Fortunately, understanding saving, investing, and our financial system works is straightforward. One key is to get the complete picture. The other is to understand how things work.

Much of the financial world is based on win-win structures that allow savers and other market participants to benefit. Understanding these fundamental concepts is crucial to understanding what is happening and what might happen next. These concepts are consistently used by people that become rich and that stay that way.

The book looks at:

  • Savings growth through compounding;
  • How debt grows through compounding (usually even faster);
  • Why money compounds;
  • How users of capital like companies and governments interact with savers;
  • Equity and debt;
  • Stocks and bonds;
  • Why financial markets are so important;
  • Equity and bond markets and their indices;
  • Mutual Funds/Unit Trusts;
  • Hedge Funds;
  • Real Estate including Real Estate Investment Trusts (REITs);
  • Other investment choices including commodities and art;
  • The economy;
  • Central banks;
  • Economic cycles and how they can impact investments;
  • Practical considerations such as time horizons, timing of investments, taxes, compounding, diversification and transactions costs;
  • Getting started.

By understanding saving, investing and the financial markets, anyone can make consistently better financial decisions, understand the world of finance and the investment choices that surround them fully, and move far along the road to fulfilling their saving and investing dreams!

The book was a Finalist for the 2005 ForeWord Magazine Book of the Year Award!

Click here for the Table of Contents and for more detail on what is discussed under each topic.