Many of us have borrowed too much, spent too much, and are now looking to survive the next couple of years until the economy recovers. Our debt is manageable for now because of artificially low interest rates. How long will that last?

My Presbyterian upbringing made me initially suspicious of debt “Neither a borrower, nor a lender be” [Okay, that was Polonius from Hamlet, but the thrust is the same], so for my first thirty years on the planet, my only debt was a mortgage on my home.

However, in the nineties, I discovered that property was a ‘investment asset class’ so embarked on ‘building a portfolio’. The rental yield only covered the mortgage but there was capital growth so the equation kinda worked, at least for a while. However, I had no idea what a portfolio was, and I had no real understanding of risk and reward.

In 2005 I reckoned that property was dead as an investment so started to divest, but found it illiquid. As of now I still own a couple of apartments in Spain with what were 50% mortgages, a chalet in the French Alps and a home in the UK: and an uncomfortable level of debt. I could (and will) downsize but this is not the best time to do it.

In the last couple of years I have been studying for the CFA exams (CFA stands for Chartered Financial Analyst) and this has given me an appreciation of the meaning of the following terms: investment, risk, reward, portfolio.

If only I had known then, what I know now….

This blog aims to cast some light and understanding on

• the credit crunch – what is it?
• good and bad debt
• understanding risk and reward
• what is a portfolio?
• as an investor how do I thrive or survive in the next 24 months?
• as an employee how do I thrive or survive in the next 24 months?
• as an business owner how do I thrive or survive in the next 24 months?
• as a self-employed professional how do I thrive or survive in the next 24 months?

Certainly, I have not finished my studies, but I do have growing knowledge of finance and investment that I aim to pass on through this blog, the fortnightly newsletter and an e-book.