the richest man in atherstone

This series of articles was inspired by a wealth-building strategy created by Stuart Goldsmith. It is called 'Double Your way to a Million' and you can sign up for your free copy on this webpage.

No 'Sandwich Man' earnings today but during my lunch break, I popped into the local Sainsbury's supermarket and discovered a 5 pence piece lying on the floor in the car park. A swift 'crouch & lift technique' means an extra 5p to my Doubling Kitty.

Step 10 in progress.
Cumulative Cash: £3.33

This series of articles was inspired by a wealth-building strategy created by Stuart Goldsmith. It is called 'Double Your way to a Million' and you can sign up for your free copy on this webpage.

The Sandwich Man Service cashed in again. The same colleague from last week took up my offer of delivering a lunchtime sandwich straight to his desk for a small 20p charge.

Step 10 in progress.
Cumulative Cash: £3.28

I'm exceedingly pleased with the progress of The Doubler's Den. The community is growing and there have been some great money-making ideas posted as well as plenty of interesting finance-related information in general.

The forum has done so well that within just one month, it has been able to afford it's own domain name. We have just finished relocating it to doublersden.co.uk.

If you're interested in becoming part of the community, pop in and introduce yourself. You can also sign up to download Stuart Goldsmith's marvelous Doubling Strategy here. Simply register your name and email address and you'll receive the report absolutely FREE via email. There's no obligations or requirements. You'll be added to Megastep International's mailing list and will receive periodic financial and personal development emails from them, but you can unsubscribe quickly and easily at any time (even straight after you've got the Doubling Report if you want).

This series of articles was inspired by a wealth-building strategy created by Stuart Goldsmith. It is called 'Double Your way to a Million' and you can sign up for your free copy on this webpage.

After a lull in my Doubling Project due to various personal issues, this week I've done a little work on step 10 of the strategy.

Whilst walking to my car on Monday morning, I discovered a twopenny bit (2p) lying on the floor and took it for my kitty.

On Wednesday, I made 50p from a generous work colleague. In recent weeks, it had occurred to me that many people at my place of work were visiting the same sandwich shop to get their lunch each day. I thought that I could charge a small fee to get sandwiches for others, perhaps 10p per item. I had discussed this with my work colleagues who agreed it was a good idea. Although I hadn't put this plan into action yet, one of my colleagues asked me to pick him up a sandwich for the 10p I had proposed. The sandwich cost £1.50 and he gave me £2.00. Upon my return, he said I could keep the whole 50p change.

Step 10 in progress.
Cumulative Cash: £3.08

Why is it so difficult opening a Savings Account for children? One of my goals for 2007 is to set up a savings plan for my kids and because they had some money given to them at Xmas, I thought it would be an ideal opportunity to change their accounts to something a bit more interest-generous. I identified the Save4it account offered by Halifax Building Society as a good option. Not only does it have a good interest rate but the kids get a free money box.

In short I wish I'd never have bothered.

I thought I'd do it over the phone, as I don't have time to visit the branch - bank's opening hours seem to be restricted so that only the unemployed can visit them and the unemployed shouldn't have any money After assurances that I wouldn't have to visit their premises, I went through a long-winded process to open the accounts. Anyway, at the end of the phone call, I was told that I would receive some documentation to sign, then I had to show my I.D and the kid's birth certificates at the branch contrary to what I'd been told originally. Grudgingly I agreed - I wasn't in the mood for an argument.

The next Saturday, I went into town armed with loads of I.D. My passport has expired and my driving licence still has my old address on it so I wanted to be sure I had enough ammunition to prove I was who I said I was. I arrived outside the Halifax at 12:05. Guess what time the bank closed? You got it - midday. So it was a completely wasted journey.

The Saturday after, I got up extra early and visited the Halifax again only to be told, I couldn't see an advisor without an appointment, even though when I entered the building, three advisors were stood around laughing and joking. After much persuasive diplomacy, they finally agreed to finish the opening of my account. I stood as an advisor typed my details into the computer, then she asked for some I.D. I removed my wad of I.D documents from my bag and showed them to her. She told me none of them were acceptable. By this time I'd had enough. I collected my stuff and walked out.

The ironic thing is that I opened an IceSave savings account for myself around two months ago with no bother whatsoever. I filled in an online form and the account was opened. Just like that.

I'd never used the Halifax before now but rest-assured no matter how good their products are, after experiencing their customer service I don't think I'll ever be using them. Meanwhile, I'm on the look out for a replacement Children's Savings account as I send off for a new passport and driving licence...

Back in May last year I invested £1000 in Premium Bonds. So far, I've won nothing and still have my £1000 worth of bonds. My plan was to keep them for 12 months before re-assessing whether I should keep them or not. This article will discuss the advantages and disadvantages of Premium Bonds as an investment vehicle and conclude with my decision.

How They Work
Basically, the monthly interest earned on every Premimum Bond is lumped together to make the prize fund. Then, a prize draw takes place using a computer (ERNIE), which randomly picks the winners.

The Details
To be eligible to purchase Premium Bonds, you must be at least 16 years old and must invest at least £100 (or £50 via a regular standing order). Premium Bonds can be bought as a gift for a child under 16 by their parents and grandparents. The most that can be invested in Premium Bonds is £30,000.

Premium Bonds are provided by National Savings & Investments, which are backed by HM Treasury so your capital is extremely safe.

The Numbers
According to the National Savings & Investments website, there are currently £26 Billion worth of bonds issued. The interest rate used in the calculation of the prize fund is 3.60% (from February 2007), there are 1,417,836 prizes every month and the total prize fund values £102.1 Million.

Prizes are tax-free and range between £50 and £1,000,000 as detailed below:

Chance of Winning
National Savings & Investments state that the chance of winning (any) prize is one in 24'000 per bond. Using the other figures on their website (1'417'836 prizes and 26 billion bonds), I calculate that there is a one in 18'338 chance of winning something per bond although it's worth noting that these figures may be out of date. Obviously they can't update the figure every time a bond is sold

It is also worth noting that should you win, you still only have a one in 708'918 chance of winning a million, making the odds of grabbing the big prize over one in 17 billion.

How Does It Compare to the National Lottery
The National Lottery (or Lotto, as it is now called) gives each ticket a one in 14 million chance of winning the jackpot, which is usually at least a million. This compares with a one in 17 billion chance with Premium Bonds. There is a one in 54 chance of winning a prize with Lotto, compared with a one in 24 chance of winning a prize with Premium Bonds. However, with Premium Bonds, you retain your capital of £1 per bond and it can be used in multiple draws. With Lotto, each £1 spent on a ticket is lost and the smallest prizes are lower than Premium Bonds (£10).

Advantages & Disadvantages
To summarise, below are the advantages and disadvantages of investing in Premium Bonds:

Advantages:

• Chance of winning a more than you have earned in interest
• Exciting Investment
• Prizes are tax-free
• Capital is retained
• Capital is secure (backed by HM Treasury)

Disadvantages:

• Poor interest rate/prize fund
• Poor odds

My Decision
My personal opinion is that, having looked at the numbers in depth, the disadvantages far outweigh the advantages, so I'll be cashing them in after the June 2007 draw has taken place. This is because the June draw is offering 5 £1 million prizes instead of the usual 2. I may keep a minimal amount (£100) in there for the fun aspect. I'll be using the money to fulfill one of my goals for 2007 - to invest £1000 in something that will yield more than the best savings account.

I have two cashback credit cards. My Morgan Stanley Platinum Card gives me 1% cashback on all purchases up to £2000 per annum and my GE Money Everyday Card gives me 3% cashback on petrol and groceries and 0.5% for anything else.

Over the last few months, I've been paying the balance of my GE Money Card with my Morgan Stanley Card. I didn't think this would be possible. I didn't think GE Money would allow me to pay my bill with another credit card but I tried it anyway and it worked. I also thought that Morgan Stanley would see that the transaction was from another credit card and not pay the cashback. This is not the case. This method has been tried and tested and works!

This means I get extra cashback for purchases I make on my GE Money Card. For example, I typically spend around £240 on petrol per month. Using my GE Money card, I get 3% cashback or £7.20. By paying the GE Money Credit Card bill with my Morgan Stanley Card, I get an additional 1%, or £2.40. This makes an impressive £9.60 rebate every month for petrol.

Unfortunately, it's not possible to pay my Morgan Stanley Card bill with my GE Money Card, otherwise I would bounce money back and forth between the two accounts maximising the amount of cashback earned (until I reached my limit).

I wonder, is it only GE Money that have this loophole or are there others out there?