From £1 per day to £20,000 in Liquid - Part 1 of 8
By Stephen Sutherland, author of Liquid Millionaire.Posted in the Category of ISAS, Investing, Stock Market, Investment Fund, Wealth Building on 23rd December, 2009.
Tags: investing service, isa, isa investing, isaco, liquid millionaire.
How Saving £1 per Day Can Help You Accumulate £20,000 in Liquid Capital
Can you afford to save £1 per day? If you answered yes, I have just the way for you to quickly accumulate your first £20,000 in liquid.
Some people who read my book Liquid Millionaire really loved it – but at the same time they came to the end of the book and were frustrated.
Here’s a couple examples of readers’ comments posted as reviews on Amazon:
“People like me with less than £10,000 will not be able to afford the £6,000 to gain access to the information which could make you richer.”
And…
“…I must say that the service offered looks interesting. I don’t know if I can afford it, not living in the UK.”
I think I know why people like this are frustrated. It’s probably because in my book, I share with you how ISACO (the company my brother and I founded back in 2001) offers a time friendly ISA investing solution – but with our three minutes per day solution comes a premium charge.
Because the book is aimed at people who have at least £20,000 in liquid, people who are frustrated probably don’t have the cash to pay for the investing service we offer. In other words, I think they wish they’d got the cash – to then give them the option of possibly becoming one of my premium clients.
And so with that in mind, today I am going to begin to share with you how, by saving just £1 per day you could be able to save up to £20,000 in liquid capital so that you too could have the option of becoming a premium client and aiming to make annual returns of 15-20% per year –or even more.
Don’t ‘Bet the Ranch’
When people have a minimum of £20,000, it means that they could probably afford the service we offer – and have money spare to invest. This means that a person with at least £20,000 in liquid would not be stretched financially should they decide to team up with us.
The last thing we need is to take on a person who has “bet the ranch” with us. For example, if a person suggested that they wanted to pay for our premium service with his or her life savings, and they had very little to invest, we’d have to turn them down.
You see, the numbers for that person just wouldn’t stack up. To get their money back, they’d have to make an astronomical return and they’d want that return in year one –which unfortunately is not how the stock market works.
And so because of this frustration, I decided to use this blog to help people in this situation to get quickly started.
Create New Habits of Thoughts and Behaviours
If you are going to make this happen, you are going to have to make some changes. And you are also going to have to create some new habits of thoughts and behaviours.
But I can assure you that the hardest day is the first. After the first day, it will start to get easier. And as you move through time, you’ll slowly start to get to like what you are doing. The next stage will be really enjoying the process and after that, you’ll get a genuine love of saving and growing your wealth. Eventually, you may even become addicted. But hey, I’m getting ahead of myself.
Let’s begin with the simple 10 step strategy you would need to follow.
Step 1 – Make a firm decision and commitment to accumulating £20,000.
Step 2 – Focus on cutting expenses, increasing income and saving.
Step 3 – There is no need to invest your money at this stage.
Step 4 – Start today to save £1 per day.
Step 5 – Save at least 3% of your net income.
Step 6 – Save 10% of your net income.
Step 7 – Hit £2000 and when the S&P 500 is 20% off its high, start investing in a Stocks and Shares ISA using a tracker fund.
Step 8 – Each year aim to invest as close to the £10,200 limit as possible.
Step 9 – Invest £20,400 per year into ISAs – for you and your partner.
Step 10 – Start parallel investing. Invest into a SIPP (Self invested personal pension).
Now let’s go into each step in more detail.
Step 1 – Make a firm decision and commitment to accumulating £20,000.
Think about a time when you made a firm decision in your life. Think about when you committed to something. Did it get done? –Yes, it did and that’s because decisions and commitments are powerful.
Wishing and hoping that you’ll get to your £20,000 goal is unfortunately not going to help you get there. You have to get serious about your financial future. Think about what motivates you. Is it pleasure? Or is it pain? Or is it a combination of both?
If you get turned on by what money can do for you, then start to think about those images as often as possible. On the other hand, if the thought of being broke, downgrading, embarrassment, and being reliant on the Government really scares you, then use this as your chief motivator.
Another good motivator that I’ve used in the past is when other people tell you that “you can’t do it” or “you haven’t got what it takes.” Boy that really does light the touch fire for me.
And so the first step to your first £20,000 starts with a decision – a firm decision that you are going to do whatever it takes to make and save your first £20,000. Commit yourself to making that goal a reality. Resolve to make it happen.
Feel free to set a deadline for when you want to have the £20,000 in your possession – but make sure your deadline is not so difficult that it becomes a de-motivator. I suggest you set a realistic deadline that helps you to really believe that you can achieve it in the time frame you set.
In Friday’s blog I am going to talk in more detail about Step 2 – Focus on cutting expenses, increasing income and saving. In the mean time if you would like to find out more about the benefits of becoming a premium client please click here for a FREE sneak preview of my book, Liquid Millionaire.
Happy reading!
Your friend,
Stephen Sutherland
The UK’s Leading Authority in ISA Trend Investing and Author of Liquid Millionaire
Please Note: As always, let me remind you that I am not a financial adviser and therefore not authorised to give advice on what investments to buy or sell.
We endeavour to deliver quality information, ideas and personal opinions on stocks, funds and the general market. However, the information, ideas and personal opinions provided are intended to be a general guide to financial management only. Our products are intended to be a general guide to financial management. ISACO Limited and its employees are not agents, brokers, stockbrokers, broker dealers or registered financial advisors. ISACO Limited do not accept any responsibility for loss occasioned to any person acting or refraining from acting as a result of material contained in its products. ISACO Limited does not recommend particular stocks or investment funds or any other security or any other investment of any kind. If particular stocks or investment funds are mentioned, they are mentioned only for illustrative and educational purposes. Whilst ISACO Limited comments on the services and advice offered by other companies and individuals, none of the companies or individuals have authorised, sponsored, endorsed or approved this publication. ISACO Limited has not received any remuneration in return for including any company or product featured in our products. You should seek advice from a registered financial professional prior to implementing any investment program or financial plan. ISACO Limited, their agents and employees, do not guarantee any results or investment returns based on the information in this program. Past performance is no indication or guarantee of future results and the value of any investment you make can go down as well as up. The products present information and opinions believed to be reliable, but the accuracy cannot be guaranteed and ISACO Limited is not responsible for any errors or omissions. ISACO Limited accept no liability for such inaccurate or incomplete information.
