Part 257: Patience and Inaction

Hello and welcome back to Mortgage Advisor on FIRE.  This week I discuss patience and inaction in the context of investing.  Also, a busy week of walking.  

Weekly Update

Last Sunday, Oana and I walked along the canal and river to Meadowhall.  In terms of the weather, it was a bit rubbish, but the walk itself was great.  We saw lots of wildlife along the river, including different types of ducks such as Mallards and Gooseanders.  We also saw Cormorants, different types of Geese, Herons, a Kingfisher, and much more.  For a moment we also thought we saw an Owl, but it turns out it was just a statue.  Fortunately, no one saw Oana trying to attract its attention.  Anyone claiming I also tried to get its attention is lying.  

Once we got to Meadowhall we walked over to Tinsley to start the walk back along a different route.  We made it about two-thirds of the way before exhaustion, and the fact we were absolutely soaked from the rain, got the better of us.  An Uber was requested and we got home, cleaned up, and made some food.  

Walking and Cooking

We’ve been enjoying our regular walks, and we’ve also enjoyed making new food via our Gousto subscription.  I made an incredible mushroom risotto.  I added a few bits and changed a couple of the processes, but I think it would have been nice regardless.  The recipe called for two types of mushroom; chestnut and flat, but I added some shitake to the mix.  Also, once the mushrooms had released all their liquid, rather than draining and discarding it, I used it as part of the stock for when I added the rice.  There were a couple of other tweaks made to the amounts and timings in the recipe, but when we ate it we were blown away.  It was lovely.  

Much of the week has been spent either walking or working on my Lego Titanic model.  I’ve also been contacted by numerous recruiters asking if I want to discuss new jobs.  I generally don’t, but one opportunity sounded positive so I scheduled a call which then never happened.  There are a fair few bullshitters out there.

Scammers

On the subject of which, I experienced a pretty poor attempt at scamming earlier in the week.  I’m looking to sell a couple of things on Facebook Marketplace; nothing too exciting, just some exercise equipment.  Someone contacted me and was keen to buy.  I thought their use of language was a bit weird, but figured they were just a bit out there.  I normally prefer to receive payment by bank transfer, but this person started going on about having a business bank account and needing my email address to generate an invoice.  This is all bullshit, and if you are asked to provide this in future just ignore the request and block/report the other person.  

How to protect yourself

I believe that the idea is they send you an official-looking invoice/statement showing that payment has been made (it hasn’t) and then they will ask to collect the item soon after.  So, you end up without an item and without payment.  Another strand to this is that the payment confirmation they email maybe for too much money, at which point they will ask you to refund the difference.  However, as no money has been sent to you, you are just sending the scammer money.  

Whilst I’m on the subject of scams, if you get a call from an unknown number and they ask a question that would normally result in you answering “yes”, please try to train yourself not to do so.  Some places will try to record your voice as a way of getting access to other accounts.  I suspect the risk is minimal, but minimal is not the same as no risk.  

An example of what I mean…

Scammer: Is that David Scothern?

Me: who is calling?

Rather than…

Scammer: Is that David Scothern?

Me: yes.

The important thing to remember is that when anyone contacts you out of the blue, whether it’s a phone call, knocking at your door, or approaching you on the street, they are not trying to do you a favour; they are trying to get something from you.  It might not always be immediately clear what they’re trying to get, but you can bet they’re after something.

Pizza

Towards the end of the week, I went out for some food with Oana and a few of her colleagues.  They’re a nice bunch of people but I was quite focused on my pizza because, well, it’s pizza.  On Saturday Oana and I went on a big walk around the city.  We set off in the direction of Norfolk Park and tried to get as high as possible, geographically speaking, not on drugs.  

We don’t deserve animals

Along the way, we saw an older woman with crutches/walking sticks very slowly walking up the hill in the park.  She had two small dogs with her, and neither of them was on a lead.  These dogs were so sweet, staying with the woman and matching her pace.  One of the dogs approached us and sniffed us a little; I think he was making sure we were not a threat.  It was so sweet and heartwarming seeing these dogs being so protective and attentive.  We asked the woman if she was ok and if she needed help, but she said she was fine.  We don’t deserve animals; they’re too good for us sometimes.

Later in the walk, we saw a cat, which we stopped to talk to.  This cat was incredibly sweet and had a lot they wanted to get off their chest.  We stopped for ten or fifteen minutes and this cat was talking to us, rubbing up against us, and generally being a sweet little thing.  It wasn’t a stray and was living in the home at the entrance to the park, but it definitely wanted to be our friend.

Coffee

We debated whether to go to a different park, or whether to head towards a food hall we wanted to check out.  In the end, we decided on the latter.  We stopped at a coffee place, 84 John Street, and had a nice chat with the guy making my latte.  He seemed like a nice, genuine, kind of guy and I liked that he took real care and attention to the process of making my drink. 

A common mistake places make when heating milk is that they simply overheat it.  Also, the depth at which the steam nozzle is placed in the milk can impact the texture.  For a latte, you want the milk to be silky smooth and not too foamy.  This latte was bang on.  I’ll definitely return for a coffee at some point, but it’s not anywhere close to my usual haunts.

Health

My weight continues to drop, and I’m getting more people asking if I’m losing weight.  There’s not a simple magic bullet I can point to and this weight loss is down to a combination of things; more physical activity, eating better, and coming off antidepressants.  

Poppy

It was Poppy’s 15th birthday this week and we spoiled her with some shredded chicken.  She loved it. Pops is now the cat we’ve had the longest, and she’s still loving, affectionate, and completely crazy.  We love her so much.  

Diabetes UK Step Challenge

From July 1st until September 30th Diabetes UK is running a step challenge to raise money for their cause.  There are three step targets to choose from; 500k, 1m, or 1.7m.  I had originally gone for the 1.7m steps, but it’s become clear I’ve bitten off more than I can chew.  I’m now aiming for the 1m target.  

If you’d like to follow my progress or make a donation, it can be done here.

Letters to Oana

Part 2 of the series Letters to Oana is now live.

Looking Back

Part 15 of the Looking Back series is also live.

What I’m Doing

Listening: The Three-Body Problem by Cixin Liu (audible).

Watching: nothing at the moment…

Yes, I’ve started on The Three-Body Problem series of books again. Don’t judge me – they’re awesome.

Website Stuff

It’s getting to that time of year when I need to pay to renew my domain and plan with my site host.  I will probably never make money from this blog but I would like to reduce what it costs me to run.  There are a couple of ways you can help and it will not cost you anything.

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Financial Update

Assets

Premium Bonds: £15,100.00.

Stocks and Shares ISA: £92,927.90.

Fuck It Fund: £1,716.35.

Pensions: £84,390.08.

Residential Property Value: £234,044.00. 

Total Assets: £428,178.33.

Debts

Residential Mortgage: £185,693.35. 

Total Debts: £185,693.35.

Total Wealth: £242,484.98.

We’re almost in the final third of the year and I’m happy with how my finances are shaping up.  Now the BTL is off the books, I’ve got a more accurate idea of what my situation looks like.  I’m delighted at the growth in my ISA and pension funds, and my hope that they’d hit £80k by the end of 2024 has been achieved early.  I’m not going to get my hopes too high, but I’d love for them to both finish the year above £90k.  

I’m not expecting too much to change in the remaining weeks of 2024.  My Fuck It Fund and Premium Bonds will likely change in December as I reallocate funds, but it will then be a waiting game until the new financial year starts in April.

Doing nothing is still a choice…

Many people, in my experience at least, adopt a head-in-the-sand approach to money.  It’s seen as too complicated and too big to worry about, and so people just ignore it.  The thing is, it’s not the sort of thing that goes away if you ignore it.  Our world is built on money, and the more secure your financial position is, the easier life becomes.  If you choose to not address financial concerns head-on, it’s still a choice; doing nothing is still a choice.  In this respect, doing nothing is very much a bad thing.

Doing nothing is not always a negative though.  There are situations where doing nothing is the best course of action.  For me, one example is when I’ve put money into my ISA.  Once I’ve invested the money, it makes sense for me to leave the money where it is so it can grow over time.  Doing nothing, for me, is the best thing.  

When it comes to investing, there’s often a strong urge to act, whether it’s buying, selling, or reshuffling your portfolio. We’re constantly bombarded with information about market fluctuations, economic shifts, and opportunities that seem too good to miss. What is often overlooked, however, is that doing nothing can be one of the most powerful actions you can take.  Inaction is still a choice, and sometimes, it’s the best one you can make.

Market Volatility

Markets go through cycles of ups and downs, and reacting to every minor fluctuation can be detrimental. Successful investors often emphasise the importance of patience and letting time work in your favour.

One of the key principles of long-term investing is the power of compounding, where your returns generate their own returns over time. By resisting the urge to tinker with your investments constantly, you allow compounding to do its work. 

Markets are volatile. It’s common to see dips or spikes in stock prices. However reacting to these short-term changes, especially out of fear or greed, can lead to costly mistakes. By doing nothing during market volatility, you give yourself the chance to weather the storm, which often leads to better outcomes than trying to time the market.

Investing is not about instant gratification. Many investment strategies take years, if not decades, to fully realise their potential.  By choosing to do nothing, you allow your strategy the time it needs to succeed.

Doing nothing is not the same as ignoring risks though.  There are times when action is required, such as rebalancing after a significant market shift or responding to a fundamental change in circumstances.  However, the key distinction is that inaction should be a deliberate decision, not an unconscious drift. If your financial goals haven’t changed, doing nothing can be the most effective move.

When our financial goals are often set over periods of years, or decades, it can feel as though not much is changing day-to-day, but this is where patience is so important. 

That’s all for this week.  Thanks for reading, and I hope you have a great week ahead. 

Disclaimer

The views and opinions in this blog are my own, and do not represent the views or opinions of my employer, nor should they be considered advice.  

If you want personalised financial advice, seek an appropriate professional.  If you are in financial difficulty, seek advice via the resources below:

StepChange

MoneyHelper

Biolink 

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bio.link/davidscothern.