Hi, I’m Siam. I’m just an average bloke from Norwich in the UK and I’m simply a full-time Investor and Business owner. Had many epic fails, some nice wins and overall I’ve done alright I guess. But enough about me. I have a question for you…
What do Maplin, JJB Sports, Toys R Us, Staples, Lehman Brothers Bank, Phones 4 U, Blockbuster, Kodak, Comet, Jamie Oliver Restaurants, Sears, General Motors, Hugo Boss, Yellow Pages, Debenhams, and Thomas Cook all have in common? (These all went bust BEFORE 2020!)
They’ve all gone bust with each leaving a trail of devastation and thousands of lost jobs behind them. Creditors lose and hard-working employees lose. Almost every year some big company or bank goes into liquidation and people gasp in shock horror every single time.
Why is this? Why are people still surprised that huge companies end up toast when this is the norm and it will continue to happen…?
Unfortunately, this all stems back to your childhood and your parents and great great grandparents childhood. Pretty much everyone you know (most likely including you) has been raised in a culture where it’s absolutely pivotal to follow a certain procedure in life:
So what happens in reality is that you end up doing averagely ok at school, you get grades you couldn’t really care for to end up at uni doing a degree you really don’t want to do, you end up in a job completely irrelevant to your degree, you’re now £50k in student debt and are still clueless of what you actually want to do in life in this big fast paced world where social media makes you feel grossly inadequate 24/7. Am I close?
Even worse is that hordes of people who are unhappy in their current job think the grass may be greener in another profession. So they spend thousands of hard earned savings trying to get another qualification to get a better/different job. If they’re lucky, they get the job, but within 5 years they end back in the same quagmire. Why is this?! I know people that have done that routine every 5-10 years for the entirety of their lives and at the age of 60 they still don’t know what to do!
Okay, so far we’ve established that a job, degree or qualifications won’t get you to Financial Independence within a time efficient manner…or ever.
I got 2 Ds for my A-levels! #qualifications do not equal more income!
What are you supposed to do then?!
Another unrealistic, yet popular thing making its way round the internet these days by finance gurus is that “…you need to use compounding interest to your favour, invest for the long term and in 40 years, your savings will have turned into the millions“. Don’t get me wrong, I’m a big fan and utiliser of compounding interest, but not when it’s dressed up this way. One should use compounding interest as one of many different arrows in your quiver.