The following is an extract from Truly Independent CEO, Andrew Goodwin’s “Work to Wealth”

With some research on the internet it doesn’t take long to discover there is a savings crisis in the UK. In 2014 HSBC reported that 44% of the population had less than £2,000 in savings. By 2016 The Money Advice Service said this had dropped to £100. The same searches today find similar results. Nearly half of the population has ‘at best’ no more than a single month’s income in savings. This is all down to the way we live and treat work. Changing this outcome is less of a challenge than you might first think.

If an individual has little or no savings, then what should they do to improve their situation?

First, they need a reason to change followed by an achievable target and the commitment to achieving that target. If you want to make a difference to your life and achieve your dreams, then there has to be a shift in how you think about work and income.

The dreams I hear people talk about are primarily modest and therefore reasonably achievable. They include:

• To own your home outright without a mortgage
• To drive a luxury car
• To run your own business
• To work in a job you love
• To travel the world
• To simply do nothing at all

There are plenty of similar examples and thoughts from the population dreaming of a better way to live. These people are frustrated with the daily churn and feel trapped in their work, a way of life not of their choosing. The answer is actually in work but let us start by looking at mindsets to avoid.

Sheer hope

Truthfully, almost everyone who struggles dreams of being financially free to choose an alternative lifestyle. It is the reason why the UK National Lottery does so well. Lottoland.co.uk report on their website that ‘a staggering 70% of the UK’s over-18s take part in the national lottery on a regular basis, which is close to 45 million people’. It states that at least 50% of the population play the lottery once a month, on average buying a minimum of three tickets each week.

Considering the facts, it could be argued that the 44% of the population who have less than £2,000 are among the same 50% who buy three lottery tickets each week. Although the lottery is just a bit of fun for some, for many a lottery win is their hoped-for saviour. They feel the potential million-pound win is worth the small sacrifice of their time and money, despite the chances of winning being a staggering 14 million to 1. It’s not much different in America either, with 57%, nearly 181 million people, buying at least one lottery ticket each year. Their hope of achieving their dreams through the lottery is nothing short of delusional and a terrible plan. What is impressive is their diligence in making regular time to buy that lottery ticket, addictively if you like; as if the week they do not buy one will be the week they would have won. Having started, they cannot now stop. Stopping would be sacrilege. If only they could redirect that same lottery time and diligence towards a more likely return on their time and outlay: something that provides a much better payoff, something more dependable than sheer hope.

Scratch-cards are equally overbought. Around 25% of Brits buy a scratch-card every month. What is astonishing is that 55–65-year-olds are more likely to buy a scratch-card than any other age group. Is it because they have more money to spend on a bit of fun or because they feel it’s their last hope at that age? I will let you ponder that conundrum; however, if you are over 65 and retired, you are the least likely to buy a lottery ticket!

The problem develops further in the children. The allure of things is strong, so they spend money rather than saving it. This issue is not helped by the fact that there is less and less ‘cash’ in the system, and seemingly no desire for it. Fewer people carry cash than ever before but they have a seemingly endless supply with a touch of plastic. Bleep! Bleep! And the item is bought.

How can we teach our children the actual value of money once it is all virtual? The answer is to teach children about future value and self-responsibility. Every adult knows they need money of some kind to live, and that this is primarily earned through work. The knowledge behind this thinking is limited. Why not avoid sheer hope and use your working time to your advantage, building a life you really want and desire rather than trying to win it?

The minimum age to buy a lottery ticket in the UK has risen from 16 to 18 years old. The authorities finally realise how early indulgence in chance sends a damaging message to our youth. We should be more positive about the wonderful experiences and benefits and certainties of a working life, rather than the lottery life of sheer hope.

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If you want to have more money, more choice and more freedom in your life, now and in the future, you need to rethink why you work, and how to make the most of it

This book will change the way you think about work, lifestyle and money. Work to Wealth provides practical guidance on how to evaluate your work situation, avoid the ‘working trap’ and invest your income to generate wealth.

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