I’m not going to soft soap this week’s message, which is that:
Getting your financial shit together is an emergency.
Generally, I don’t like the alarmism of the news media who grab our attention by revelling in reporting the latest miseries from all around the world…most of which we don’t need to know.
The Escape Artist generally likes his blogposts calm, with no SHOUTING. He likes chilling with some tropical house in the background…as zen as fuck. But today is an exception…because this personal finance stuff is an EMERGENCY…not for the earthquake victims of some far away country but FOR YOU. RIGHT HERE, RIGHT NOW.
The Escape Artist has come to realise that, when it comes to money, most people out there are doing it all wrong. I thought that after I’d single-handedly solved the Pensions Crisis shared the story of Kate, everyone would get that this stuff is time critical. I imagined a world where everyone had their pension sorted, no one left angry comments on the internet and we could all go to the pub.
After all, the maths are compelling. You save £15,000 by the age of 25 which, with a Vanguard tracker fund and a bit of luck, could turn into over £1,000,000 by the time you’re 65. That’s right: you get to be a millionaire without saving another penny after the age of 25.
True, inflation means that £1,000,000 won’t buy as much then but still…not too shabby. Pensions crisis? What pensions crisis?
But what happens if at the age of 18 you are too…errr…busy being young and you delay 5 years…only getting started at age 23? Well now you no longer have £1,000,000 at 65….you will only have £644,050. Better than nothing…but quite a difference.
Now what happens