Financial Dignity
THE FOUNDATION OF WEALTH
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By J.G.Campbell
ISBN 0-9549835-05
Introduction. 3
Principle 1
Spend some of your money. 26
Principle 2
Save the rest. 29
Principle 3
Get rid of the debt with the high interest. 42
Principle 4
Learn enough to invest with the best. 60
A happy ending? 85
A extra bit 86
Reference sources. 93
approach and research and are the opinion or view of the author
only.
of the contents.
help ensure you are getting an investment strategy that meets your
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Blaine Lee
you.
• No consumer Debt.
to you.
and income are all so different and diverse. But one thing I am
rest of my life.
down and think what Financial Dignity would mean to you. Come
back some time later and write it down on the following page or in
your diary or journal. The important thing is that you write it down
can show you a way to attain your own vision of financial dignity by
Commit to being debt free.
moments to reflect and write down what Financial Dignity would be to you)
because all successful people have written goals. They write their
goals down in detail and work out what they will need to do to
Michael Angier shares stories of struggle and achievement, offers practical advice,
motivates you on a quest for your best and shares the steps of his own personal
journey from Vermont farmer to international success guru.
This simply means plan for the plan not to go according to plan! I
am sure as soon as you start working towards your goal things will
change, some for the better some for the worse. If the plan is not
to you.
A person who tries and fails and tries again is not a failure,
For Week
Ending ACTION STEP MORNING AFTERNOON EVENING
…/…/…
MONDAY
TUESDAY
WEDNESDAY
THURSDAY
FRIDAY
SATURDAY
SUNDAY
If you work on your Goals each day you will achieve them.
• IFITISTOBEITISUPTOME.
Most of us will not have much problem with this particular tenet.
where all manner of fine luxuries can be had or at least aspired to!
and confident people are able to recognise and resist such negative
habits. They are also able to resist the purchasing of something just
Your financial lifestyle should be one that reflects your own beliefs
The following is a little story about a friend of mine who has the
lifestyle and that he did not want or need fancy clothes or food. He
Indeed I had often found him having porridge for tea prior to an
exclaim with a wink of an eye and a smack of his lips which always
sounding like a landlubber again “ All that fancy stuff you eat is just
a habit you have got into, I am full up and nourished, what more do
want to be able to do it for a lot longer yet” was his retort. I must
have been looking puzzled yet again for he went on to explain. “ It’s
simple, all the money I have coming in I split up into some for food
and drink, some for clothes, some for looking after the house, some
the car. No car, no climbing, you got to get there, man (now
season’s climbing trips and the last pot is where I put it away for
look at it is that the more I can save now, the more climbing I can
It was not until I started writing this book did I recall the wisdom of
tool. He planned with foresight how to use it. Allowing him freedom
Dignity.
Enrich your life with what you value.
riches.
Please do not read any further until you have calculated ALL your
form.
Partner.
Social Security Benefits.
TOTAL INCOME
Your 10%
This 10% is to pay your self first. You must save it no matter what
If you treat your 10% well this is how it will repay you.
• Let say you earn half the current average national wage of
month.
an annual basis.
at 65 and you invest your £105 each month every month for
the 49 years.
Two million four thousand and one hundred and forty seven pounds!
You could retire at 50 with £409,284 to your name and that would
one penny less than thy clear gains; then shall thy pocket begin to
thrive; creditors will not insult, nor want oppress, nor hunger bite,
you will need to divide the payment over each of the twelve
months.
Always carry a small notebook and pencil to record all the hard- to-
remember bits you purchase over the course of a day. Above all be
honest with yourself about the findings. When you have completed
and video rental. On top of that there is all the sweets, chocolate,
drinks, peanuts, and crisps, etc. that are almost essential to chomp
your way through when watching TV. We still do the same things
Minus
TOTAL £……
Important
your spending plan with more resolve to cut out non-vital items and
help quickly. Here are some useful addresses and phone numbers.
http://www.adviceguide.org.uk/
http://www.cccs.co.uk/
your own. These organisations have trained people that can help.
Taking Control.
The next part of the process is to start planning how you are going
to spend your money. You are taking control and channelling your
without affecting your lifestyle too much. Out of these savings you
When you start making the cuts to what you spend, do not forget
that you still need to enjoy life and that enjoyment is a justifiable
expense.
Life is short; you should enjoy its fruits in moderation and when you
Principle 3
Consumer Debt
can really suck the life out of your financial future and is best
If you have any non-mortgage debt, loans, credit cards etc. take
the money you have identified as your 10% and put it towards
paying off those debts. Get them paid down as quickly as possible
because each day you have them they cost you more money, This
first and may well be the best investment you ever make.
For example: if you have a credit card and the interest rate is 18%
per annum and if you pay it off, you are saving yourself having to
pay out that extra 18%; which is just the same as getting an
I have seen this question asked all over the internet and I
and disturbing:
The debt with the highest interest has not necessarily got a
percentage after it. It is the debt that can cause you the most harm
you have borrowed money from less reputable sources you can be
economic insecurity”
To be sure you are paying off the most harmful debt fill in the following
form.
How
Who do How What are the What is much do
I owe much consequences the I have
money do I of not paying interest to pay
to? owe? this debt? rate? each
month?
No new debt.
food groups.
And
Sorry!
factors in a busy family life to account for all the money you spend.
All you can hope for it to plan what you can and try to keep track of
where you do spend it. I have stilled called it a budget planner for
only a plan and keep your spend flexible enough to enjoy life
An Example
322 354
TOTAL
TOTAL
THINGS WE
FORGOT!!!
between the Planned and the Actual spends on the individual items
a year it will build into a monstrous £1664 by the end of the year
that will demand paying from somewhere. Try not to become over-
jealous about sticking to your budget; it could drive you mad with
worry! There are just to many variables to account for during a pay
Dignity.
Keep heading towards your Financial Dignity.
• After you have paid all your creditors and expenses you do
not have enough left to pay for essential items such as food.
food.
• You lie and otherwise deceive friends and loved ones about
your debt on your behalf. They can offer consolidation loans, to use
mainly interest with little actually being paid off the debt itself.
Thus keeping you in debt and paying them interest over long
periods of time.
This is Compound Interest working against you and for the lender.
You really do not need to learn very much to invest with the best.
What the best know, understand and use wisely is the effect of time
and compound interest.
attaining long term Financial Dignity. They balance the risk and
investment or not, you will have heard the terms, The FTSE 100,
The FTSE-all share index (UK), The Dow Jones (USA) and the Nikkei
You invest in all the companies in the index by pooling your money
the size of the company. The future value of the units replicates the
companies will do very well and some will fail. But having invested
in the whole index you have reduced the exposure to the risk of
failing companies and balanced that with the gains from the
successful companies.
over a short period of time. But over a prolonged time period the
averaging of the ups and downs of the Stock Market to take effect.
Lets say you regularly invest £25 each month in an Index Tracker
Fund.
The first month the market is high and the unit cost are £1.00 each.
The second month the market takes a dip and the units are only
worth £0.50 but you still buy £25 worth acquiring 50 units.
The third month the market has rallied and the units are £1.00 each
again and again you buy £25 worth. So at the end of month 3 you
have invested £75 in total and have 100 units now valued at
£1each.
The figures have been simplified for the illustration to clearly show
advantage of the rises and falls in the value of the chosen index.
than occasional lump sum takes full advantage of what the volatile
stock markets do naturally and that is, rise and fall in value over a
short term. If you add this to the very low management charges
winning combination.
http://www.fsa.gov.uk/
http://www.adviceguide.org.uk/
http://www.nationaldebtline.co.uk/
http://www.cccs.co.uk/
http://www.youngmoney.com/
http://www.freedictionary.com/
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Stay Well Stay Happy
John