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Be Financially Free

Book Description

Wouldn’t it be great to be free from financial worries? To be able to live the life you choose instead of working your life away? You can achieve this if you understand how the economy works, how consumerism seduces you into debt, and how to use the tools at your disposal correctly. Financial independence is too important to let others manage it for you. Morten Strange, financial analyst, ‘citizen economist’ and naturalist, draws from his 50 years of experience through the 1973 oil crisis and various stock market crashes and economic recessions to show you how to manage your money so you can be financially free. He explains, in simple terms, the mechanics of financial products and types of investments such as savings, bonds, shares and property, and offers practical guidelines you can apply immediately. What sets this book apart is its focus on the current economy and the ominous direction that it is taking. While most analysts focus on short-term solutions, Be Financially Free takes a global view. In this time of impending ecological limits and the end of economic growth, what will you need to do to achieve – and protect – your financial independence in the long term?

Table of Contents

  1. Cover
  2. Title
  3. Copyright
  4. Contents
  5. Preface
  6. 1 Retire at 30?
    1. A lucky break
    2. The key to financial freedom
    3. Make more
    4. Don’t listen to them
    5. A case study
  7. 2 Spend Less
    1. Why would you … spend less?
    2. 13 ways to spend less
    3. The paradox of thrift
    4. Five ways to grow your money
  8. 3 Interest in Economics
    1. Is economics boring?
    2. How wealth is created
    3. From Adam Smith to Paul Krugman
    4. Capitalism can set you free
    5. A few macroeconomic concepts
  9. 4 Derivatives
    1. What are they?
    2. Use of derivatives
    3. Derivative trading is zero-sum
    4. Gambler’s ruin
    5. Are you gambling or investing?
  10. 5 Investing in Stuff
    1. Commodities trading
    2. Some microeconomics
    3. The case of oil
    4. And the case of gold
    5. Gold in finance
    6. Alternative investments
    7. Should you or shouldn’t you?
  11. 6 Bonds and Property
    1. The fixed income market
    2. Bonds – the basics
    3. The power of compounding
    4. A bit about yield
    5. Fixed income products
    6. Bond ratings and risks
    7. Investing in bonds
    8. Bonds then and now
    9. How to buy
    10. Financing a home
    11. (Almost) always own your home
    12. A second property?
    13. REITs
  12. 7 Shares
    1. A share of what?
    2. In business we trust
    3. Now you are an owner
    4. How to find a wonderful business
    5. Checking the annual report
    6. Digging a bit deeper
    7. Which stock to buy
    8. The bigger picture
    9. What’s a good price?
    10. More tools
    11. Is technical analysis mumbo jumbo?
  13. 8 Getting Started
    1. Shares – the way to go
    2. Start your portfolio
    3. Executing the trade
    4. A bit about risk
    5. Spread it … your risk
    6. Going international
    7. Prediction is difficult
  14. 9 Mix It Up
    1. The right mix of assets
    2. ETFs (exchange traded funds)
    3. Gone Fishin’
    4. Not so sure about insurance
    5. What should you expect in return?
    6. Learning from the big boys
    7. Reality kicks in
    8. What lies ahead
  15. 10 It’s a Finite World
    1. Are there limits to growth?
    2. Shrinking returns
    3. The skeptics are growing in numbers
    4. Who benefits?
    5. Lingering reluctance
    6. Not all growth is good
    7. Too much of a good thing
    8. What will the limits look like?
    9. The more the merrier?
    10. Meanwhile, on the islands of prosperity
    11. But technology will save us, right?
    12. Get used to it
  16. 11 So What Can I Do?
    1. Position yourself to win
    2. The big picture
    3. What did nature ever do for me?
    4. There are alternatives
    5. Vote with your wallet
    6. A do-gooder’s guide to investing
    7. Ethical investing in practice
    8. Find your own way
  17. 12 Enjoy Your Freedom
    1. The great disconnect
    2. How do you cope?
    3. By the way, what happened to me?
    4. Plan for your liberty
    5. Pensions and annuities
    6. When will I be free?
    7. Keep going
    8. Why this book
  18. Notes
  19. Glossary
  20. Persons referred to
  21. References