Life After Full-time Work Blog

Finally, a book for those who aren’t comfortable thinking about it

You know I’m a geek, of course. About anything to do with numbers. But more than that: about anything to do with the application of numbers to finance. All of that stuff has always come naturally to me. That’s why I’ve always found it difficult to understand those who aren’t naturally familiar with money. And, in turn, that’s why I love Claer Barrett’s book What They Don’t Teach You About Money. It’s aimed at those who aren’t “good” with money: they don’t understand the basics, and perhaps they’re scared to ask about it or even ashamed to admit it. Claer’s book is the perfect introduction. She tackles (and teaches) things directly, but gently. Let me tell you how she does it.

In the Introduction she outlines seven key habits that come up all the time and have helped keep her on track. The first is: Be rational, not emotional. And yet Chapter 1 is called “Money: It’s Emotional.” That’s not a contradiction. It’s her style. She gets into your head, if you’re not knowledgeable, or if you’re scared. She shows you that she understands where you’re coming from, with story after story from her own experience or from people who feel exactly the way you do. Your reaction is going to be: “Oh my goodness, she really does understand me.” And so you trust her. And then she explains why you feel the way you do, and, step by step, why it would be better if you felt a little bit differently, and here’s how to do so, and here’s how things would be better if you did.

For example, here’s the opening paragraph in Chapter 1:

“Learning how to deal with money is difficult, on many levels. There’s the numbers, which give many people the heebie-jeebies. Then there’s the jargon that the financial world seems to have invented merely to confuse us. And finally, there’s the emotional tripwires that can prevent us from talking about money, or asking for help if we don’t understand.”

There it is: numbers, jargon, embarrassment, shame. Followed by stories, and tips, so you know she’s where you are, and on your side. And in the next few chapters, gently, how to break bad habits: controlling spending, sorting out your situation, getting out of the debt trap. (I love her explanation of why credit cards should really be called debt cards.)

And only after all that does she get to building positive habits, like setting goals (which can go all the way to buying a car or a house); then another warning: avoid appealing shortcuts to wealth, with many kinds of scams explained; then two chapters on getting rich slowly (your “pension fund” — or your “future fund,” as she sensibly prefers to call it — and tax-favored investing (with taxation, investing and compound interest explained); even how to ask for a raise, or (if you think you’re worth it — and how to make that judgement) changing jobs.

And finally, how to feel more comfortable talking about money — like with your partner, your landlord or a financial advisor. Imagine getting there, when that first paragraph in Chapter One described you! And all in 266 pages written as simply as possible.

No wonder I recommend this book.

It’s aimed primarily at British readers, with specific references to UK taxation and tax-related products. But the principles involved hold true anywhere in the world, so I recommend it for readers in any country if you fit the description in that first paragraph, or for a family member or friend if it describes them.

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I know Claer personally, and this must be an innate characteristic of hers (I wish I had it!), because until I read her book I never realized that, when I first met her, she needed to use it to get inside my head. Here’s how I remember it.

Today she’s the Financial Times consumer editor and columnist as well as a TV and radio star. I met her some 10 years ago, through her colleague, award-winning journalist Josephine Cumbo, when Claer was the FT’s personal finance editor. And after we talked for a few minutes Claer asked me if I’d be willing to write a column for the weekend edition of FT Money, about the sort of stuff we were chatting about. NO!!! I enjoyed reading the regular work of many FT columnists, but becoming one? That terrified me: it would become a regular obligation, and that caused me instant stress, just thinking about it, and I said so. Oh no, replied Claer, no obligation at all — no regular column, just write the first one, and if that was all, so be it. No regular schedule? No, no regular schedule, and if from time to time I felt the urge to write another column, that would be great, but nothing to tie me down. OK, I said, I’ll do one. Great, just send it to me, she said.

So I that’s what I did, and Claer liked it, and said she’d call the column The Art of Investment, because it wasn’t technical or filled with jargon, and I liked that. No pressure. Just something occasional, if I felt like it. As I write this blog post, I’ve just looked at the shelf where I put all my published stuff, and I see that I wrote another column three months later … and over the next 18 months I wrote a total of ten columns — all with no pressure, exactly as Claer had assured the nervous me. In fact, when I wrote my Life Two book, Claer used the column that described it as the basis for the cover of that weekend’s FT Money supplement.

What a pleasure it all turned out to be, for the fearful me, thanks to Claer’s way of seeing what scared me and showing me that there was no need for fear. That’s how she has written her book.

I love it. It’s too late for it to be a Christmas present, but that doesn’t matter: its value is timeless.

Here’s a link to multiple UK retailers where you can buy it: https://lnk.to/WTDTYAM , or of course go to any retailer in your own country.

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Takeaway

Everything you need to know about breaking bad financial habits and building good ones, explained in simple language, from the basics to compound interest and saving for retirement and everything else that’s practical.

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