Oh Lordy, my path is now down the yellow brick road.

Hi all,

I made a decision at the end of the summer, to discontinue with my website for a while.  I have building work to manage, my Naturopathy course to complete and my youngest is entering that final year before she starts school.  It would be so easy to be swallowed up by my commitments and miss out on our final year of being together full time.

So I ended my year deciding not to continue doing much more than I have in the last year.

All that changed when I started to delve a little deeper into our financial situation, both personally and looking at the world stage.

I read a few books and one in particular:

Smart Women Finish Rich by David Bach

has been instrumental in motivating me to do something about those niggling doubts that I have about our financial security.

One of the things that David Bach suggests in his book is getting up earlier to work.  To create those extra hours in the day to get more done.  This is not about nose to the grindstone, this is about jumping out of bed to make your dreams happen.  So I have been diligently setting my alarm clock half an hour earlier each morning and getting to bed earlier and earlier to bring about this change.

Anyway the upshot of all my nosing around in things financial, is to work on my Wealth section for a while.  The Wealth pages to date, have had the attention that my finances get in real life right now.  It is time to dust them down and I have decided that all this apathy and head in the sand is about to change.

I am about to become an investor.  For many reasons, mainly an on-line presentation that I watched by Mike Dillard who has formed The Elevation Group, I have decided to invest in gold.  For my own ethical reasons, namely that mining brings about connotations of slave labour and poisonous extraction chemicals, I have decided to buy only gold sovereigns.  I see soveriegns as antiques and collectables, if I buy only the old ones I can kind of tell myself that I am creating no further demand.  Shady, yes but for now this is what I have settled on.

In the short time that I have been considering making a purchase, I have contacted a local coin dealership that has been around for a while and got an idea of prices.  I have also been given the name of someone in the school playground who has been home investing for a while. He has been really helpful and has suggested a further meeting with someone else who he says has also the thoughts that I have on the world economy and who has taken the step of investing in gold sovereigns.  So now it seems I may have a mentor…how did that happen?  I say thank you universe!

Now with extension work happening, swallowing up the cash now would seem like a really stupid time to be buying gold.  Having read a few chapters by Bach however, I am convinced that I must start now.  He uses an example of a 14 year old girl who invests 2,000 every year for 5 years.  She places her investment in a 10% interest account and does no more saving after this but leaves it in this high interest account until she retires at 65.  At which point this initial 10,000 investment is worth over 1 million.

There are of course a few flaws in this plan.  My first question is how on earth can you guarantee 10% any where?  The answer is of course that you can’t.  But hey it might be worth trying.  Google this question and there are many ideas out there, none guaranteed of course, but the lesson that I am starting to realise is nothing ventured and all that.

My other problem with this kind of investment is that she started at 14…I wish!  But this is the point that Bach makes later: it is the cumulative effect that is so important.  He also shows how much we should be saving and at what age to achieve the same figure (although still with that almighty 10% interest rate).

I guess that what has been triggered in me is action.  If we sit still and do nothing then we can sit back and watch inflation take us down.

Another way to look at it is that my first move into investment will be to start aking savings.  All the money that I invest is going to be found from current income.  So to start this I am going to look at The Budget Planner on MoneySavingExpert.com.

If you wish to follow my path then keep watching my Money pages as I explore all of my ideas and put them into action in the coming months.

Of course it is especially timely when looking to money matters that we remember to be grateful for what we have, every day.

Wishing you all an abundant 2013

Gemma x

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