What is the current interest rate? A good question and one you should be able to answer. You see, there are certain things you should not ignore, regardless of how boring they are to you. One such thing is the state of economic affairs of the country where you live and work.
For your information, the Bank of England increased the interest rate to 5.25% today. My worry however is not for today’s interest rate, but for that of the future. Why worry about the future? Following Miyamoto Musashi’s advice, you need to see distant things as if they were close and take a distant view of close things.
I read the other day about the UK’s tax burden growing to about 42% of GDP (Gross Domestic Product) over the next 50 years. In other words, you and I will be paying a lot of tax, which in turn means goods, and services will continue to be expensive.
The findings of this report produced by the treasury should not be a shock. After all, the congestion charge was brought in a few years ago at £5 and we are already being asked to pay £8. My guess, the fee will be increased and extended again within the next 5 years.
The fact is we are in for a life of tax increases and you cannot and should not ignore it; rather you should be thinking and doing something. How old will you be in 30 years? I will be just over 60 years old and will hope to have made, saved and invested enough money to look after my family and me. The last thing you want at that age is to be broke and a burden to your family and society.
If taxes are going to increase at such an alarming rate, then you should be asking yourself, would my money grow at the same rate or more. It will have to, if you are to live comfortably in the future, but it can’t if you are doing nothing about it. There are a number of things you need to do, and I will mention three here.
1. Understand how the state of affairs of the economy affects every area of your life.
2. Have a good idea of the state of affairs of your money.
3. Find ways to increase your money.
Paying attention to all things money should be a priority, because like it or not, it affects every area of your life.
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