Month: February 2017

Money makes the world go round

Money makes the world go round

Welcome to Money Generation XYZ

This is the blog which will enable you to compound your wisdom at an annualised rate of 24%. I have studied the theory of making money since I was 13 and have put this theory into continual practice. This relentless pursuit in understanding how the financial markets work, how to analyze businesses and how to make money make more money allowed me to emerge from the financial fog richer in both knowledge and wealth.

I now want a platform to teach others

Why pursue money? One thing I have learned is that money really does make the world go round. We are absolutely controlled by finance. Central bankers don’t pull levers for no reason, they pull interest rate levers to make you spend or save, politicians pull fiscal levers to guide your financial decisions. This is not some grand conspiracy, we are all participating in a finely tuned machine and it is beneficial to society and the advancement of humanity (most of the time). Who wants to be at the mercy of the above? We need to take back control.

My desire is to be a free financial spirit

Making money has been a pursuit since childhood. It started when I began collecting coins. I managed to hijack collecting coins by purchasing a job lot of coins off eBay. I’m impatient like that. Who’s got time to wait for your parents to bring you a dollar from America anyway? I then moved onto selling multi-pack sweets individually on the playground. Fast forward twelve years – I am a successful Ebay and Amazon seller, a Finance Analyst and a side hustler.

Having a 9-5  job is rather like coin collecting – too slow

If I collect an average UK wage of £27,600 with a 2% pay rise each year and save 27% of that income after all expenses (my FY17 personal savings rate) I’ll be earning £60,000 and I’ll have saved circa £480,000 by the time I was 65. Sounds great, however that means I save £11,700 on average per year. Average UK house prices will have grown from £216,000 to £631,000 (assuming that house prices follow the 100 year annualized historical increase of 2.79%). Notice the key word here? Average.

Freddos will cost 65 pence!

£480,000 buys me 1,920,000 freddos today however in future I’ll only be able to purchase 738,461 freddos with the same amount. This is called the time value of money and this is a fundamental axiom of making money. It is why people who have worked all their life are still working. I’ll teach you all about it on our journey where I intend to hijack the art of collecting paychecks by earning more on the side through investing and money-making projects. I think you should too.

This blog needs to act as a sanity check

My fear is not failing to make enough money, it’s that I’ll never know when to stop. Afterall when is  enough, enough? We all admire Warren Buffet but he isn’t free. Warren Buffett has been shackled to the complex of money-making all of his life and I get the impression that he regrets the opportunity cost of his time with his family. Just read The Snowball: Warren Buffett and the Business of Life for more on that.

That’s where you come in. You can be my guide, you can tell me when enough is enough.

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