There has been a strong trend developing over the last 70 years which is now rapidly accelerating. This trend is the ‘squeezing’ of a family’s wealth. This diminished purchasing power is very hard to spot and has happened to millions of families over this time with a very small percentage of the population noticing it. So here’s a true story to illustrate this:

The Kidd family is a long lineage of lower-middle class. In the 1920s-1950s, the Kidd family could survive on the income of the man of the house, my granddad, Albert ‘Ginge’ Kidd, an RAF Pilot and Test Pilot/Engineer. Despite the fancy job, he wasn’t actually paid that much, but at least the family was able to survive on his income. Then from the 1950s-1980s, Ginge and Kit (my grandma) were unable to survive comfortably on the main income stream, so Kit began to get part time job which eventually led to a full time job in order to maintain the same standard of living. Now the next generation family, my ‘Mum n Dad’, from the 1980s-late 1990s, despite 2 full time income streams, they also had to rely on debt in the form of loans and credit cards. So not only were 2 full time income streams enough, they had to resort to ‘borrowed credit’ in order maintain the family lifestyle (and I was an only child).

Now you’re probably thinking, ‘so what’s your point Siam?’ Well my point is that this sequence of situations was not just limited to my family. This has happened throughout the UK to millions of other families. Between the 1920s-1950s, whether the husband was a miner, a cleaner or a solicitor, the profession was irrelevant, the family could survive on just 1 income stream. The trend of families living from 1 income stream to 2 incomes and then to 2 incomes stream with credit cards & loans has accelerated remarkably over the last 20 years. Now in the ‘20teens’ families are having to resort to ‘payday loan’ sharks companies which charge extortionate APRs like 4000%. Evidently, peoples’ spending habits are worse than others, but the trend is hopefully now glaringly obvious to you. Families are having to resort to extra income streams to maintain the same desired standard of living.

So what next? What does a family do if they can’t survive on 2 income streams and credit card/loan debt? The answer is extra part time jobs/home businesses. We are quickly being forced to become more entrepreneurial, which in my eternally optimistic view point, could be a good thing! But for now, it’s a real struggle for people to balance the family with a part time job/business. Fortunately for you, now is the easiest time ever to set up a part time business or learn how to establish a new income producing skill for life like trading. This leads us nicely onto the next point…

WHY ‘Savers’ are being systematically wiped out…

The reasons why families are being squeezed and why ‘Savers’ are being destroyed are simply due to the value of the Pound falling over 90% in the last 90 years (2/3rd of that within the last 40 years). So in a nutshell, the £s in your pocket won’t buy you as much as it did 10 years ago, or even 1 year ago. Your purchasing power is diminishing at a rapid rate and it’s very hard to understand/notice unless you’re informed of money/finances/investing. So this is where I really can help you. You see, the reason the £s in your pocket/bank/savings are losing value is because the Bank of England has been ‘printing’ ‘money’ for a while now. And the moment a single £ is printed and released into the economy, it instantly devalues every other £ in existence. Therefore, anyone who has been diligently saving money in a savings account is instantly hurt as their savings now have less purchasing power than it used to. Since 2009, the Bank of England has ‘printed’ an extra £375 Billion! These days most of the currency isn’t even printed. It’s just 1s and 0s typed into a computer and it literally springs into existence from nothing. POOF! This is the No.1 way Governments secretly extract wealth away from the public and the quote from the famous economist John Maynard Keynes has never been truer:

“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

The menacing thing that ‘money printing’ creates is price inflation. When the currency supply increases, this extra ‘funny money’ has to go somewhere. So it ends up going into ‘stuff’ like the Stock Market, commodities, property etc. But more importantly, everyday items that we all use and consume like food, clothes and doodads etc. So guess what…the prices for everything go up. This is price inflation and I don’t have the time to explore this properly here, but real inflation (everyday living costs) are far higher than the Government announces and lets on. Just a cursory looks at chocolate bars will show you that in the last ten years, the price has increased at least 100% and they are also now 7.2% smaller. In fact, other than electronics, can you name just 1 thing cheaper now than it was in 1980?

So the point to remember here is that if you’re a saver, you are 100% losing wealth and purchasing power every single day…and you’re single handedly ruining your family’s chances of ever becoming wealthy. That may seem quite controversial, but it’s true.

If you are a saver and start with £10000 in a typical savings account and added £250 per month to it, you’d end up with £100k after 30 years. You may think that’s quite a lot, but don’t forget that inflation would have eroded the purchasing power of that away over this time. Also, assume that you would then have to live off that £100k for another 20 years…your DIY nest-egg would only provide you £416.66 per month! You can barely live off £416.66 per month in this day and age, let alone in the far future.

But if you just took the time now to develop a life skill which would allow you to grow your money by trading/investing, you’ll be able to set yourself up properly. For instance, let’s just say that you were extremely average with your investing and managed to make 10% per year. You’d end up with around £761000 in 30 years. That would equate to £3170.83 per month if you had to live off that for another 20 years. That’s a HUGE (family saving) difference all from just a little bit of time invested in yourself now. Trust me, you can achieve these results in less than 5 minutes per day or even 5 minutes per month if you wanted to take a more laid back approach.