789.90 £519,823.18 £856,473.36 £1,398,651.85

300 £372,947.88 £623,787.81 £1,027,768.04 £1,678,382.22

350 £435,105.86 £727,752.45 £1,199,062.71 £1,958,112.59

400 £497,263.84 £831,717.09 £1,370,357.38 £2,237,842.96

450 £559,421.82 £935,681.72 £1,541,652.05 £2,517,573.33

500 £621,579.80 £1,039,646.36 £1,712,946.73 £2,797,303.70

550 £683,737.78 £1,143,610.99 £1,884,241.40 £3,077,034.07

600 £745,895.76 £1,247,575.63 £2,055,536.07 £3,356,764.44

650 £808,053.74 £1,351,540.27 £2,226,830.74 £3,636,494.81

700 £870,211.72 £1,455,504.90 £2,398,125.42 £3,916,225.18

750 £932,369.70 £1,559,469.54 £2,569,420.09 £4,195,955.55

800 £994,527.68 £1,663,434.17 £2,740,714.76 £4,475,685.92

850 £1,056,685.66 £1,767,398.81 £2,912,009.43 £4,755,416.29

900 £1,118,843.64 £1,871,363.44 £3,083,304.11 £5,035,146.66

950 £1,181,001.63 £1,975,328.08 £3,254,598.78 £5,314,877.03

1000 £1,243,159.61 £2,079,292.72 £3,425,893.45 £5,594,607.40

1050 £1,305,317.59 £2,183,257.35 £3,597,188.13 £5,874,337.77

1100 £1,367,475.57 £2,287,221.99 £3,768,482.80 £6,154,068.14

1150 £1,429,633.55 £2,391,186.62 £3,939,777.47 £6,433,798.52

1200 £1,491,791.53 £2,495,151.26 £4,111,072.14 £6,713,528.89

1250 £1,553,949.51 £2,599,115.90 £4,282,366.82 £6,993,259.26

1300 £1,616,107.49 £2,703,080.53 £4,453,661.49 £7,272,989.63

1350 £1,678,265.47 £2,807,045.17 £4,624,956.16 £7,552,720.00

1400 £1,740,423.45 £2,911,009.80 £4,796,250.83 £7,832,450.37

1450 £1,802,581.43 £3,014,974.44 £4,967,545.51 £8,112,180.74

1500 £1,864,739.41 £3,118,939.07 £5,138,840.18 £8,391,911.11

1550 £1,926,897.39 £3,222,903.71 £5,310,134.85 £8,671,641.48

1600 £1,989,055.37 £3,326,868.35 £5,481,429.52 £8,951,371.85

1650 £2,051,213.35 £3,430,832.98 £5,652,724.20 £9,231,102.22

1700 £2,113,371.33 £3,534,797.62 £5,824,018.87 £9,510,832.59

50 £4,367.10 £13,150.91 £30,818.28 £66,353.67

100 £8,734.21 £26,301.82 £61,636.56 £132,707.34

150 £13,101.31 £39,452.73 £92,454.84 £199,061.02

200 £17,468.42 £52,603.64 £123,273.12 £265,414.69

250 £21,835.52 £65,754.55 £154,091.40 £331,768.36

300 £26,202.62 £78,905.46 £184,909.68 £398,122.03

350 £30,569.73 £92,056.36 £215,727.96 £464,475.70

400 £34,936.83 £105,207.27 £246,546.24 £530,829.38

450 £39,303.93 £118,358.18 £277,364.52 £597,183.05

500 £43,671.04 £131,509.09 £308,182.80 £663,536.72

550 £48,038.14 £144,660.00 £339,001.08 £729,890.39

600 £52,405.25 £157,810.91 £369,819.36 £796,244.06

650 £56,772.35 £170,961.82 £400,637.64 £862,597.74

700 £61,139.45 £184,112.73 £431,455.92 £928,951.41

750 £65,506.56 £197,263.64 £462,274.19 £995,305.08

800 £69,873.66 £210,414.55 £493,092.47 £1,061,658.75

850 £74,240.76 £223,565.46 £523,910.75 £1,128,012.42

900 £78,607.87 £236,716.37 £554,729.03 £1,194,366.10

950 £82,974.97 £249,867.28 £585,547.31 £1,260,719.77

1000 £87,342.08 £263,018.19 £616,365.59 £1,327,073.44

1050 £91,709.18 £276,169.09 £647,183.87 £1,393,427.11

1100 £96,076.28 £289,320.00 £678,002.15 £1,459,780.78

1150 £100,443.39 £302,470.91 £708,820.43 £1,526,134.46

1200 £104,810.49 £315,621.82 £739,638.71 £1,592,488.13

1250 £109,177.59 £328,772.73 £770,456.99 £1,658,841.80

1300 £113,544.70 £341,923.64 £801,275.27 £1,725,195.47

1350 £117,911.80 £355,074.55 £832,093.55 £1,791,549.14

1400 £122,278.91 £368,225.46 £862,911.83 £1,857,902.82

1450 £126,646.01 £381,376.37 £893,730.11 £1,924,256.49

1500 £131,013.11 £394,527.28 £924,548.39 £1,990,610.16

1550 £135,380.22 £407,678.19 £955,366.67 £2,056,963.83

1600 £139,747.32 £420,829.10 £986,184.95 £2,123,317.50

1650 £144,114.42 £433,980.01 £1,017,003.23 £2,189,671.18

1700 £148,481.53 £447,130.92 £1,047,821.51 £2,256,024.85

100 £275,656.08 £563,177.04 £1,141,484.40 £2,304,667.05

150 £413,484.12 £844,765.56 £1,712,226.59 £3,457,000.58

200 £551,312.16 £1,126,354.08 £2,282,968.79 £4,609,334.11

250 £689,140.19 £1,407,942.60 £2,853,710.99 £5,761,667.63

300 £826,968.23 £1,689,531.12 £3,424,453.19 £6,914,001.16

350 £964,796.27 £1,971,119.64 £3,995,195.39 £8,066,334.68

400 £1,102,624.31 £2,252,708.16 £4,565,937.59 £9,218,668.21

450 £1,240,452.35 £2,534,296.68 £5,136,679.78 £10,371,001.74

500 £1,378,280.39 £2,815,885.20 £5,707,421.98 £11,523,335.26

550 £1,516,108.43 £3,097,473.72 £6,278,164.18 £12,675,668.79

600 £1,653,936.47 £3,379,062.25 £6,848,906.38 £13,828,002.32

650 £1,791,764.51 £3,660,650.77 £7,419,648.58 £14,980,335.84

700 £1,929,592.54 £3,942,239.29 £7,990,390.78 £16,132,669.37

750 £2,067,420.58 £4,223,827.81 £8,561,132.97 £17,285,002.90

800 £2,205,248.62 £4,505,416.33 £9,131,875.17 £18,437,336.42

850 £2,343,076.66 £4,787,004.85 £9,702,617.37 £19,589,669.95

900 £2,480,904.70 £5,068,593.37 £10,273,359.57 £20,742,003.47

950 £2,618,732.74 £5,350,181.89 £10,844,101.77 £21,894,337.00

1000 £2,756,560.78 £5,631,770.41 £11,414,843.96 £23,046,670.53

1050 £2,894,388.82 £5,913,358.93 £11,985,586.16 £24,199,004.05

1100 £3,032,216.86 £6,194,947.45 £12,556,328.36 £25,351,337.58

1150 £3,170,044.89 £6,476,535.97 £13,127,070.56 £26,503,671.11

1200 £3,307,872.93 £6,758,124.49 £13,697,812.76 £27,656,004.63

1250 £3,445,700.97 £7,039,713.01 £14,268,554.96 £28,808,338.16

1300 £3,583,529.01 £7,321,301.53 £14,839,297.15 £29,960,671.69

1350 £3,721,357.05 £7,602,890.05 £15,410,039.35 £31,113,005.21

1400 £3,859,185.09 £7,884,478.57 £15,980,781.55 £32,265,338.74

1450 £3,997,013.13 £8,166,067.09 £16,551,523.75 £33,417,672.26

1500 £4,134,841.17 £8,447,655.61 £17,122,265.95 £34,570,005.79

1550 £4,272,669.21 £8,729,244.13 £17,693,008.15 £35,722,339.32

1600 £4,410,497.24 £9,010,832.65 £18,263,750.34 £36,874,672.84

1650 £4,548,325.28 £9,292,421.17 £18,834,492.54 £38,027,006.37

1700 £4,686,153.32 £9,574,009.69 £19,405,234.74 £39,179,339.90

50 £4,935.20 £17,215.55 £47,773.00 £123,809.70

100 £9,870.40 £34,431.10 £95,545.99 £247,619.40

150 £14,805.59 £51,646.65 £143,318.99 £371,429.10

200 £19,740.79 £68,862.20 £191,091.98 £495,238.80

250 £24,675.99 £86,077.75 £238,864.98 £619,048.50

300 £29,611.19 £103,293.30 £286,637.98 £742,858.20

350 £34,546.39 £120,508.85 £334,410.97 £866,667.90

400 £39,481.58 £137,724.40 £382,183.97 £990,477.60

450 £44,416.78 £154,939.95 £429,956.96 £1,114,287.29

500 £49,351.98 £172,155.50 £477,729.96 £1,238,096.99

550 £54,287.18 £189,371.05 £525,502.96 £1,361,906.69

600 £59,222.38 £206,586.60 £573,275.95 £1,485,716.39

650 £64,157.58 £223,802.15 £621,048.95 £1,609,526.09

700 £69,092.77 £241,017.70 £668,821.94 £1,733,335.79

750 £74,027.97 £258,233.25 £716,594.94 £1,857,145.49

800 £78,963.17 £275,448.80 £764,367.94 £1,980,955.19

850 £83,898.37 £292,664.35 £812,140.93 £2,104,764.89

900 £88,833.57 £309,879.90 £859,913.93 £2,228,574.59

950 £93,768.76 £327,095.45 £907,686.92 £2,352,384.29

1000 £98,703.96 £344,311.00 £955,459.92 £2,476,193.99

1050 £103,639.16 £361,526.55 £1,003,232.92 £2,600,003.69

1100 £108,574.36 £378,742.10 £1,051,005.91 £2,723,813.39

1150 £113,509.56 £395,957.65 £1,098,778.91 £2,847,623.09

1200 £118,444.75 £413,173.20 £1,146,551.90 £2,971,432.79

1250 £123,379.95 £430,388.75 £1,194,324.90 £3,095,242.48

1300 £128,315.15 £447,604.31 £1,242,097.89 £3,219,052.18

1350 £133,250.35 £464,819.86 £1,289,870.89 £3,342,861.88

1400 £138,185.55 £482,035.41 £1,337,643.89 £3,466,671.58

1450 £143,120.74 £499,250.96 £1,385,416.88 £3,590,481.28

1500 £148,055.94 £516,466.51 £1,433,189.88 £3,714,290.98

1550 £152,991.14 £533,682.06 £1,480,962.87 £3,838,100.68

1600 £157,926.34 £550,897.61 £1,528,735.87 £3,961,910.38

1650 £162,861.54 £568,113.16 £1,576,508.87 £4,085,720.08

1700 £167,796.74 £585,328.71 £1,624,281.86 £4,209,529.78

100 £626,026.70 £1,567,625.15 £3,910,623.41 £9,740,752.84

150 £939,040.05 £2,351,437.73 £5,865,935.12 £14,611,129.26

200 £1,252,053.40 £3,135,250.30 £7,821,246.82 £19,481,505.69

250 £1,565,066.75 £3,919,062.88 £9,776,558.53 £24,351,882.11

300 £1,878,080.10 £4,702,875.45 £11,731,870.23 £29,222,258.53

350 £2,191,093.44 £5,486,688.03 £13,687,181.94 £34,092,634.95

400 £2,504,106.79 £6,270,500.60 £15,642,493.65 £38,963,011.37

450 £2,817,120.14 £7,054,313.18 £17,597,805.35 £43,833,387.79

500 £3,130,133.49 £7,838,125.75 £19,553,117.06 £48,703,764.22

550 £3,443,146.84 £8,621,938.33 £21,508,428.76 £53,574,140.64

600 £3,756,160.19 £9,405,750.90 £23,463,740.47 £58,444,517.06

650 £4,069,173.54 £10,189,563.48 £25,419,052.17 £63,314,893.48

700 £4,382,186.89 £10,973,376.06 £27,374,363.88 £68,185,269.90

750 £4,695,200.24 £11,757,188.63 £29,329,675.58 £73,055,646.32

800 £5,008,213.59 £12,541,001.21 £31,284,987.29 £77,926,022.74

850 £5,321,226.94 £13,324,813.78 £33,240,299.00 £82,796,399.17

900 £5,634,240.29 £14,108,626.36 £35,195,610.70 £87,666,775.59

950 £5,947,253.64 £14,892,438.93 £37,150,922.41 £92,537,152.01

1000 £6,260,266.99 £15,676,251.51 £39,106,234.11 £97,407,528.43

1050 £6,573,280.33 £16,460,064.08 £41,061,545.82 £102,277,904.85

1100 £6,886,293.68 £17,243,876.66 £43,016,857.52 £107,148,281.27

1150 £7,199,307.03 £18,027,689.23 £44,972,169.23 £112,018,657.70

1200 £7,512,320.38 £18,811,501.81 £46,927,480.94 £116,889,034.12

1250 £7,825,333.73 £19,595,314.38 £48,882,792.64 £121,759,410.54

1300 £8,138,347.08 £20,379,126.96 £50,838,104.35 £126,629,786.96

1350 £8,451,360.43 £21,162,939.54 £52,793,416.05 £131,500,163.38

1400 £8,764,373.78 £21,946,752.11 £54,748,727.76 £136,370,539.80

1450 £9,077,387.13 £22,730,564.69 £56,704,039.46 £141,240,916.22

1500 £9,390,400.48 £23,514,377.26 £58,659,351.17 £146,111,292.65

1550 £9,703,413.83 £24,298,189.84 £60,614,662.88 £150,981,669.07

1600 £10,016,427.18 £25,082,002.41 £62,569,974.58 £155,852,045.49

1650 £10,329,440.53 £25,865,814.99 £64,525,286.29 £160,722,421.91

1700 £10,642,453.88 £26,649,627.56 £66,480,597.99 £165,592,798.33

50 £5,568.33 £22,561.51 £74,420.59 £232,681.94

100 £11,136.65 £45,123.02 £148,841.18 £465,363.87

150 £16,704.98 £67,684.53 £223,261.76 £698,045.81

200 £22,273.30 £90,246.04 £297,682.35 £930,727.74

250 £27,841.63 £112,807.55 £372,102.94 £1,163,409.68

300 £33,409.96 £135,369.05 £446,523.53 £1,396,091.61

350 £38,978.28 £157,930.56 £520,944.11 £1,628,773.55

400 £44,546.61 £180,492.07 £595,364.70 £1,861,455.49

450 £50,114.94 £203,053.58 £669,785.29 £2,094,137.42

500 £55,683.26 £225,615.09 £744,205.88 £2,326,819.36

550 £61,251.59 £248,176.60 £818,626.46 £2,559,501.29

600 £66,819.91 £270,738.11 £893,047.05 £2,792,183.23

650 £72,388.24 £293,299.62 £967,467.64 £3,024,865.16

700 £77,956.57 £315,861.13 £1,041,888.23 £3,257,547.10

750 £83,524.89 £338,422.64 £1,116,308.81 £3,490,229.03

800 £89,093.22 £360,984.14 £1,190,729.40 £3,722,910.97

850 £94,661.54 £383,545.65 £1,265,149.99 £3,955,592.91

900 £100,229.87 £406,107.16 £1,339,570.58 £4,188,274.84

950 £105,798.20 £428,668.67 £1,413,991.16 £4,420,956.78

1000 £111,366.52 £451,230.18 £1,488,411.75 £4,653,638.71

1050 £116,934.85 £473,791.69 £1,562,832.34 £4,886,320.65

1100 £122,503.18 £496,353.20 £1,637,252.93 £5,119,002.58

1150 £128,071.50 £518,914.71 £1,711,673.51 £5,351,684.52

1200 £133,639.83 £541,476.22 £1,786,094.10 £5,584,366.46

1250 £139,208.15 £564,037.73 £1,860,514.69 £5,817,048.39

1300 £144,776.48 £586,599.23 £1,934,935.28 £6,049,730.33

1350 £150,344.81 £609,160.74 £2,009,355.86 £6,282,412.26

1400 £155,913.13 £631,722.25 £2,083,776.45 £6,515,094.20

1450 £161,481.46 £654,283.76 £2,158,197.04 £6,747,776.13

1500 £167,049.78 £676,845.27 £2,232,617.63 £6,980,458.07

1550 £172,618.11 £699,406.78 £2,307,038.21 £7,213,140.00

1600 £178,186.44 £721,968.29 £2,381,458.80 £7,445,821.94

1650 £183,754.76 £744,529.80 £2,455,879.39 £7,678,503.88

1700 £189,323.09 £767,091.31 £2,530,299.98 £7,911,185.81

50 £715,657.24 £2,189,580.90 £6,687,638.95 £20,414,622.74

100 £1,431,314.48 £4,379,161.81 £13,375,277.90 £40,829,245.49

150 £2,146,971.72 £6,568,742.71 £20,062,916.85 £61,243,868.23

200 £2,862,628.96 £8,758,323.61 £26,750,555.81 £81,658,490.98

250 £3,578,286.21 £10,947,904.51 £33,438,194.76 £102,073,113.72

300 £4,293,943.45 £13,137,485.42 £40,125,833.71 £122,487,736.46

350 £5,009,600.69 £15,327,066.32 £46,813,472.66 £142,902,359.21

400 £5,725,257.93 £17,516,647.22 £53,501,111.61 £163,316,981.95

450 £6,440,915.17 £19,706,228.12 £60,188,750.56 £183,731,604.70

500 £7,156,572.41 £21,895,809.03 £66,876,389.52 £204,146,227.44

550 £7,872,229.65 £24,085,389.93 £73,564,028.47 £224,560,850.18

600 £8,587,886.89 £26,274,970.83 £80,251,667.42 £244,975,472.93

650 £9,303,544.13 £28,464,551.73 £86,939,306.37 £265,390,095.67

700 £10,019,201.37 £30,654,132.64 £93,626,945.32 £285,804,718.42

750 £10,734,858.62 £32,843,713.54 £100,314,584.27 £306,219,341.16

800 £11,450,515.86 £35,033,294.44 £107,002,223.23 £326,633,963.90

850 £12,166,173.10 £37,222,875.34 £113,689,862.18 £347,048,586.65

900 £12,881,830.34 £39,412,456.25 £120,377,501.13 £367,463,209.39

950 £13,597,487.58 £41,602,037.15 £127,065,140.08 £387,877,832.14

1000 £14,313,144.82 £43,791,618.05 £133,752,779.03 £408,292,454.88

1050 £15,028,802.06 £45,981,198.95 £140,440,417.98 £428,707,077.62

1100 £15,744,459.30 £48,170,779.86 £147,128,056.94 £449,121,700.37

1150 £16,460,116.54 £50,360,360.76 £153,815,695.89 £469,536,323.11

1200 £17,175,773.78 £52,549,941.66 £160,503,334.84 £489,950,945.86

1250 £17,891,431.03 £54,739,522.56 £167,190,973.79 £510,365,568.60

1300 £18,607,088.27 £56,929,103.47 £173,878,612.74 £530,780,191.34

1350 £19,322,745.51 £59,118,684.37 £180,566,251.69 £551,194,814.09

1400 £20,038,402.75 £61,308,265.27 £187,253,890.65 £571,609,436.83

1450 £20,754,059.99 £63,497,846.17 £193,941,529.60 £592,024,059.58

1500 £21,469,717.23 £65,687,427.08 £200,629,168.55 £612,438,682.32

1550 £22,185,374.47 £67,877,007.98 £207,316,807.50 £632,853,305.06

1600 £22,901,031.71 £70,066,588.88 £214,004,446.45 £653,267,927.81

1650 £23,616,688.95 £72,256,169.78 £220,692,085.40 £673,682,550.55

1700 £24,332,346.20 £74,445,750.69 £227,379,724.36 £694,097,173.30

50 £6,272.26 £29,560.73 £116,029.18 £437,080.48

100 £12,544.52 £59,121.46 £232,058.36 £874,160.95

150 £18,816.78 £88,682.19 £348,087.53 £1,311,241.43

200 £25,089.05 £118,242.91 £464,116.71 £1,748,321.91

250 £31,361.31 £147,803.64 £580,145.89 £2,185,402.38

300 £37,633.57 £177,364.37 £696,175.07 £2,622,482.86

350 £43,905.83 £206,925.10 £812,204.25 £3,059,563.34

400 £50,178.09 £236,485.83 £928,233.42 £3,496,643.81

450 £56,450.35 £266,046.56 £1,044,262.60 £3,933,724.29

500 £62,722.61 £295,607.29 £1,160,291.78 £4,370,804.77

550 £68,994.87 £325,168.02 £1,276,320.96 £4,807,885.25

600 £75,267.14 £354,728.74 £1,392,350.13 £5,244,965.72

650 £81,539.40 £384,289.47 £1,508,379.31 £5,682,046.20

700 £87,811.66 £413,850.20 £1,624,408.49 £6,119,126.68

750 £94,083.92 £443,410.93 £1,740,437.67 £6,556,207.15

800 £100,356.18 £472,971.66 £1,856,466.85 £6,993,287.63

850 £106,628.44 £502,532.39 £1,972,496.02 £7,430,368.11

900 £112,900.70 £532,093.12 £2,088,525.20 £7,867,448.58

950 £119,172.97 £561,653.85 £2,204,554.38 £8,304,529.06

1000 £125,445.23 £591,214.57 £2,320,583.56 £8,741,609.54

1050 £131,717.49 £620,775.30 £2,436,612.74 £9,178,690.01

1100 £137,989.75 £650,336.03 £2,552,641.91 £9,615,770.49

1150 £144,262.01 £679,896.76 £2,668,671.09 £10,052,850.97

1200 £150,534.27 £709,457.49 £2,784,700.27 £10,489,931.44

1250 £156,806.53 £739,018.22 £2,900,729.45 £10,927,011.92

1300 £163,078.80 £768,578.95 £3,016,758.63 £11,364,092.40

1350 £169,351.06 £798,139.68 £3,132,787.80 £11,801,172.88

1400 £175,623.32 £827,700.40 £3,248,816.98 £12,238,253.35

1450 £181,895.58 £857,261.13 £3,364,846.16 £12,675,333.83

1500 £188,167.84 £886,821.86 £3,480,875.34 £13,112,414.31

1550 £194,440.10 £916,382.59 £3,596,904.51 £13,549,494.78

1600 £200,712.36 £945,943.32 £3,712,933.69 £13,986,575.26

1650 £206,984.62 £975,504.05 £3,828,962.87 £14,423,655.74

1700 £213,256.89 £1,005,064.78 £3,944,992.05 £14,860,736.21

100 £3,258,242.95 £12,110,172.53 £44,976,767.41 £167,008,133.54

150 £4,887,364.43 £18,165,258.79 £67,465,151.12 £250,512,200.32

200 £6,516,485.91 £24,220,345.06 £89,953,534.82 £334,016,267.09

250 £8,145,607.38 £30,275,431.32 £112,441,918.53 £417,520,333.86

300 £9,774,728.86 £36,330,517.59 £134,930,302.23 £501,024,400.63

350 £11,403,850.33 £42,385,603.85 £157,418,685.94 £584,528,467.41

400 £13,032,971.81 £48,440,690.12 £179,907,069.64 £668,032,534.18

450 £14,662,093.29 £54,495,776.38 £202,395,453.35 £751,536,600.95

500 £16,291,214.76 £60,550,862.64 £224,883,837.05 £835,040,667.72

550 £17,920,336.24 £66,605,948.91 £247,372,220.76 £918,544,734.49

600 £19,549,457.72 £72,661,035.17 £269,860,604.46 £1,002,048,801.27

650 £21,178,579.19 £78,716,121.44 £292,348,988.17 £1,085,552,868.04

700 £22,807,700.67 £84,771,207.70 £314,837,371.87 £1,169,056,934.81

750 £24,436,822.14 £90,826,293.97 £337,325,755.58 £1,252,561,001.58

800 £26,065,943.62 £96,881,380.23 £359,814,139.28 £1,336,065,068.36

850 £27,695,065.10 £102,936,466.50 £382,302,522.99 £1,419,569,135.13

900 £29,324,186.57 £108,991,552.76 £404,790,906.70 £1,503,073,201.90

950 £30,953,308.05 £115,046,639.02 £427,279,290.40 £1,586,577,268.67

1000 £32,582,429.53 £121,101,725.29 £449,767,674.11 £1,670,081,335.44

1050 £34,211,551.00 £127,156,811.55 £472,256,057.81 £1,753,585,402.22

1100 £35,840,672.48 £133,211,897.82 £494,744,441.52 £1,837,089,468.99

1150 £37,469,793.96 £139,266,984.08 £517,232,825.22 £1,920,593,535.76

1200 £39,098,915.43 £145,322,070.35 £539,721,208.93 £2,004,097,602.53

1250 £40,728,036.91 £151,377,156.61 £562,209,592.63 £2,087,601,669.31

1300 £42,357,158.38 £157,432,242.88 £584,697,976.34 £2,171,105,736.08

1350 £43,986,279.86 £163,487,329.14 £607,186,360.04 £2,254,609,802.85

1400 £45,615,401.34 £169,542,415.41 £629,674,743.75 £2,338,113,869.62

1450 £47,244,522.81 £175,597,501.67 £652,163,127.45 £2,421,617,936.40

1500 £48,873,644.29 £181,652,587.93 £674,651,511.16 £2,505,122,003.17

1550 £50,502,765.77 £187,707,674.20 £697,139,894.86 £2,588,626,069.94

1600 £52,131,887.24 £193,762,760.46 £719,628,278.57 £2,672,130,136.71

1650 £53,761,008.72 £199,817,846.73 £742,116,662.27 £2,755,634,203.48

1700 £55,390,130.20 £205,872,932.99 £764,605,045.98 £2,839,138,270.26

By looking at all the tables, we hope you can see clearly that if you were to save,

let’s say for example £50 a month every month over a period of 30 years, your

money would grow at different rates depending on how much you could get it to

grow.

Let’s look at how £50.00 per month grows at different rates of return over time.

I have highlighted these amounts in blue on the compounding tables in this

chapter.

£281,588.52

£783,812.58

£6,055,086.26!

As you can see this is the reason why we suggest you must start your savings

plan today!

can see below time works with us or it can work against us.

If you don’t start immediately it means you’ll have to invest more money or

invest in a higher risk investment vehicle to achieve your goal of financial

independence.

as you will see in the next two examples.

Simon Smart is twenty-three years old and is planning to be financially

independent by the age of 55 (32-year plan). If he decided to invest £150 a

month for a period of thirty years in an investment that grows at 15% each year,

after thirty two years his money would be worth over £1.1 million pounds.

(£1,121,380.18)

(See Figure 1. 9)

Phil Foolish was also advised to start investing when he was twenty-three but he

didn’t take the advice. Now he is ten years older than Simon, which makes Phil

thirty-three years old. He’s delayed saving for the first ten years but Phil is

confident that even though he wasted ten years, he can still accumulate the

same amount as Simon (£1,121,380.18) in twenty two years.

Why then is Phil Foolish so confident and why did he continue to put off his

financial plan?

Smart is investing. Phil can invest £300 per month in the same investment as

Simon and that grows once again at 15% per year.

And what is the reason why Phil is called Phil Foolish?

After twenty years growing at 15%, his money would only be worth £534,871.84

(see Figure 1. 10).

How can this be?

whopping £586,508.30.

Let’s say that you were going to invest £50.00 per month over a thirty-year

period.

If the money grew at a rate of 15% per year, every year, the money would grow

into £281,588.52.

But if you decided to wait ten years to invest for whatever reason, investing the

same £50.00 per month for twenty years, the money would grow into only

£66,353.67.

That’s a massive £215,234.85 you would have missed by waiting ten years.

That means if you were investing just £50.00 a month, every single day you put

things off, it would cost you £58.96 per day or £413.91 per week of future

income.

Could you live with the thought that every day you will be losing out on future

income?

Can you really afford to do that?

As you can see, delaying starting your financial plan is not a wise decision.

Its interesting also to note from this example that in a thirty year plan of £50.00

per month growing at 15%, your money, after twenty years, would be worth

£66,353.67. (See Figure 1. 11)

However, after 30 years it would be worth £281,588.52. That means that in the

final 10 years it grows by £215,234.85. (See Figure 1. 12)

Many people don’t realise that money really starts to grow at massive rates in

the final years of their plan. The financial trap that most people fall into is that

they spend all the money when it has only been growing for a few years.

They fail to realise that by leaving it, it would eventually become a huge amount

as long as it was invested wisely.

Many people don’t realise that money really starts to grow at massive rates in

the final years of their plan.

Let me tell you a story about a family of smokers to illustrate how we all have

the money.

Every morning for a period of time, Stephen would take our dog Spike for a

walk. At the same time each day, he would often see a family who were chain

smokers.

We assumed that each of them would smoke on average one packet of twenty

cigarettes in a day because every time he saw them they always seemed to have a

cigarette in their mouths.

So let’s do some figures:

If the family decided to give up and they knew how to invest that money wisely

then they could first save the following:

One packet per day costs £4.20 x 7 days = £29.40 spent per week on cigarettes.

There were four people in the family so £29.40 per person per week on

cigarettes x 4 people = £117.60 spent by the whole family per week.

If we multiply this by 52 weeks for the full year (£117.60 x 52) it equals

£6,115.20 spent on cigarettes in a year.

Then divide this by 12 (12 months).

The family could be investing £509.60 per month instead of spending it on

cigarettes.

Guess what happens if the family invested this money over 30 years and it grew

at different rates of return like 10%, 15%, 20%, 25%, 30%.

At 10% the money grows to £1,059,607.57. (Over one million pounds!)

At 15% the money grows to £2,869,950.20

At 20% the money grows to £7,988,617.77.

At 25% the money grows to £22,316,208.56.

At 30% the money grows to £61,713,439.21.

The family would be millionaires if they just got 10%.

This is why Stephen and I have a strong belief that anyone in a free country can

become financially independent in a lifetime, if they intelligently use the

incredible power of compounding.

Now do you believe me when we say “Everybody has the money”?

It’s simply the choices we make about what we do with it that count.

Let’s now review what you have learned in this chapter:

becoming financially independent.

second.

month or year in accordance with your financial independence goal.

soon as your child is born in an investment which grows at 15% a year

for sixty-five years and you’ll have over 40 million pounds.

could be disastrous as in the example of Simon Smart & Phil Foolish.

with it that count.

If you liked the last chapter, you are really going to love the next one. Would

you like to know how it’s possible for you to generate the 10%, 15%, 20% or, if

you are really dedicated, even 30% or more on your money?

You would?

Your wish is my command.

It’s time to learn the real truth about…

serious about getting to financial independence.

historically performed better than others.

UK.

independence.

the risk significantly.

predict things such as market tops and market bottoms.

The stock market is an actual physical location (or computerised system) for the

organised buying and selling of stocks, (stocks meaning a share or part

ownership in companies).

Before I answer your question, let’s start with the basics.

A share or stock represents ownership or equity in a company. Stocks or shares

of companies are bought and sold at a stock market.

When you buy stock, you become a shareholder in the company whose stock you

have bought. A shareholder may benefit from the company’s growth through an

increase in the stock’s price.

It’s a fact that stocks grow money much better than gilts, bonds or any building

society account as you will see in the next three charts.

Take a look at the chart below that shows how equities (stocks) outperform gilts

and treasury bills over a 40-year period from 31 Dec 1962–31 Dec 2001. (See

Figure 1. 13)

You can see that stocks are the clear winner. Just £100.00 invested for 40 years

without any further additions would have been worth £1,192. That’s a whopping

1,092% growth!

It’s because of the combination of two powerful forces. One is the stock market

and the other is compounding.

Figure 1. 14 shows how equities outperformed bonds and cash over a 15-year

period.

Figure 1. 15 shows equities versus a building society account compared over a

10-year period.

Once again, stocks come out the clear winner.

It’s a fact that over time, stocks have outperformed all other types of investment

and common stocks have been the only group to consistently outpace inflation.

Let’s take a look at what percentage return you can expect from putting your

money into stocks. Table 1. 13 below shows percentage returns of stocks in the

UK stock market over three separate time periods.

You can see that if you had invested in stocks over the last 50 years, you would

have made a return each year of 13.6%.

This is a key point because when we work on your plan, you will be using an

estimated return of 12% per year growth just to be conservative. However, in

the next chapter you will see that there are investments linked to the stock

market that consistently outperform the market, which means every year they

beat the stock markets returns.

So instead of getting your money to grow at just 3% to 4% per year from a bank

or building society account, by choosing investment vehicles that are linked to

the stock market but manage to consistently outperform it, you’ll see that you

can grow your money at 15%, 20% and even 30% or more, per year!

There really is no limit on how much you can grow your money per year using

the stock market as its main growth vehicle. The only limits are those that are

placed by your own mind. (More about this in Chapter 5.)

Great question. The stock market can be risky in the short term because the

market can be very volatile and swing in either direction. That means if you put

your money into the market, one month or even one year later, the value on

your investment may have gone down.

Using this same example, if you didn’t know how the stock market worked and

you had lost value on your investment in a short space of time, you may decide

to draw out your money taking a loss and swear never to invest in the stock

market again.

Therefore many people do get their fingers burnt because they don’t look at the

market as a long-term investment. They also don’t know when to enter or exit

the market.

The stock market is something where you must invest your money and then

keep it in for a minimum of at least ten years. This is a golden rule you must

obey if you want to be financially successful.

The key is to look at the market as a very long-term investment vehicle. We

suggest that you look at locking in your cash for at least twenty years and after

seeing how money grows over time, I’m sure you’ll understand why.

One other reason why we suggest a very long term view, is because of risk. If

you take a look at the charts below, you’ll see what percentage risk you have of

losing money in the stock market with different time periods. (See Chart 1. 1,

Chart 1. 2, Chart 1. 3).

Let’s quickly summarise these three graphs. If you tie up your money for one

year, you have a 25% chance of losses. If you tie it up for five years, you have an

11% chance of losses, but if you tie it up for ten years or more, you have a 0%

chance of losing money. That means that if you can leave it invested for a

minimum of ten years, you have absolutely zero risk of loss!

No, and all markets will have different past performances.

As you will soon see, both the US and the UK stock markets have, over time,

continued in an upward trend, continually growing. Of course there have been

periods where the markets have corrected (gone down) for sometimes one or

two years, but this is normal action.

The great news is that the markets are always in an up-trend. That means that if

you leave your money in the market over the long term, you are virtually

guaranteed of excellent growth on your money.

The key part to realise here is that after every market correction, the market

eventually goes higher and has always eventually moved into new higher

ground.

Before I tell you why it keeps on going higher and higher, first take a look at

these two charts of the growth of the US and the UK stock markets over the last

thirty years. (See Figure 1. 16 and Figure 1. 17)

You can clearly see that the markets just keep going higher and higher.

Now take a look at the next chart that highlights two major correction periods in

the UK markets. These were times when people were saying the world was

coming to an end just as they were between 2000 to 2002. (Figure 1. 18.)

Figure 1. 18 shows clearly that these short-term fluctuations eventually iron

themselves out and share prices eventually rise after a fall. These drops may

seem serious in the short term but looked back on after a few years they can

turn out to be insignificant blips.

The reason the stock market keeps going higher is that our world is continually

getting better and better. It is a fiercely competitive world that we live in and

new exciting and dynamic products and services are being created and

developed all the time.

This will always continue to happen and people will continually need to buy

products and services just to survive. For example, we will always need food,

drink, clothing and shelter to survive.

Some people in the world will want more than survival, and desire either to

sustain or even upgrade their lifestyles.

People will continue to buy from established companies’ products and services

as well as purchasing products and services from new and dynamic companies.

Companies will make profits on the goods and services they sell. Investors will

always want to buy shares in both well-established, deemed safer, companies

and new hot growth companies and so stocks prices will continually rise.

The strongest, most innovative companies will survive. The dinosaurs that don’t

move with the times will die. New companies will replace them. Competition is

becoming stronger in each industry every single year.

So let me repeat this key point. The stock market will always continue to rise

higher and higher. It will have brief periods when it will correct but it will never

stop going higher and higher.

If history has anything to do with it, then it has to be the US.

Here are some reasons why:

The Dow Jones Industrial Average, which is the leading measure of US stocks,

had gained 1,300% since 1982. THE FTSE 100 Index of leading UK shares rose

488% over the same period.*

Investors who started to track the Dow five years ago have watched the index

soar 169%. The FTSE has returned 97%.*

The US has the biggest stock market in the World.**

The US has historically outperformed all the European markets.**

If we compare the US Nasdaq composite with the UK’s FTSE 100 over the last

ten-year period, the Nasdaq is up 399% against the FTSE’s 132%.**

The US is the world business leader and therefore holds more opportunities for

growth than here in the UK through world-leading, dynamic, innovative

companies.

Here is another chart to give you more evidence why the US is probably your

best bet.

This chart shows the last 14 years of growth in the US and UK market both

plotted on the same chart. (See Figure 1. 19.)

The chart in black represents the UK’s FTSE 100 index. You can see that over

the last 14 years, it grew by approximately 150%.

Now take a look at the chart in the brown that represents the US Dow Jones

Industrial average. You can see that the growth in the same 14-year period was

over double the FTSE at 350%!

Therefore the lesson is that by investing in the US, you probably will get to your

goal quicker than if you invested here in the UK.

The facts speak for themselves.

Absolutely, but we need to remember that nobody can predict the future. All we

can do is look at this with a common-sense approach. History continues to

repeat itself. Historical charts teach us that the US is the world leader and its

economy has been and still is growing at a rate faster than here in the UK.

This means that there is a greater chance of making larger gains in the US. Also,

with the stock markets, what tends to be the strongest becomes even stronger.

We believe the US markets will become even stronger in the future.

Paul and I also didn’t know anything about the US when we first started

investing so there is no need to be concerned. First of all, let us make it quite

clear that you do not have to invest in US companies if you don’t want to.

We are merely pointing out to you where we feel the best opportunities are.

If you are very patriotic and want to invest in purely UK companies you can do

that using this system.

If you wanted to diversify more and buy companies from different parts of the

Let me tell you how you can quickly and easily find an outstanding investment

vehicle. As you are probably already on the Internet, you’ll understand its

power. If you’re not yet hooked up, then we urge you to do so as soon as

possible.

The Internet allows you to find out everything you need to know to make the

very best investment decisions. It’s easy to understand and it’s fast!

But the Internet is also full of junk information, so the key is to go to the correct

sites to get the very best up-to-date quality information. You also want to make

sure that your information is from a trusted source.

That is where we come in. You will find within the book and at the back, lists of

trusted sites that are easy to navigate, and free to use.

The exciting thing is that this will save you hundreds of hours of what could

have been wasted time trying to find the right sites.

To answer the second question, investing in the US is just as easy as in the UK, if

not easier.

Let me give you an example of how you can invest in top US companies without

being an expert stock picker.

It’s possible to pool your money with other investors into an investment fund

that invests purely in US companies.

The fund is controlled and managed by a person called a fund manager. His or

her job is to buy and sell shares of companies on your behalf.

Professionally managed funds are known in the UK as Investment Funds. They

come in three different types. They are known as Unit trusts, OEICs and

Investment trusts. Don’t be concerned with the names for now, as everything

will be explained in the next chapter.

For now, all you need to know is that it is possible to invest in the US through an

investment vehicle called an Investment Fund.

Companies that want to generate cash for, let’s say expansion plans, can do this

by becoming a member company on the stock market. This is known as the

company becoming a “listed” company.

Companies who do this have made the move from being a privately owned

company to becoming a publicly owned one. A number of shares are made

available to the public for purchase. In return the buyer of the shares then has

part ownership in the company.

If the company does well, the value of the shares increases. If the company does

poorly, the value of the share price will drop. The owner (or shareholder) of the

shares is free to decide when he or she wants to buy or sell, thus making a profit

or loss on the money that they used to invest in the shares.

Yes. The stock market gives companies and individuals more potential for

growth on their money than other investment vehicles such as bank or building

society accounts. Because it can increase your money quickly, it can also

decrease your money just as fast.

That’s why it must be viewed as a long-term investment vehicle (minimum of

ten years) and you must only invest money you are prepared to lose. In the

short term, there can be sudden price movements in either direction, but in the

long term, history teaches us that the market for over two hundred years has

continued to grow and always recovered after bad spells such as recessions and

depressions.

This means that by understanding how the market works, it can be your best

friend. However, if you break investment rules of the market, it can become

your worst enemy.

Investment companies, insurance houses, pension fund managers, banks,

building societies and individuals, are just some of the many different

organisations and individuals who use the market to make money.

Did you know that when people like you and I put money into banks and

building societies and receive a very small percentage of return on the

investment, that very same money gets invested into the stock market by these

banks and building societies, generating millions of pounds in profits for them

by using other people’s money?

It’s true, and now you know why banks are so wealthy.

You’ll first need to know exactly where you are with your finances. You need to

know what amount of interest you could withdraw from the money you

currently have, if you stopped working from this point onwards.

The next step is to know where you are going. You need to decide exactly how

much money you need for you to reach financial independence.

Next you need to create a plan that will guarantee your success. This plan will

involve you buying outstanding investments that are linked directly to the stock

market.

Your plan will involve turning what you have now, which we will call £X, into

the amount you need to reach financial independence in the future, this amount

being £Y.

To get from £X to £Y, your plan will involve your money growing at a certain

percentage rate of return each year. Banks and building societies will not be

able to get you the returns you need. However, the stock market can help you to

create these returns because of its incredible power.

Combined with the help of “compounding” and “time”, if you stick to your plan

and invest the right amounts into the right investments, you will become

financially independent and that’s guaranteed!

time.

It happens when the country’s economy is healthy; interest rates are usually low

which encourages people and companies to borrow because money is “cheap”.

Because of this environment, people are generally spending and buying more of

company’s products and services and thus the company’s sales and profits are

high which means stock prices go up in value.

Bull markets generally last between two and four years.

period of time. This happens when the country’s economy is unhealthy and

interest rates are high, which does not encourage people and companies to

borrow.

Because of this environment, companies and individuals are usually reluctant to

spend money and thus company’s sales and profits suffer, which means stock

prices go down in value.

Bear markets generally last between nine and eighteen months.

in your favour to make money.

which is which.

This next paragraph is a little graphic although very true. We apologise ahead in

case this disturbs you in any way.

In California during the 1800s, fights to the death between the great grizzly

bears and the Spanish bulls are well documented.

During the fights the bull would use its powerful neck and shoulders to try to

toss the bear in the air, hence it would thrust its head “up”.

Therefore a “Bull Market” is when the main trend of the market is up.

The bear on the other hand would try to pull the bull “down” or sometimes try

to crush the bull “down”.

Therefore a “Bear market” is when the main trend of the market is down.

If you looked in a textbook, the definition of risk would be something like:

While this definition may be a little bit confusing, our thoughts are:

This means that if you want to invest in something that is very safe and gives

very small annual returns, there is usually little risk attached to the investment.

If you want larger returns, the investment will carry more risk.

So the truth is, if you really want to get to financial independence, you are going

to have to take some risks, but it sure will be worth it.

However, you can control and reduce your risk significantly by using the

following four factors:

decreases.

of what to do if the investment is not performing to the standards

expected.

have a long-term investment horizon as opposed to a short-term one.

Remember that if you invest for a period of ten years, your risk of losing

money is zero.

industries rather than just one or two. Instead of putting all your money

into, let’s say the technology sector, you can spread your money into

various sectors such as financial, retail, energy, health and many others.

Before I tell you what an index is, let me first tell you an important point about

them.

By studying the main indexes daily, you can soon start to understand how the

markets work and in which direction the market is heading.

That last sentence is priceless & so I urge you to reread it a couple of more

times.

I’m really looking forward to showing you how the market really works in

Chapter 7 so that you can eventually start to read it like a true professional and

start making some big money.

If you are truly dedicated to understanding how the stock market really works,

the amount of money you can make from this information alone is virtually

unlimited!

Why? Because when you start to understand how the market works by

monitoring the indexes, you will eventually be able to determine market tops

and market bottoms.

Would that be useful to you?

Just think; you could buy investments just after the market has bottomed and

sell them when it has topped. With that knowledge alone you can make some

very serious money.

number of companies that belong to the individual index.

The purpose of stock market indexes, are to help gauge the overall health and

performance of the stock market as a whole.