Lewis - Three Most Important Lessons Youve Never Been Taught

CONTENTS

ABOUT THE BOOK

The Three Most Important Lessons Youve Never Been Taught is a survival guide to living in one of the worlds most competitive consumer economies. We need to change the way we think about money. This book will start you on the path to beating the system, grabbing the best deals and avoiding being ripped off... and it only takes an hour to read.

A company s job is to make money from you; your job is to stop them.
Debt isnt bad; bad debt is bad. Learn to tell them apart.
Loyalty doesnt pay; become someone whose custom is fought for, not taken for granted.

Consumer campaigner and top TV expert, Martin Lewis, first designed these lessons for a unique TV challenge where he had just one day to turn twelve normal 15-year-olds into Money Saving Experts. Yet this isnt childs play - after the class they went home and saved their parents over 5,000. Now its time for everyone to learn these golden rules ...

ABOUT THE AUTHOR

Ultra-specialised journalist, broadcaster and financial campaigner, MoneySavingExpert Martin Lewis, has his own Five TV programme It Pays to Watch, regularly presents ITV1s Tonight and is the regular expert on GMTVs LK Today, Radio 2s Vine and Radio 1s Whiley. His free-to-use, ad-free website www.MoneySavingExpert.com is the UKs biggest money website with over three million visitors a month, and his weekly e-mail newsletter goes to 1.5 million people.

P.S. This book will work whether you use the internet or not. Yet throughout there are lots of web-links for further information to help you save money. The internet is a very powerful tool for MoneySaving. So why not go along to your local library, where you can use the web for free and even get lessons in how to do it?

THINGS HAVE CHANGED SINCE I WAS AT SCHOOL

THINGS HAVE CHANGED since I was at school but not enough. Companies spend billions of pounds a year on marketing, advertising and training their staff to sell; yet we still dont get any buyers training.

This means we as consumers are naked in the face of their commerciality. Its time to change that and Ive a bunch of 15-year-olds to thank for making me realise that.

Where It All Started

The ITV1 Tonight programme gave me a challenge: take a class of ordinary teenagers for one day and turn them into junior MoneySavingExperts. It was a scary concept, and like nothing Id tried before. Yet the results were astonishing: after class, the 12 pupils went home and saved their families a whopping 5,050!

Think about that. These children, with just a days worth of lessons, were able to go home and in a significant way rework some elements of their parents finances. Why? Simple: because as a nation were close to being illiterate when it comes to finances and debt, and people are scared of money decisions and change. Were taught to be loyal and to listen to the bank manager; we dont prioritise our own finances; and we dont take time to sort them out.

At that point I decided it was time to try and help people change this mindset. Not just for themselves, but for the next generation too. This book is an attempt to break the cycle.

The short lessons contained in these pages are based on what I taught the Teen Cash Class, and include some of their reactions. Yet dont think that means its childs play. This isnt a trite guide to opening a bank account or how cheques work. This is a real practical survival guide to living in one of the most competitive consumer economies in the world. In just an hour or so, these three lessons are designed to give you the ability to carefully critique every money action you make.

Fifteen-year-olds learn new concepts every day; theyre like sponges waiting to suck up information. Without doubt, that class was far more adaptable than most adults on whom Ive done money makeovers in the course of my television career.

So whether this is for you, or even your teen, the real question is Can you match up to a 15-year-old?

LESSON ONE:

KNOW YOUR ENEMY A COMPANY ISNT YOUR FRIEND

LET ME SAY this loud and clear at the start: know your enemy a company is not your friend.

It is the single most important thing Ill say in this whole guide. If you dont understand it, youve lost before youve even started.

Now dont think this means Im anti-company; Im not. I dont think they do anything wrong. This is simply a function of how our society works. My problem isnt that their job is to make money; my problem is that most people dont understand this and think instead that businesses are there to help and assist with daily life.

Of course, some companies give a great service, but thats just part of making money. As a business you can attract customers in many ways: using cheap prices; offering the best product; giving great customer service. Yet these are simply all a way to bring in customers and increase your profits.

Sometimes, the very fact they want your cash works in your favour. If youre a new customer and they want business, youre likely to get a great deal. Yet once youve been trapped into buying a product, you may well find that its not right for you, but now theyve got your money, they dont give a stuff.

Why this lesson is important:

Until you understand that a companys job is to make money, you will make the wrong decisions

YOU are the only person who is really bothered about YOU

The aim of this lesson isnt to make you avoid companies but to make you understand them, and remember that when they try and sell you something whether its a mobile phone or debt that doesnt mean its good or bad for you. It means itll make THEM money.

If you dont learn this lesson, companies will be left with smiles on their faces while you will be left eating cold baked beans at mealtimes because it could be all you can afford. A companys job is to make money; it is NOT there to help you; it is NOT your friend. They spend billions on advertising, marketing and teaching their staff to sell; all to make you part with your cash, even when you shouldnt!

Still unsure about this? Right. Think about a supermarket:

The store layout. Items that you regularly buy your bread and milk tend to be sprinkled around the store; so you have to pass by many other tempting goodies to complete your shopping.

Feeling hungry? Delicious food smells regularly waft through the store. Of course, when youre hungry, you buy more food!

Dont look at eye-level. The most profitable stock is placed at eye-level (or childrens eye-level if its targeted at them); yet profitable goods for stores tend not to be the best deals for shoppers, so the adage look high and low for something really does apply here.

Not all sales are super! While grapes and other attractive products may be placed near the front of a store to entice you in with a genuine bargain, the same signage and displays will be used elsewhere to promote deals, yet these mightnt be competitive. Bright colours and the words discount or sale make us feel good, yet the reduction may be pennies, and cheaper equivalent products may still be hidden on the shelf.