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- Herausgeber: John Wiley & Sons
- Kategorie: Ratgeber
- Sprache: Englisch
An accessible playbook for a brighter financial future
In 10 Things I Love About Money: Simple Rules to Spend your Way to Wealth, author Mathew Megens, founder of the money management app HyperJar, delivers an easy-to-follow roadmap to financial independence, security, and freedom that anyone can use. The book is packed with insightful tips you can action immediately, from simple strategies for mindful spending to automating your good habits. You'll also learn about how to get – and stay – out of debt, and how to save money over the long term by taking advantage of discounts, loyalty programmes, and debt refinancing.
Inside the book:
- Advice for understanding how to accumulate wealth based on your personality type
- 10 Rules for Financial Mastery, including how to start with a spending audit and the power of tiny daily habits
- Simple strategies to start investing today without getting ripped off
- Learn how to make saving money as much fun as spending money
The perfect roadmap to financial wellness for students andworking people of any age, 10 Things I Love About Money is the no-nonsense, jargon-free guide to money, spending, debt, and wealth that you've been waiting for.
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Seitenzahl: 373
Veröffentlichungsjahr: 2025
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Table of Contents
COVER
TABLE OF CONTENTS
TITLE PAGE
COPYRIGHT
DEDICATION
NOTE
PREFACE
NOTES
FOREWORD
INTRODUCTION
WHAT
HOW
NOTES
SECTION I: WHAT
CHAPTER ONE: RULE 1: FOCUS ON YOUR DAILY SPENDING
WHY SPENDING IS MORE IMPORTANT THAN SAVINGS
WHY IS SPENDING WELL EVEN HARDER NOW?
WHAT IS MINDFUL SPENDING?
YOU'RE ALREADY A MILLIONAIRE
RULE 1 WRAP-UP
NOTES
CHAPTER TWO: RULE 2: UNDERSTAND YOURSELF
MSPI – MAT SPENDING PERSONALITY INDICATOR
SPENDING BEHAVIOURS
SPENDING PERSONALITIES
THE MSPI SURVEY
WHAT DOES IT ALL MEAN?
MY JOURNEY – FROM NIGHTMARE TO ZEN
MOOD-BASED SPENDING
MONEY AND LIFE
RULE 2 WRAP-UP
NOTES
CHAPTER THREE: RULE 3: UNDERSTAND OTHERS
BANKS
SAVINGS COMPANIES
SHOPS AND MERCHANTS
UTILITIES
FAMILY AND FRIENDS (OR ARE THEY?)
PRESSURE TO PARTICIPATE
SOCIAL STATUS – DON'T TRY TO KEEP UP WITH THE JONESES
OVERCOMING SHYNESS WHEN IT COMES TO MONEY
BEING A YES-PERSON
RULE 3 WRAP-UP
NOTES
CHAPTER FOUR: RULE 4: THE SMALL THINGS MATTER
UNINTERESTING INTEREST
A LIFETIME OF MISTAKES (OR GOOD HABITS) ADD UP
YOU ARE A FUNCTION OF YOUR ENVIRONMENT
THE DISPOSABLE ECONOMY
SUBSCRIPTIONS MAKE THE WORLD GO ROUND
ADDICTIONS AND VICES
EATING OUT WHEN YOU ARE ACTUALLY IN – FOOD DELIVERY SERVICES
RULE 4 WRAP-UP
NOTES
CHAPTER FIVE: RULE 5: MASTER DEBT. THE GOOD, THE BAD AND THE UGLY
SO WHAT IS DEBT?
DEBT IN THE UNITED KINGDOM
A CLOSER LOOK AT PERSONAL DEBT IN THE UNITED KINGDOM
DEBT TRAPS AND SPIRALS
GOOD DEBT, BAD DEBT. WHAT'S THE DIFFERENCE?
BANK DEBT DECISION CALCULATOR
MY DEBT DECISION CALCULATOR
DAILY SURPLUS AND ASSETS AND LIABILITIES
STAY OUT OF DEBT
LAST RESORT – PERSONAL INSOLVENCY AND IVA
RULE 5 WRAP-UP
NOTES
SECTION II: HOW
CHAPTER SIX: RULE 6: AUDIT YOUR SPENDING HISTORY
HOW DO PEOPLE SPEND SO MUCH? LET'S ASK THE ONS
TIME TO GET TO WORK
YOUR PAST. A SPENDING DEEP DIVE
BENCHMARK YOURSELF
THE PRESENT
YOUR FUTURE. YOUR DAILY ONE NUMBER: DON
BRING IT TOGETHER: INCLUDE ADDITIONAL ACCOUNTS
DREAM BIG
THE REFLEX: MOVE FROM CONSCIOUS TO SUBCONSCIOUS
RULE 6 WRAP-UP
NOTES
CHAPTER SEVEN: RULE 7: BUILD NEW HABITS THAT WORK FOR YOU
WHAT ARE HABITS?
HOW LONG IT TAKES TO FORM A HABIT
THE FOUR PHASES OF SPENDING
OTHER STUFF TO THINK ABOUT
RULE 7 WRAP-UP
NOTES
CHAPTER EIGHT: RULE 8: SPEND LESS BY FINDING DEALS
A LITTLE LESS CONVERSATION, A LITTLE MORE ACTION
INEFFICIENT MARKET THEORY: DON'T BE AN EASY MARK
WHERE THE DISCOUNTS ARE (AND HOW TO FIND THEM)
WHEN LOYALTY COUNTS: BULK BUYING; MERCHANT LOYALTY SCHEMES
THE ART OF THE DELAY
FINDING THE CHEAPEST PRODUCTS AND SERVICES
HONEY BROWSER PLUG-IN
RULE 8 WRAP-UP
NOTES
CHAPTER NINE: RULE 9: ENJOY THE JOURNEY (AND BUILD A SUNNY-DAY FUND)
BEING IN CONTROL IS COOL
ENJOY EVERY DAY MORE: MAKE EVERY DAY A SATURDAY
THE FUTURE
DOUBLE DOPAMINE: TWO FOR ONE
BE SMUG
A RAINY-DAY FUND
THE SUNNY-DAY FUND
PLANNING FOR RETIREMENT
CHECK IN ON YOURSELF
IT ISN'T JUST REPETITION THAT MAKES THINGS STICK
SOCIALISE YOUR NEW LIFESTYLE WITH YOUR SOCIAL CIRCLE
STOP THE TOXICS IN THEIR TRACKS
LET'S POPULARISE A WORD: THOIL
TRY AND BE HAPPY WITH WHAT YOU HAVE
EXPLORE YOUR MINDSET
RULE 9 WRAP-UP
NOTES
CHAPTER TEN: RULE 10: BEGIN SAVING AND INVESTING DAILY
WHAT IS INVESTING ANYWAY?
THREE TIME FRAMES
THREE INVESTMENTS
WHICH INVESTMENT FOR WHICH TIME FRAME?
FOUR PRINCIPLES
WHY DIFFERENT TIME FRAMES REQUIRE DIFFERENT STRATEGIES
ISAs, PENSIONS AND TAX
EXTERNAL ADVICE
PAYING OFF DEBT
OTHER STUFF PEOPLE INVEST IN
PUTTING IT ALL TOGETHER
RULE 10 WRAP-UP
NOTES
CHAPTER ELEVEN: BONUS RULE 11: PARENT GUIDE FOR HELPING YOUR KIDS
THE THREE BEARS
LIFE SIMULATION
POCKET MONEY
INVESTING
SPECIFIC PLANS FOR CHILDREN BY AGE
RULE 11 WRAP-UP
NOTES
CONCLUSION
NOTE
ACKNOWLEDGEMENTS
NOTE
ABOUT THE AUTHOR
INDEX
END USER LICENSE AGREEMENT
List of Tables
Chapter 2
Table 2.1 Understanding
Table 2.2 Receptiveness
Table 2.3 Impulsiveness
Chapter 10
Table 10.1 Accelerate Loan Maturity by Overpayments
Chapter 11
Table 11.1 Average Pocket Money in the UK by Age
List of Illustrations
Chapter 1
Figure 1.1 Spending versus Savings
Figure 1.2 How Much We Talk about Spending and Saving
Figure 1.3 What We Should Be Talking About
Figure 1.4 Cash Is Physical and Visible
Figure 1.5 A Robot Navigating Spending
Figure 1.6 How Big Amounts Can Become Small
Chapter 2
Figure 2.1 The Eight Indicators
Chapter 3
Figure 3.1 Social Pressure – It All Adds Up
Figure 3.2 It's Not the Answer
Figure 3.3 People Have Different Earning Profiles
Chapter 4
Figure 4.1 A Mars a Day
Figure 4.2 Awesome Compounding
Figure 4.3 You are Kidding Me. That Much?
Figure 4.4 Subscriptions Are Everywhere
Chapter 5
Figure 5.1 Mindbogglingly Big Numbers
Figure 5.2 Mind Blowing: The Money Charity Statistics
Figure 5.3 Mat – the Stock Picking Superstar
Figure 5.4 A Life Time Occupation – Paying Off a Credit Card Debt
Figure 5.5 Lender Data
Figure 5.6 Example Bank Lending Flow Chart
Figure 5.7 Debt Calculator
Chapter 6
Figure 6.1 UK Household Spend Pie
Figure 6.2 Discretionary Spend
Chapter 7
Figure 7.1 The Four Phases of Spending
Chapter 8
Figure 8.1 It Really Is This Simple
Chapter 9
Figure 9.1 Financial Words Used to Describe People
Chapter 10
Figure 10.1 Shares versus Property
Figure 10.2 Investment Returns over Different Time Frames
Guide
Cover
Title Page
Copyright
Dedication
Preface
Foreword
Introduction
Table of Contents
Begin Reading
Conclusion
Acknowledgements
About the Author
Index
End User License Agreement
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10 THINGS I HATE LOVE ABOUT MONEY
SIMPLE RULES TO SPEND AND SAVE YOUR WAY TO WEALTH AND HAPPINESS
BY
MAT MEGENS
This edition first published 2025© 2025 John Wiley & Sons, Ltd.
All rights reserved, including rights for text and data mining and training of artificial intelligence technologies or similar technologies. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by law. Advice on how to obtain permission to reuse material from this title is available at http://www.wiley.com/go/permissions.
The right of Mat Megens to be identified as the author of this work has been asserted in accordance with law.
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Limit of Liability/Disclaimer of WarrantyWhile the publisher and authors have used their best efforts in preparing this work, they make no representations or warranties with respect to the accuracy or completeness of the contents of this work and specifically disclaim all warranties, including without limitation any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives, written sales materials or promotional statements for this work. This work is sold with the understanding that the publisher is not engaged in rendering professional services. The advice and strategies contained herein may not be suitable for your situation. You should consult with a specialist where appropriate. The fact that an organization, website, or product is referred to in this work as a citation and/or potential source of further information does not mean that the publisher and authors endorse the information or services the organization, website, or product may provide or recommendations it may make. Further, readers should be aware that websites listed in this work may have changed or disappeared between when this work was written and when it is read. Neither the publisher nor authors shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
Library of Congress Cataloging-in-Publication Data is Available:
ISBN 9781394299751 (Paperback)ISBN 9781394299768 (ePub)ISBN 9781394299775 (ePDF)
Cover Design: WileyCover Image: © Hammad Khan/Getty Images
This book is dedicated to my mom, dad (RIP) and my four kids: Molly, Michael, Marilyn and Makenna. My mom and dad inspired my vision for HyperJar in equal measure with their lessons on spending money carefully and avoiding the perils of debt. I still remember my mom saying to me that more people need to know how good it feels to save up for something. Truer words have never been spoken.
My children’s unconditional love and support has been a constant positive force in my life and inspires me to achieve everything I have. Kids, I hope you all read this book and remember its lessons well.1
‘If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.’
—Sun Tzu, The Art of War
‘If you’re trying to sell it to me for full price, you’ve picked the wrong girl.’
—Elle Woods, Legally Blonde (Robert Luketic, dir., MGM, 2001)
NOTE
1
If not for yourself, for me in my retirement.
PREFACE
If you asked most people who know me to sum me up in a few words I think you would get pretty much the same three main responses: Canadian; finance guy; really into sport and fitness.1
Why on earth is this in any way relevant for a book about money?
I grew up in a modest middle-class family on a farm in Canada with a strict father born in the Netherlands during the Great Depression. My dad was frightfully scared of debt and was extremely sensible with money. The only debt he ever had was a mortgage on the farm which was paid off within a decade. Subsequently both of my parents were extremely focused on financial education for me and my siblings, never missing an opportunity to regale us with terrifying stories of the evils of borrowing and materialism, and the wonders of savings and financial prudence.
A nerd through and through, I started my career as an electrical engineer during the dotcom boom, working in various crazy start-ups, which gave me a lifelong love of entrepreneurship, and perhaps an unhealthy tolerance for risk.
I eventually earned an MBA and leveraged this into jobs at two prominent investment banks in London.2 I worked in various highly technical roles in trading and structured finance in the bond markets. Many of the crazy complex financial products I specialised in were right at the epicentre of the Global Financial Crisis in 2007, which, to say it provided an entertaining learning experience is a gross understatement. I continued to work in the financial sector for the next decade as I started a family with all the responsibility, both financial and personal, which that entails.
Throughout my journey sport has always been a huge part of my life, I am a qualified personal trainer, I play ice hockey, cycle, run, workout3 as does everyone in my family. Exercise is so fully integrated into every aspect of our life that I barely have to think about it at all, it just happens.
You would think that: given my education and upbringing; my ability with numbers; my long career in finance (both from an intellectual angle and also having been fortunate enough to be handsomely paid at various great jobs); my personal responsibility to my family; and my disciplined approach to physical fitness; that my level of financial fitness would have been equally as high. You would be wrong.
For most of my adult life I have had a terrible relationship with money, both in terms of management, but also in terms of all the anxieties and worries that not getting a grip on finances can bring. I finally sat down in my early forties4 and had a long hard think about why this was, and I think I worked it out.
The first result of this epiphany is that I have finally reached a place where I am genuinely happy in terms of my relationship with money.
Secondly, I founded a company called HyperJar, a visual spending app to help people spend their money better. HyperJar currently has almost three quarters of a million users, has won many awards, and is one of the most highly rated personal finance apps in the United Kingdom.5
Thirdly, I have written this book. I hope you enjoy it.
HyperJar is making a difference, and I hope this book helps to continue this very personal mission of mine.
NOTES
1
I did test this out, there were some other words, especially from my ex-wife, but this is a book about finance so moving swiftly on.
2
Lehman Brothers and Morgan Stanley. Not all banks are the same, despite what I imply in this book.
3
In fact, you name a sport, I am almost certainly into it.
4
I am now 50. Go me.
5
Permit me to be a little bit proud. The next big release in 2025 is going to be even better. We have learned a lot.
FOREWORD
For two of the three (or so) decades I have been working in finance, your fearless author Mat has been a friend of mine and, on three separate occasions, a professional colleague. Firstly, in a big American investment bank where we mucked about with all sorts of esoteric financial nonsense. Secondly, as a partner in an asset management firm (which I founded), where we boldly attempted to set the world of international trade finance to rights – well, we did right up to the time when Mat made the (frankly financially ludicrous) decision to abandon me to embark on a “career” as an entrepreneur. As you are about to find out when you read the book, Mat can put forward ideas in uniquely compelling ways, so seven years ago he managed to convince me to team up with him for a third time, at his start-up fintech called HyperJar. Many of the ideas in this gem of a book have evolved from talking to our (now over) half a million customers in the United Kingdom about how they do (or more usually do not) get a grip on their financial health – it has been and continues to be an eye-opening journey.
What I hate about the book is how Mat has used me, several times, as a prime example of what people do wrong when managing their financial (and physical) health! (I can see myself in the pages, and I hate the fact that he is completely right – I really did have to have a long hard look at myself as soon as I put the book down.) I'm going to warn you, you are probably going to have a similar reaction, but sometimes looking in the mirror is just the medicine you need to provide motivation for change.
What I love about the book is how simply and clearly the core principles are set out. I flipped between facepalming at all the obvious stuff (which I simply hadn't thought properly about, so maybe not as obvious as I thought); laughing out loud as various institutions and commonly held ideas are rightly speared; and being intrigued by some genuinely new and fresh ideas about how to look at money – particular stand-outs for me are the Daily One Number for managing your day-to-day spending and Mat's Spending Personality Index for working out if you are just a regular, or a total, nightmare when it comes to managing your money.
I hope you have as much fun and get as much out of reading this book as I did. I believe the pages contain a small number of clear foundational principles about getting to grips with money which, if put into practice, can make a genuine difference to financial well-being with real knock-on effects to overall happiness. The most important part is how simple and manageable the principles are.
I'm really interested to know what you think.
Spend life well.
Paul Rolles
INTRODUCTION
This book does not contain a magic formula for wealth. I'm sorry.1
What it does contain is a very simple set of rules and principles for how to understand and manage the messy reality of money. This book builds a foundation of habits that will make everyone, even wealthy people, happier with their lives.
On first glance, it seems very obvious why having money, or the lack of it, is important. We use money to buy things that we need, or in order to buy things that we want. But dig a little bit deeper and it becomes clear that there is much more to it than that:
How financially successful we perceive ourselves to be can often be a major driver of self-esteem, either directly, or in terms of how we think others view us and our place in the world.
How much money we have squirrelled away for the future to cover retirement or unexpected problems, has a major impact on how we feel about life today.
2
Feeling uncomfortable with understanding the complexity of finance and money can be overwhelming and stressful – and it can be a continuous form of low-level torture that never goes away.
Worrying about other people, family and loved ones, and if they will have enough now and in the future, can extend your levels of stress from personal to your social networks, creating a multiplier effect.
Being in debt, for many people a semi-permanent state, can be one of the most stressful aspects of modern life.
There are plenty of people, with plenty of money, who still have plenty of issues and anxieties surrounding their finances.
To put it simply, money worries can have a massive impact on mental health, no matter who you are, or what your actual financial situation is. Some (not remotely fun) facts about the United Kingdom for context:
39% of UK adults don't feel confident managing their money.
3
34% of UK adults reported feeling anxious about their financial situation in the past month and 10% feel hopeless about their financial situation.
4
46% of people in problem debt also have mental health problems.
5
So, the statistics on mental health problems and money are pretty stark. I can't imagine that this is much of a surprise to anyone reading this, but the magnitude of the problem is quite something isn't it? I'm not a betting person6 but if I was, I would gamble a few quid on pretty much any person, even those who wouldn't ever consider themselves having any mental health issues, having a low-level constant stream of anxiety relating to their money.7
What is it about money that seems to always bring with it big dollops of stress? I think I may finally know the answer to this question in so far as it relates to myself, and hopefully this book is here to try and see if these rules can help you.
I'm going to pause for a second and draw an analogy with physical health and fitness here.8 There are thousands of books on health, diet, fitness and how to live to 100.9 There are endless fads and experts, the next new thing in terms of working out or dieting and entire TV channels dedicated to selling you fancy new gadgets, but, when it all comes down to it, they can all be boiled down to about four principles which will get you 90% of the way there:
Eat decent food, and eat fewer calories than you burn.
Get some exercise – some walking, some stretching and some weights will do.
Get enough sleep and try not to be too stressed.
Don't do incredibly stupid things which will kill you, like smoking (at all) or drinking (way too much).
That's it. I've just saved you hundreds of hours of time and thousands of hours of worry. Just do the four things above and don't delay.10
On first blush, finance seems even more complex and overwhelming. Not only are there just as many crazy books, fads and people with advice, there are also big scary banks, lots of technical jargon combined with numbers and maths which can make the difficulty of getting to grips with money almost impossible.
Well, the good news is that it's not. Understanding how to get financially fit is even simpler than getting physically fit and really boils down to one single overarching principle:
Learn to spend well.
There is only so much you can do about, and think about, how much you earn. Get or change your job. Educate yourself over many years. Marry a footballer. Win the lottery. Find out that dear departed Uncle Bob was actually a millionaire and left you some money in his will. Don't get me wrong, finding ways to get money is really important, but there are only so many ways that you can actively change your income.
What you can do, every day, is spend what money you have better, or indeed don't spend it at all. Understanding what your financial resources are (for good or bad) but more importantly making sure you deploy them effectively and in equilibrium is the secret to reaching a state of financial zen. What you'll also learn is how much of a difference doing this well will make to your finances and your mental well-being.
So how do you learn to spend well? I've set out 10 rules for how do this across two sections: ‘What’ and ‘How’:
What
comprises five rules around what we need to be aware of. This is our foundation.
How
are five concrete rules to help us tackle the What.
11
To give you a sense of where we are going, I'm going to summarise the 10 rules here.
12
WHAT
Rule 1
– Focus on your daily spend. Ignore the noise.
When it comes down to it, it's actually very simple: focus on your spending. Everything you earn you are ultimately going to spend somewhere. If you read the financial pages or look at most stuff online there is a huge amount of stuff on savings and investments which is really complex, you can ignore almost all of this. Why don't people talk about spending well? Because no-one, apart from you, makes any money from it.13
Rule 2
– Understand yourself.
We are all different, and the reasons why we spend what we do are all different. Work out what kind of spender you are, try and change, or learn how to manage your particular challenges.
Rule 3
– Understand others.
Almost no-one wants you to spend well, everyone wants you to spend your money: your family, your friends and social circle, banks, lenders, shops, social media, the government. By understanding the ‘enemy’ you can learn how to come to terms with all of the forces which consciously or unconsciously conspire to make you spend poorly.
Rule 4
– Small things matter.
Even small amounts of good spending behaviour can add up to very big changes in financial outcomes. The most basic daily improvements in spending can change your life.
Rule 5
– Master debt. Don't let it master you.
There are different kinds of debt, both good and bad14 – work out which is which and do everything in your power to avoid or repay the bad kind.
HOW
Rule 6
– Audit your spending history.
Work out exactly what you spend, where and why. Work out what your stable equilibrium spending level is so you can stick to it in a way that is permanent, sustainable and eliminates mental clutter. This is the first and most important step. Even if you stop here good things will happen.
Rule 7
– Build healthy spending habits that work for you.
Given who you are, and what you spend, what are the habits that you can adopt which work for you?
Rule 8
– How to shop.
Spend less by finding deals. It's not as hard as you think, and it's fun.
Rule 9
– Make mastering money fun.
Being in control of your money isn't a chore, it's fun. Remember that, as well as the pleasure of being in control, everything you don't spend now can be spent on something else in the future.
Build a positive connection with money. This is less about how wealthy you are, and more about how aware you are and how good you feel about yourself on a daily basis. That's a function of small habits and self-awareness.
Rule 10
– Begin investing daily.
Investing isn't complex, it's easy. It's also easy to do it regularly (in small amounts if required). When you have sorted out your spending, try and put a little bit of money aside for the future. You will feel great about it.
Bonus Rule 11
– Help your children (or young people in your life) become money maestros.
For a lot of people, anxiety about money is not just personal, it's a family thing. Spend some time getting your children financially fit and healthy, and you will feel less stressed about it yourself.15
That's it. The book sets each of these rules out in their own lovely chapters.
This book won't reveal any secrets of the universe, but if you follow its advice, most of which will seem like common sense, I hope it can change your life for the better. I have tried to make the rules simple in order to encourage you to start attempting to spend life well as soon as possible. Why is this so important now?
It has never been easier to spend badly. The demise of cash and the digitisation of the economy, the power of social media and marketing, the ingenuity of debt providers16 are all factors which are making it harder for people to master their outgoings.
The world seems really stressful right now.17 Let's not add to it the cost-of-living crisis, worries about geopolitics, the climate, our place in the world by layering on financial worries – sorting out one of the major sources of stress you can actually do something about is a great thing to do today.
This is a good time to save. As interest rates rise, it causes problems but also lots of opportunities. Debt is more expensive and harder to come by. Conversely savings accounts yield much better interest rates. This is when a lot of people start to curb their borrowing and begin saving or thinking about paying off their mortgages.18 You should be part of this and get your share of assets and wealth if you can.
Finally, why not? The best part is, we can improve our spending habits dramatically without any major deterioration in our quality of life.19 Little things add up over time – if you remove a little thing each day you barely notice it.
Let's do it.
NOTES
1
For both you and for me. There simply isn't one. If there was, I would own an ice hockey franchise and a great deal more cars and motorbikes and probably wouldn't have got around to writing this book.
2
Even if the money is never needed. The quote ‘you can't take it with you’ may be true, but it can certainly encourage bad behaviour. Simply having a nice financial cushion for the future can make a big difference to your happiness now.
3
Source: Financial Conduct Authority (2023)
Financial Lives 2022 Survey
, July,
https://www.fca.org.uk/financial-lives/financial-lives-2022-survey
, no author.
4
Source: Fundraising Regulator (2024)
The Public's Experience and Expectations of Charitable Fundraising
, Opinium Research,
https://www.fundraisingregulator.org.uk/sites/default/files/2024-05/The%20public%27s%20experience%20and%20expectations%20of%20charitable%20fundraising%20%2029%20May%202024_.pdf
.
5
Source: H. James and A. Lymer (2023)
Money and Pension Service: Money and Mental Health Rapid Evidence Review
, March,
https://www.aston.ac.uk/sites/default/files/2024-08/final_maps_money_and_mental_health_rea_july.pdf
.
6
And neither should you be, it's one of the most surefire ways to fast-track yourself to financial stress, even if you can afford it. Stop it.
7
‘Mo Money Mo Problems’, song by The Notorious B.I.G., 1997.
8
I'm sorry, I can't help it, it won't be my last.
9
Yes, I've read a lot of them. Check out my six-pack.
10
Why are you still here? Why haven't you gone out for a walk to get a carrot smoothie?
11
There is a final optional bonus rule for those of us who have kids, grandkids or little people we care about.
12
But in return for me revealing the plot and the ending, I ask that you promise to read the entire book, to absorb each of the lessons and think how you could adapt your life to incorporate these rules into your life to become a financial zen master.
13
Well some people do talk about it to be fair. A shout out to Martin Lewis, the Money Savings Expert, and Chris and Jordan on the UK TV programme
Eat Well for Less
? For example.
14
Like cholesterol.
15
No, my parents' constant horror stories about debt and materialism didn't help me. They scared me, and probably impacted me negatively in my twenties since it put me off focusing on my finances.
16
Buy Now Pay Later anyone? Don't make me give you my stern look, and see the chapter on debt, because that is exactly what it is.
17
I highlight the word
seems
here – it isn't actually clear to me how bad it actually is compared to how it used to be, anyone remember the 1970s? But it certainly feels pretty awful sometimes.
18
If they are lucky enough to be a homeowner. Another important topic for later in the book.
19
I have learned in fact, in most cases not at all – in fact it makes everything better.
SECTION IWHAT
‘Do not save what is left after spending, but spend what is left after saving.’
—Warren Buffet – arguably the greatest investor in the world
‘With all due respect Warren, that’s rubbish.
Save what is left after spending wisely.’
—Mat Megens – first-time author
CHAPTER ONERULE 1: FOCUS ON YOUR DAILY SPENDING
Ignore the noise. Forget investing, forget your debts and mortgage for now. Let's start with mindful spending.
‘Annual income twenty pounds, annual expenditure nineteen, nineteen, and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.’
—Charles Dickens, David Copperfield
What I hate – Discussions on personal finance quickly divert into complicated theory and maths – it seems hugely complicated, so people ignore it or give up.
What I love – I love how being in control of your finances starts with one simple thing, mastering spending. You need to walk before you can run, and you don't ever need to run to get into good financial shape. Don't overcomplicate it. It's not about interest rates or stocks and bonds, it's about making the most of your income.
People who want to run a marathon, or become a bodybuilder or even an Olympic athlete, start with the basics.1 The beautiful thing about the basics of fitness is for 99% of people you can stop right there and get pretty much all you need for a healthy life. What are the basics? Drink water, eat well, get your sleep, and move every day. The beauty of these really simple principles is that not only are they straightforward to achieve, but they are very easy to measure.2 Just by measuring them regularly you will almost certainly naturally improve behaviours and feel better about yourself. You do those things, and you have the foundation for whatever excellence you want to achieve. It's simple and elegant. Money is remarkably similar.
The first rule is a change in mindset suitable for everyone. For the saver, the spender, those mired in debt, those without any debt, students, parents, retirees, working two jobs or on disability benefits. It doesn't matter who you are, this will help you. We're going to discuss a few key points.
Most of personal finance is noise which you can ignore, at least for now.
Be mindful of your spending because it's the most important thing you can do to improve your financial situation and happiness.
How much you spend is really easy to measure.
3
As the economy becomes more digital, it becomes increasingly harder to know how much you are spending.
We earn over £1 million on average over our lifetimes so small changes to our behaviour can make a huge difference both whilst earning but also in retirement.
Throughout the book we are going to dig deeper into what causes bad spending and what it takes to spend well.
WHY SPENDING IS MORE IMPORTANT THAN SAVINGS
Even away from all of the benefits of feeling in control, for most people spending well is a far more important factor in financial wellness than savings or investments. Ask yourself, at first glance does this statement seem correct?
Figure 1.1 shows how much lifetime spending compares to the average pension pot in the United Kingdom.
Unbelievable, isn't it? And remember, everything you save up, ultimately you expect that you (or your loved ones) will ultimately spend.
Why don't people talk more about it? If you look around at the world today, whether that is television, social media, even your friends or family, saving and investing is typically discussed far more often than spending habits. Certainly, on a commercial level, you'll see plenty of advertisements for savings products trying to tempt you into a new account or investments offering an attractive interest rate. I'm always astounded by the sheer amount of conversations there are about moving money into accounts with high interest rates.4Figure 1.2 illustrates how often you'll hear saving discussed versus mindful spending.5
Figure 1.1 Spending versus Savings
Compare Figure 1.2 to Figure 1.1. It seems backwards, doesn't it? But the reasons for it aren't hard to see.
No one really makes any money from people spending well. Banks (and others) like to lend you money. Shops like you to buy things. Advertisers and social media companies want to convince shops that they can make you buy stuff. Investment managers and financial advisors want you to invest in ISAs. Utilities and subscription services are delighted if you never bother to renegotiate or shop around. Even the government likes you to spend – it pushes up VAT receipts and allows them to make statements about growth.6 Not only does no-one (apart from you) benefit from you cutting down on your posh coffee habit by one cup a day, getting rid of one of your movie subscriptions, and buying one less designer handbag a year using Buy Now Pay Later (BNPL), they actively don't want you to change your habits since it hits their financial bottom line. If you spend well, the banks will lend less, and shops will sell less. This is pervasive, the entire economy is geared around making and taking money from you, either directly, or indirectly by advising you about savings, getting your savings, getting you to leave too much money in your current account earning next to nothing, getting you to borrow or use BNPL, and getting you to buy and transact as much as possible. Spending less is not something shops or banks really want to encourage. Because of this, you've been on your own.7
Figure 1.2 How Much We Talk about Spending and Saving
For example: I find it completely bizarre how much media and personal bandwidth is spent discussing high-interest bank accounts. Of course you should put your money in one, and I'm going to encourage you to do so, but the average UK consumer has about £1,000 in their current account – 3% on this is £30 per year or to put it another way, you will make more money by cutting out one posh latte a month.8 That's it.
Figure 1.3 shows what the balance of the discussion really should be.
Figure 1.3 What We Should Be Talking About
As we will see later on in Rule 10, savings and investments are really straightforward to get right, and you only have to think about it very occasionally.
It may seem odd to describe spending as complicated, at the end of the day you are just tapping your card, but the pressures surrounding doing this simple thing well are extensive. It's an odd paradox but once you understand it, and its implications, it can be truly life changing.
WHY IS SPENDING WELL EVEN HARDER NOW?
The first point to understand is that these days opportunities to spend exist everywhere. Before the internet became ubiquitous, you had to hop in your car and go into the shop. Perhaps you had to avoid the salesman coming to your door. When I was a kid, this was mostly people selling sets of encyclopedias or aerial photographs of the farm.9 Now, every time you pick up your mobile phone, you will be presented with temptations to spend. Even though you're aware of this, I doubt everyone comprehends how invasive and pervasive this spending pressure is.
In any given day, you will come across hundreds of opportunities to buy something. You are being tempted whether you realise it or not. This constant programming becomes subconscious. And today, the friction required to spend is almost non-existent with the emergence of contactless payments. In fact, it just keeps getting easier and easier to physically spend your money. Compare the old days of getting cash out from the bank that has evolved to using an ATM; to a credit card you had to sign; to debit cards with chip and pin; to contactless and Apple/Android Pay.
Physical cash has given way to digital currency. I'm not talking about bitcoin or crypto, I'm simply referring to using credit and debit cards to transact on everyday purchases. This trend has been growing strongly and there are no signs of it slowing down. It is simply more convenient than physical cash for most consumers and handling physical cash by shops is a gigantic pain and has many risks (including being robbed or losing notes when depositing the cash).
What has the shift to digital meant for shoppers? Everything is harder and harder.
Marketing has got better and better at making you spend because they have way more data to figure you out. It is also much easier to give you tempting rewards and cashback.10
Lenders and banks have got better and better at making you borrow because they have more data to figure you out. They can also embed attractive lending products like BNPL directly into your digital spending journeys.
Many people now have multiple cards and multiple accounts – it's harder and harder to see how much you actually have.
Physical cash has almost disappeared so it's harder and harder to work out how much you actually have (or have not) got, exactly how much you are spending when you tap your card, or put brakes on spending because most people are only dimly aware of their balance.
Imagine you had a £50 note11
