A Rich Life Letter Survival Guide

HOW TO BEAT THE BANK BLOODSUCKERS

How to protect your wealth over the coming years and stop your bank leeching thousands from your account!

by Lewis Geary

CONTENTS

Foreword.............................................. page x
Intro..................................... .......... page x

Tackle the taboo that could be losing you thousands! Credit Addiction how to beat it for good........... Mortgage tricks that will leave your bank fuming..... How to avoid becoming a debt slave!.................. More tips to keep debt at bay........................

page xx page xx page xx page xx page xx

How to stop banks ripping you off when youre abroad.. page xx And while Im here.................................... page xx

Round up..............................................

page xx

Foreword
My name is Lewis Geary. Im the author of The Rich Life Letter, and Minimum Wage Millionaire. This report covers some of the ways you can stop your money from ending up in the pockets of the big banks and other greedy financial institutions. If youd like to get more free information on ways to make money, save money, build wealth and live a happier life then please check out The Rich Life Letter. Twice every week I email my inner circle of readers with a free newsletter packed with advice and tips. If you like the ideas in this report, Im sure youll love my no-nonsense approach to personal finance. Enter this web address into your browser now and sign up on my website:

www.richlifeletter.co.uk

Introduction
Dear Friend, You never see them... You never hear them... But in the dead of night, while youre sleeping safely in your bed, they sink their teeth into your bank balance and drain away your cash, little by little. Sounds like an intro to a horror film doesnt it? But this is worse than a horror film. Much, much worse. In fact, if I showed you how much from you over the years in unfair payments and rip-off loans, youd made you sit through back to back The Texas Chainsaw Massacre. the banks have probably taken charges, bloated mortgage probably scream more than if I screenings of The Exorcist and

Seriously, this is a MUCH bigger threat to your wealth than the recent banking crisis. Okay, it riles us when incompetent, greedy bankers... the very same bankers who almost caused a global catastrophe and sent us spiralling into recession... pay themselves huge bonuses with OUR money. And it REALLY riles me when the government does nothing about it except wring their hands and say we really think you should behave yourselves. But the banking threats I want to tackle today pose a far bigger threat to your wealth than any banking crisis... because if you sit back and do nothing, the banks (and credit card companies) will slowly drain your wealth away. Pound by pound. Thats why I decided to put this guide together for you...

To help you beat the banks, to help you cut out unnecessary spending, and help you keep more of your hard earned cash to spend on yourself. So without further ado, lets get going...

BEFORE YOU DO ANYTHING ELSE... Tackle the taboo that could be losing you thousands!
Ooh youll never guess what Mrs Miggins at number 42 has been up to? Ooh, well I never! I wondered why shes had so much plumbing work done recently... ooooh! etc... While we love to blabber and speculate about what goes on behind closed doors, theres one subject we HATE to talk about. Money. For some reason, where cash is concerned, we clam up instantly like its some great taboo subject that cannot be discussed: thou shalt not talk about your finances... your salary... bills... or spending habits with anyone, under pain of... of... Severe embarrassment! We Brits are odd creatures, arent we? Get this: research from the Your Money Matters roadshow claims that 25 per cent of us have NO IDEA how much money we spend in a week! Madness! The thing is, by ignoring your finances you could be walking blindly into a whole heap of trouble especially at the moment.

The biggest money mistake you can make

The credit crisis has caused financial mayhem in the UK. Everything from savings to mortgages and shares have been affected. And if you take the pretend its all not happening approach, Im sorry to say this, but youll only have yourself to blame if things go pear-shaped. Id like to help you avoid that painful eventuality if I can. AND help you stay on course to achieve your financial goals in the next 12 months.

Thats why I say: you LITERALLY cant afford for money to be taboo subject in your house. So get control. Do a FULL audit of your income and expenditure, savings, investment, loans and mortgages. Leave nothing out. Do it this weekend or if not, as soon as possible. Interrogate... probe... and discuss. See where youre leaking valuable pounds AND pennies... see if theres a way to bring down the cost of your borrowing... see where you can make cutbacks in your spending. Get the family involved. See if you can do all of this without compromising your lifestyle too much. Yes, its a pain in the backside... yes, it might be embarrassing. Yes, it may take you a few hours when youd rather be watching The X-Factor or whatever else is on. But its absolutely vital to your financial future. So make sure YOURE in control of your money. Then follow these simple tips to make sure the banks and credit card companies cant get their hands on it...

Credit Addiction how to beat it for good

I heard a particularly sad tale at the weekend. A friend of mine told me that the situation at his work place is really grim... overtime has dried up due to the economic downturn and blokes who had gotten used to doing the extra factory shifts were breaking down in tears at being told there was no more after-hours work to do. I feel desperately for these guys. Its a sticky situation for the employer, too they are a business, after all. They dont HAVE to provide overtime for workers. They would undoubtedly prefer to get the job done on time in every instance. Overtime is a costly (but previously affordable) failsafe theyd had to rely on all too often. Unfortunately, workers had come to rely on it too. According to my pal some had even factored the money made from extra shifts into their mortgage borrowing which is incredibly dangerous... But I rather suspect they were egged-on by over zealous lenders back when we had a buoyant credit market (it seems so long ago now!) This is precisely what sparked the credit crunch in the US: greedy banks loaning too much money to lower-income people who couldnt afford to pay it back. Its only now that the effect of this greed is really starting to bite worldwide. And who suffers the most? Ordinary, hardworking people like my friends colleagues. His firms customers are cutting back their orders... which means theres less work to do and as their overtime bill was one of their biggest expenses, the company are happy to reign in these costs. So the people who have come to rely on this extra work are completely scuppered.

What to do about the growing cost of living

Were all looking over our shoulder a bit at the minute. My shopping bill has gone up by about 20 a week and thats even AFTER Ive employed my sneaky supermarket survival tricks... But even if Alistair Darling is right, and we ARE facing the biggest downturn of the last 60 years you dont have to go under as long as you ACTIVATE your finances! If you sit there watching as the situation worsens, fretting about how youre going to meet your rising bills, youre not thinking like a rich lifer. I know its easy to say but its at times like this when you need to be at your most dispassionate. You need to stop looking at your debts as huge weights around your neck and see them instead as mechanisms that can be tweaked and controlled to your advantage. Im not talking here about your utility bills, council tax, food bills, or any other such monthly costs although there are positive things you can do to bring these down i.e. switching energy providers, request a re-evaluation of your homes tax band... better budgeting... etc... The debt mechanisms Im interested in are your mortgage, personal loans, car finance, credit or store cards... your borrowing, as opposed to your bills. Tweaking these can have a huge positive impact on your overall debt burden. And you have more control over them than you probably realise... Right now you should be exercising that control. Instead of having 5 or 6 different debt-streams leaving your bank account each month at varying interest rates... you should aim for ONE consolidated debt that trickles out of your account at the lowest rate you can get. Sounds difficult, doesnt it? Well it isnt, as long as youre prepared to put a bit of effort in...

Why theres no such thing as a set-in-stone loan

Lets look at your borrowing. In a moment well take a look at your mortgage and how to use it PROPERLY. Because if you have one, its THE best and most flexible debt mechanism at your disposal... Then well go through any personal loans, store cards or car finance that you might be paying anywhere between 9-35% interest on... Because theres A LOT you can do to get yourself better deals and save yourself a ton of money. For example, when you borrow money from any approved lender, you agree to pay it back over a certain period of time at a preagreed fixed or variable interest rate correct? Many people think that this agreement is set in stone. But it isnt, necessarily. You can always ask any lender for a settlement figure i.e. the cost of paying that debt off in full then clear it with a credit card... For example, if you had a personal loan of 2,500 paying 9% interest and outstanding car finance of 3,000 paying 12% interest why not explore the idea of paying both off with one credit card... and then transferring that balance to a low-rate life-of-balance credit card? That would knock a hefty chunk off your monthly outgoings! So, rest assured, there are plenty of ways to make sure the banks and credit card companies take LESS of your money, not more. Lets start with the biggest loan of them all...

MORTGAGE TRICKS THAT WILL LEAVE YOUR BANK FUMING!

Lets face it... Unless youre Richard Branson, buying your house will be the biggest expenditure of your life. And for most of us, that means taking out a massive loan in the shape of a mortgage. Even my parents who were dead against buying anything unless you could pay for it in cash had a mortgage. Its just something most of us will need at some point in our lives. But how you handle your mortgage once youve got it could make a huge difference to your wealth over the years. Seriously, if you get your mortgage right and make it work for YOU rather than the banks, you could end up 20,000... 50,000... 100,000 richer by the time you retire. In fact, making sure you get the best deal over the lifetime of your mortgage could save you around 4,996 a year! Its that important. Here are some simple ways to make sure you end up a lot wealthier by the time your mortgage is paid off...

How to pay off your mortgage much quicker

As long as youre clued up on your mortgage... and youre aware of the different types of products that are out there, you can still pay it down - and even off - well ahead of time...

No matter WHAT happens to interest rates! Did you know that the word mortgage is derived from two Latin words meaning, literally death pledge? Im not trying to scare the Bejesus out of you - it just amazes me the way people gloss over their mortgage debt sometimes... But contrary to what you might think, living the rich life is about facing up to, and even embracing your debt; not ignoring it. If you know what youre up against, and how it works, you can beat it. Remember: were talking about 25 years of your life here... most MARRIAGES dont last that long these days! I remember a couple of years ago watching agog as lenders like HSBC and Alliance & Leicester offered homebuyers 40-year terms on their mortgages... As I recall, Tesco went the highest of all with a whopping 52YEAR deal! The joke always used to be: you get less than that for manslaughter... but I think you actually get less than 52 years for MURDER! Talk about a death pledge...

The golden rule of personal debt

I believe that your mortgage is THE most important bit of financial business youll ever do in your life, so you always need to be on top of it. Remember, even though its a huge commitment, your mortgage doesnt have to be set in stone - you can change products many times over the course of your loan. And you should: interest rates can vary wildly over the course of a mortgage. You can just sit there and let them do their worst - or you can use this to your advantage... its up to you. You should always make sure your mortgage is working FOR rather than against you.

This means ALWAYS making sure every penny of your personal debt is being paid at your lowest rate, which is most likely your mortgage... and looking for products that tie your home-loan into your bank account, called offset mortgages. (Though these arent for everyone, so make sure you get proper advice from a professional mortgage advisor) There are TONS of things you can do to bring forward that beautiful day when youre completely debt free... in spite of the prevailing financial conditions.

Never pay more than 2% mortgage interest

If youve never looked into switching your mortgage because it seemed too complicated or time consuming, I hope youll forgive my frankness but youre missing a huge trick. I guess its because youre uncertain... you probably have tons of questions about what to do... whats right for you... and how its all going to affect your finances. Im guessing some of these questions sound familiar: Will I make any money from switching in the current market? What kind of mortgage is right for me in the current climate? When is it right to switch? What will it cost me to switch? What kinds of fixed-rate deals are right in the current financial climate? When and how do I remortgage? Is it worth remortgaging if interest rates are only going to carry on going up? Where do you look for the best deals? Is it still a good idea to buy-to-let? Will I ACTUALLY end up paying less if I switch? Will I ACTUALLY pay my mortgage off any quicker if I switch?

Now, in case you hadnt already figured it out, your bank would LOVE you to stay with them for the full term of your mortgage. But you dont have to. There are plenty of ways to activate your mortgage out there - as long as you know where to look...

For example, did you know: How to find mortgage deals that offer 2% - even if rates go up to 8% How you can buy a 1 Million property without putting a single penny down

And this is probably my favourite activation trick of all at the moment - I think this is GENIUS:

How to wipe 2,500 off your mortgage in a week

Heres a brilliant idea: multi-currency mortgages. Sounds strange, doesnt it - and a little complicated but it isnt. You see; were only stuck with UK interest rates while our mortgage debt is in STERLING. But say you were to move your debt into another currency... and then to another... and another... you could, in theory, always ensure you were paying the LOWEST possible interest rate around! And these kinds of mortgages DO exist. The advantage of this, of course, is that your repayments are lower. But the other advantage of a multi-currency mortgage is that you can use it to pay off your debt quicker. Heres an example... Say you had 100,000 worth of debt and moved it into US Dollars at $1.95 to the pound... then say within a week, the rate is $2.00 to the pound, you move your mortgage back into Sterling and youve knocked 2,500 off it in a week! Now I know that currency markets are volatile and risky... Ive used this to my advantage a couple of times when spread betting but yes, I know it could work against you if youre not sure what youre doing. The beauty of these mortgages is that they are managed for you by forex market pros! Again, Im not suggesting a multi-currency mortgage is right for you, but did you even know they existed?

Everyone likes to talk about how they own their own home but its a myth. Until youve paid that last penny off - and youve got the deeds in your hand to prove it its the property of the bank. My view is that you should ALWAYS be looking to pay it down... and lessen the impact your mortgage has on your monthly finances. This is a Rich Life Letter maxim... and one of the cleverest and most prudent things you can do to secure your financial future more quickly.

How to insure yourself against rate rises

Now if youre looking for peace of mind at the moment, knowing how much your mortgage is going to cost you every month no matter what happens to interest rates is one way to get it. Switching to a fixed deal is one way to insulate yourself against a raft of rate changes. Of course, if rates stay low or even drop further you could lose out if youre on a fixed deal in which case you can look to switch again (always read the small print!) But if they go up and I reckon they have to at some stage youll find yourself well insulated. Like I say: if you keep on top of your finances you can ALWAYS make sure circumstances are working with you and not against. Have a look for yourself go to www.moneysupermarket.com and search for fixed rate mortgages. Remember, if youre in any doubt over the right kind of product for you, you should consult a professional mortgage advisor.

HOW TO AVOID BECOMING A DEBT SLAVE!

When I was a lad (back in the days when Penny Farthings were all the rage), I was taught to save, save, save. Spending was seen as a bad thing, saving a good thing. And, usually, it makes sense. BUT... Over the last ten years or so, something has truly poisonous has reared its ugly head and has threatened every household in the country. Im talking about debt. Of course, we ALL have debt at some point or other, usually in the form of a mortgage. But although it doesnt seem like it at times, the government make some effort to keep mortgage rates low (low for a loan anyway). And in the last chapter I ran through ways to pay off your mortgage and keep the costs as low as possible. But over the last few years, OTHER debt has become a real problem, mainly in the form of credit cards. And debt is one of THE main reasons why most people struggle to build a real wealth. So, here are a few ideas to help you get out of debt and keep control of your finances. First off...

Saving when you have debt is a false economy!

Why would you keep a sum in the bank and earn 3% on it when you have a monthly credit card bill that charges you 18%? It doesnt add up. Saving is great we should all do it. But not while we have credit card and personal loan debt - get these cleared first then you can feed the piggy bank.

Use your mortgage wisely

Can you borrow from other debt that charges you a lower interest rate to pay off your credit card? Im talking here specifically about borrowing against your mortgage. 5% on your mortgage has to be preferable to 18% on your credit card! Let me put it another way: Would you rather have a spread of debt like this: 100,000 mortgage at 5% interest 10,000 personal loan at 7.5% interest 5,000 car finance at 12% interest 5,000 credit card balance at 15% 1,000 store card balance at 30% interest Or a 121,000 mortgage debt at 5% interest? Well, lets look at the benefits: Youve only one monthly payment to worry about not five... If you put all of your personal debt onto your mortgage (i.e. remortgage and pay it off) you can cut HUNDREDS off your total monthly payments. Also you can continue to pay the same amount per month if you wish and clear down your debts much more QUICKLY... For example...

Say you owe 5,000 on your credit card, and the interest rate on that card is 15%. You can afford to pay 75 a month which means itll take you 142 months to clear. Now lets say you move this debt onto your mortgage the interest rate here (for the sake of argument) is 5%... You can pay the SAME 75 a month and the debt will be cleared in 78 months roughly HALF the time! Like I say: dont sit there wallowing: ACTIVATE your finances! Approach your mortgage lender to see if theyre prepared to lend you an extra amount on top of your home loan to pay off your debts. If youve had your current mortgage deal for over a year phone your lender and tell them youre after a more competitive rate AND that you want to borrow more money on top! (Dont ask dont get... though Im not sure this applies if youre on a fixed-rate deal!) If they want to keep your business they may well offer you a better deal there and then. Most lenders employ sales teams who are bonused on customer retention. I.E. It is THEIR JOB to offer you whatever it takes to persuade you to stay... If you tell your lender that youre considering switching to a different mortgage provider, you might be pleasantly surprised by what happens! As with all of these kinds of negotiations, it helps to have ammunition to hand when you start the process off. So take a couple of hours one evening this week and start researching different mortgage deals online. It really is a good investment of your time. Mortgage comparison websites are a good place to start gathering intelligence. Here are a few: http://www.fsa.gov.uk/tables/ http://www.moneyfacts.co.uk/mortgages/default.aspx http://www.charcol.co.uk/ http://www.moneynet.co.uk/mortgages/index.shtml http://www.moneyextra.com/compare/mortgages http://www.moneysupermarket.com/mortgages/

Final word: I promise you, consolidating all of your piddlyfiddly debts into your mortgage WILL have a dramatic effect on your monthly outgoings. Its the intelligent thing to do: if you can renegotiate terms with your existing lender (a better product or interest-only) or get an improved deal somewhere else, you may be able to neutralize the effect of your other borrowing completely!

How your credit card can get you out of debt

I know I know... Ive already moaned about the blight of credit cards. But if you know how to play them, they can throw up some advantages that are worth exploring... Right now (subject to approval) you can get rates as low as 4.9% on some life of balance cards (meaning the rate stays that low until youve paid back the debt however long it takes!) And if youre happy to have a pay-back deadline, you can still get a 0% interest rate on some credit cards - for as long as 17 MONTHS! Check some of these deals at www.moneysupermarket.com. My advice: apply for the credit card, pay off any outstanding finance with it then cut it up! FOR HEAVENS SAKE DONT SPEND ON IT!!! Credit cards get a bad rap in the personal finance media but believe it or not, that little piece of plastic is the SECOND most flexible debt mechanism available to you (assuming you cant get a long-term interest free loan from a friend or family member). Used sensibly, your plastic can help you consolidate and clear down your debts FAST... You can dilute debt by moving balances around, and theres no fee for paying your debt off early, in full.

Check your life insurance policy

Certain variable policies allow you to borrow money against the policy maturity amount. Its a way to get your hands on cash at lower than market interest rates.

With both of these options, do your research and make sure theyre right for you before taking the plunge. If in doubt, always seek professional advice.

This might end up being the best way to reduce your debt payments...
This wont be for everyone but why not ask friends or family for a loan? Chances are youll get a very favourable interest rate... maybe even nil! This can be a tricky one so if you do it, make sure you agree with them IN WRITING a repayment schedule that way youll avoid misunderstandings and hard feelings. And it goes without saying that you should stick to this!

How your neighbour can give you a cheap loan

Theres another way to borrow money cheaply without resorting to banks, building societies, loan sharks or Channel Five daytime TV ads... Im talking about credit unions and there may be one in your area... Credit unions are financial co-operatives owned and controlled by their members. They offer good value loans, plus other banking services like current and savings accounts, ISAs and Trust Funds. To join a credit union, you must have a common bond with existing members. But dont worry this isnt the freemasons. The common bond may be as simple as living or working in the same area... working for the same employer... or belonging to the same association, such as a church or trade union. Most credit unions loans will cost you no more than 1% a month on the REDUCING balance of the loan (an APR of 12.7%). So if you borrowed 1000 over one year, you would repay no more than 1067 in total. Not bad, eh?

Many credit unions charge less, some may charge more but by law this cannot be more than 2% a month on the reducing balance (an APR of 26.8%). Better still, credit union loans have no hidden charges and no penalties for repaying the loan early. And even better STILL - life insurance is built in, at no cost so if you died before youd repaid the loan, the insurance would pay it off for you. There are more than 500 credit unions in the UK. To find out if theres one near you, click on this link and use the search facility. http://www.abcul.coop/page/index.cfm There are, of course, plenty more things you can do to save money and head-off financial uncertainty in rocky periods. Ill keep packing my Rich Life Letter email with them. But please for your own sake dont ignore your finances: the last thing you need at the moment is for your own money to be working against you!

MORE TIPS TO KEEP DEBT AT BAY!

How to avoid the minimum payments trap
If youve got a large credit card bill and theres no way you can pay it back in full, you need to draw up a budget. First, work out what you owe, in full. Then figure out the ABSOLUTE most you can afford to pay off your credit card each month. Remember: If you stick to the minimum payments (PRECISELY what your bank wants you to do) youll hardly touch the balance and just prolong your debt agony. So think hard... you dont want to be paying your credit card company simply to service your debt. So how can you make your monthly repayments bigger? First sounds stupid but STOP using this card and any other store or credit cards while this debt still exists. The last thing you want to do is add to your overall burden particularly with compounding working against you. Then lets try to bring the interest on the debt down: that means looking for a balance transfer for this credit card. There are some good deals around at the moment go to www.moneysupermarket.com and see if you can find one that suits you. But make sure you dont spend on this new card as purchases are often charged at a higher rate! Also, check very closely how long the new card will give you at the preferential rate. Some are 6 months (bad)... others are the lifetime of the balance (good!)

The b word that can reduce your interest

The other thing to do is to organise your bills and make sure youre paying as much by direct debit as you can. This will give some much-needed structure to your finances and will show you exactly how much money you have spare to pay off your debts at the end of each month. Remember the more you can pay off, the better! Another thing you can try is to call your creditors and explain the situation youre in, calmly and politely they may be able to help. This is a classic dont-ask-dont-get strategy... Tell them you borrowed the money in good faith, you absolutely intend to pay it back but that repayments are starting to get on top of you and you fear you MAY have to go bankrupt. The key here is not to ACTUALLY go bankrupt! That can leave a stain on your credit rating for YEARS... But if you MENTION the b word to your lender, youll be amazed at how they suddenly start bending over backwards to help. Remember they want their money back. If you go bankrupt they may not even see a penny of it. So what you may find is they reduce your interest rate by a few percent or kill the interest completely. Banks and credit card companies actually LIKE communication it shows willing on your part. So dont be afraid or embarrassed to pick up the phone and ask them what they can do for you. And finally if you REALLY want to clear down this debt: be disciplined and single minded about it! I always find getting really indignant helps... particularly about paying interest! I get so affronted that I should pay EVEN ONE PENNY more than I borrowed. That keeps me nice and disciplined until the debt has gone!

How to stop banks ripping you off when you go abroad

The way things are at the moment, when you kick back on holiday and spend your hard-earned cash in local bars, restaurants and gift shops, youre not the only one having a good time... Your bank is too. The loathsome practice of loading is where your bank charges you an additional percentage ON TOP of the exchange rate for spending abroad on your credit or debit card. They do this because they can. This is usually about 2.75% - but it wont show up as a separate charge on your statement, the underhanded so-and-sos! They also whack a 2% levy on any money drawn from foreign cash machines on your credit OR debit card. Some banks even charge you an ADDITIONAL fee for every transaction you make overseas on your debit card... around 1.75 a go. Beware this if you bank with Halifax, Lloyds TSB, RBS or NatWest. Little tinkers, arent they, with their hidden rip-off charges... But heres the thing: There are two credit card companies that dont charge A PENNY when you use them to make purchases abroad... (Although I should point out that they do charge a 2% fee for withdrawing cash so dont!)

Apply for one of these now, in plenty of time for your holiday...
Our first holiday-friendly credit card is provided by The Post Office. For more details click on this link: http://snipurl.com/1j8p1 The second one is my favourite: the Nationwide Classic card. Click on this for more information or to apply: http://snipurl.com/1j8pk My advice first: get one of these no-commission cards. Second: dont change up ANY cash before you fly. Take sterling with you and change some while youre out there (but in a licensed bureau - NOT in a pricey hotel) to cover drinks and ice-creams. Use your holiday-friendly plastic as much as you can (the examples above are both Visa so theyll be accepted practically everywhere). But DONT draw cash with it unless you absolutely have to. Then, make sure you pay the balance off these cards IN FULL when you get home. That way you wont pay any interest on your holiday spending. Job done. Final point on this: in shops, always make sure you pay in the local currency. Especially as your holiday-friendly credit card wont charge you a penny for the transaction. I know its easier to think in terms of sterling when youre abroad but dont. Leave it to a retailer to decide on the exchange rate and you could end up being royally ripped off! Theyll count on your ignorance to load the deal in favour of themselves! And we dont want that, now do we? After all, its YOUR holiday; youre the one whos worked hard all year... why should anyone else profit?

And while Im here...

Right, thats the banks and credit card companies out for the count. If you put a bit of time into it and CHECK whats coming out of your bank account, Im utterly convinced you can cut down on bills and charges and save thousands over the years. Really THOUSANDS. Imagine that for a moment... Imagine having 10,000 MORE in ten years time, just for doing a little housekeeping now and not just accepting what the banks and credit card companies initially offer us. Wouldnt it be great to have an extra 10,000 sitting in your account in the future? I mean why let the banks have it when you or your children could be enjoying it instead? So dont put it off pick through the payments youre making and see how much less you could be paying. And while were here... As were talking about saving you a ton of money, I just couldnt resist throwing in a little advice on battling another necessary evil the taxman. Of course, taxes are necessary for the country to survive. And I have no problem in some of my hard earned cash going towards helping people who havent been as lucky as me in life. Im sure you feel the same. But do you want to pay MORE tax than you have to? No, thought not. Me neither.

But chances are, you ARE paying too much tax. You see, most of us believe that theres nothing we can do about the tax we pay... that the biggest chunk of it gets whisked away before we even see it. But theres plenty you can do... as youre about to find out... And then theres the moral issue of paying our way which I do believe in. But I do get cross when I see vast sums of MY money being wasted by the Government on ill thought-out projects and hair-brained schemes. Maybe you do too. Not that disagreeing with the way my pounds are spent is any defence for avoiding tax, you understand... Of course, The Rich Life Letter is not a political vehicle... Im sure things would be the same no matter who was running the show. And thats why my first loyalty is to my family. So if there are ways, loopholes, strategies and tricks I can employ to keep more of my own money legally then Im sure as hell going to look into them... And then pass the detail onto you, naturally ;)

What if you could keep more of YOUR money?

The main problem with the taxation system in this country is that its so damn complicated deliberately so. And because of this we rarely hold it up to scrutiny... because where would we start? Im no tax lawyer dont ask me! Every year tens of thousands of tax returns arrive late at the Inland Revenue. I honestly think this has less to do with avoidance and more to do with people putting it off because the whole process is such a pain in the backside. The revenues main tax return form is TEN pages long for crying out loud! <shudder>

But it works: you see the cloudier and more complicated the system is, the more well simply pay HM Revenue & Customs what were told to like a bunch of compliant little lemmings. But I remind you: this is YOUR money... YOU earned it... so YOU should get more of a say in how its spent right? Right? Can you honestly say, hand on heart, that every bit of your income wages, earnings from shares or property, interest earned on savings, inheritance is being taxed at the correct amount? You might be shocked: according to independent financial advisers yellowbrickroad.com, approximately THREE-QUARTERS of all taxpayers are paying more tax than they need to! Dont you think you should check your situation out as a matter of priority? Im not talking about, or advocating, tax evasion because thats illegal. But theres absolutely NO reason whatsoever why we cant ALL be more tax EFFICIENT... There are some great and easy ways to LEGALLY pay less tax without having to jump through too many hoops! Here are a few ideas:

6 ways to pay less tax

*** Get an ISA... Individual Savings Accounts (ISAs) allow you to invest up to 7,200 a year in a tax-efficient wrapper. You can make investments either in cash or stocks and shares. Any interest earned on your savings, and any gains made on your shares are tax free. For more on ISAs click here: http://www.moneysupermarket.com/isa/ *** Get pensioned up... A pension is a brilliant way of ringfencing your money. For every 78 you save you'll get 22 tax back, boosting your investment to 100! When you retire, you can take 25% of your savings as a tax-free lump sum but the rest of your pensionable income is taxable. Ask your employer if they have a final salary scheme it might be your best option tax-wise. This calculates your pension

based on the number of years you've worked and your salary when you leave. *** Claim tax back... non-taxpayers can claim back tax charged on the interest on your balance in bank and building society accounts. To get back your tax you need to complete Inland Revenue form R85 form, which you can download at this website: www.hmrc.gov.uk/forms/r85.pdf Heres an idea: if youre a taxpayer and your spouse isnt, you might want to consider transferring any savings accounts into your spouses name... but if you do this, the account must be solely held in your non-taxpaying partners name not joint names! *** Save As You Earn... Check whether your company has a Save As You Earn (SAYE) scheme. This is a savings-related share option scheme, set up by your employer, that allows you to purchase shares in the company you work for at a discount... and you pay for them out of your PRE-TAX salary... for more, click here: http://snipurl.com/2w95x *** Check your tax code... We Brits overpay MILLIONS of pounds in tax each year and much of this is because we are given the wrong tax code! First thing to do is march on over to your payroll or HR department and ask how your tax code has been generated. Ask them to explain the coding to you so that youre in the know. Then telephone your tax office and ask them whether or not you have been put in the right category. You could find yourself getting a nice fat tax-back cheque plus your wage packet will be more substantial going forward. This website will show you how to contact your tax office: http://www.hmrc.gov.uk/individuals/iwtcontact-my-taxoffice.shtml *** Offset your mortgage: Ive banged on before about the many benefits of offset mortgages... and heres another one: by offsetting your savings against your mortgage, you dont pay tax on the interest that your deposits would otherwise have earned. Okay, you dont earn interest on your savings, but you will pay less on your mortgage and that means youll cut its term. An

example: If your mortgage rate is 5.95% and you offset 10,000 against a 100,000 mortgage, this is equivalent to earning 7.44% on that money if you're a basic-rate taxpayer or 9.92% if you are a higher-rate taxpayer. For more info, click here: http://www.offsetmortgagecentre.co.uk/

Uh-oh... rant alert...

Look none of this is sneaky or illegal. Its perfectly above board to make your finances more tax efficient. Why would you give away a PENNY more of YOUR MONEY than you legally have to? Like I say, Im not averse to paying my way I like to think Im a member of a fair society where everyone contributes their share to the running of things. But I do REALLY do take exception to the totally unfair and seemingly arbitrary array of taxes imposed on us in this country. Its a good job I havent got enough room in this report to get stuck into Inheritance Tax (IHT)... thatll have to wait for another day. It makes me puce with rage just thinking about it... you work hard all of your life, trying to make a crust for yourself and your kids... You pay into the system in all kinds of ways: through income tax, road tax, national insurance, duty on petrol, wine, cigarettes, import duty, council tax... You know as well as I do: the list is endless. And then, at the end of your days, if you havent got your affairs sorted out, the government can lay claim to a whopping 40% if your estate through Inheritance Tax! Decency laws wont allow me to print what Im thinking so I think its best for everyone if I just step slowly away from the keyboard, go and crack open a cold can of Budweiser and see if theres any cricket on the telly!

ROUND-UP...
I hope youve found this survival guide useful. If just ONE tip helps you save money, then my job is done because I HATE to see good, honest, hard-working people lose money unnecessarily. Especially when there are ways you can fight back and keep the banks, the credit card companies and even the taxman away from your money. But none of this is any good unless you do one thing... You USE this information! I know it may be a drag to make a few phone calls or do a little research on the Internet. And itll be an even BIGGER drag to go through your loans with your bank manager. But unless you pin these things down and DO THEM, youll never be as wealthy as you could be. And thats what this is all about making sure you grow wealthy by keeping hold of money thats rightfully yours. So go through this guide again, and get to work! Ciao for now, Lewis Geary The Rich Life Letter

Afterword
Let me show you how to enjoy a standard of living way above what you earn... make good money on the side... and save a packet without having to make painful sacrifices!
If you enjoyed this free report, youll love my twice-weekly email service, The Rich Life Letter. If you havent signed up for it yet, you can so so at www.richlifeletter.co.uk Ive spent most of my adult life discovering hidden ways to lead a wealthier, happier, more-fulfilling and stress-free life without any major upheaval... now I can help you do the same... Twice a week, Ill send you lots of tips, ideas and little known ways to live and feel like a millionaire, WHATEVER your wage packet says you earn. Youll learn how to get control over your finances fast and make money work FOR you instead of against... how to make extra cash easily... and how to pay less for the things they buy... without making major cutbacks. Here are some of the tips Ive shared with my readers in the past... The TV trick that could get you a better quality 42" plasma set for 900 less than the "top-of-the-range" model. How a "debt diet" could save you A GRAND in a month great if you need to pay off your credit card quickly... or save for a holiday New Tyres you never know if youre being ripped-off. But visit this website and you can leave your car on the drive and let the cheapest tyres in your area come to YOU Is your bank penalising you for being a loyal customer? Put a stop to it NOW and get their top rate by making one phone call Mobile phone contract up? This trick will get your providers BEST handset and CHEAPEST tariff.

How to get tons of free stuff from coffee... to perfume... to cat food. Why spend s on your weekly grocery shop when you can get it for NOTHING? Revealed: the "hidden" side of investing that gives you all of your profits TAX-FREE - legally!

Ive tried many of the tips, tricks and techniques Ill share with you every week, and Im considerably better off for it. I dont think I could go back to living the old way ever again... Maybe youll feel the same in a few months time... Ill also help you navigate a safe route through this difficult, incredibly bonkers and often dangerous financial world we inhabit. I can dig out some of the hidden tree stumps, sweep away the banana skins and fill in the potholes to help smooth your passage. And the best bit about living the rich life? You dont have to slave away like a navvy... suck-up at work... or kill yourself chasing down that elusive million-pound-payday... All it takes is a few, small, simple (and weirdly obvious) changes to the way you think about your job, wealth and family life. Your friends will definitely notice the difference in you, but theyll never guess how youre doing it! The Rich Life Letter is 100% FREE. Youll never be asked for a penny to read it no hidden charges and no strings attached! Whatever we think about money, the truth is that it is incredibly important in all of our lives. Financial problems can rip families apart. They can damage your health and destroy your peace of mind and quality of life. But having more money in your pocket every month can be a huge stress-buster: you can live well, enjoy yourself and afford the things that youd normally have to do without. Imagine having the extra discretionary cash to pay down your mortgage, loan or car finance... and reduce your overall debt burden... Imagine not being under quite so much pressure at work OR at home. How would your relationships and emotional state improve not to mention your quality of life? For hundreds of moneymaking, money-saving and wealth building tips, ideas and strategies, go to www.richlifeletter.co.uk now and sign up!

Heres what other readers have said about The Rich Life Letter... I enjoy reading your weekly letters and feel I have found a kindred spirit. Keep it up. Alwyn Smith Let me say how much I enjoy reading your practical down-toearth tips on how to organise life so that it works how I want it to. And also to tell you how much I enjoy applying those tips. That's when the fun really starts! Andie Just writing to say how much I enjoy your twice-weekly eletter. I am a mum working part-time, realising that leveraging my time so I can spend time with my family is the way to go now. Gradually putting things in place to achieve this (though it's a bit tight in the jar just now!) It really makes a difference hearing from people who are of the same mindset, and scanning through the ideas to see what fits for me. Keep up the good work! Anne Smith I've subscribed to your Newsletter for a little while now and always really enjoy reading them.. Your article about customer service/how not to run a business should be required reading for Chairmen/CEOs/MDs of companies of all sizes - not just potential entrepreneurs. What you said is so obvious - and simple - that one would expect everyone with any remote sense of business acumen to apply these principles. Inga Collison I heartily endorse the contents of your Rich Life Letter. It should be printed and framed and a copy hung in every workplace! Well done and thank you. Pamela Bower I enjoy reading your insights into the financial world, your emails always give me food for thought. Many thanks for your amusing insight in an otherwise dull subject.

Claire Martin Just a quick note to tell you I enjoy reading your emails and usually ponder your latest tips. Real food for thought. Keep 'em coming. Thanks. Colin S Great stuff Lewis! I don't praise lightly. There is so much BS and hype about all the time. I enjoy your open, honest style as "one of us" - the longsuffering masses. Keep up the good work. David Wow! I always look forward to receiving your Rich Life letter but wow, wow and triple wow! I am going to print your email and pin it to the notice board by my desk to remind me of what we are doing right and more importantly what we have let slip. Denise Remember, The Rich Life Letter is 100% free of charge, and you can unsubscribe at any time. So if youre not onboard already, why not give it a go? Just pop here for a second and sign up now: www.richlifeletter.co.uk