Part One in the series: The Smart Start Guide to Wealth in a Digital Age
A few weeks ago, I was at the bar of a local pub. We’d just taken our dogs on a 10k walk in the heat, and everyone needed refreshments. My wife and the dogs were in the beer garden enjoying a well-earned rest, while I was ordering some refreshments.
A pint of lager for me, a glass of white wine for my wife and a bowl of ice-cold water for our pooped pooches.
The bartender told me the price. I held out a £20 note and she held out a card reader. For a couple of seconds, we just stared at each other. The money and the means to receive it didn’t match. I clenched my jaw, feeling a little embarrassed.
“Oh cash, OK,” she said apologetically.
“Sorry,” I replied. “I’m old school.”
That’s when it struck me; only ten years ago, this moment wouldn’t have happened. Cash was king. In the grand history of money, that’s the blink of an eye, the change has been lightning fast. The future of wealth is shifting, and the nature of money is evolving once again, as it always has.
This series is about navigating that shift. If, like me, you see change as both a challenge and an opportunity, I will show you how to adapt and even thrive in the unknowable future ahead.
In this first post, I’ll set out why the future of money is changing and how it will affect you. Later, we’ll get into practical steps you can take right now to prepare. But first, here are the main forces driving the transformation.
The Drivers of Change
We are living in unprecedented times. Today, there are over 8 billion people alive. In the 1970s, when I was a child, that number was 4 billion. The population has doubled in less than two generations.
Alongside this, we’re about to witness the largest transfer of wealth in human history.
1. The Great Wealth Transfer
In the next 30 years, between £5.5 and £7 trillion will pass from one generation to the next in the UK alone. Globally, the figure is around $124 trillion—that’s 124 followed by twelve zeros (Source: fortune.com).
Boomers and their legacy
After the Second World War came the “baby boom” of the late 1940s and 50s. These Boomers entered their teens in the 1960s, sparking huge socio-economic change. Economic growth surged into the 70s and 80s. Consumerism took off. Dual-income households became the norm. Aggregate wealth exploded.
Living longer, holding more
Boomers began retiring in the 1990s and 2000s, enjoying the fruits of decades of growth. Life expectancy, which was far lower when they were born, now stands at around 82 years. This generation is the wealthiest in history, not just in cash, but in investments, pensions, and property.
Home ownership, in particular, became widespread for the first time among this generation. As the natural cycle of life continues, younger generations: X, Millennials, Z, will inherit unprecedented sums.
Governments and corporations have been preparing for this for decades. The rise of inheritance tax, lucrative government contracts, and the military-industrial complex all point to one truth: everyone wants a slice of the pie.
2. Nature as a Source of Value
The second major driver is a shift in what we define as “wealth.” Traditionally, this meant financial assets (cash, stocks, pensions) and physical assets (property, vehicles, possessions). Increasingly, it will also mean natural assets.
Water scarcity will make it far more valuable than today. Forests and countryside will be recognised as vital organs for planetary health, not just leisure destinations. Soil will be cherished as the life-giver it is; without it, nothing grows.
As these resources become scarcer, their value will rise. They will be monetised in more sustainable ways. Regeneration projects will no longer be just altruistic, they’ll be smart economic investments.
3. Societal Threats
Three interconnected threats are reshaping the wealth landscape:
- Poverty
- Inequality
- Environmental degradation
The great wealth transfer will make some far richer, widening inequality. Wage stagnation and fewer opportunities will breed resentment. This will be a recipe for civil unrest.
Meanwhile, ageing populations mean fewer young taxpayers to fund public services. More money will flow out of state coffers than in, pushing governments to raise taxes, squeezing the middle classes and dampening aspiration.
Environmental damage and resource scarcity will drive economic migration, disrupt societies, and fuel conflict. These are effects we can already see.
4. Technology
Technological progress in the past generation has been staggering. Yet socially, economically, and even biologically, we haven’t caught up. Jobs are being automated faster than we can create higher-level work to replace them. This is adding to the mix of social and economic pressure.
5. Globalisation
Globalisation has bundled all these pressures together. Young people aren’t just competing with classmates, they’re competing with peers worldwide. Corporations can shift operations anywhere to chase lower taxes or labour costs, moving their operations from country A to country B overnight.
The Central Bank Digital Currency (CBDC)
One of the most visible outcomes of these forces will be the rise of Central Bank Digital Currencies (CBDCs). This is digital money issued by institutions like the Bank of England.
The Bank of England says CBDCs could “help maintain trust in money and protect our financial system, while improving payments by increasing efficiency and supporting innovation.”
Whatever your view of their motives, CBDCs are coming. Like King Cnut ordering the tide to retreat, wishing them away is pointless. They will change money, and wealth, forever. For those with the right mindset, they’ll also present opportunity.
What It Means for You
You’ll notice changes in how transactions happen. We’ve already seen cash use plummet, but the pace of change will accelerate. Digital transactions will be instant. You might be paid in cash, a bank transfer, Bitcoin, or CBDCs.
Greater transparency will give consumers more power to choose who they deal with based on values and practices. Digitisation may increase financial inclusion but also widen wealth inequality.
And these changes won’t stop at your wallet They will also affect social narratives, mental health and even our sense of resilience.
Coming Up in This Series
In future posts, we’ll explore:
- How assets will change in the CBDC era (This will include portable property)
- Practical steps to build resilience and seize opportunities
- Privacy, control and protecting your wealth
- Global resilience in a changing economy
- The mindset needed to thrive in this new landscape
In the meantime, if you are interested in what asset classes you can invest portable