The truth about financial literacy

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So I am a finance guy.

I have mad skills with excel…I build models like people breath air.

Also, I have earned a significant amount of cheddar in my short career… hello was an investment banker.

In addition, I having been studying for the Chartered Financial Analyst Exam so have been exposed to the best practice information for financial and investment planning.

…So why do I still live at home?

Because as much as I have a mutual fund and a stock broking account, as much as I automatically put aside my investment funds before considering my expenses, and as much as I save a percentage of every inflow, quite frankly, I lack disciple- my brother says I am a sucker for every sob-story.

Yes it is true. Most of the reasons I break the rules on my savings and investment plans is because I either fall prey to a charity request or I give out a loan to a friend that ends up as bad debt.

And I must be “crazy” because Einstein already told us that doing the same thing and expecting different results is “insane”

Therefore, the fundamental truth about financial literacy I want to share is not a fancy excel sheet (been there done that) but the discipline and consistency to stick with your financial strategy and guidelines.

You might think that this is a well duh, or is too simple…we want you to explain the cashflow quadrant.

But let me tell you all you need:

  1. Records of inflows and outflows daily
  2. Percent of inflows sent to a savings/investment account based on sustainable preference
  3. The remaining is matched to outflows in other of priority and stops when it is finished


You can find a fund manager to manage the savings/investment account or you can open the newspaper or a financial times and get recommendations (diversify across fixed income and include some higher yielding securities based on your risk willingness and tolerance).

There is no rocket science to it.

It is that simple.

Everything else is just maximisation (getting the most for the least effort) …all the other sorcery portfolio and fund mangers do is not necessary for you to know unless you want to go into that line of business.

With does three basic steps you will be able to fund the life you have chosen and within time fund the life you want… (remember the returns are also an inflow so you apply the percentage to it and keep going… an let the MAGIC of compounding takeover)

God bless



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