This page is the framework for everything

Before you start

The government supports a financial advice website - Money Advice Service, shortly (2020) to be absorbed into the Money and Pensions Service.  It is good, though it is careful not to offend any of the army of  industry participants aiming to sell you a service and pay their taxes on the profits they make.

But what it does is answer your questions. What it doesn't do is give you - an intelligent person too busy or uninterested to learn how to manage your money - a pathway to lifetime personal money management. If you like, it doesn't tell you what questions to ask. That's what we do.

We assume you are intelligent but financially ignorant. Please don't be offended.

Here's a plan

Do these five things and you are 95% of the way there. Most people don't get that far. We call this the 5/95 plan.

1) Protect yourself and your family from catastrophic loss
This means: insure against those events that you just cannot cope with. 

2) Repay high-cost debt
This certainly means all credit card debt, and almost certainly means all debt except your mortgage. 

3) Build a cash cushion
You need some cash for emergencies. Or access to cash, which is just as good. 

4) Secure your own home
Rent or buy? Buy now or later? These are big decisions you can't avoid.

5) Repay your mortgage
This is likely to be as good an option as any investment you might make. Unless you're a professional. 

If you do these five things, and in that order, you'll be doing better than 95% of the population. The links at the ends of each page will take you through the five steps of  Protection, Handling Debts, Cash Cushion, Securing your homeRepaying your Mortgage

And you must do these things before you get to the tricky bit.


What's the tricky bit?

That's the last 5%:

  • You have to prepare for the future, and that includes when you no longer have earning power - sometimes called 'old age'.
  • You have to invest your savings, if you are lucky enough to have any.

You do both these things by learning the three features of financial life for the financially successful: saving, investing and planning.

'Saving' is.....
....what happens when you spend less than you earn.

'Investing' is......
......what you do with your savings.

'Planning' is.....
A process of balancing your lifestyle and your work habits and expectations against your financial needs for the rest of your life to come to the best compromise for you.

What next

Follow the eight steps of the Foundation. The first five steps will deliver the 5/95 plan. After that, even if you are not yet a saver look at the three steps of Saving, Investing and Planning. At your own pace, over the next year or two, follow those steps and use the advice to reach your own conclusions about how you want to influence your financial future.


Move to the first Foundation step:  
Go to: