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The Wise Investor

2 Personal money management
2.1 Wise financial management
John stared across the park, silent.
Minutes passed, and Kate become nervous. She briefly
wondered if John had fallen into some sort of trance, or
forgotten altogether that she was there with him. She waited
for him to say something, unsure of whether to speak or stay
"Err, John," Kate said nervously, "How should we start?"
John's face turned slightly red. "I'm not quite sure, sweetie,"
he said. "Where does one begin with these things?"
He looked a little nervous, Kate thought. She realised that
he was unused to sharing his insights, so she prompted
gently to reassure him. "Let us begin at the beginning," she
said playfully, quoting a passage from Alice in Wonderland.
John raised his eyes and looked beyond the park to the
city skyline. Prominent among the buildings was a half-
finished skyscraper, a famous project that had been plagued
with problems and was never completed. As he stared at the
building, an inspiration struck him and he began to speak.
"We will start with wise financial management," he said
confidently. "Everything else flows from this. If you don't
manage your money wisely, everything else is doomed to
"Isn't that everything, though?" said Kate, confused.
"Not at all," replied John. It is simply the beginning. First,
you must manage your money sensibly. Then, you must save
part of your income. These savings must be invested wisely.
Only then, only once you have done all this, will your
financial position begin to improve. When you have done
this, your finances will be better with each passing year.
Before you know it, you will have independence and choices
you never dreamed of."