This is not advice. This is information only.

One of my goals for 2022 is to start a YouTube channel. So, at the beginning of Feb, Personal Finances and Investing with duffmoney will start on YouTube. This channel will help absolute beginners with their personal finances and then with their investing.

The first 20 odd videos will be loosely based on my 1st book all about my colourful relationship with money and how I’ve managed to turn things around. This will be split into 4 sections and there will be 5 videos in each section. The third section is all about financial literacy – in my case it was much needed financial literacy in early 2019. See below for a little summary of the financial literacy videos:

Financial literacy

  • Learn about budgeting and personal finance fundamentals … spend less than you earn and invest the rest
  • Learn about the history of money … Barter then silver and gold then paper and maybe in the future digital (very likely)
  • Learn about inflation and how education is your hedge against the nasty effects of inflation
  • Stocks and shares – investing fundamentals
  • Learn about the future of money

Today’s post is a brief summary of these next 5 videos….

Video 12 – Budgeting and personal finance

This video is all about budgeting and we will also touch on personal finance fundamentals…

Before you nod off – I just want to highlight the importance of being on top of your budget and personal finance basics… this is essential if you want to attract money and keep hold of that hard earned money.

Don’t be like I was between 2008 and 2018 …. I was that tit who was always complaining about how he didn’t know where his money went.

I was fortunate enough to earn good money in this period … especially between 2012 and 2016 – but I was also good at spending… I was in the spend more than you earn and worry about it later camp …

My main issue was that I didn’t check my bank statements. I just increased my spending as my wages went up. If that happens now, I increase my investments … that is what I will be encouraging anyone watching my channel. I will be encouraging you towards investing and business.

Anyway… I didn’t check my statements, I had no idea on tax, no idea about interest rates but I did like a good whinge… I whinged about not knowing where my money went and this went on up until mid 2018. Since then I have been all over financial literacy like a rash.

But one of the hardest things to do has been to go through my bank statements. This is mainly because I was that poor with money for that long, my personal finances were a joke. But I went through my bank statements regularly at the back end of 2018 and started to get a clear picture of where my money had been going.

I had well and truly fell into the consumer trap. But I made the necessary cut backs and added a little budgeting folder to my desktop on my laptop. I added financial spreadsheets in there and have been checking this folder weekly ever since… it took time to set up .. but now its set up it literally takes 5 mins a week to check and this means I am on top of my personal finances.

Fortunately I am now in the spend less than you earn and invest the difference camp….

I’ll give you a little example of poor personal finance… in my little purple patch work wise between 2012 and 2016 I managed to save quite a bit of money … and being the wise investor stuck it into premium bonds with a less than 1% interest rate.

As I’ve said I was also clueless with tax and never put my tax money away … little tip – if you ever get paid as a contractor into limited company put x amount away each month for tax – speak to an accountant. Get your head round tax and put your tax money away – I never did and I was always stressed looking for tax money at the end of the Tax year.

Anyway, I didn’t want to touch my little premium bonds stash so to pay my tax bill. In 2015 I got a loan to my tax bill instead of using my premium bonds … so I’m making 0.5% interest from premium bonds and paying about 7% in interest on the loan … what makes it worse is that I done this wise little move 2 years in a row.

I’ve done loads of schoolboy mistakes when it comes to money mainly between 2008 and 2018 and this led to my 1st book on personal finance and investing … for more details on my 1st book you can find the link in the show notes.

The video goes on … this is just to highlight the importance of budgeting and personal finance.

Video 13 – The history of money

 This video is a very brief overview of the history of money. If you look into the history of money, it is my opinion that it will improve your understanding of money…

Anyway, lets look at a duffmoney version of the history of money..

1000s of years ago it was all about the barter. Then it was about exchanging coins in silver or gold. The first recorded paper currency dates back to about 770 B.C. in China. The bank of England jumped onto paper money at around 1694. Fast forward to 2021 and we still have paper money. But we also have digital currency and in my humble opinion, that is the future of money.

There are many examples of money and how people used to exchange value … Like seashells for example. This is just a brief overview if ya like …

The video covers the bartering from 100s of years ago… it covers how silver and gold coins have been used as money for 100s of years… then it is about paper money or fiat currency should I say – fiat currency is basically paper money that is backed by the government… and finally we move onto digital currencies.

 Video 14 – The nasty effects of inflation

 Over the last 6 months I’ve really started to understand the nasty effects of inflation and worse still hyper inflation. What I’m going to do in this video is try and encourage anyone watching to go and do their own research. If you are into your reading, you can read some books like THE BITCOIN STANDARD or THE PRICE OF TOMORROW. You can also watch more YouTube videos or listen to podcasts depending on what you’re into.

My financial literacy has improved over the last 3 years. Part of learning about money, was to learn about inflation.

I was aware of it.

I factored it in when I started investing in index funds. Like if I managed to earn 7% interest in a given year, my thinking was that I was really making 5% due to a 2% inflation rate.

I was aware of inflation, but I didn’t really understand inflation.

There are two types of inflation.

  1. Price inflation – when the price of goods and services goes up – like a loaf of bread or a pint of lager …. By the way a pint of Peroni in my local pub is now at about £5 a pint – absolute joke!!!!
  2. Monetary inflation – is QE or Quantitative Easing – basically governments like the UK printing lots of money and devaluing their currency… devaluing your hard-earned pounds

Most people I know are aware of inflation and know what it means. But do they know how bad it is in this country and especially the United States … I’m not so sure.

Now I want to encourage you to look up hyperinflation … look into countries like Venezuela or Argentina and the effects of hyperinflation … there are many people who literally can’t afford to buy their weekly shopping because hyperinflation has devalued their currency so much … it really is heart breaking and I really hope it doesn’t happen to the UK.

That covers the main points of video 14.

 Video 15 – Single shares

 This is more of a WARNING than anything else. Basically, I’ve been burned by single shares due to a lack of understanding and a complete lack of research.

Many more have went down the same path and have taken advice from colleagues at work or their friends down the local boozer. Not the way to go and I’m going to try and help you avoid this method of investing.

This is the opposite of investing with skill!!!

Don’t get me wrong, I do invest in the stock market, and I do this via index investing. This enables you to track the full market so you can still make some decent returns but are at less risk than investing in single shares.

Don’t worry if you don’t know what index investing is. We will be covering that in more detail when we start to invest with skill in a few videos time. Investing with skill will complete this little mini-series of personal finance and investing and this will be 5 videos to help you with your investing.

Anyway, back to single shares…

Back in 2010, I had just started offshore, and all the lads were talking about single shares and it got me excited. My inner gambler was all over it and I started to invest in oil and gas companies.

This was without any research whatsoever. Not only that but I was checking on my single shares every 5 minutes which is another schoolboy error!!!

Im not going to go too much into it … all I’ll say is that I ended up losing £8000 of my hard earned money without doing any research. With any investments, please do your own research. Even if you are getting advised from Warren Buffet or Ray Dalio, you have to go and do your own research.

This £8000 was my full life savings at the time so it didn’t go down well with the future Mrs Duffy.

Video 16 – The future of money

 I’ve been writing about crypto for the last few years as I am learning about this exciting new technology. My hope is that my friends and family become interested in Crypto. Even if you haven’t got much spare money to invest, it is my opinion that by getting in early will help you going forward. In the digital age we are currently living in things are moving fast – very fast. It is a good idea to move with the times and start to learn about and understand what many believe is the future of money.

 Here is a little overview of what I’ve learned over the last few years of investing in crypto:

  • Only invest with money you are willing to lose
  • Do your own research …. Avoid the hype if possible
  • If you like the sound of a coin – read the white paper
  • If you like the sound of a coin – who is the CEO?
  • If you like the sound of a coin – is there much money behind the project?
  • Who are the developers (software developers and the geeks writing the code etc) behind the project?
  • How many coins are in circulation e.g. Bitcoin has max supply of 21million so it is very scarce in crypto terms – that and the fact it is completely de-centralised is the reason why it has so much market share and the price is so high …. On the other hand coins can have too much supply like safemoon v1 having total supply of 585 trillion … this is supply and demand
  • Watch YouTube vids on Michael Sayler, Raoul Pal and Siam Kidd … these have legit crypto knowledge and know what they are talking about
  • Listen to the crypto standard podcast – helps you to understand crypto and whats going on big picture in terms of the US dollar, QE, inflation, hyperinflation in countries like Venezuela etc …. There are loads of crypto podcasts out there but this one is perfect for beginners as they a very good at explaining crypto in plain English
  • When dealing with cryptocurrency, a user is usually given a public address and a private key to send and receive coins or tokens. The public address is where the funds are deposited and received. But even though a user has tokens deposited into their address, they won’t be able to withdraw them without the unique private key. With your private key, you can take your tokens offline
  • All I would say initially is to invest a small amount … again an amount you are happy to lose… learn to buy crypto, store it on an exchange or in a wallet and transfer it from one place to another … this might sound like a foreign language if you are an absolute beginner, but you will get your head round it once you get in and have a play
  • In terms of storing it you can store crypto on an exchange or a wallet… and there are two types of wallets a hot wallet and a cold wallet … very simply a hot wallet is online and the least secure of the two types of wallet .. and the cold wallet is offline and is the most secure of the two types of wallets

Have a little look into crypto as in my opinion, it has a big part to play in the future of money.

And if you are a beginner, have a listen to the crypto standard podcast. My favourite crypto podcast and will help you to understand it. As the hosts say, they take the cryptic out of crypto.

YouTube channel

This is a post to go over the 5 videos that will cover financial literacy on my new YouTube channel. This type of post is just until the YouTube channel starts in the next few weeks. If you like the sound of my new YouTube channel, look out for it in early February.

By the way, if you want some more info on personal finance and investing, you can always read my 1st book. Or if you are on a limited budget, I have no issues sending you a FREE COPY.

 

 

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