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Financial Dignity

This book is a free version.
Can be given away.
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Can be offered as a bonus.
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Can be added to free membership sites.
You cannot alter or edit it in anyway.

By J.G.Campbell
ISBN 0-9549835-05

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Please note:

In this free edition you have a limited amount of pages.

Go to the full version.

The legal stuff. 2

Introduction. 3

The Place to start. 8

Principle 1
Spend some of your money. 26

Principle 2
Save the rest. 29

Principle 3
Get rid of the debt with the high interest. 42

Principle 4
Learn enough to invest with the best. 60

A happy ending? 85

A extra bit 86

Reference sources. 93

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The Legal stuff.

Financial Dignity Free Edition © is copyright of John Campbell 2010

No part of this publication may be reproduced or transmitted by

any means without prior permission in writing from the author.

The contents of this publication were established by a journalistic

approach and research and are the opinion or view of the author


The Author is not a financial advisor.

The contents are not to be taken as financial advice.

There are no guarantees offered as to the completeness or accuracy

of the contents.

You are accountable for how you use any

information you find on the internet.
Everybody’s personal and financial circumstances are different. To

help ensure you are getting an investment strategy that meets your

needs it would be prudent to contact a member of the:

Financial Services Authority.

FSA Consumer Helpline 0845 606 1234

Frugal Dignity and frugal living tips at 3
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When you click on link in this document it may lead to:

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This is what most websites do to make money. It is just that we
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More Internet truth

At Financial Dignity we aim to bring value to the 20 years old and
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You should exercise caution and look at the privacy

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“ We are all capable of change and growth we just need to

know where to start”

Blaine Lee

The Place to start…

What is Financial Dignity?

Financial Dignity is the controlled use of all the money that

you accrue to achieve a lifestyle that is of maximum value to


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The 4 Principles of Financial Dignity

1. Spend some of your money

2. Save the rest

3. Get rid of the debt with the high interest

4. Then learn enough to invest with the best.

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There are typical signs of having attained Financial Dignity

• Having manageable Mortgage Debt.

• No consumer Debt.

• Investing at least 10% of all your income so you have the

means to support a fulfilling lifestyle for the rest of your life.

• Spending the rest of your money on a lifestyle that is of value

to you.

Frugal Dignity and frugal living tips at 7
Financial Dignity could mean many different things to as many

different people. Each individual’s aspirations, motivation, abilities

and income are all so different and diverse. But one thing I am

sure they all have in common is that they

will aspire to be better off financially at

sometime in the future than they are now. Live

What Financial Dignity means to me

personally is to be able to live debt-free so Debt

that all the money I work for is mine to do

with as I please; to have at least three times Free

my monthly income available for

emergencies; to be able to afford to take

holidays when I want and where I want, and

to be able to do all this in comfort for the

rest of my life.

Now please take a pause here, put the book

down and think what Financial Dignity would mean to you. Come

back some time later and write it down on the following page or in

your diary or journal. The important thing is that you write it down

and keep it somewhere safe for it is a vision of your future.

Within the following pages there is extraordinary information that

can show you a way to attain your own vision of financial dignity by

simple, non-extraordinary means. However the information consists

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of a series of mere words that are worthless unless you add the

magic ingredient— Commitment.

Commit to being debt free.

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What Financial Dignity means to me: (Take a few

moments to reflect and write down what Financial Dignity would be to you)

In writing down your version of Financial Dignity you have started

to change a dream into a goal. Take much inspiration from this

because all successful people have written goals. They write their

goals down in detail and work out what they will need to do to

achieve them. Then they go to work on taking all the steps

necessary to attain their goals.

10 Frugal Dignity and frugal living tips at
Find out how to significantly enhance your ability to consistently operate
at your personal and professional best at

Michael Angier shares stories of struggle and achievement, offers practical advice,
motivates you on a quest for your best and shares the steps of his own personal
journey from Vermont farmer to international success guru.

Please bear this in mind,

“No plan survives contact with the enemy”

General Field Marshall Helmuth Von Moltke

This simply means plan for the plan not to go according to plan! I

am sure as soon as you start working towards your goal things will

change, some for the better some for the worse. If the plan is not

working, don’t worry do another one, re-adjust, re-assess the time

scales, start again or work out a way around it.

Keep focused on your goal and remind yourself why it is important

to you.

A person who tries and fails and tries again is not a failure,

just someone who has not succeeded YET.

The only failures are the ones that never try.

Believe in your self

Frugal Dignity and frugal living tips at 11
Daily Action Planner. Put at least one planned action step/task
against each day and note what you actually do achieve in the
Morning, Afternoon, Evening Columns.

For Week







If you work on your Goals each day you will achieve them.

By the end of the week your daily action planner becomes

your achievement record.

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• You can only ever have one priority. This is set by urgency or

importance and logical position in your plan.

• Write down your action steps in priority order.

• Do what you need to do when you need to do it*.

• Getting it wrong is an opportunity to learn.


*Source: Goals by Zig Ziglar, Simon & Schuster Audio.

Frugal Dignity and frugal living tips at 13

Spend Some of your Money

Most of us will not have much problem with this particular tenet.

Lets face it we all like to spend money on things we find desirable.

Who can blame us as we live in such a wonderfully diverse world

where all manner of fine luxuries can be had or at least aspired to!

Spending is a pleasurable habit and like a habit it needs controlling

or it may become an uncontrollable vice. Impulse buying or

uncontrolled spending is an instant gratification. Financially mature

and confident people are able to recognise and resist such negative

habits. They are also able to resist the purchasing of something just

to keep up with or impress friends or neighbours.

Your financial lifestyle should be one that reflects your own beliefs

and values and be congruent with society. You should spend to

please yourself on things you find of value.

What having money does best is it allows you to be able to

please yourself. Enjoy it.

The following is a little story about a friend of mine who has the

wisdom of a Zen Master when it comes to money. He also has a

great passion and talent for rock climbing.

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Climbing Money Day

“Ah climbing money day,” Rob remarked, clapping his gnarly,

calloused hands together as we walked to the site of our latest

climbing adventure. Puzzled I asked; “what’s climbing money day”?

“Pay day…Climbing money day,” he replied. He must of thought I

still look puzzled for he went on to explain” Payday is climbing

money day, it is the only reason I go out to work, so I can afford to

go climbing,” He drew attention to what some would call a frugal

lifestyle and that he did not want or need fancy clothes or food. He

just wanted to climb.

Indeed I had often found him having porridge for tea prior to an

after work climbing session “ Arr, good climbing grub,” he would

exclaim with a wink of an eye and a smack of his lips which always

seemed to me to be a fine imitation of a salty old sea Captain. “

Porridge for tea, Rob, that’s a bit grim,” I questioned. He replied

sounding like a landlubber again “ All that fancy stuff you eat is just

a habit you have got into, I am full up and nourished, what more do

you want?” “I like my food, I argued.” “I like my climbing and I

want to be able to do it for a lot longer yet” was his retort. I must

have been looking puzzled yet again for he went on to explain. “ It’s

simple, all the money I have coming in I split up into some for food

and drink, some for clothes, some for looking after the house, some

for keeping my climbing equipment in good order and that includes

the car. No car, no climbing, you got to get there, man (now

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sounding like a hippie!). Now I also have a pot of money for this

season’s climbing trips and the last pot is where I put it away for

future seasons when I intend not to be working anymore. The way I

look at it is that the more I can save now, the more climbing I can

do in the future. Its simple No Money No Climbing”.

It was not until I started writing this book did I recall the wisdom of

his words and actions. My climbing friend was in control of his

spending. He channelled the flow of all the money that passed

through his gnarly, calloused, rock-climbing battered hands into

what he desired most. Money to Rob is just a means to an end, a

tool. He planned with foresight how to use it. Allowing him freedom

to devote his leisure time to doing just what pleased HIM.

His needs are simple, frugal some

would say, but he had the

knowledge and skills to power-

spend to enrich his life with what he

valued. He had attained Financial


Enrich your life with what you value.

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Please take the time here to stop and consider this snippet of

common sense but uncommon practice for it is the key to great


You now have the knowledge and if you apply it by taking

productive action it WILL make you rich.

The action you need to take is…PAY YOURSELF FIRST.

Please do not read any further until you have calculated ALL your

incoming money over the course of a month. Fill in the following



Wages from Employment.

Social Security Benefits.

Income from assets.


Frugal Dignity and frugal living tips at 17
Calculate 10% of your total income and record in the box below.

This is the money that can make you rich.

Your 10%

This 10% is to pay your self first. You must save it no matter what

occurs. It is to be taken away from all your money to be treated as

special, to be understood and to be nurtured, for this money is your

future and therefore very precious indeed.

If you treat your 10% well this is how it will repay you.

• Let say you earn half the current average national wage of

around £ 25,000 per year that is £12,500 or £1048 per


• 10% of that is £105.

• You invest that £105 at 11% compound interest capitalised on

an annual basis.

• You work for 49 years. That is starting work at 16 and retiring

at 65 and you invest your £105 each month every month for

the 49 years.

Would have £2,004,147

Two million four thousand and one hundred and forty seven pounds!

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You could retire at 50 with £409,284 to your name and that would

yield you an annual lump sum of £45,021 every year forever

without your capital diminishing.

“Let honesty and industry be thy constant companions and spend

one penny less than thy clear gains; then shall thy pocket begin to

thrive; creditors will not insult, nor want oppress, nor hunger bite,

nor nakedness freeze thee.”

Benjamin Franklin (1706-1790)

Save the rest

Frugal Dignity and frugal living tips at 19
A Financial Clairvoyants Crystal Ball

Saving is preparing for the future. Using the Financial Lifestyle

Predictor on page 47 can foretell your financial future with a

reasonable amount of certainty. You can see what is happening

now, apply a budget to make changes and predict the effect of

those changes on your financial

future. You will get a vital insight

Enjoying life
into your lifestyle and spending
is a justifiable
habits. You may well be shocked expense
how much your vices and daily

purchases of unimportant trivia are

really costing you. Please take the

time to start filling in the Predictor

starting with your current spending

habits and then the Spending Plan

that follows as accurately as

possible. For large one off purchases

you will need to divide the payment over each of the twelve


Always carry a small notebook and pencil to record all the hard- to-

remember bits you purchase over the course of a day. Above all be

honest with yourself about the findings. When you have completed

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filling in all the items that are relevant to your lifestyle, take a long

critical look. How you interpret the results must be up to you.

I remember the first time I completed the exercise. My wife and I

were aghast to find out how much we were spending on satellite TV

and video rental. On top of that there is all the sweets, chocolate,

drinks, peanuts, and crisps, etc. that are almost essential to chomp

your way through when watching TV. We still do the same things

but on a reduced scale and still enjoy it just as much.

The next part of the process is to compare your current monthly

spending habits with your monthly income.

Total income from page 31 £…………


Existing spending habits (The full version has an extensive Lifestyle

Predictor which will help you do this accurately) £…………


If your total is a minus amount fill in this section

I am living beyond my means by £……… Date………

If your total is a positive amount fill in this section

I am living below my means by £……… Date………


Frugal Dignity and frugal living tips at 21
If you find you are coming out with a minus figure go back over

your spending plan with more resolve to cut out non-vital items and

reduce the others to a minimum. If after doing this, your outgoings

are still greater than your incomings get independent professional

help quickly. Here are some useful addresses and phone numbers.



TELEPHONE 0800 138 1111

Please take prompt action because your debt will be increasing

daily. Debt problems can seem daunting and insurmountable on

your own. These organisations have trained people that can help.

Their support and guidance will prove invaluable.

• Be very cautious of any person or organisation that is making

any sort of fee or charge to sort out debt on your behalf.

Taking Control.

The next part of the process is to start planning how you are going

to spend your money. You are taking control and channelling your

money in the direction of your goals. I am sure many pennies and

pounds can be “Shaved and Saved” from most of the categories

without affecting your lifestyle too much. Out of these savings you

22 Frugal Dignity and frugal living tips at
will be able to find YOUR 10% to pay yourself first. Fill in the

Monthly Spending Plan inserting YOUR 10% at the top of the

column on page 48.

When you start making the cuts to what you spend, do not forget

that you still need to enjoy life and that enjoyment is a justifiable


The plan is to balance having it now or in the future.

Life is short; you should enjoy its fruits in moderation and when you

can afford them, but without mortgaging your future.

“The way to wealth…

Depends chiefly on two words, industry and frugality;

That is, waste neither time nor money”.

Benjamin Franklin (1706-1790)

Frugal Dignity and frugal living tips at 23
Recommended Resources to Automate your budget and learn how to cut

the cost and eliminate your debts quickly at Budget Stretcher

Principle 3

Get rid of the Debt with the high interest.

Consumer Debt

The Debt I refer to here is Consumer Debt that is linked to the

acquisition of lifestyle comforts, whims or desires. This type of debt

can really suck the life out of your financial future and is best

avoided. Entering into debt for business reasons or to accumulate

assets is often necessary and indeed wise as long as it is part of a

well thought out Business Plan or Investment Strategy.

If you have any non-mortgage debt, loans, credit cards etc. take

the money you have identified as your 10% and put it towards

paying off those debts. Get them paid down as quickly as possible

because each day you have them they cost you more money, This

Compound interest working against you. This is still paying yourself

first and may well be the best investment you ever make.

For example: if you have a credit card and the interest rate is 18%

per annum and if you pay it off, you are saving yourself having to

pay out that extra 18%; which is just the same as getting an

exceptional return of 18% on an investment.

24 Frugal Dignity and frugal living tips at
Which debt do I pay of off first?

I have seen this question asked all over the internet and I

have not seen a satisfactory answer. The answer is simple

and disturbing:

The debt with the highest interest has not necessarily got a

percentage after it. It is the debt that can cause you the most harm

if it remains unpaid. If you do not pay your rent or mortgage you

could be evicted from your home. Moneylenders can, via County

Court Judgements apply for an order for Bailiffs to take your

possessions and sell them to recover any defaulted payments. If

you have borrowed money from less reputable sources you can be

threatened with violence or worse if you fail to meet their

payments. Prison sentences can be handed out for not paying

income tax, council tax, and child support.

“There can be no real individual freedom in the presence of

economic insecurity”

Chester Bowles (1901-1986)

Frugal Dignity and frugal living tips at 25
Debt Priority Form

To be sure you are paying off the most harmful debt fill in the following


Who do How What are the What is much do
I owe much consequences the I have
money do I of not paying interest to pay
to? owe? this debt? rate? each

26 Frugal Dignity and frugal living tips at
RULE 1 No more new debt.

RULE 2 Do not forget Rule 1.

No new debt.

Frugal Dignity and frugal living tips at 27
Budget Stretcher Premium
How Do I Know Where To Start?

Most members join Budget Stretcher Premium because they

need a single place to help them improve their financial situation.
They need access to a lot of information without spending hours
trying to find it on the web.

When you become a member you are immediately directed to the

BSP Home Page. There you will find a step-by-step process to
immediately start getting your finances organized, know where you
stand now and what you need to do.

This process covers everything from establishing a workable budget

to getting your credit report and score free of charge.

You have rights as a consumer. You will learn what

they are at Budget Stretcher

time to gain in your life.

28 Frugal Dignity and frugal living tips at

NOTE: Beer, wine and chocolate are not essential

food groups.


There are no reported serious injuries associated

with cancelling subscriptions to Satellite TV.


Frugal Dignity and frugal living tips at 29
Do not do budgets!!!

I find it difficult to stick to a budget. I think there are too many

factors in a busy family life to account for all the money you spend.

All you can hope for it to plan what you can and try to keep track of

where you do spend it. I have stilled called it a budget planner for

the people that are disciplined enough to budget effectively (and

because I could not think of a better name) Please remember it is

only a plan and keep your spend flexible enough to enjoy life

An Example

Weekly Budget Planner Date …/…/…(Friday To Thursday).

Item Planned Spend Actual Spend

£££ £££
Kid’s dinner money. 30 30
Kid’s pocket money. 20 20
Dad’s dinner money. 10 12
Mum’s dinner money. 10 10
Jim’s Martial art. 10 10
Bowling. 30 36
Food. 120 135
Beer, wine, sweets. 30 32
Petrol. 20 27
Videos 10 10
Lottery 2 2
292 324
Rob’s Birthday- Climbing
book. 30 30

322 354

30 Frugal Dignity and frugal living tips at
(Fill in your own details in this planner. You might want to photocopy it first)

Weekly Budget Planner Week beginning: …/…/…

Item Planned Spend Actual Spend


Frugal Dignity and frugal living tips at 31
It can clearly be seen in the above example that the difference

between the Planned and the Actual spends on the individual items

are fairly nominal. But when totalled, there is a substantial disparity

appearing, of £32 per week. If that disparity is left uncontrolled for

a year it will build into a monstrous £1664 by the end of the year

that will demand paying from somewhere. Try not to become over-

jealous about sticking to your budget; it could drive you mad with

worry! There are just to many variables to account for during a pay

period. It is not a science; it is merely a guide or map. With regular

small adjustments to your course you can stay on track, keep

control of your spending and head towards your own Financial


Keep heading towards your Financial Dignity.

32 Frugal Dignity and frugal living tips at
The Warning signs of too much debt.

You are burdened with too much Debt if;

• You worry, cannot sleep or show other signs of stress caused

by your financial situation.

• You fret over opening the mail as it may contain demands

from your creditors or bank.

• After you have paid all your creditors and expenses you do

not have enough left to pay for essential items such as food.

• You use credit cards or loans to buy essential items such as


• You can only ‘afford’ pay only the minimum payments on

your credit card(s).

• Your credit cards are often near or at your spending limit.

• Credit cards get declined and cheques bounce.

• You have to ‘time’ putting in cheque payments hoping that

they will not be presented before the next payday.

• If you have a minor financial emergency you would need to

borrow money to resolve it.

• You have no savings, investments or other assets.

• You lie and otherwise deceive friends and loved ones about

your spending habits and financial situation.

Frugal Dignity and frugal living tips at 33
Be cautious.

If any of these are symptomatic you should consider getting advice

from a relevant organisation. But please be cautious of advice from

organisations that charge you a fee or a percentage to manage

your debt on your behalf. They can offer consolidation loans, to use

the equity in your house or otherwise restructure the debt. The

hook is new lower monthly repayment. These repayments are

mainly interest with little actually being paid off the debt itself.

Thus keeping you in debt and paying them interest over long

periods of time.

This is Compound Interest working against you and for the lender.

Remember the aim is to get out of debt, not take on extra or

prolong existing debt.

34 Frugal Dignity and frugal living tips at
Principle 4.

Learn enough to invest with the best.

You really do not need to learn very much to invest with the best.
What the best know, understand and use wisely is the effect of time
and compound interest.

 Compound interest is the key to great prosperity. 

Understand it well.

Frugal Dignity and frugal living tips at 35
Tracker Funds and Pound Cost Averaging are the basis for

attaining long term Financial Dignity. They balance the risk and

potential returns in a most advantageous manner.

These simply just track a given index. If you are interested in

investment or not, you will have heard the terms, The FTSE 100,

The FTSE-all share index (UK), The Dow Jones (USA) and the Nikkei

(Japan) All of these are examples of indices in different countries.

You invest in all the companies in the index by pooling your money

with others to buy part shares (units) in amounts proportionate to

the size of the company. The future value of the units replicates the

performance of the Index as a whole. In any given index, some

companies will do very well and some will fail. But having invested

in the whole index you have reduced the exposure to the risk of

failing companies and balanced that with the gains from the

successful companies.

The return on your investment will go up and down when observed

over a short period of time. But over a prolonged time period the

trend will always be up, the average growth of an investment since

1918 has been 11%*. A tracker Fund is a long-term investment so

you need to commit to it for at least 10 years as this allows the

averaging of the ups and downs of the Stock Market to take effect.

*Credit Suisse First Boston Equity at time of writing.

36 Frugal Dignity and frugal living tips at
Pound-cost Averaging.

It may seem improbable, but you can enhance your investment as

the market goes down as well.

Lets say you regularly invest £25 each month in an Index Tracker


The first month the market is high and the unit cost are £1.00 each.

You now have 25 units.

The second month the market takes a dip and the units are only

worth £0.50 but you still buy £25 worth acquiring 50 units.

The third month the market has rallied and the units are £1.00 each

again and again you buy £25 worth. So at the end of month 3 you

have invested £75 in total and have 100 units now valued at


The figures have been simplified for the illustration to clearly show

how the mechanics of Pound–Cost Averaging can be used to take

advantage of the rises and falls in the value of the chosen index.

Investing smaller amounts in a “Tracker” on a regular basis rather

than occasional lump sum takes full advantage of what the volatile

stock markets do naturally and that is, rise and fall in value over a

short term. If you add this to the very low management charges

and fees, “Trackers” and Pound Cost Averaging are proved to be a

winning combination.

Frugal Dignity and frugal living tips at 37


Spend some of your money

Save the rest,

Get rid of the debt with the high interest,

Then learn enough to invest with the best.

38 Frugal Dignity and frugal living tips at
Reference Sources

• Financial Service Authority.

FSA Consumer Helpline 0845 606 1234



TELEPHONE 0808 808 4000.


TELEPHONE 0800 138 1111

Sources of information via the internet -Money.

Welcome to

The Motley Fool UK -

Welcome to

Sources of information via the internet -Goals

Goals: Free Tutorials and Top Resources

Dr Philip E Humbert, Author, Speaker and Coach.

Sources of information, Books and Audio

Frugal Dignity and frugal living tips at 39

GOALS, How to set them how to reach them. By Zig Ziglar.

Think and grow rich. By Napoleon Hill.

Rich Dad poor Dad: What the rich teach their kids about

money---That the poor and middle class don’t. by Robert


The Warren Buffet way. By Robert G Hagstom.

The 7 Habits of highly effective people. By Stephen Covey

Stock Market Essentials. By Victor A Cuadra.

Be your own Stock Broker. The secrets of managing you own

investments. By Charles Vincent.

Think yourself rich. How to develop the mind of a millionaire.

By Sharon Maxwell Magnus.

The White Ladder Diaries. By Ros Jay.

Sources of Information-Magazines and Newspapers.

Investors Chronicle. Published by Financial Times Business Ltd.

Your Money, Savings and Investing. Published By Matching Hat


Save Money. Published by Crimson Publishing Limited.

Moneywise. Published by RD Publications Ltd.

Cash. The Financial supplement with The Observer newspaper.

Save and Spend. The Financial supplement with The Independent


40 Frugal Dignity and frugal living tips at





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