By Peter Komolafe
Published by Harper Collins, 2023
As you know by now, the Next Few Steps blog is all about helping you to cut through the crap and find the best information from the best sources, so you can make well-informed decisions on topics to move you from passive to active. And no topic is potentially more convoluted, overwhelming and emotive than when you start to deal with your finances.
When I go into a bank, I want straight-talking honesty using small words so my small brain can understand what you say. Start using terms like ‘bear markets’, ‘dividends’ and ‘blue-chip stocks’ and I glaze over like a Krispy Kreme doughnut. Don’t get me wrong – I have an inkling what these phrases mean, but to be honest, I don’t truly understand how they affect me or how I can use them to my advantage.
This is why I found Peter’s book so refreshing. He uses normal phrases like ‘avoid debt’ and ‘emergency fund’. Awesome! I know what they mean! No blustering with terminology, no blinding me with science, no: showing how much an expert you are by using cumbersome locutions to stupefy and confound me into consternation.
Everything is clearly explained, concise and written so that I can understand it. Now that’s how I want to consume any sort of advice when I’m a trembling novice!
Why do I like the book? Well for starters, Peter begins by expressing his desire for you to be your own financial hero – bang on message with my desire for this blog. All I want is for you to have the confidence to make a massive difference to your own life.
Then, after two short activities to decide when your current financial state is, he shares his B.A.S.I.C. message:
1. Budgeting
2. Avoid Debt
3. Save Early
4. Invest Early
5. Credit Score
Each of the 5 sections is further split up into between 3 and 7 chapters that build on previous information in a light, breezy style that took me about 3-4 hours to complete.
Sprinkled judiciously through the first part of the book, like currants though a spotted dick, are tasks for you to complete. These tasks enable you to apply Peter’s theories to your life and it’s a shame these don’t continue through the rest of the book as I found they really helped bring his concepts to life.
What really impressed me though, beyond the clarity and easy style of writing, was that he debunks common myths, exposes mistakes that he knows I will make if left to my own devices and has clearly set out procedures such as ‘How to improve your credit score’ and the 5 psychological traits that can scupper an newbie investor’s chances of success.
Not only that, but there are whole chapters on attitude to risk, mind-set, the type of spender you are and how this can derail your carefully laid savings’ plans, the list goes on. (It turns out I’m a bargain spender and that comes with its benefits and drawbacks, one of which is that nabbing that elusive bargain sends (and I quote) ‘my brain into a frenzy’! Now, steady on, Peter! But sadly he’s spot on about my habits and now they’ve been pointed out, I can safely distance myself from all electronic devices around Black Friday!
It’s all there and it’s all accessible for those beginning their journey to financial freedom.
And sure, it’s not the most in-depth book on finances I’ve read. But it doesn’t try to be. Neither ‘bear markets’ nor ‘blue-chip stocks’ are mentioned in the index because they simply don’t need to be. (Just for completion, dividends have 4 pages devoted to them because they could apply to my financial journey)
The book is perfect for the learning the B.A.S.I.C.s (pun fully intended) if you’re starting from scratch. And I understood pretty much everything. You know it was written for someone like me when you come across the glossary on pages 1-8!
Conclusion: ‘The Money Basics’ (How to become your own financial here) by Peter Komolafe, is well worth a read if financial matters normally leave you clammy with fear or you want a ‘leg up’ to tame your spending, begin saving or even dip your financial toes into investments.
Homework:
When you finish the book, fill in the Odd Book Review form to help the information stick and make sure you apply at least one takeaway to your life.
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