A new investment guide from the #1 best-selling author of

“How to Own the World”

ANDREW CRAIG

LIVE ON LESS
INVEST THE REST
A Plain English investment workbook.
Sorting your finances out once and for all.

Audiobook Accompanying Material

New Updated Edition
ABOU T THE AU THOR
Andrew Craig believes that you owe it to yourself to learn about
money and investment because doing so is life changing. He has
worked in the City of London for over twenty years and in 2011, he
founded personal finance website, www.plainenglishfinance.co.uk.
Andrew is a director of Plain English Finance Limited and has
run PEF’s global investment fund (the VT PEF Global Multi Asset
fund) since launching it in September 2017.
In addition to his responsibilities at Plain English Finance, Andrew
is also a partner at leading boutique life sciences investment bank,
WG Partners.
Since founding Plain English Finance, Andrew has appeared in
numerous national and specialist financial publications including:
The Mail on Sunday, The Mirror, CityAM, The Spectator, Shares and
MoneyWeek magazines, YourMoney, This Is Money and Money
Observer. He has been interviewed on Bloomberg and Shares Radio
and on IG TV, was featured in Russell Brand and Michael Winterbot-
tom’s 2015 film The Emperor’s New Clothes and interviewed by
Eamonn Holmes for the Channel 5 programme How the Other Half
Live.
Andrew lives in South West London with his wife, Rachel and
their two small children, Ella and Oscar.
 LIVE ON LESS
INVEST THE REST
A Plain English investment workbook.

Andrew Craig
 Copyright © 2020 by Andrew Craig. All rights reserved.

First published as The Complete Guide in Great Britain

in 2014 by Plain English Finance Limited.
This version, titled Live on Less, Invest the Rest, published July 2020

https://plainenglishfinance.co.uk

Andrew Craig is identified as the Author of this Work in accordance with the Copyright,
Designs and Patents Act 1988.

All rights reserved. No part of this publication may be reproduced,

stored in a retrieval system, or transmitted, in any form or by any means (electronically,
mechanically or otherwise) without the prior written permission of the copyright owner
except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or
under the terms of a license issued by the Copyright Licensing Agency Ltd, Saffron House,
6-10 Kirby Street, London EC1N 8TS.

This publication is to be used for personal, non-commercial purposes only. Applications for
the copyright owner’s written permission to reproduce any part of this publication should
be addressed to the publisher. Full acknowledgement of author, publisher and source must
be given. You must not circulate this publication in any form of binding or cover other than
that in which it is published and without a similar condition being imposed on the
subsequent purchaser.

The information and advice given here in this book is written in good faith and should be
used responsibly and at your own discretion. Whilst reasonable care has been taken to
ensure the accuracy of the content of this Work the information in this book is distributed on
an “As Is” basis, without warranty. Neither the author, the publisher nor the companies
owned by the author shall have any liability to any person or entity with respect to any loss
or damage caused by or alleged to be caused directly or indirectly by acting or refraining
from acting, due to the instruction contained in this book.
 DISCLAIMER
Andrew Craig is a director of Plain English Finance Limited
and this document is being issued by Plain English Finance
Limited.
Whilst Plain English Finance Limited has used all reason-
able efforts to ensure the accuracy of the information
contained in this document at the date of publication no
representation or warranty, express or implied, is made as
to, and no reliance should be placed on, the fairness, accuracy,
completeness or correctness of the information or opinions
contained herein. All expressions of opinion are subject to
change without notice and do not constitute advice and
should not be relied upon. Certain economic and market
information contained herein has been obtained from sources
prepared by other parties. While such sources are believed
to be reliable, neither Plain English Finance Limited nor any
of its directors or advisers assumes any responsibility for
the accuracy or completeness of such information.
Past performance is not a reliable indicator of future
performance. The value of investments and any income
from them may fall as well as rise, the return may increase
or decrease as a result of currency fluctuations, and you may
not get back the amount of your original investment.
Plain English Finance Limited does not make any recom-
mendations regarding the suitability of any product for you
and the information provided here should not be considered
as investment or other advice or a recommendation to buy,
sell or hold a particular investment. To reiterate, investments
mentioned herein may not be suitable for you and you must
make your own independent assessment and rely on your
own judgement (or that of your financial adviser) in order
to determine whether any particular investment represents
a suitable investment opportunity for you on the basis of your
personal circumstances, tax position and available financial
resources and the legal, regulatory, tax and investment conse-
quences and risks of investing. If you are in any doubt about
the information here or on our website please consult your
financial or other professional adviser.
To the fullest extent permitted by law Plain English Finance
Limited, its directors, shareholders, partners, advisers or
representatives shall not have any responsibility or liability
whatsoever (for negligence or otherwise) for any loss howso-
ever arising from any use of this document or its contents or
otherwise arising in connection with this document. The
information set out herein may be subject to material updating,
completion, revision and amendment.
Certain elements of this document, most particularly,
the references to the VT PEF Global Multi-Asset Fund
(the “Fund”) can be considered a financial promotion. This
is intended for UK residents only. The financial promotion
is communicated by Plain English Finance Ltd. (7503422)
which is authorised and regulated by the Financial Conduct
Authority (564876) with its registered office of: Stag Gates
House, 63/64 The Avenue, Southampton, Hampshire,
United Kingdom, SO17 1XS.
 17

WORKBOOK “ TICK-LIST”

Please find below a ten-step tick-list to help you keep track of the
tasks you might complete to get your finances humming. We wish
you the best of luck getting through each one in turn!

❏ 1.
Work out how to find money to save and invest
each month. Ideally at least 10% of your income.

❏ 2. Pay off any expensive debt.

❏ 3. Build up a “rainy-day” pot of cash.

❏
Use the idea of ”100 minus your age” to work out
4. the proportion of your money you might choose to
allocate to “defensive” versus “aggressive” assets.

❏ 5.
Work out which “defensive” and “aggressive” assets
you are going to use.

❏
Choose which stockbroker or investment company
6. to use and set up the investment accounts you
need (ISA, GIA, pension and so on).

❏ 7.
Set up monthly direct debits into whichever assets
you have chosen.

❏ 8.
Work out what to do with any lump sum you might
have.

❏ 9. Re-balance roughly once a year.

❏
Use the idea of ”100 minus your age” to tweak your
10. investments gradually over time – perhaps only
every five years or so…
 Part T wo - What Now ? Investing 4 3

Table 1 - The power of compound interest

After x Saver 0% Investor 8% Investor Investor Investor

years return return 10% return 12% return 20% return

1 £8,000 £8,584 £8,737 £8,893 £9,544

5 £20,000 £25,991 £27,816 £29,796 £39,568

10 £35,000 £57,214 £65,286 £74,752 £132,538

15 £50,000 £103,731 £126,936 £156,423 £383,182

20 £65,000 £173,035 £228,370 £304,794 £1,058,910

30 £95,000 £430,117 £669,845 £1,064,024 £7,792,017

Assuming £5,000 lump sum to begin and £250 saved each month...

Source: Plain English Finance

Table 2 - Return on saving your full ISA allowance of £20,000 a year

After x Saver 0% Investor 8% Investor 10% Investor 12% Investor 20%

years return return return return return

1 £25,000 £26,339 £26,687 £27,039 £28,503

5 £105,000 £130,776 £138,432 £146,651 £186,127

10 £205,000 £318,114 £357,900 £403,897 £674,217

15 £305,000 £597,218 £718,993 £871,235 £1,990,092

20 £405,000 £1,013,040 £1,313,102 £1,720,247 £5,537,651

30 £505,000 £2,555,525 £3,898,874 £5,054,712 £40,886,331

Assuming £5,000 lump sum to begin and £1,666.66 saved each month...

Source: Plain English Finance

 Part T wo - What Now ? Investing 47

FIG. 1 – 10 Year Treasury Rate - 54 Year Historical Chart

18%

16%

14%

12%

10%

8%

6%

4%

2%

1970 1980 1990 2000 2010 2020

Source: MacroTrends (www.macrotrends.net)

 Part T wo - What Now ? Investing 53

Table 3 - 100/110/120 Minus Your Age Ready Reckoner

100 minus rule 110 minus rule 120 minus rule

Your Aggres. Defen. Aggres. Defen. Aggres. Defen.
Age
% % % % % %

100 0 100 10 90 20 80
95 5 95 15 85 25 75
90 10 90 20 80 30 70
85 15 85 25 75 35 65
80 20 80 30 70 40 60
75 25 75 35 65 45 55
70 30 70 40 60 50 50
65 35 65 45 55 55 45
60 40 60 50 50 60 40
55 45 55 55 45 65 35
50 50 50 60 40 70 30
45 55 45 65 35 75 25
40 60 40 70 30 80 20
35 65 35 75 25 85 15
30 70 30 80 20 90 10
25 75 25 85 15 95 5
20 80 20 90 10 100 0
15 85 15 95 5 100 0
10 90 10 100 0 100 0
5 95 5 100 0 100 0
0 100 0 100 0 100 0

Source: Plain English Finance

 62 LIVE ON LESS, INVEST THE REST

FIG. 2 – “Always a reason to sell...”

Source: Michael Batnick AKA The Irrelevant Investor (theirrelevantinvestor.com)

FIG. 3: 120 Years of Moore’s Law

MECHANICAL RELAY VACUUM TUBE TRANSISTOR INTEGRATED CIRCUIT

NVIDIA
TITAN X
1E + 09 GTX480
CALCULATIONS PER SECOND PER CONSTANT DOLLAR

1E + 07
IBM Blue
Genie
1E + 05 Power Mac

1,000
IBM ASCI
White
IBM PC Pentium PC
10 Cray 1
Sun 1
Apple
0.1 Macintosh
Whirlwind
Data General
0.001 IBM 360 Nova
ENIAC DEC PDP-1
Colossus

1E - 05
Hollerith IBM Tabulator
1E - 07 Tabulator

Analytical
Engine
1E - 09

1900 1905 1910 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

Source: Steve Jurvetson (www.flickr.com/photos/jurvetson/31409423572)

 Part T wo - What Now ? Investing 81

FIG. 4: Cost per Human Genome 2001–2019

$100,000,000

$10,000,000

$1,000,000
Moore’s Law

$100,000

$10,000

$1,000

$100
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: National Human Genome Research Institute, NIH

FIG. 5: Drug Approvals in the US, 2008-2019

60

50
Number of Drugs Approved

40

30

20

10

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: CDER – Center for Drug Evaluation and Research
TOTAL you have to A. Possible B. Left Over for ISA C. 10% of ISA DD D. Left For
invest each month Allocation to → Direct Debit (DD) → Kept in Cash (In → Investing in Def./
Precious Metals ISA Account) Aggres. Assets

£50 £0 £50 £5 £45

£100 £0 £100 £10 £90

£150 £0 £150 £15 £135

£200 £0 £200 £20 £180

£250 £0 £250 £25 £225

£300 £0 £300 £30 £270

£350 £0 £350 £35 £315

£400 £0 £400 £40 £360

£450 £0 £450 £45 £405

£500 £100 £400 £40 £360

£550 £100 £450 £45 £405

£600 £100 £500 £50 £450

£650 £100 £550 £55 £495

£700 £100 £600 £60 £540

£750 £100 £650 £65 £585

£800 £100 £700 £70 £630

£850 £100 £750 £75 £675

£900 £100 £800 £80 £720

£950 £100 £850 £85 £765

£1,000 £100 £900 £90 £810

£1,050 £150 £900 £90 £810

£1,100 £150 £950 £95 £855

£1,150 £150 £1,000 £100 £900

£1,200 £150 £1,050 £105 £945

£1,250 £150 £1,100 £110 £990

£1,300 £150 £1,150 £115 £1,035

£1,350 £150 £1,200 £120 £1,080

£1,400 £150 £1,250 £125 £1,125

£1,450 £150 £1,300 £130 £1,170

£1,500 £150 £1,350 £135 £1,215

£1,550 £200 £1,350 £135 £1,215

£1,600 £200 £1,400 £140 £1,260

£1,650 £200 £1,450 £145 £1,305

£1,700 £200 £1,500 £150 £1,350

£1,750 £200 £1,550 £155 £1,395

£1,800 £200 £1,600 £160 £1,440

£1,850 £200 £1,650 £165 £1,485

16 4 LIVE ON LESS, INVEST THE REST

19. LINKS

GENERAL LINKS

A. “How to Own the World” - https://pef.io/buy-htotw-3

B. Plain English Finance / Our Community - https://pef.io/community
C. VT PEF Global Multi-Asset Fund - https://pef.io/fund
D. You Need a Budget - https://ynab.com
E. Hargreaves Lansdown - https://hl.co.uk
F. AJ Bell - https://www.ajbell.co.uk/
G. Interactive Investor - https://www.ii.co.uk
H. Plain English Finance / Opinion - https://pef.io/opinion
I. Sharps Pixley - https://www.sharpspixley.com/
J. BullionVault - https://pef.io/2BM6W0K
K. Scottish Mortgage Trust - https://pef.io/3ggk2C7
L. MoneyWeek subs - http://subscription.moneyweek. co.uk
M. Tim Ferris Show - https://tim.blog/podcast
N. Plain English Finance / Email archive - https://pef.io/email-archive
 Part Five - Additional Information 165
PAGE/SECTION SPECIFIC LINKS
i. https://pef.io/3aDWuo3
ii. https://pef.io/39A1Gb9
iii. https://pef.io/2RlJqML
iv. https://pef.io/3dRi6PJ
v. https://pef.io/39EuYpl
vi. https://pef.io/2wYcy5p
vii. https://pef.io/2UVdKPd
viii. https://pef.io/3dR6Enu
ix. https://pef.io/2UDfpda
x. https://pef.io/347358b
xi. https://pef.io/2UAz9OG
xii. https://pef.io/2UEKXzn
xiii. https://pef.io/3bQ4Lpj
xiv. https://pef.io/2w8OyMJ
xv. https://pef.io/3aG9ucT
xvi. https://pef.io/39CMx95
xvii. https://pef.io/2JvVF4X
xviii. https://pef.io/343US4y
xix. https://pef.io/2UFdKnA
xx. https://pef.io/2yv8l9V
xxi. https://pef.io/3aFi23H
xxii. https://pef.io/2xFncye
xxiii. https://pef.io/2X0Fftf
xxiv. https://pef.io/3dZmn3Y
xxv. https://pef.io/2XfolY7
xxvi. https://pef.io/2ZlEhaG
xxvii. https://pef.io/3g4K4rC
xxviii. https://pef.io/2BLGL9Y
xxix. https://pef.io/38a5UYg
xxx. https://pef.io/3dMWrax
xxxi. https://pef.io/3fZybDk
xxxii. https://pef.io/31pTk5w
xxxiii. https://pef.io/38rM22D
xxxiv. https://pef.io/3ix1Ndx
xxxv. https://pef.io/2ZBQBn1
xxxvi. https://pef.io/38sFIrZ
xxxvii. https://pef.io/3ix2qnp
xxxviii. https://pef.io/2C9QLda
xxxix. https://pef.io/3grPdue
xl. https://amzn.to/2u3oezr
xli. https://amzn.to/2MXMo59
xlii. https://pef.io/3gsGmZe
xliii. https://pef.io/2AtfM2E
xliv. https://pef.io/3iF0eu3
xlv. https://pef.io/2VX1Fu2
 167

EXCLUSIVE READER OFFER

OUR “HOW TO OWN THE

WORLD COMMUNIT Y…”

Our stated ambition as a business is to improve the financial affairs

of as many people as possible.
We created our “How to Own the World” online Community with
this goal in mind.
The Community is an ongoing source of financial education and
inspiration, and the accountability that goes hand in hand with being
part of a group of like-minded individuals on a similar journey.
It is hosted by Andrew Craig and the team in a private Facebook
group, and designed to be an interactive support tool to help you get
your financial house in order over time.
Our Community is open to anyone, from those who are just getting
started on their financial journey, to seasoned investors - many of
whom often share their knowledge with the rest of the community
– giving you direct access to a powerful “brain-trust” of several
hundred like-minded people.

Don’t just take our word for it. Below are some of the things
members are saying:

“I can’t begin to tell you how grateful I am to be part of the community. It

has not only helped my knowledge on investing and planning for my
future, but it has also completely changed my mindset towards finance,
wealth management and my daily spending habits. Andrew and the guys
will always come back and give wonderful advice on any question you
168 LIVE ON LESS, INVEST THE REST

may have no matter how silly they may seem.”

— Callum K

“The sheer depth of knowledge offered by other members is astounding.

Then, the resources available on top. Truly excellent group.”
— Daniel H

“Any question you ask in the group is answered by many and everyone is
always happy to help. I love that Andrew also answers most questions, on
a lot of other groups, you hardly ever hear from the main man/woman.”
— Laura G

You can find out more by visiting our website at:

plainenglishfinance.co.uk in the “Our Community” section. We look
forward to welcoming you...

Use the code below to receive 3 months free. You can cancel
at any time, but we hope you will want to stay! Signup now...
(B↗)

LOLITR-3
Research shows that as many as 75% of people in the
UK worry about their financial situation.
Source: The Independent

In America, 25% of people say they worry about

money “all the time”.
Source: CNBC

It need not be like this! We created this Plain English

guide to address this problem head on.
Andrew Craig takes you through the steps needed to get your finances
humming, including:

— Paying off any debt.

— Setting up the right investment accounts such as ISAs and pensions.
— Simple investment strategies you might consider.
— Annual housekeeping and Further Resources.

In this book, you will learn a common-sense approach to investment and the
vital importance of ignoring the news.

If you “own the world”, automate your investments and stick to it, you could
make high single digit to low double-digit returns through the economic
cycle.

Over a lifetime of investment, these returns can make you a millionaire.

Investment need not be that complicated – it is just that most people never
learn anything about it.

This approach will give you the confidence to sort your finances out once
and for all. For most people, this is a huge relief and one of life’s great
problems solved.…

@pef_uk
#LOLITR
plainenglishfinance.co.uk