Key Themes:
Finance, Investing, Financial Literacy, Pensions, Savings
Summary:
How to Own the World by Andrew Craig is proof (if needed) that growing your money isn’t complicated. His crash course on financial literacy, gives you the power to transform your finances and your prospects. This book gives you the knowledge and tools to make the most of your money and grow it through compounding for a healthy financial future.
Content Overview:
Experienced City professional Craig’s goes against the advice of many financial advisers in suggesting you take personal control of your investments, as opposed to leave them to an ‘expert’. He outlines how to do this and recommends building a diverse portfolio based around a number of asset classes, including stocks, bonds, commodities and gold.
Craig’s book is divided into three sections. The first section outlines his core beliefs including that most professionals know surprisingly little about the market. He states that global competition for resources will drive up prices across the board. He argues that this is already taking place, pointing out the various ways in which official inflation and unemployment rates have been deliberately rounded down over the years.
He devotes a whole section on the need to save at least 10% of your income annually, before the final section takes us through the appropriate steps we can take. Craig has strong opinions. He has clear views on the property sector, believing that UK prices (specifically London) are artificially inflated, with low rental yields. If capital values fall, or even stagnate, investors will end up getting very little reward for the stress and hard work that accompany being a landlord (in relation to other asset classes).
Craig outlines the impact of an ageing population on governments that already have high levels of debt and the increased burden on state pension systems. He outlines how this will lead to governments cutting back on state pension provision, making it imperative for people to build up a big pot of savings that can support them through their retirement.
Some of this book makes for uncomfortable reading. He challenges our assumptions that we will be able to enjoy a financially rewarding retirement without significantly boosting the amount we save and invest. By outlining the steps that we need to take, including re-evaluating our lifestyle to free up funds – we should ignore him at our peril.
Rating: 9/10
If you are looking to improve your financial knowledge and understand how you can grow your money this book is a great start. Craig’s explanations of compounding, different asset classes and the basics of the markets helped me easily grasp the basics and inspired me to get started on wealth building.
Readability: 9/10
I’ve always been turned off by financial books as I struggle to grasp the concepts and acronyms outlined. However, Craig’s book is a revelation. Using simple language and clear explanation, it helps you to understand the knowledge you need to effectively grow your money.
Does what it says on the tin: 9.5/10
Yes – if you are a financial novice, this plain English guide will help you to take control of your finances and get your money working for you. This book outlines a number of uncomfortable financial truths but it’s the kick up the backside most of us need to effectively plan for our retirement.