What if Private Finance Had a Person’s Information?
There is a lot that contributes to financial stability – and it seems out of reach for many of us. Laura Whateley’s new book Money: A User’s Guide breaks the panic and gives readers the confidence they need to take back their financial goals. We believe this book needs to be added to any high school curriculum.
[ Read: How to Create and Customize Your 2021 Financial Goals ]
Not only does Whateley cover topics like credit scores and saving money, but it also deals with money, love, and mental health. In this way, readers can use what they have learned to be successful in all areas of life. While this book focuses on the European economic system, lessons extend across the world.
Where do you think most people are going wrong with their finances?
Finance is believed to be a complicated and daunting area that is mostly aimed at those who are good at numbers or really good at spreadsheets. In fact, the fundamentals of money are straightforward and accessible to most of us, and we should all be much more comfortable learning and “owning” than something that is for us, not just for the rich or the people, who work on Wall Street.
Too many people I speak to to write off as horrible with money – but it’s not – as I write in the book, a personality trait or crap tattoo that you have when you are drunk and that you go with forever an industrial concealer. It’s a temporary condition that with a little persistence you can address.
Burying our heads because finances feel overwhelming or difficult is one of the worst (and most expensive) things we can do. Yet it is also the most common reaction when we feel overwhelmed, bored, or disconnected.
If you had it, what financial subject should be taught in schools?
Everyone needs to understand the basics of compound interest, the 8th wonder of the world, said Einstein, who famously said, “He [I’m adding she here too] Whoever understands it deserves it … he [she] who doesn’t … pays for it. “
We know we are in a huge debt crisis, and so many people I meet don’t know how much debt they cost in the long run because interest compounds can cause you to start borrowing £ 100 but if you do 20% interest is charged, after one year your debt is £ 120 and you are then charged 20% on £ 120.
Compound interest also means that the younger we start saving or investing, the less we will have to give up later in life. That £ 100 saving with 20% interest (though you won’t find that return anywhere right now!) Will increase as you earn 20% to £ 120 over the years over the years.
In my experience, a lot of people come late to the topic of money. At this point, they are a little embarrassed to admit that they don’t really understand how the stock market works, what a mortgage really is or what theirs 401,000 money is enough, and in the end, making big financial decisions makes them feel like how buying a house, sorting student loans, or putting enough aside for the future, playing through. This leaves you open to losing money or getting loose or getting ripped off.
What sparked interest in writing a book on personal finance?
I’ve been a journalist for many years. I started writing about money for The Times of London in my early twenties, two weeks after the Lehman Brothers collapse, in the middle of the financial crisis. I wrote the book to share everything I had learned in my own life, as well as years of interviews with financial experts, everything I would have wished for ten years ago, everything that many of my friends still need to know!
How did you choose which topics to cover in your book?
As I wrote the book, I thought about targeting my younger self. What would have been most important or helpful to me? What topics or areas, in my opinion, are most important for people under 40, a generation that has grown up with more financial pressures through two global recessions – expensive housing, student loans, salaries hit by the financial crisis, lack of pensions as new opportunities and burdens Technology and changed family structures.
I also go into the more emotional aspects of money – topics that are becoming more common because of the way we live. Money and love, for example. How do you deal with money with a partner or your family? Housing costs mean that many more people live together for financial reasons or have to move in with someone else. How do you make sure that you and your partner are both protected in this scenario? And how did you have this super awkward money talk?
If there’s one thing people should be taking out of your book, which one should it be?
Budgeting is not about knowing how to play in the markets, it is about realizing the emotional attractions and how our feelings for money, what our parents taught us, what our friends do, affect how much we can or want to spend and save.
Dealing “well” with your money means trust. With a little knowledge, you will find that personal finance is not as intimidating a topic as you might think. And if I can understand, so can you!
About the author
Laura Whateley is an award-winning journalist and The times“Consumer Champion” who writes the “Agony Tante”, “Troubleshooter” and “Millennial Money” columns in the “Saturday Money” section. She also specializes in affordable travel, real estate, and interiors for The times and wrote for The Sunday Times, the Guardian, the observer, Dow Jones and Money wise Magazine. She grew up in the West Country and studied PSA at the University of Warwick before moving to East London. Money: A User Guide is Whatley’s first book.
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