Looking Back: Part 21

Originally published March 22nd, 2020.

Introduction

Hello and welcome back to Mortgage Advisor on FIRE.  There’s a lot to discuss this week. I will talk a little about conspiracy theories and why they are dangerous, and then move on to my financial response to the Coronacrisis.  

Coronacrisis? How did this term not end up in mainstream use?

Weekly Update

It’s been my first week back in work following my return from India.  I’m so relieved that I made it back to the UK, as had I been any later there is a very real chance I would still be stuck abroad.  It must be so frustrating for all those who are trapped away from their homes at the moment. I know my girlfriend is feeling the distance from her family.  

It was only a few days after we returned that the UK shut down. It would have been less than ideal to be trapped outside the UK during a global pandemic.

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In terms of distance, the importance of social distancing at this time cannot be overstated.  It should not even be that difficult in an age of video calling and social media. It’s annoying that so many people have not heeded advice until now, purely thinking of themselves instead of thinking how they may be the carrier that passes the virus on to other, more vulnerable, people.  Tragically, people will die because of this thoughtlessness. One of the best pieces of advice I saw was to act as if you were already infected. If you were already infected you avoid contact with other people and become a hermit for a couple of weeks, or at least I hope you would.

It still frustrates me when I think about how many people just ignored basic guidance re: social distancing, mask-wearing, and handwashing. It almost certainly will have contributed to avoidable deaths.

Conspiracy Theories

“IT’S ALL A PLOY TO GET US MASS VACCINATED!”

Erm… ok?

I keep seeing people posting things like this on social media, claiming that the coronavirus is all a ploy to get us mass vaccinated.  The thing I’m not clear on, and after questioning the people posting this, I don’t think they are clear on it either, is what we are supposed to be getting vaccinated against and also, why.  

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“Why?” is a question that shuts down most crackpot theories.  Another conspiracy theory I’ve come across is that this is all a hoax to force society to self-isolate.  I ask again, why? What would be the point? What would be achieved?

“Why?” is a great question for this sort of bullshit.

The government wants to use vaccines to implant trackers in our bodies.

Why?

They want to track us.

Why?

Because they want to know about how habits, who we see, what we spend on, that sort of thing.

Ok, two points; first, they can already do that. Second, why?

Another way to shut down these theories is to ask people for their sources.  Most of these conspiracy theories come from unverified sources lacking general credibility, and this is just a polite way of saying “some dude off Facebook.”

Conspiracy theories can be fun.  There are several theories which I’ve gone down the rabbit hole with, including the 9/11 theories, the sinking of the Titanic, the Phantom Time hypothesis, and even Flat Earth theories.  The thing is, for me, it is entertainment and a way to sharpen my critical thinking skills. There is a host of research in the psychological literature that shows if you believe in one conspiracy theory, you are more likely to believe in other conspiracy theories. 

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For the most part, it’s pretty harmless to society. If you choose to believe the Moon landings were faked, or that the Earth is flat you aren’t really harming anyone, with the exception you might be socially isolating yourself (although Flat Earth has a large community now).  There are some conspiracy theories, though, which can be extremely harmful to the extent they can cause death.

Anti-vaxxers are fucking idiots.  Let’s just get this out of the way first.  There is not a shred of credible, peer-reviewed, evidence that links vaccines to things like autism.  Every single argument from anti-vaxxers can be deconstructed quite easily by the medical establishment.  Vaccines are safe, and they save lives every day.  

A few days ago, someone I know shared a status on Facebook which was one of the typical “things were better back in the day” posts.  It described how their parents used to use the same knife and chopping board to cut fresh chicken and then butter bread, and then stated how their packed lunch for school was not kept cool.  It also described how they were not given antibiotics and sterilisation kits for bee stings (I think it’s rare that a bee sting gets infected, but I digress). Anyway, it was one of those posts that got my back up a bit because on the face of it, it’s pretty inoffensive but when you drill down it has the potential to be dangerous.  

Survivorship bias should be taught in schools from an early age. So much bullshit in society could be avoided if people had a better understanding of this concept.

Of course, the only people talking about living through all these unsafe practices will be the ones who survived, because had they not survived they would not be here to talk about it.

Let’s take a trip back in time.  According to the ONS, Infant (aged under 1 year) mortality has dropped from 9.4 to 3.9 per 1,000 live births over the last three decades.  Life expectancy has also improved substantially in the last few decades, as per the charts below from the ONS. 

There is a survival bias when people look back at the past.  People can look back now and say “Well, I survived so cross-contamination from food preparation was not dangerous” or “I survived playing in the dirt” and so on.  The thing is, of course, you survived because you’re here to say it. What about all those that did not survive?  

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So, coming back to my point a couple of paragraphs ago.  Why are statements on Facebook, promoting the unhygienic past, dangerous?  It’s because it subtly promotes a return to that way of life. If just one parent decides to make their child’s cheese sandwich with the same equipment they prepared raw chicken, there is an increased risk that the child will die at an early age.  The same principle applies to those who do not vaccinate their children.  

How does this relate to the coronavirus conspiracy theories?  Well, if people are posting BS theories that are not backed up by credible evidence, it runs the risk of convincing other, uninformed, people to disregard government and medical advice.  If people do not practice social distancing then we are in this for a longer period. For most people, the virus will be an inconvenience, but if you are one of those people disregarding medical advice you risk passing the virus on to the elderly or those with compromised immune systems such as cancer patients.

Throughout the pandemic, I lost count of how many times I had this argument with people. Just because you felt fine, and just because you were not worried about the virus, it did not mean you couldn’t transmit it to someone vulnerable. The infection chain might be several people long, but eventually, it would reach someone with a weakened immune system. The entitlement of some people was astounding.

Another thing to remember, if you think the actions by the government are heavy-handed, is that it’s easier to scale back an overreaction than it is to ramp up an underreaction.  These measures might be extreme, but I have little sympathy when we have to explain how you should wash your hands in the year 2020. I wash my hands regularly and thoroughly, and I’ve had people comment on it before.  The thing is, for the last twenty years or so I have always washed my hands according to NHS guidelines. I see people come out of bathroom stalls and then just flick their hands briefly under a tap. This is not washing your hands.

I remember one whiny little asshole I temporarily lived with several years ago who thought that dipping his hands into a sink of water, where dishes were soaking, was the same as washing his hands. This is what happens when you have a mother with room temperature IQ, and you have much in common with a bungalow; you both have nothing upstairs.

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Now that I have vented, let’s move on to the financial update. 

Financial Update

Premium Bonds: £15,000 (up £1,275 from last update). Target Met.

Stocks and Shares ISA: £6,353.84 (down £725.71 from last update).

F**k It Fund:£1,879.51 (up £265 from last update). 

Property Value: £181,626 (no change from last update).  

Total Assets: £204,859.35 (up £814.29 from last update). 

Credit Card Debt: £1,732.14 (down £27.80 from last update).

Loan Debt: £2,906.84 (down £29.38 from last update). 

Residential Mortgage: £133,673.84 (no change from last update). 

Total Debts: £138,312.82 (down £57.18 from last update). 

Total Wealth Figure: £66,546.53 (up £871.47 from last update). 

The ISA is continuing to take a pasting, but I’m not worried.  This is a good thing for long-term, regular investors as it means we get more from pound-cost-averaging, which I will come back to shortly.  I have now hit my target of £15,000 in Premium Bonds, which was going to be used for a BTL deposit. However, those plans are on hold. I’ve spoken with my business partner and we’ve agreed to hold our plans until there is more clarity about the impact of Covid-19 on the property market.

Financial Comment

In my last post, I argued for the need for flexibility when investing.  I have also promoted the concept of process goals over outcome goals, as I believe if you stick to a general process (i.e. regularly investing and continual financial education) you will achieve financial independence.  I still believe that and I have small outcome goals that help direct the path my process goals will take me on, such as raising enough money to pay my half of a BTL deposit. The outcomes are just signposts though, that I’m on the right path.  

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With Coronavirus spreading as it is, many people are finding themselves in uncertain financial times.  There are many resources out there to help if you are struggling with debt or budgeting.

Resources

StepChange
URL: https://www.stepchange.org/contact-us.aspx

National Debtline
URL: https://www.nationaldebtline.org/

Citizens Advice
URL: https://www.citizensadvice.org.uk/

Money Advice Service
URL: https://www.moneyadviceservice.org.uk/en

Do not suffer alone if you are struggling.  If you are in financial difficulties, please contact one of the above organisations for help and advice.  If you are going to struggle to meet your mortgage payments, please contact your lender as soon as possible.  In the first instance, use their website. I know some lenders are offering payment holidays you can apply for over their website.  This will help reduce the strain on those working in the offices who are dealing with long queues of calls. If you do apply for a payment holiday, please make sure you understand the implications of this before agreeing to it.  

Support for Mental Health

Although the Coronavirus is primarily a physical issue, the impact it will have on the mental health of the nation should not be underestimated.  Although we are to remain socially distant, it does not mean we should be emotionally distant. Talk to those around you. Be kind. If we continue to be there for each other emotionally we may end up saving lives.  

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If you are struggling with your mental health, please reach out to your friends and family, or one of the organisations listed on the NHS link here:

https://www.nhs.uk/conditions/stress-anxiety-depression/mental-health-helplines/

I have seen more than a few BTL portfolio landlords, and Rent-to-Rent landlords state they are struggling as their tenants are unable to pay rent having lost their jobs due to the Coronavirus.  In response, I made a point, which caused some controversy; if you are in financial difficulty because your tenants have missed one payment, then you have overstretched yourself and are guilty of the same lack of contingency planning you accuse your tenants of. 

I see many landlords who operate under the mindset of “more, more, more” and will leverage to the maximum degree to obtain as many properties as possible. I hope this will be a wake-up call that more isn’t always better. One thing I have discussed in depth with my business partner is the need for a significant contingency fund should anything go wrong with our first BTL.  I would not be able to sleep at night if I did not have at least six months of funds behind me.

I saw something on social media recently that summarised this point nicely; “portfolio size is vanity, equity is sanity”. Having twenty houses leveraged to 90% LTV is not as sensible as having ten houses at 50% LTV.

Pound Cost Averaging

A few weeks ago I explained this concept, and I think now is a good time to revisit it.  The stock market is taking an absolute hammering at the moment with many shares tanking. There are some signs that the collapse may have bottomed out, but it’s my personal view that stocks could fall even further.  We are only in the first few weeks of the Coronavirus impacting business in the UK, and Europe as a whole. As more businesses close their doors and more people lose their jobs, I suspect we may see more than one high-profile casualty in the stock market as well as significant further falls across the board.  

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The basic concept of pound-cost-averaging is that you spread your investment in stocks out over time.  The frequency isn’t all that important, you could spread the investment out weekly, monthly, quarterly etc but remember that trading fees can impact the overall cost of each stock.  I invest monthly as it matches the frequency of my salary.  

An Example

An Example (trading fees and taxes ignored for simplicity)

Month 1: You invest £1,000 in a stock priced at £20 per unit.  You purchase 50 units.  

Month 2: You invest £1,000 in the same stock which is now priced at £17 per unit.  You purchase 58 units and have £14 left over.

Month 3: You invest £1,014 in the same stock which is now priced at £18.50.  You purchase 54 units. You have £15 left over.

Month 4: You invest £1,015 in the same stock which is now priced at £22.  You purchase 46 units. You have £3 left over.  

In total, you have purchased 208 units at a cost of approximately £4,000.  The average (mean) cost of each unit of stock was £19.23. This is pound-cost-averaging.  

If you had instead saved your £4,000 and invested in month 4 in one lump sum, your £4,000 would have purchased just 181 units.  

This can go the other way, where you end up with fewer units by spreading your investing over several months. My view now, years removed from this original post, is that I’d rather get money invested ASAP so that it has more time in the market to grow.

As the quote goes; “It’s not timing the market, but time in the market that counts.”

Changing Focus

Now that I’ve saved my deposit for the first BTL, I’m going to switch my focus to investing aggressively in the stock market.  Although I invest heavily in index funds, I also have a small selection of individual stocks that I invest in. I believe in the long-term future of these stocks and some of them have lost 50% of their value since the start of the Coronacrisis.  There are bargains to be had. Even if you look at index funds only, the Vanguard FTSE100 Index Fund has lost approx 25% of its value in the last month. It may drop further, but I firmly believe it will bounce back in time. The Vanguard Global Bond Index has remained fairly static throughout the last month, but in the past week or so it has started to drop by a much smaller amount than the stock market.  

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As I stated before, I firmly believe this is a great time to invest in the stock market as long as you have done your research.  If you invest without research, you are just gambling.  

Final Notes

The most important thing now is to stay calm and be prepared.  This applies to your finances, your health, and your work. We are in uncharted waters and we don’t know for certain how this virus is going to impact us in the short, medium and long-term.  The only way we get through this is together. Be there for the people you care about and please try not to scaremonger.  

I hope you have found this part of the blog interesting and if you have any questions or feedback, please leave a comment.  

Looking Back: Parts 18, 19 & 20

Originally published on 13th March, 2020.

This post covers our trip to India just before the world shut down due to Covid, and I had one of the most difficult times of my life as several other things hit me all at once. It wasn’t a good time, but I feel as though I’ve (mostly) come out of the other side now.

Introduction

It’s been a few weeks since I last updated this blog.  Part 17 was posted on 21/02/2020 and I’m frustrated at the gap between posts.  This week I will explain a little about the reasons for the gap.  I will also look at the impact of the coronavirus on my investment strategy.  First of all, the weekly update.

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Weekly Update

I was thinking I should rename this section “Weekly Updates” but I did not want to confuse matters unnecessarily.  In Part 17 I explained that I would be leaving for India, but I did not realise that I had the departure dates mixed up. 

At least I ended up arriving on the right date. I know of other people who arrived at the right airport, at the right time, on the wrong date. I mean, two out of three isn’t bad, as such, but you can’t board a plane that’s not there.

I thought I was flying on Saturday 29/02/2020 but I was flying the day before, and Friday is the normal posting day for this blog.  Part 18, as a result, was lost in the mix.  To be honest, I had a draft of Part 18 ready but it was not my best writing and I think it’s best to just leave it in my saved files.  The plan, as mentioned in a previous post, was to have a guest blogger post an update whilst I was in India but that did not come to pass either.  With a very limited internet connection in India, I was not able to post anything.  So, apologies for the gap between posts.  I have not given up on this blog and am still passionate about the project and the journey to financial independence.

And I’m still here years later, older, wiser, and still as passionate, which is in no small part down to my readers.

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India

India was quite disappointing.  In brief, the main issues stemmed from the agents messing us around. We had booked a “luxury” package but it was far from luxury.  Also, we knew this was a trip that involved some travelling between cities but in the eleven days we had in India I calculated that we spent approximately seventy hours on the coach. 

The hotels ranged from adequate to terrible.  In one hotel we had an issue where our room had no hot water and it took over two hours for the hotel to move us to a different room.  This was late at night after a long day in dirty streets.  The hotel’s conduct during this issue was disgraceful.  Another hotel had no power or water from the time we checked in at around 19:00 until almost 22:00.  This meant after a long day on the road we had no toilet facilities, showers or even lighting. 

Another hotel marketed as five-star could not accept card payments, something not disclosed at check-in, which meant that when it came to paying bills, many guests were having heated conversations about paying their expenses.  

The tour guide was also spineless.  There was a group of thirty-six travelers and there was a real division within the group.  One of the travellers insisted on sitting next to the driver in the forward cabin of the coach, and we could see him distract the driver several times.  We narrowly avoided accidents on multiple occasions but the tour guide said he could not do anything about it.  We challenged the other traveler but he refused to change seats. 

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I was quite vocal about this issue and another traveller started making comments about me to other members of the group.  I was told about this, and I calmly confronted the woman to ask if she wanted to clear the air.  She became abusive and I told her to mind her own business in future.  She then sent her husband to speak to me, but I made it quite clear to them both that I would not tolerate their nonsense further.  All of this made the trip pretty underwhelming.  

Time has not been kind to my memories of this trip. It was, in large part, awful. We were basically scammed with many of the advertised destinations and activities replaced by others due to, what I’m almost certain, was bribery. It went like this; we were promised a visit to such-and-such temple. Instead, we were driven to some remote place that had people making jewellery or clothing. We were then pressured into buying things we didn’t need.

Initially, I quite liked our tour guide but after just a couple of days, my opinion of him shifted.  Early on in the trip, we were offered an upgraded meal plan that would include dinner at the hotels in addition to breakfast.  This would be at the cost of £10 per person, per night.  We accepted the offer.  Nothing was mentioned in detail about payment, so I assumed that it would just be a card payment to the travel agent or local tour operator.  Now for a little tangent…

The Indian currency is the Rupee.  You cannot buy the Rupee outside of India.  The currency is highly regulated and you are not permitted to transport the currency across India’s borders.  I have cash across three banks, as well as a credit card.  Two of my bank account providers do not charge for using their debit cards abroad or for foreign ATM withdrawals.  However, I had to try many different ATMs to find one that would work.  When they did work, the daily withdrawal limit was 10,000 Rupees, which is roughly £110.  This has to pay for general expenses, lunches and so on.  It does not leave much room to accumulate the cash needed to pay for the meal plan in Rupees. 

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It was not just me having an issue with ATMs not working.  On several occasions, there was a queue of people from our group all trying to draw money from Indian ATMs but they would not work for any of us.  I called my banks and they stated they had no record of attempted withdrawals, which meant the issue was probably that the connection timed out between the Indian banks and the UK banks.  The card readers in shops and restaurants were no better.  Our tour guide was well aware of all these problems.  

When we were in Jaipur, one of our last destinations, we were told that we needed to make payment in cash.  We ended up being driven around the city in a Tuk Tuk trying to find an ATM that would work.  We failed.  I explained this to our tour guide; he would either have to find a way to allow a card payment or an online transfer.  After some debate, I was sent a link to make an online payment.  However, the hotel we were at by this point had no wi-fi. 

On the coach the next day, the guide used his phone as a hotspot.  I spent an hour, as we were driving through the Indian countryside trying to make the payment but the signal kept cutting out.  I eventually gave up.  I was only able to make the payment on the last day.  The guide kept pestering me to give him the money.  I ended up asking him if he thought I had some magic power to summon cash out of thin air, and I think he got the message.  

One of the most frustrating things about this trip was just how bad the food was. Oana and I love food and experiencing authentic cuisine from around the world. When I think of Indian food, I think of spices, fragrant mixtures of vegetables, grilled chicken, lamb, and fish. Also, different types and textures of bread, with a sense of warmth and comfort. What we experienced was overcooked bowls of tasteless, mushy, veg. At one of our last hotels, part of a Western chain, they had a chicken burger and fries on the menu. I almost cried with joy.

On the positive side, my girlfriend and I spent time together away from the pressures of day-to-day life.  We made the best of our time together and got to experience another culture and way of life.  We saw the Taj Mahal, several forts, and temples steeped in history.  We also made some great friends in our group including Jane and Melvyn, a retired couple from the Birmingham area.  We met Tess, a lady living not far from us in South Yorkshire.  We also spent time with a lovely Indian family, and our joint dinners at several of the hotels were great fun. 

I also spoke briefly with some other members of the group who seemed like interesting people whom I would like to have known better, but the time pressures of such a trip made it difficult.  I hate being so negative about travelling.  I love travelling, and even when things don’t go to plan, there are normally ways to resolve the situation.  Both my girlfriend and myself agree though, this was our least enjoyable trip in the thirteen years we have been together.  We feel like we need a holiday just to recover from this trip.  

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Financial Update

Premium Bonds: £13,725 (no change from last update).

Stocks and Shares ISA: £7,079.55 (down £1,533.87 from last update).

F**k It Fund: £1,614.51 (up £1.40 from last update).

Property Value: £181,626 (no change from last update). 

Total Assets: £204,045.06 (down £1,532.47 from last update)

Credit Card Debt: £1,759.94 (up £1,759.94 from last update).

Loan Debt: £2,936.22 (down £400 from last update). 

Residential Mortgage: £133,673.84 (down £286.73 from last update). 

Total Debts: £138,370.00 (up £1,039.10 from last update). 

Total Wealth Figure: £65,675.06 (down £2,571.57 from last update). 

You will notice two massive changes since the last update.  My credit card balance has increased significantly.  As I’ve stated previously, I normally run my credit card at a zero balance where it is paid off as soon as it is used.  India threw a spanner in the works as we had to spend much more than expected.  Also, with my bank cards not working properly in India I had to rely more on the credit card even though it charged me a fee for non-sterling transactions.  It’s probably going to take a couple of months to reduce that balance back down to zero, but it will get there.  

My ISA has taken a pasting with the stock market slump due to the coronavirus.  I’m not concerned though; it’s an exciting time.  It’s like Black Friday for stocks and there are many, many deals to be had.  For short-term investors, day-traders and speculators, this sort of drop in the stock market is terrifying.  For long-term investors, it’s a great time to start snapping up shares.  The stock market will bounce back; it always does.  

“It’s an exciting time”. Fuck me, that’s not aged well. If only we’d known how bad it would get.

A Soft Reboot

“No plan survives contact with the enemy.” 

~ paraphrased from a quote by Field Marshal Helmuth Karl Bernhard Graf von Moltke.

I’ve spoken before about the need for flexible plans and goals that are process-based rather than outcome-based.  Our trip to India ended up being a bigger speed bump in the road than expected.  Also, the rise of Covid-19 is something that I could not realistically plan for.  I need to reassess my financial priorities and look to streamline as much as possible over the coming months.  I have devised a new plan of action which involves ticking off the financial goals that I’m closest to achieving first, thus freeing up the money that would otherwise be committed to those goals.  

  1. Finish saving for my BTL deposit.  The initial goal was to save £14,850 to match my JV partner’s contribution to our first BTL.  I said a while ago that I’d rounded this up to £15,000.  I need to save £1,275 to hit that figure.  I should do this from my next salary credit.  
  2. Reduce my credit card to zero.  Once I have my BTL deposit saved I can allocate money that was being saved towards that, towards paying my credit card off.  I should pay more than half the balance off in my April salary, with the remainder cleared in May.  
  3. Clear the remaining loan balance.  Initially, I had hoped to have this clear by June, but that’s looking a little less realistic.  Once the credit card is back to zero in May, it will probably take June, July and August to clear the loan.  

Throughout all this, I will also be investing in my stocks and shares ISA.  Depending on dividend income I may be able to hit the targets mentioned above a little earlier, but I’m not counting on that.

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Investing in Stocks: Now is the time to buy.

“The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.”

~ Warren Buffett.

Investing can be complicated.  It can involve detailed analysis of economic trends, balance sheets and dozens of other factors.  Sometimes though, it is very simple.  

These mass selloffs which we see in the stock market at times of crisis are a case in point, and amateur investors need a reminder of just what the stock market it.  What I’m about to say, sounds like common sense.  However, the more you let the point sink in, the more relevance you will observe to the market right now.  Here goes;

When you buy stock, someone else is selling.  When you sell stock, someone else is buying.

The stock market is a middleman.  You don’t buy or sell stock to or from the stock market as an institution but rather through the stock market to another individual or business.  When you choose to sell stocks in a panic, someone else is rubbing their hands together as they sense the opportunity for a bargain.  The cynic in me thinks that a lot of the experts you see on the news promoting stock market catastrophe are the ones who will be logging into their trading accounts shortly after to start hoovering up shares that have plummeted in value.  

The stock market isn’t a specific, physical, thing, but rather a name for the whole apparatus. Although there are market makers which keep the exchange liquid, the point stands that when you buy, someone else is selling, and vice versa.

When the stock market falls, it’s a chance to make money.  I did this just after the Brexit Referendum in 2016 and made a tidy profit.  I will probably make some money from this plunge as well.  You make your money in stocks when you buy, not necessarily when you sell, as a long-term investor may not sell.  My strategy is to buy, hold, and take the dividends.  When the stock market falls, I get more for my money; more units of the stock and more dividends further down the line.  

Final Notes

Apologies again for the gap between posting on this blog.  Normal service should now resume.  However, I am making a change to the posting schedule from next week.  Instead of posting on a Friday, I am moving the posting day to Sunday each week.  I have a few things on at the moment with studying for my Financial Advisor qualifications and posting on a Sunday just makes more sense for my circumstances.  Thank you for reading. 

It’s always strange looking back at the world pre-Covid. In my life two demarcation lines are separating what came before from what came after; 9/11 and Covid. It almost feels as though there’s a certain naivety when I look back at my thoughts pre-Covid. It’s going to be interesting going through the next few months of posts to see how my opinions and feelings changed through the pandemic.

Part 268: London, Kygo, Pensions, Minimising Regret, and a Job Offer

Hello and welcome back to Mortgage Advisor on FIRE. This week, in a bumper post, I look back at our trip to London to see Kygo. Also, my thoughts on whether to accept a job offer, and some thoughts on the UK state pension.

Weekly Update

It’s been a busy week taken up mostly by our trip to London to see Kygo, and here is how it went down day by day.

London

Monday

We had to drop Poppy off at the cattery and it seems that each time we have to get her in her carrier, it becomes more difficult.  It’s like each time she is more scared.  This time was by far the worst.  She managed to get through a gap in the kickboards in our kitchen and hid right at the back wall under the kitchen units.  It took lots of work to get her out, and as she got more stressed, we got more stressed, which meant she got even more stressed.  It’s a self-reinforcing cycle.  If only we could explain to her that this is just a temporary thing, and we love her, and we’ll be back. 

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It must be scary for animals when they don’t know what’s happening.  We don’t do this often, and we travel much less now than when we didn’t have animals.  Oana and I have agreed that following our Norway cruise in 2025 we will be scaling back our travel even more.  Once Pops is no longer with us, we can travel.  She’s the third part of our household and we try to treat her as an equal as far as possible.

Too tired to cook…

After we dropped her off we were both physically and mentally shattered so we decided to grab a quick bite for dinner.  We went to a food hall in the city centre; Oana had Peruvian and I had a Yorkshire pudding wrap with rosemary fries.  The wrap was good, but the paper they wrapped it in stuck to the Yorkshire and the whole thing fell apart.  The guy saw what happened and made me another one without my asking.  The second one was much better, and I really enjoyed it.  The filling was shredded beef, carrot, peas, and roast potato.  Next time I would do without the fries.

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As we were eating we talked through the plan for the following morning.  We had booked the National Express, which is a four-and-a-half-hour trip, and we’d have to wake up at 07:00.  Instead, we decided to take the hit and book the train.  We could get to London earlier than the coach but sleep in an extra couple of hours.

Tuesday

It was a decent journey down to London.  Our train was quiet and we only made a few stops; Chesterfield, Derby, Leicester, and then London.  When we arrived at St. Pancras the first thing we did was make a beeline for the sandwich kiosk at King’s Cross where they do an amazing Reuben.  However, tragically, the place has closed since last we visited.  

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Not wanting to carry our luggage too far, we decided to head to our hotel in North Greenwich to freshen up.  We got to the hotel a little early for check-in and expected to just be able to drop our luggage, but they said we could have our room early.  We dropped our stuff off, freshened up and headed back out into central London.

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Mind the gap…

On the underground journey, we witnessed a scary incident where a guy tried to board our carriage but his foot fell into the gap between the train and the platform.  He fell heavily and had he been angled differently his leg would have snapped.  Those close to him managed to lift him and help him to his feet but he was obviously embarrassed and in shock.  He hurried away down the carriage.  I suspect when the adrenaline wore off he was probably in a fair amount of pain.  

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View from above…

We have been trying to get up the Walkie-Talkie building for ages but every time we try there is no availability. Fortunately, we recently discovered the Gardens at 120 Fenchurch, which is a rooftop garden with free entry.  We had a walk around and took some pics.  It was nice, with amazing views of the London skyline, but it was freezing cold.  After half an hour or so up there, we started back to street level to find some food. 

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We stumbled across a place called Farmer J, which it turns out is a London chain.  They offer food that is freshly prepared on-site, and sourced from local farms.  It wasn’t anything special, but we enjoyed it.  For lunch and dinner, they offer a Field Tray where you choose a main and two sides.  

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It was tasty but we were both still very hungry.

We had a walk around the financial district and onto the river, with a brief stop at Roasting Plant for a coffee.  It was a Mexican blend with notes of citrus and peanuts and I enjoyed it very much.  We took a subway to Oxford Street to see the Christmas lights, which were ok I guess.  For some reason, I decided to check what Too Good To Go offers were in the area, and there was one for a nearby Starbucks for £2.50.  I went in and showed my code, and the guy started taking pastries from the display and bagging them up for me.  Every time I thought he’d finished he grabbed another.  In total, we received a plain croissant, an almond croissant, a pain au chocolat, a maple and pecan muffin, and an apple and cinnamon Danish.  All that for £2.50 and it was all fresh.  

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Dave’s Hot Chicken

It would appear that the people of London love Dave’s spicy meat.  We walked past a fast food place called Dave’s Hot Chicken and people were queuing down the street for it.  This fuelled a great many jokes and puns about people wanting my meat and whatnot.  

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And it started so well…

We were getting hungry again and I did some searching on Google Maps and found an Italian restaurant nearby that had decent ratings called Mortimer House Kitchen.  Our table was next to the open kitchen and the food looked great.  We shared a Caprese salad for the starter, and for the main Oana had porcini pasta and I had meatballs with polenta.  It was tasty but quite small portions.

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After finishing our mains, we sat for a while and ordered a tiramisu to share.  It was very nice, and we sat some more to let the meal settle, whilst we watched the chefs in the kitchen.  Then we saw something that turned the whole meal on its head.  A chef no more than a couple of meters away tasted a dish, put the spoon he had put in his mouth back in the dish and used it to serve the food which was then served to a customer.  

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Chefs tasting food is standard practice but restaurants should have tasting spoons that are used once and then passed to be washed.  They definitely should not be reused.  

When the bill came it had a service charge added and we explained to the server what we saw and that we would not pay the service charge as a result.  On our way out we stopped to have a chat at the front desk to explain what we saw, but they fobbed us off.  In the end, we filled out a complaint form to the local FSA department and I’ve received a reply stating they will be investigating. 

Trust

The thing about restaurants is that you put so much trust in them to be hygienic.  If they are engaging in this sort of practice in an open kitchen, it leads you to ask what they are doing behind closed doors.  It makes you question their food storage, hand washing, and more.  

Following the gross end to our dinner we took a walk to the Lego store and then headed back to the hotel for a fairly early night.  Our sleep was disturbed around 04:00 when the fire alarms were briefly activated.  Just as we were drifting back to sleep they went off again.  It wasn’t the best night’s sleep as a result.

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Wednesday

We had an early start and walked along the river to the underground station at North Greenwich.  We planned to head to St Paul’s for the Penguin Trail in that part of the city.  Unfortunately, the maps available were not great.  They were cartoonish, and obviously not to scale.  Not being too familiar with the area we gave up after about an hour.

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We had not eaten breakfast and our next task was to find somewhere decent to eat.  I looked up an Australian place that did brunch so we set off in that direction, but came across somewhere called Brother Marcus that looked busy and had an interesting menu.  We stopped in and ordered the fried chicken rosti each.  It was not good. 

The secret to a good rosti…

A rosti should be golden and crisp on the outside, and soft on the inside.  These rostis had the depth of a drink coaster and the texture to match.  At one point Oana picked one up and smacked it against her plate and it didn’t break.  The meal was ultimately disappointing.

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After this, we had a walk through Borough Market and over the Millennium Bridge.  We were heading to Trafalgar Square, as just beyond it was a shoe shop we wanted to look at, and the restaurant we had lunch booked for.  We saw many of the tractors taking part in the protests about farmers and inheritance tax.

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I’m not sure how I feel about the issue of IHT and farms, and I don’t know enough about it to pass a detailed and informed opinion.  All I’ll say is that we all have to pay taxes in some way.  Farms are an essential part of our society and national infrastructure, providing an element of food security.  Maybe there should be a rethink of how farms are owned and operated.  It’s a messy situation because if farms are exempt from IHT, it could raise arguments against other family-owned businesses being exempt as well. 

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Lunch at Cicchetti

Anyway, after being caught up in that protest we had lunch at Cicchetti and it was an amusing experience.  The place is always busy and the tables are close enough together that you are basically on top of each other.  The table to our side was made up of a young French man and an older man I assume was a work colleague, friend, or both.  Anyway, the younger man spent the whole time loudly bitching about his job, his employer, his colleagues, and the bad attitude of the people he works with, and he just generally came across as very entitled.  His dining partner was trying to calm him down but the young man was getting himself increasingly worked up.  

After lunch, we had a walk to Hatchards bookstore, which opened in 1797 and claims to be the oldest in the UK.  It was interesting looking around the various items on sale but we were both feeling a bit fed up, cold, and tired.  We decided to go back to the hotel for a snooze.

Oana showered first and got in bed, and was asleep when I had finished showering.  I played a bit on my phone but quickly got sleepy.  I had what can only be described as one of the most satisfying snoozes of all time.  Everything was perfect; the bed, the angle of the pillows, the temperature, the soft glow of the street light through the window, and the faint sound of traffic.  It all combined to a great afternoon nap.  

The Concert

Pre-concert food

The doors to the O2 opened at 18:30 but Kygo was not due on stage until 21:00.  We left the hotel around half-six, intending to eat in the food hall across from the O2.  We opted for the Mexican place and chose a burrito bowl each; beef for Oana and pork for me.  The food was dire.  My pork tasted like briny tuna.  Oana’s burrito bowl was minced beef with some beans, salad, and rice.  There was no flavour to it.  

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After a couple of bites of my food, I put it to one side and went to the burger place, Southern Soul.  The guy who served me was friendly and chatty, without it coming across as forced.  I went for the beef brisket burger, served with beef jus, English mustard, and pickles.  I watched my burger being made and the chef took real care of each one he made.  My burger was amazing; one of the nicest, tastiest burgers I’ve had.  On the side, I had some waffle fries and mayo. 

After smashing through the food I went back to the vendor to tell them how much I enjoyed it.  The man who served me explained the place was owned by his nephew, who was the guy making the burgers.  I had a brief chat with him as well.  I always try to give that good feedback when I can, because I guess that most of the time people come back to complain.  We would have gone back the following day but we had to leave before they opened.

The O2

The O2 is not what I expected.  I literally thought it was just an arena, with the usual concourses and whatnot.  I did not realise there were dozens of restaurants, shops, bars, an indoor climbing wall, a battle bar, a cinema, and an indoor skydiving place.  It’s huge inside, and I have since read that it’s the ninth-largest building in the world by volume.  

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We had a look around the inside of the arena itself and then took our seats.  We were near the aisle, with two young women sitting on the end, then myself, and then Oana, and then a group of three; two guys and one woman.  This group of three were not just drunk; they were absolutely steaming and it was only around 19:30.

Alcohol, again…

During the support act, they kept getting up and coming back.  They were stumbling, slurring, and spilling drinks.  The people in front were hit by some of the spilt drinks, and everyone in the area was getting annoyed.  Sometime around 20:30 I’d had enough and went to speak with security.  As I was chatting with them, the couple who had been hit with the spilt drink came over to make the same complaint.  Shortly after security came and had words with the offenders, and explained to me that they’d told them clearly that if there was one more issue they would be thrown out.  

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In my opinion, they should have been ejected at this point.  They were not just a bit drunk with a little buzz.  They were hammered.  Throughout the concert they continued to fall all over, bumping into other people, whilst spilling more drinks.  The woman was the most annoying one.  She was barely dressed with everything on display and kept trying to engage the people around her.  She kept arguing with her partner, loudly enough it was distracting from the performance, and at one point the guy had enough and fell asleep for almost an hour.  Due to her size, she was encroaching on our space so that Oana and I, and the two young women, were squashed into the space for just three seats.  

Like being hit by a bulldozer

I’m not fat shaming here but in her drunken state, with her hardly being dressed, and constantly banging into us it really took away a lot of the enjoyment.  If a small person knocks into you it is barely noticeable.  When a large, drunken, person does it, it just hits differently. 

I lost count of the times they stumbled over us to go to the concourse before coming back and not remembering where they were sat.  Oana, myself, the two young women, and others around us were openly laughing at them but they didn’t notice because they were that drunk. 

It’s difficult to accurately convey just how annoying these people were.  They detracted from the concert, and on the videos we took for our own memories, you can hear them screeching and shouting at each other more clearly than you can hear much of the music.  

This event was not cheap.  I don’t understand how they could look back at this and think it was a good time.  

Back to the music…

Anyway, back to the actual concert.  The support act, SOFI TUKKER, was insane.  Some music makes you feel a range of emotions.  Some music can bring tears to your eyes, or bring you back to an earlier time in your life.  It’s a lot like smell in that it can evoke feelings and memories so vividly.  Then, you have music that is just fun and makes you smile.  This is the space that SOFI TUKKER seemed to fill.  Their song, Woof, has been played a few times in the Scothern household since we got back from London. 

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Duo SOFI TUKKER

Kygo was great and put on a hell of a show.  He had a lot of artists with him to do the vocals and brought out the orchestra for several songs.  Some of my favourites were played, including the remix of Wait with M83.  Sadly, the two songs I like with Sasha Alex Sloan, I’ll Wait, and Let Go, were not performed.  

From Kygo’s social media posts from the O2

My favourite song of Kygo’s is Freeze, and funnily enough, Kygo has said in interviews it’s one of his favourites too.  He normally ends his concerts with this song and puts on a huge show with the orchestra, and drummers out on stage.  The song lasts over eight minutes, but it’s a masterpiece.  I couldn’t understand how, or why, much of the audience chose to leave as the song was starting.  It’s like what you see at many football matches where the crowd starts pouring out in the 85th minute.  I just couldn’t understand.  The song was brilliant, but it was distracting watching hundreds and hundreds of people heading for the exit whilst the song was being performed.  I also felt it was massively disrespectful to the artists.

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On the whole, we still enjoyed the concert but it will always be tainted by having to deal with those drunken dipshits.

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Thursday

We had another early start as we wanted to get to St Pancras with time enough to chill before the journey.  There was a Farmer J near the station, so we had breakfast there.  We won an auction on Seatfrog to get an upgrade to first class for the return journey, and we made sure to stock up on free shortbread and crisps.  It was, thankfully, a fairly relaxed journey back.  

Once we arrived back home, we got the place ready for Pops and then went to pick her up.  We tried for a while to get an Uber but no cars were available, and we ended up getting the bus.  The cattery is a fair distance away and it took a long time to get across the city.  We picked her up though and brought her home, and settled down for some food.

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We are a little concerned because she’s not eating.  I’m writing this on Saturday afternoon and so far she’s only had some cat milk and some Likilix.  We’ve put her out wet food, biscuits, treats, and more, but she’s ignoring it all.  We hope it’s not a return of her tooth problems and that it’s stress which will subside.  

That, my friends, is the report from our trip to London.

Thief in our Apartment Complex

In all the years we’ve lived here there have been times when parcels have been stolen.  It’s a shitty fact of living with many other people where there’s no secure lock up for packages.  Some people just don’t play by the rules civilised society should adhere to.  In recent months it’s been very bad.

Whilst I was in St Pancras waiting for a coffee before boarding the train back, a neighbour sent me a message asking if I could take in a Lego delivery for him.  We’ve spoken a few times and he bought my Lego Star Destroyer a few months back.  I explained I was in London but would check when I got back home.  The package was apparently delivered a little over an hour before I got back, but by the time I arrived at our apartment, the parcel was nowhere to be seen.  

The Post Room

We have individual post boxes that are locked for each residence, but these are so small only letters will fit.  Packages are left in the post room, which is open to everyone passing through.  We recently had two locked parcel bins installed but the keys are accessible, making the locking of them a bit redundant.  Short of somehow giving each flat a huge lockable unit for parcels, I’m not sure what the answer is.  We’ve asked for an Amazon locker, but have been refused.  I’m not sure what the answer is, apart from setting some sort of trap for the thief. 

It’s ridiculous how much is being stolen.  We have to watch for delivery updates like a hawk and then rush down as soon as something has been delivered.  There have been times when people have rushed down only to find that in the few minutes between the parcel being dropped off and them coming to collect it, it has already been stolen.

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I don’t think it’s likely to be the delivery people.  I think it would be too easy for them to be caught.  It has to be a resident.  If anyone has any ideas on how to legally deal with this, I’d be interested to know.  I don’t think CCTV is going to be effective because it will not be able to read the labels on each individual package, so it has no way of distinguishing between people getting their own packages and those who are stealing.

This neighbour who messaged me has now lost out on a retired Lego set because someone decided to steal it.  

Scammers

Similarly, I had an interesting experience selling a TV on Facebook Marketplace.  Whilst I was in London I was receiving enquiries about our old TV that we’ve replaced.  We wanted something a bit bigger.  The TV still worked and it was literally a case of us just trading up.  

One guy was interested and wanted to see it working.  When I got back, I took several pictures and recorded a video of the front and back, with the TV screen switched on, and to give the guy peace of mind I spoke through the video including his name, addressing the points he asked about.  He said he’d take it and arranged to drive over that night.

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I handed over the TV and received payment.  It all went fine.  Later that night the buyer sent me a series of messages calling me a scammer and saying I sold him a broken TV.  He claims to have reported me to Facebook and made other comments as well.  The TV worked fine when I handed it over. 

The Scam

We had a bit of back and forth with me repeating the facts that I’d given him many photos and videos of the TV working.  He takes the TV in his car, gets it home, and says the screen has a blue tint.  It didn’t when we had it.  It worked fine.  He started asking for a refund, and that’s when the alarm bells started to ring.

Although there’s a chance the TV was damaged in transit (I didn’t see him secure it with anything in his car) it seems more likely to me that he was hoping I’d just give a refund to keep him quiet.  He could then sell the TV on again and make some money.  After all, when we were chatting about buying and selling online he told me he used to flip cars.  Am I joining the dots correctly? Who knows.  

I asked him to put himself in my shoes for a moment.  I sold a TV in good faith.  It worked fine.  I satisfied the buyer with images and video of the TV working.  Then, I receive a series of angry messages accusing me of being a scammer.  No message to politely enquire about an issue he was having with the TV.  No, no.  This guy went straight from zero to scammer.  

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When I asked him what he’d do in my situation, he replied “Not sell a broken TV” and then he left the conversation.

The thing is, I was going to give the TV away for free to someone who had their house burned down, but they sourced another one before I made the offer.  I don’t really give a shit about a few quid, but I don’t like people trying to take the piss.

Job Search

I’ve been offered a job this week which has a lot of positive aspects to it, but the training could be problematic.  The company is based in a small satellite town to a mid-sized city, and although it’s less than a hundred miles door to door as the crow flies, it will take two hours each way by car, or three hours each way by public transport.  Let me explain…

I don’t drive.  I’ve never bothered to learn.  I think too many people own cars, and too many people use them for journeys that could be done by other means.  I think we need to move away from a car ownership model, to perhaps a car share structure where people rent cars for when they need them.  It’s a long way off I suspect.  As I hold these beliefs it would be hypocritical of me to buy a car.  Also, long-standing joint issues mean it would be painful driving, and that’s just another reason I don’t want to bother.

Public Transport

So my remaining option is public transport.  I would have to get two trains and a bus each way, or a cab.  For a 09:00 start, due to train timetables, I would leave the house at 05:00 and not return until after 21:00.  I don’t think this is conducive to learning.  

If I go via the cab option, it will cost a minimum of £1k for the week, and it would shorten the day by two hours, maybe slightly more.

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It’s a WFH job but the training has to be done in person.  There might be other times I’d need to go into the office.  The more I think about it, the more I’m talking myself out of it.  This isn’t a dream job, it’s just a job, which brings me on to…

Regret Minimisation Framework

In the book I’m listening to there’s a concept referred to called the Regret Minimisation Framework.  This was put forward by Jeff Bezos and is concerned with reducing the number, and severity, of regrets you’ll experience.  He used this idea to help him decide whether to try making Amazon work or to stick with his job.  

I’ve used a similar approach when helping mortgage customers in the past.  If they are deciding between a shorter fixed rate or a longer fixed rate I would often break it down like this;

“If you go for a shorter deal, thinking rates will go down, and then rates actually go up, would you feel worse than if you went for a longer deal and rates instead dropped?”

It’s a case of what makes you more uncomfortable; certainty for longer, or uncertainty that could lead to a net positive.  There’s no universal right answer, and each person will have their own opinion on it. 

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In terms of how this links to my job search, I have to decide whether to take this job or not.  If I take it, I’ll be starting in a month and I’ll hardly have any time to work on other projects I’ve got in the pipeline.  I know that I’ll regret not having a real go at some of these projects.  If I turn the job down, I don’t know if I’ll get another opportunity like it again.  Maybe I’d have to settle for something worse.  It comes down to which course of action I’d regret not taking.

What I’m Doing

Listening: Algorithms to Live By: The Computer Science of Human Decisions by Brian Christian and Tom Griffiths.

Watching: Star Trek: Deep Space Nine

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Financial Update

Assets

Premium Bonds: £15,500.00.

Stocks and Shares ISA: £91,208.57.

Fuck It Fund: £36.79.

Pensions: £89,737.46.

Residential Property Value: £237,447.00. 

Total Assets: £433,929.82.

Debts

Residential Mortgage: £184,783.09. 

Total Debts: £184,783.09.

Total Wealth: £249,146.73.

My pension fund dipped back under £90k which is a little frustrating, but not really an issue.  It’s just a psychological thing more than anything.  

By the time of the next post, I expect these figures to have changed massively because I’ll have received my final pay from my old employer.  

The next few months are going to be interesting because we don’t know with any confidence what we’ll be doing.  Oana has a job offer but they aren’t being consistent with what they’ve already promised.  Oana was offered a part-time role, for approximately 25 hours per week.  The contract that has been sent to her is for a full-time role.  She’s been trying to rectify this without success. 

If neither of us is earning, then our savings will reduce by £2k-£3k each month, with various expenses coming up over Christmas and early into 2025.  When you draw from your investments you are not just losing that amount, but the future gains that amount would have made over time.  

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Regular readers will know that I’ve got a passion for fighting against poor customer service, but institutional incompetence is spreading to recruitment as well.  The amount of businesses that have contracted out the screening and eligibility checks for employees is incredible, and many of those screening companies don’t know what they’re doing.  In the past few weeks, Oana and I have been left utterly confused by some of the requests made by these third-party companies.  When I stop and think about it, I’m amazed anything, anywhere, actually gets done.

The UK State Pension

I read an interesting bit of trivia this week which I’ve not been able to verify.  It was that, when the UK state pension started being funded by NI contributions, there were 20 workers for each person drawing the pension.  Over time that ratio has dropped from 20-1 to 3-1.  If true, this would mean that in 1946 approximately 4.7% of the UK adult population would have been old enough to claim the pension.  Now, it would be something like 25%.  

Other sources I’ve called on claim that in the early 1950s, the ratio of workers to pensioners was 5-1, with this projected to drop to 2-1 by the 2040s.  One thing for certain is that unless we have a massive baby boom, the population will become skewed towards older people.  Relying on the state pension to fund retirement is foolish if you can avoid it.  

Why is this happening?

A couple of factors are pushing the state pension to the brink.

Increased life expectancy is a major part of the problem.  People are living longer than ever before, which means they’re drawing their pensions for many more years.  Retirement used to make up a small proportion of a person’s life, but that is increasing all the time.  

The other side of the coin is falling birth rates.  With fewer children being born, the size of the future workforce is shrinking.  There are fewer people to pay the money needed to fund the state pension for a growing number of pensioners.  

The state pension is being squeezed from both sides.

Another factor is the baby boomer effect.  A large number of people born in the mid-20th century is now reaching retirement age, creating a demographic bulge.  It’s almost like a storm surge about the make landfall.  

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Implications for the future…

This shrinking ratio means that fewer workers are available to fund the pensions of a growing number of retirees. As a result, the UK government faces tough choices:

It could increase taxes or National Insurance contributions to raise funds, but tax increases are never popular.  The added difficulty is that, as a long-term project, any tax increase would not have an immediate benefit.  Many people would struggle to understand why they need to pay more simply to get what people before them have enjoyed.

Another option would be to raise the state pension age further to reduce the number of years people can claim.  Much like the previous option, this would not be popular.  

Or we could reform the state pension system entirely to ensure long-term sustainability, possibly along the lines of a universal basic income for all.  

What can you do?

While the government struggles not just with these challenges but seemingly with simply existing, it’s essential for individuals to take control of their retirement planning. Relying solely on the state pension may not be enough to maintain your desired standard of living in retirement.  The state pension is barely enough for someone to exist, and it’s not sufficient for someone to live comfortably.  

People should consider:

Reviewing workplace or personal pension schemes to make sure free money is not being left on the table.  Many pension schemes offered by employers will contribute more if you also pay more.  Not maxing out this benefit is leaving free money on the table.  

Exploring investments to supplement your retirement income is another avenue to explore.  There are lots of investments out there and it’s vital to make sure you understand fully what you are doing.  If you don’t understand an investment you are just gambling.  

Ensuring you maximize your state pension entitlement by checking your National Insurance record.  This can be done quickly and easily online through gov.uk.  If there are gaps in your record, you may be able to pay to fill in those gaps to make sure you have a full record of contributions.  Always seek expert and impartial advice to make sure you are not paying for something you do not need.  

The UK state pension is a valuable benefit and bonus but it should not be the only thing relied upon in retirement.  Too much can, and probably will, change as our population make-up evolves.  

That’s all for this week in this bumper post.  Thank you for reading and I hope you have a great week ahead.

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Disclaimer

The views and opinions in this blog are my own, and do not represent the views or opinions of my employer, be it past, present, or future, 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 

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.

Part 267: End of an Era

Hello and welcome back to Mortgage Advisor on FIRE.  This week I discuss the end of my current employment, the FI canon, and another milestone hit in my journey.

Weekly Update

Although my contract with my employer ends on December 10th, I had my last day of logging on to their systems this week as I had booked the last few days off with my remaining holiday allowance.  It’s been a huge part of my life working for this employer; over 13 years.  I’ve met a lot of good people and accumulated a breadth and depth of knowledge about mortgages.  It’s time for the next chapter in my life to start.

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Before that next chapter starts, there’s an interlude over Christmas and the New Year.  Next week Oana and I are in London for a few days for the Kygo concert at the O2.  It’s going to be a flying visit and we only have one full day in the capital.  We have booked a table at an Italian restaurant we like, and between that and the concert we probably will not have much time for anything else, other than a visit to the Lego shop and a Reuben sandwich from this place near King’s Cross.  Most people go to London for culture.  I go for Lego and food. 

Ongoing elbow pain…

I was supposed to have an appointment with the surgeon about my right elbow, but it was cancelled at short notice as he was sick.  It’s just one of those things, but the difficulty I have is that my private health coverage runs out at the end of December.  With my trip to London and Christmas between now and the end of the month, it was a worry I would not be able to be seen.  I called the secretary and calmly explained my predicament.  Sure enough, taking the calm approach resulted in them squeezing me into a clinic before the end of the month which they normally would not be able to do.  

This is what I don’t get about some people.  Things happen in life, and not everything goes to plan.  When it’s a genuine issue that can’t be avoided, like illness, bereavement, bad weather, and so on, there’s no point getting angry about it.  If the other party works with you to arrive at a solution that’s all that matters.  The time to get annoyed is when you are dealing with incompetence or a poor attitude.  

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More fun with Monopoly

Speaking of poor attitude, apparently I displayed one during my recent game of Monopoly with Oana. I don’t see what I did wrong, as I was just making observations, like;

“Isn’t it funny how you always land on my properties and I never land on yours?”

And…

“Isn’t it weird that I have all these houses and hotels, and you don’t?”

And…

“Awww that’s cute having to pay £10 in rent.  I remember back when I first started out and was charging that.  It’s just pocket change now.”

At first, I didn’t notice her staring daggers at me as I was busy verbally counting out all my money and wondering if this was the most anyone ever had in a two-player game.  

I mean, I don’t see what I did wrong.

Storm Darragh

On Saturday we were due to have a new television delivered in the morning.  We’ve had our current one for over six years and it’s starting to show its age.  We had some vouchers for John Lewis, and around Black Friday we found a good offer.  Anyway, the delivery truck had a flat tyre so it was not until late afternoon when it arrived.  The guy was apologetic but I was pretty chill about it because it is literally just one of those things.

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The new TV is great.  It’s bigger than the old one and the picture quality is incredible.  What annoys me is the requirement that everything seemingly has for an app.  If you buy a fridge, you need an app. If you buy a toaster, and you need an app.  It’s annoying.

I would have liked to go out on Saturday for a walk or something but there’s a real chance I would have been carried off by the wind.  The sounds from outside make it seem as though the windows are going to get blown in.  As I type this there are at least two confirmed fatalities due to Storm Darragh. Unless we manage to tackle climate change we will have to learn to cope with more extreme weather.  Without a massive technological breakthrough, I can’t see how we are going to turn the tide of climate change.  

Legal Tender

Ah yes, this phrase has popped up again this week alongside the cringey “cash is king”.  I find it hilarious how some people think that paper money is somehow more secure than digital.  The frustrating thing is this isn’t even what the phrase is supposed to mean, but the way in which people use the statement shows they have completely misunderstood it.  For example, having a sign at a food truck saying they prefer cash payments because “cash is king.”

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For the last time, a private business does not have to accept physical cash as payment for goods or services.  They can choose to accept only digital payments.  Legal tender refers to the obligation for physical money to be acceptable for the payment of debts.  The statement “cash is king” refers to having readily available money rather than credit or too much stock.  

Amazon

Just a random one that makes me shake my head.  We order some household stuff in bulk from Amazon as it’s convenient and a bit cheaper.  One of the things we get is kitchen roll.  We order 18 rolls that come in 6×3 packs.  This is where, in my opinion, it’s absurd.  Working from the outside in, we have a cardboard box, filled with packing paper.  Under all this is a plastic layer keeping the six packs together, which are all individually wrapped in plastic.  Then, a roll of paper surrounds a cardboard tube.

Card, paper, plastic, plastic, paper, card.  

It’s not as bad as the time we ordered some packing tape which came in a box roughly five times too big and was also filled with packing paper.  It’s such a waste. 

I hate Amazon for the way they operate but it’s such a convenient way to get stuff in bulk when we don’t have a car.

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Job Search

I’ve had a couple of interviews this week, including one on Friday that I’m excited by.  It’s just a case of waiting to hear back with, hopefully, a positive outcome.  I liked what I heard from the interviewer, and the job sounds appealing with a chance to properly push myself.  It’s also a position that would start in late February/early March which means I can have a short break, and also help Oana as she starts her new job early in the new year.

Canon in Fiction

The term “canon” refers to anything within a fictional universe that is considered real or legitimate.  For example, in Star Wars the films are all canon, but a fan-produced film would not be canon.  Star Wars canon used to include the book universe, known as the Expanded Universe, but since Disney acquired the rights to Star Wars, the books were moved to one side to form the Legends canon.  It’s a shame because the Thrawn Trilogy by Timothy Zahn is some of the best Star Wars out there, but I digress.

Anyway, Oana and I are working our way through Star Trek: Deep Space Nine and I normally check out the various ‘Trek subreddits a couple of times a week, as well as being in several Facebook groups.  One of the most common arguments is about canon, whether it’s what is Alpha canon, Beta canon, and so on.  It’s generally agreed that Alpha canon is anything we see on screen, whereas Beta canon is from books, comics, games, and so on.  Where there’s a contradiction, Alpha trumps Beta.  

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So, in regards to Star Trek canon, I have my own headcanon because what we are told just doesn’t make sense.  Here is how I group the various ‘Trek shows, not including the animated shows.

TOS Canon

The Original Series

TOS Movies

TNG Canon

The Next Generation

Deep Space Nine

Voyager

Picard

TNG Movies

SNW Canon

Strange New Worlds

You may ask yourself, “what about Discovery”?  No, I’ve not forgotten about that dumpster fire but the only canon it should be part of is a cannon that launches it out of the solar system so it can never be watched again.  I thought about firing it into the sun instead, but that would require much more energy (orbital mechanics are a bitch).  

The debate about canon is taken very seriously by some people, and much like asking for food from a replicator, no matter how much you enjoy it someone will always argue that it’s not authentic.

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Anyway, back to my original point about canon.  All this debate got me wondering about what FIRE canon would look like.

The Core Tenets of FIRE: The Canonical Principles

Spend Less Than You Earn

This is the foundation of financial independence, by creating a gap between income and expenses to save and invest.  Having this financial gap allows investments to grow over time which eventually leads to financial independence.  

Invest Wisely and Consistently

It’s not enough to just throw money in all directions at all sorts of speculative investments.  The approach needs to be carefully considered and it needs to be consistent over time.  Low-cost index funds are the backbone of this strategy.

The 4% Rule & Safe Withdrawal Rate

This guideline suggests you can withdraw 4% of your investment portfolio annually in retirement without depleting your pot. While the exact percentage is debated, the principle is a cornerstone of FIRE discussions.

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Frugality and Intentional Spending

Prioritising value and cutting unnecessary expenses while still aligning spending with personal happiness and goals.  However, there’s a massive distinction between frugality and poverty.  FIRE is not a race to the bottom where you count every single penny.  Rather, it’s about not wasting money.

FI as a Spectrum

Recognizing that financial independence doesn’t always mean retiring fully.  It can mean pursuing passion projects, part-time work, or just having freedom from financial stress.  There’s a line from one of my favourite sci-fi books;

“He hadn’t been aware he’d felt wrong until he suddenly felt right again.”

  • Leviathan Wakes: Book 1 of The Expanse

I imagine that having true financial independence will feel something like this.

Debates and Expansions of FIRE Canon

The 4% Rule vs. Alternatives

Some argue for a more conservative withdrawal rate or dynamic/flexible withdrawal strategies, especially given current market conditions.  Some people get so bogged down in the detail here that I think they miss the point.  No withdrawal rate is set in stone, and it’s not something that leads to instant failure.  If you’re drawing down too much and your investment pot is shrinking too quickly, then you can look at taking steps to address this.  It might mean dipping back into paid employment for a time, but if you are prepared it shouldn’t result in catastrophic failure.

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I prefer to think of the 4% rule as a guide, and something to aim for.  Once you have 25x your desired annual spending in place you should be in the right sort of ballpark to seriously think about early retirement. 

Lean FIRE vs. Fat FIRE 

Lean FIRE focuses on extreme frugality and minimalism, while Fat FIRE embraces higher spending levels for a more luxurious lifestyle.  The key point here is that luxury and frugality are subjective.  Someone coming from a background of poverty may view having their own modest house as luxurious.  There’s no right and wrong here.

Coast FIRE and Barista FIRE

These variations challenge the traditional “full-stop” retirement model by incorporating part-time work or pausing contributions once investments can grow independently.  Again, there’s nothing wrong with this approach if it suits the individual.  Some within the FI community come across as elitist and don’t view these types of FI as being “canon”.

Ethics of FIRE

Some debate the social implications of early retirement, like the responsibilities of a financially independent person to contribute to society or how FIRE strategies might rely on systemic inequalities.  This is a tricky one, because there may be some validity to the argument.  Some people will, no doubt, view FI as a way of not having to contribute to society whilst still taking advantage of things like the NHS.  I think these people are in the minority.  

Anyone who achieves FI, not including those who win huge sums of money early in life, will probably have paid a lot of income tax, national insurance, and possibly things like CGT.  To achieve FI you need to have seen a lot of money flow through you via income and spending.  When I discuss FIRE with people, most seem to emphasise the first half of the acronym over the second half.  People want financial independence not because they don’t want to work at all, but because they’d rather work for personal satisfaction than money.  

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What’s NOT Canon (But Often Misinterpreted)

Complete Retirement is Mandatory

FIRE isn’t just about quitting work entirely. Many pursue financial independence for freedom, not early retirement.  Most people want to work in some fashion but they want to work in a job that is satisfying and allows them to learn, and grow.  

Extreme Frugality is the Only Way

While some FIRE enthusiasts love cutting expenses to the bone, others find ways to save and invest without sacrificing quality of life.  You have to enjoy life in the moment as well as save for the future.

In short, the “canon” of FIRE is the shared foundation of financial independence principles, but like any rich universe, such as that in Star Trek, it’s constantly being expanded and reimagined by the community.  So, as the Vulcans would say, “Live Long, and Prosper.”

Discovery still sucks though.

What I’m Doing

Listening: The Secret Base: The Glass Book Three by Nathan Hystad.

Watching: Star Trek: Deep Space Nine; MasterChef: The Professionals.

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Financial Update

Assets

Premium Bonds: £15,200.00.

Stocks and Shares ISA: £90,062.00.

Fuck It Fund: £36.79.

Pensions: £90,126.85.

Residential Property Value: £237,447.00. 

Total Assets: £432,872.64.

Debts

Residential Mortgage: £184,783.09. 

Total Debts: £184,783.09.

Total Wealth: £248,089.55.

For the first time since starting this journey both my pension and ISA balances are over £90,000.  The next milestone is to get them both over £100,000.  I should be able to do this when the new financial year starts and the ISA allowance opens.  I’m hesitant to throw a lump sum into the pension because it’s not the priority at the moment.  My pension has plenty of time to grow with additional regular contributions when I’m back in work, although the tax relief on a lump sum is attractive.  I need to wait and see how much the tax, NI, and student loan deductions are when I get my final payslip.

Strong Foundations

The foundations are set now for FI, and my pension and ISA should grow by over £10k per year based on 6% returns.  Once they’re both over £100k, the total combined pot would grow at £1,000 per month based on 6% returns.  It’s like a good friend of mine says; “it’s like having another person working for you.”

Sometimes I have to remind myself that these are huge sums of money to most people, and having this much saved is amazing.  I remember having a conversation with a particularly unpleasant older guy who happens to be quite wealthy, who had a go at me for “only having £17k saved.”  This was some years ago, and he is at least thirty years older than I am.  Yeah, let’s compare when I get to that age.

Without any further contributions, and assuming a growth rate of 6% my pension would increase to £280k by the time I’m 60.  In combination with my ISA and Premium Bonds, the future is looking bright.  The cherry on top will be the state pension, assuming it is still around when I get to that age.  

What do I need to do to reach a million?

Between my ISA, Bonds, and pension, I have approximately £195,000.  I decided to check what I’d need to do to grow that total balance to a million.  First, the ground rules:

Starting balance: £195,000

Assumed growth rate: 6%

Time: 19 years

Zero contributions get me to £608,000.

£100pm gets me to £650,000.

£250pm edges closer, with a final balance of £714,000.

£500pm arrives at £820,000.

£1,000pm would see me finish on £1.03M. 

The thing about these calculations is that time and the growth rate are more important than the additional contributions.  For example, take £100pm over 19 years.  That’s £22.800.  If I increased the starting balance by that amount but then made no additional contributions I would expect to finish on £679k.  Taking that same principle for the £500pm scenario, the final balance would be £963,000 instead of £820k.  

Just to look at this from the perspective of growth rate, if I took my current starting balance and experienced 10% growth for 19 years, I’d end up with over £1.25M with no additional contributions.  Those little differences in growth rates make a massive difference over time.  

That’s all for this week. Thank you for reading, and be sure to leave a comment if you have any thoughts or questions.

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

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.

Part 266: Christmas Financial Tips

Hello and welcome back to Mortgage Advisor on FIRE.  This week I discuss Christmas, including financial tips, and discussing what the impact would be of cancelling it.  Also, progress on my job search, and the usual financial updates.  

Weekly Update

I had a few medical appointments this week which were all fairly routine, including a GP appointment about my ear pain, and some scans on my right elbow which has been painful for a few years now.  

I had been using a spray for my ears but it didn’t fully resolve the issue and now I’m on oral antibiotics.  There’s some suspicion I might have ruptured my eardrums at some point with an infection taking hold as they healed.  Whatever caused it, it’s been annoying.

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My elbow problems started in the summer of 2022 and despite lots of physio, it’s not healing.  I’ve seen a couple of surgeons and had several scans which have not suggested anything that needs repair.  The pain is real though.  I’ve been seeing a new consultant who ordered a different type of scan, so hopefully, something will come of this.

This weekend we had a look around some of the Christmas markets in the city centre.  To be honest, they were a bit dull.  It was nice being out and about with Oana, and we had a nice lunch of poutine served in a giant Yorkshire pudding, along with spicy chicken tenders on Texas Toast.

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If there’s one thing about this time of year I hate, it’s forced enthusiasm.  I don’t think it’s as bad now as it used to be, but for a long time, it felt as though if you didn’t pretend to enjoy Christmas and get blind drunk through most of December, you were seen as miserable and a party pooper, just like me in the pic below:

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This got me wondering about the possible economic impact of Christmas just being cancelled.  

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Cancelling Christmas

Christmas is a huge cultural and economic event, and cancelling it would have some far-reaching consequences.  These would not necessarily be all positive or negative though.  Let’s get into it…

Negative Impacts

Retail

Christmas is a peak sales period for retailers, especially in sectors like toys, electronics, clothing, and luxury goods. Without Christmas, retail sales would drop, especially in the fourth quarter, affecting profitability and potentially leading to job cuts.  

This would have a similar impact on the hospitality and tourism sectors.  Christmas markets, holiday travel, and festive dining contribute billions to local economies. Without the holiday, restaurants, hotels, and attractions would lose vital revenue.  Which leads back to… 

Job Losses

Seasonal employment spikes during Christmas in retail, logistics, hospitality, and delivery services. Without Christmas, many of these temporary jobs would vanish.  

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Charity

Many charities rely on donations during the festive season. The absence of Christmas could lead to a significant drop in funding for non-profits.  Many people only donate at this time of year, and without that prompt to be charitable, some of these organisations would fail.  

Positive Impacts

Reduced Financial Stress

Families often go into debt to fund Christmas spending. Without it, households might save money, leading to better financial health for individuals.  Not having to worry about funding Christmas could have a massive impact on mental and physical health.  

Environmental

No Christmas would reduce the environmental impact of excessive consumption, such as waste from packaging, energy for decorations, and carbon emissions from holiday travel.  Also, a reduction in the amount of crap that is produced entirely for Christmas (a lot of which is plastic) can only be a good thing.  

Economic Rebalancing

Without a single holiday driving consumption, spending might be spread more evenly throughout the year, stabilising cash flows for businesses. It would potentially lead to more mindful spending, and less “boom and bust”.

Improved Physical and Mental Health

Without the need to go “all out” on entertainment and gifts, people will not need to push themselves to the brink.  The stress of Christmas, and the expectation to indulge to excess, is not good for physical, mental, or financial health.  Yes, there are some benefits to treating yourself now and then, but this time of year seems to be all about excess.  

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Not Like Other Girls Retailers

My phone has not been working properly for some time with the microphone being the major issue.  This is a problem when I’m taking calls from potential recruiters and employers.  I’ve had the phone for over two years, which is not as long as I would like.  However, a repair would have cost almost £600, with Apple also offering me £330 to trade in my 13 Pro Max.  Based on these numbers, it made sense to just get a new phone.

I’d been putting off going to the Apple store because I don’t like the shopping centre it’s located in, and I find the arrogance of Apple off-putting.  I like Apple products though, and I like the user experience.  There’s just this cult mentality around the brand which I can’t stand.  I’ve tried using Android a few times and it’s just not for me.

So, I decided to make the trip to Meadowhall and visit the Apple store.  It was, as expected, busy but not crazily so.  There were plenty of staff milling around chatting with each other and with customers.  I was soon approached by one of their associates and this is how the conversation went.

Setting: Apple Store – Sheffield

Me: I’d like to buy a new iPhone, please.

Apple Drone 1: Ok, there’s over an hour’s wait.

Me: To buy a new phone?

AD1: Yes, we can book you an appointment.

Me: Sorry, I need to make an appointment to buy a new phone?

AD1: Yes, it’s very busy.

Me: But you’re literally stood with me and I know exactly what I want.

AD1: Even so, it takes a long time to go through the sale.

Me: Why?

AD1: It just does.

Me: So you’re talking to me now.  I can see other members of staff not engaged with customers, and you will not sell me a phone without an appointment.

AD1: Yes.

Me: Is there someone more senior I can speak with?

AD2

A couple of minutes later I was speaking with someone who was apparently senior.  I’ll refer to them as AD2.  The conversation went exactly as with AD1.  By this point, I’d been in the store for over twenty minutes.  AD2 explained that the process of selling a new phone takes approximately twenty minutes.  

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I don’t like being awkward.  I hate shopping and I hate dealing with salespeople.  In this case, I wanted to trade in my phone and make sure it was all done and dusted quickly, I thought an in-person visit was the lesser of two evils.

I then spoke with a third person, this time a manager, who was patronising and kept saying “Apple aren’t like other retailers.”  As she gesticulated she managed to hit my arm.  I looked down at my arm and then to her face; “Please do not touch me.”

Fortunately, at this point a salesperson became free and I walked away from the manager.  By this point, I’d been in the store for half an hour already.  The sales guy was great.  We had a good chat about the phone and loads of other stuff including his travels in Japan, and the time he spent in Pakistan.  It’s not often that I get great service, but this visit to the store saw both extremes of the spectrum, and fortunately, the sales guy was excellent.

Getting the phone…

My new phone is good although it will take some time to get used to the new features on the 16 Pro Max.  The camera has new features, and the handset has several new buttons.  So far I like it.  

The thing that frustrated me today was not the fact that Apple wants to use an appointment system for sales.  It’s the inefficiency I experienced.  If their staff were going flat out and the store was rammed, I’d get it.  The store wasn’t rammed though.  If they took some of the staff doing the busy work, like trying to promote the appointment system, and had them actually serve customers, perhaps they wouldn’t need an appointment system.

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John Lewis…

It reminds me of the issue I had with the John Lewis store in Sheffield.  I predicted its closure a couple of years before Covid-19 hit in a blog post on my old site, Now We Live.  I cited two reasons why it would close; a lack of sales staff and a lack of stock.  Sales is simple if you have good staff and a good product, people will buy from you.  John Lewis had a lack of both. 

Many times I went to the store to look for a new TV, laptop, camera and so on.  I’d see one I like, and be happy to buy it there and then, but I’d then be told they had no stock available and they could order it for me.  I’d tell them it’s ok and look it up myself online, only to find it cheaper elsewhere (usually Amazon) where I could get next-day delivery.  This was happening day in, and day out.  

I’m not suggesting that Apple are about to go under.  I am arguing that too many people in business take a simple concept and make it unnecessarily complex. 

Job Search

I’ve got three irons in the fire, so to speak.  I’m waiting to hear back after two interviews for the first job, and I’m waiting for the results of an assessment I completed for a second job.  I’ve got an interview lined up for a third one, following an informal chat.  

I only have a few days left before going on holiday, and I’ll be on leave for the remainder of my notice period.  It’s so strange that this chapter of my life is ending, as it’s been a third of my life, and the bulk of my working life.  I’ve met some great people in this job, and I wish them all the best even if we don’t stay in contact.

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There’s a tendency, despite what people intend, for people to lose touch once they no longer have a reason to speak, such as work.  A friend of mine suggests that people have to share interests or hobbies outside of work to remain friends, and that makes sense.  As the saying goes, out of sight, out of mind.

Job Sites

Before this current job search, I had not had reason to seriously look for work for over a decade.  The main websites I’m using to search for roles, like Indeed and Reed, are if I’m being polite, not good.

One of the major problems is that the filter options don’t work.  If you try to filter just remote jobs, you end up with jobs that state they’re remote, but in the description also state you have to attend the office.  There are also a lot of scam listings where employers ask for free work as a demonstration of your ability.

I’m a bit old-fashioned when it comes to browsing social media, shopping sites, or for work.  I don’t want an algorithm to determine what I see; I want filters that work, and I want to see things listed in order, whether that’s chronological, by price, or another standard metric.

What I’m Doing

Listening: The Hidden Space: The Glass Book Two by Nathan Hystad.

Watching: Star Trek: Deep Space Nine; MasterChef: The Professionals.

Gregg Wallace

The allegations against Gregg Wallace are mounting, with reports claiming he has engaged in sexist and racist behaviour.  I have no idea if it’s true or not, but I don’t expect him to be presenting MasterChef again anytime soon.  I’ve always found him a little bit annoying but I don’t generally like trial by media.  Hopefully, the investigation will get to the bottom of it all.  

In more general terms you would think that people would learn by now that being misogynistic, racist, or generally being an asshole, does not fly in civilised society.  This sort of behaviour needs to be called out as soon as it occurs, and it needs to be understood that not challenging this behaviour in the moment simply allows it to spread.  

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Giving up partway through the story…

I’m in the middle of a series by Nathan Hystad but I’m not sure that I’m going to finish it because it’s dull and I don’t have that urge to pick it up and listen to it some more.  I hate not finishing a story I’ve started though, so I might just have a read at the plot summary and see what happens that way.  

Deep Space Nine

We are nearing the end of season two of our DS9 rewatch. It’s my seventh, maybe eighth rewatch, and I’m still noticing new things. The amount of world-building and foreshadowing is insane. I know there are arguments out there that DS9 was ripping off Babylon 5 but even if that’s the case the former was the better overall show than the latter. B5 told a great story but the production value was lower and it’s aged badly. DS9, on the other hand, in some ways hasn’t aged a day.

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Financial Update

Assets

Premium Bonds: £15,200.00.

Stocks and Shares ISA: £89,987.73.

Fuck It Fund: £34.94.

Pensions: £89,534.77.

Residential Property Value: £237,447.00. 

Total Assets: £432,204.44.

Debts

Residential Mortgage: £185,094.90. 

Total Debts: £185,094.90.

Total Wealth: £247,109.54.

Not much to report from my finances this week.  It’s that regular lull between payday and getting the monthly bills out of the way.

As you read this we will be in December, and on the home stretch to Christmas, and I thought it would be wise to share some best practices when it comes to Christmas spending.

Do

Set a Budget

Decide how much you can afford to spend overall and stick to it. Include gifts, decorations, food, and travel in your budget.  Christmas is a short period that comes around every year.  There’s no need to break the bank every single year.

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Plan Ahead

Start shopping early to avoid last-minute rushes and inflated prices. Create a list of gifts and prioritize them.  It might be a moot point for this year, but you may be able to buy some gifts for 2025 in the January sales

DIY Where Possible

Consider homemade gifts or decorations. They’re personal, thoughtful, and often cheaper.  It’s not always about how much you spend on a gift, but rather the thought that goes into it.  

Track Spending

Keep a record of your purchases to ensure you’re staying within budget.  I love spreadsheets so this doesn’t feel like a chore to me.  It’s easy to get carried away with buying gifts and tracking what you spend helps prevent this. 

Secret Santa

Secret Santa can be fun in large friendship or work groups, and you can even choose a specific theme or spending limit.  I’ve had some great Secret Santa gifts and a few that have made me question what sort of impression I’d made on the gift giver. Either way, it’s good fun.

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Don’t

Don’t Overspend

Avoid feeling pressured to buy expensive gifts or keep up with others.  There will always be someone who has spent or received more, so just accept that and get on with your own life.  Overspending on gifts is just idiotic as no one benefits from it.  Each year hundreds of millions of pounds are spent on unwanted gifts that are never used.  

Don’t Ignore Hidden Costs

Unless specifically requested I would avoid buying a gift that requires another purchase from the receiver.  For example, buying a gift that requires specific batteries but then not providing those also.  Or buying a subscription to something that will require the receiver to subscribe for longer to get the full benefit.  You’re not buying someone a gift, you are buying them an obligation.

Don’t Use Credit Cards…

…unless you can pay them off in full without paying interest.  Anyone who values thoughts over material possessions would not want you to get into debt to provide a gift.

Don’t Wait Until the Last Minute

Procrastinating can lead to panic buying, which often costs more.  Make a plan with enough time to allow you to research gifts and avoid impulse buys.

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Don’t Ignore Sales Psychology

Beware of “limited-time offers” or “buy one, get one” deals that may push you to buy unnecessary items.  A similar concept is where you are given a discount code which requires you to spend money on something to receive said discount.  This is not a saving; it’s a way of manipulating you into buying something you had no intention of buying.

Don’t Forget to Communicate

Discuss expectations with family and friends, especially if finances are tight, to avoid awkwardness.  Maybe agree to not get individual gifts and instead pool resources on a group experience.

Don’t Consume To Excess 

Christmas is a time to enjoy good company and good food, at least it is to me.  However, as I’ve gotten older I’ve realised that much of the food and drink consumed at this time of year is not stuff I actually enjoy or crave; it’s just bought and consumed out of habit. 

For the past few years, we’ve been gradually scaling back what we buy and what we use.  We aren’t depriving ourselves, but rather are focusing our money on what we actually want and will enjoy.  For example, instead of buying a dozen bottles of some soft drink, we’ll buy less of one we really like.  It’s the same principle with biscuits or cheese; buy less, but buy better quality.  

That’s all for this week. Thank you for reading, and I hope you have a great week ahead. If you have any thoughts on this week’s post, please leave a comment below.

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 

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.

Part 265: The Orange Always Win

Hello and welcome back to Mortgage Advisor on FIRE.  This week I look ahead to my financial goals for 2025.  Also, some potentially positive developments on the job front, and dealing with more bureaucratic incompetence.  

Weekly Update

One thing I love about snow is the change in sound that you experience.  You probably know what I mean.  When there’s heavy snow it’s almost like a calm silence falls over the place.  We had some decent snow this week and Oana and I went for a late-night walk around the area.  We were not alone.  Many other residents had the same idea and it was a nice atmosphere with people having fun and just enjoying the weather.  I do like the snow, but I hate it when it turns to ice and then the following few days are spent sliding all over the pavement.  The one major downside to the cold weather is how difficult it is to keep our apartment warm when it’s all-electric and we have a cat that hates closed doors.

Our heaters are 2kw, which means an hour of being switched on uses 2kw/h.  The cost per kw/h is 28.76p, so each hour of use costs us 57.52p.  An hour a day, over a full month, is an extra £15-£20 on the electric bill.  When we can’t keep the doors closed for long because of Poppy, the heat does not stick around that well.  Compared to the cost of running the heater, it often makes more sense to use tealights.  A pack of 100 tealights is £4, and 20 tealights will heat our living room for the four hours they burn, and a little after, so call it five hours.  If I’ve done my calculation correctly, that’s 16p per hour of heat; much cheaper than running an electric heater.  Something is wrong with how basic utilities are run.

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Stereotypes – Medical Secretaries

There are some wholly unfair stereotypes, and there are some that it’s difficult to argue against.  One of the consequences of having poor physical health is that I have to deal with lots of medical secretaries.  I also worked in health insurance for a couple of years which involved a lot of communication with these secretaries.  Whilst there are some excellent ones out there, it seems they are massively outnumbered by the ones that are so bad they’re striving for incompetence, as it would be an improvement on the service they currently offer.  What’s the phrase; delusions of adequacy.

In the summer of 2023, I was in a really bad way with my mental health.  Only a handful of people know how bad it was.  I saw a GP in July of that year and was referred for an emergency appointment with the mental health team.  A few weeks later, once the worst of it had passed, I had a call out of the blue from this mental health team.  Those who are unfortunate enough to have struggled with their mental health know that it’s not always something you are comfortable talking about with no warning.  Sometimes, simply discussing it can feel like opening a wound.  It just so happened that when I took the call I was working and was not in the headspace to discuss it.  I was then referred to speak with a mental health practitioner.  

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Urgency? What’s that?

Whilst all this was going on I was paying to see a private therapist in London via video.  She’s been incredible.  I owe her a huge debt and I’ll never forget that.  Weeks became months and I’d still not heard anything about this mental health practitioner.  I mentioned it in a review with my GP and they said they’d look into it.  A few days later I was offered an appointment with this person, and a couple of days later they cancelled the appointment for some unknown reason.  A few weeks went by, and the same thing happened again.  I decided not to chase it up again as I was, for the most part, doing better.

Last week I had a call offering me an appointment for this mental health review, and I figured I’d take it.  My sessions with the private therapist are coming to an end and getting some advice from the NHS couldn’t do any harm, or so I thought.

I was wrong…

On the day of the appointment, which was booked for 15:30 we also had to take Poppy back to the vet for another follow-up after her surgery.  I was feeling stretched and at 10:00 I called the GP to ask if I could reschedule, and I ended up having a frustrating conversation where the following was explained;

  • I could not reschedule.
  • If I did not attend, it would go down as a mark against me which would limit my ability for future appointments with the GP or this mental health practitioner. 
  • I could not have a telephone appointment.

I appreciate cancelling or rescheduling on the day is not ideal, however, I’d been waiting a year and a half for this and they’d already cancelled on me twice.  Forcing me to attend an appointment regarding mental health in person was surely not good from a medical point of view.

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The call ended with the appointment being left open.  I managed to get to the surgery at 15:25 to be told that the appointment was cancelled.  However, no one had tried to contact me.  I then ended up arguing with three receptionists at the same time as to why it was cancelled without anyone telling me.  They stated could still be seen but I’d have to wait a bit, almost like they were doing me a favour. I was not impressed seeing as though I didn’t want the appointment and had tried to cancel, and here I was already stressed out and not feeling in the headspace to discuss my mental health.

Rubbing salt in the wound

The practitioner came out and said he could spare a few minutes but I was done at this point.  I had a chat with the practice manager who listened to the call recording and explained the person I spoke with on the phone got it wrong.  I explained my side but I don’t think it will change anything.  These people need to do better.  This isn’t like turning up to a restaurant to find your table has been cancelled.  They’re dealing with the health of people who are already going through a tough time.  Their mistakes have real consequences.

Had this happened to someone in a terrible place, it could have been the tipping point.  This wasn’t just a single mistake.  Had they been able to arrange a phone call, which the practice manager later confirmed was an option, none of this would have gone down in such a shambolic way.  The first mistake was the incorrect information on the phone call, the second mistake was cancelling the appointment without telling me, and the third was how this was handled in the surgery with multiple secretaries shouting over each other and across the waiting area whilst discussing the issue as other patients were waiting in line.

They need to do better.

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Poppy

Poppy has now been discharged from the vet and seems to have made a good recovery.  Hopefully, we don’t have to take her back for a long time.  A couple of times this week she’s panicked thinking we were getting ready to take her again, and she’s gone hiding under the sofa.  We feel awful having to stress her out with the vet, but it’s for her own good.  It would just be nice to be able to communicate that in a way she would understand.  

Job Search

I received a reply from the high street lender I was negotiating with that they could not meet my demands, so I formally withdrew from the process.  To be fair, I was not fully sold on the job anyway, so it’s no great loss.  

I did take a call from a recruiter about an employed mortgage advisor role and it sounds interesting.  She went back and forth between the company and me a few times, and they want to speak to me directly.  I’m just waiting for them to make contact.  

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Also, I had a second chat with another business about a similar-sounding role.  I’ve now spoken with their area manager and the person who would be my line manager.  It sounds like an exciting opportunity and I’m hoping to hear positive news about this role next week.  

If I could have another job lined up for the new year it would be amazing and would take a lot of pressure off.

Applying for jobs now seems like much more hard work than it was when I got my current job back in 2011.  There are so many scams out there and you have to remain vigilant.  I was telling Oana about how I got my last job before going to university, and it was off the back of a newspaper advert.  An actual printed advert in a newspaper.  This was back in the day when Netflix came in the post and people used to buy ringtones for their phones.  

An unexpected benefit of being a mortgage advisor…

…is that you wipe the floor with people at Monopoly.  Yes, this week I’ve been challenged by Oana to two games of Monopoly and both times I won without breaking a sweat.  It’s almost as though my brain has been rewired to assess the variables instantly to know what deals to strike.  Either that or I’m just really lucky with the dice!

Here are my top tips for Monopoly.

  1. Avoid the yellow and red sets; they are too expensive and you get little reward from them.
  2. The orange set is the best in the game with a good combination of price and reward.
  3. The railway sets are undervalued.
  4. The utilities are worthless and will almost certainly run at a loss.  If you think about the maximum value of a roll of the dice, and how the rent is calculated compared to the cost of the property, you can see how it takes multiple instances of opponents landing on them to make any money.
  5. Taunting your opponents can get them to make silly mistakes.  Learn how best to wind them up and exploit those weaknesses.
  6. In the late game, jail is your friend.  

Spam Comments

For those who don’t know, part of the dashboard with my website host relates to comments people leave.  Anyone who hasn’t commented before has to have their comment approved before it’s published, as do many posts that contain certain words or phrases.  I’ve got to give credit where it’s due as the filters are great at stopping 99.9% of the rubbish that comes my way.

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On any given day I receive multiple spam comments and they’re not even subtle.  I don’t understand what the sender, or creator, of these comments hopes to achieve.  Most of the comments are word-for-word the same and follow one of a few set templates.  See the pics below.  I normally delete the comments as they come through, but I thought I’d let a few build up in the spam folder to show you the sort of rubbish that is being sent in.

I do enjoy getting real feedback from readers though, so if you have any thoughts on the blog, please do get in touch.  

Another recipe…

A few people have enjoyed reading my recipes recently.  I made another great meal a couple of days ago that I’ll share below.  It’s for mushroom gnocchi.

Ingredients

Flat mushrooms, shallot, garlic, fresh parsley, gnocchi, creme fraiche, parmesan, chicken stock, butter, salt, and pepper.

Process

Finely chop the shallot and garlic and sweat them down in a little butter.  Once they’ve softened, add the chopped mushrooms and season with salt and pepper.  You want to cook down the mushrooms quite a bit and then add the chopped parsley, and roughly 300ml of creme fraiche.  Also, add roughly 200ml of chicken stock.  Let the mixture reduce.  

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Get the gnocchi in a pot of boiling water.  Once it’s cooked, drain and then stir the gnocchi through the sauce.  Once the gnocchi is all coated, add grated parmesan to the mixture and stir through.  Serve with extra parmesan on top, and with garlic bread if you like.  

It was amazing.

Anyway, if I’m going to have a regular section about food it needs to have a name.  I suggested, A Song of Food and FIRE to Oana and she was so impressed she couldn’t bring herself to talk to me for an hour.  My genius has that effect on people.  It will only mean something to those familiar with Game of Thrones though.  

Other options include Cooking with FIRE, or maybe Cooking on FIRE.  

If you have a suggestion, please let me know.

Letters to Oana

Part 2 of the series Letters to Oana is now live, and Part 3 is in progress.  

Looking Back

Part 17 of the Looking Back series is also live.

What I’m Doing

Listening: The Hidden Space: The Glass Book Two by Nathan Hystad.

Watching: Star Trek: Deep Space Nine; MasterChef: The Professionals.

Whenever I finish an excellent series of books there’s always a hangover of sorts.  It’s almost like a form of grieving, where you say goodbye to those characters and that world.  It can be difficult to find something new after because you’re still in that other world. 

Another way of describing this would be to use an example from food.  In some restaurants, the courses are structured so that their palate cleansers are offered between dishes that have strong or distinct flavours.  When I finish a great story, I need a palate cleanser for my brain.

Nathan Hystad is one of those authors whose work I enjoy listening to, but also find disposable.  There are some books where, even years later, I can remember characters and scenes, and there are others where I finish the last book and a few days later it’s already in the mental trash folder.  

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The new series that I’ve started concerns a series of invisible barriers that emerge all around the world, and involves concepts such as time travel, alternate realities, aliens, and so on.  It’s entertaining enough but nothing I’m massively excited about.  

If anyone reading this has suggestions for good sci-fi I’d love to hear from you.

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Financial Update

Assets

Premium Bonds: £15,200.00.

Stocks and Shares ISA: £90,310.64.

Fuck It Fund: £34.94.

Pensions: £87,582.26.

Residential Property Value: £237,447.00. 

Total Assets: £430,574.84.

Debts

Residential Mortgage: £185,094.90. 

Total Debts: £185,094.90.

Total Wealth: £245,479.94.

It was pointed out by some readers that my Fuck It Fund dropped last week and I didn’t mention it.  This was an oversight on my part, as I had meant to mention it.  I had to use some of those funds to pay for Poppy’s surgery and related expenses.  Having older pets is not cheap, but they’re worth every penny.  

I’ve not been able to invest much of my salary this month as I’m paying for our combined cost of living until Oana starts her new job in the new year.  Once we both have some stability with work, it will be good to start chipping away a bit at the mortgage debt.

Goals for 2025

It’s getting to that point in the year when I start thinking about what I want to achieve in the new year.  2024 has been a bit transitional for me, with the end of my current employment looming.  I’ll have been working in this job for a third of my life, and most of my adult life.  I think 2025 is going to be a time to build new foundations so that I can hopefully move forward with more energy and determination.  

The roles I’m in contention for may come with a lower basic salary but higher earning potential overall once the commission is factored in.  If I’m in a position where I can see a more direct link between effort and reward, I fully expect I’ll step up my game accordingly.

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The most important goal for 2025 has to be, like for most FI followers, maxing out my ISA allowance for the year.  Once this is achieved, I think it will then be a matter of chipping away at the mortgage.

Normally, I’d not be too concerned about the mortgage but in a couple of years, we’ll need to get a new deal.  Rates are much higher than when I started this project, and my mortgage payments have roughly doubled over the last few years.  This eats up a significant proportion of our income, and getting that down will reduce our future cost of living when it comes to retirement.  

If I can max out my ISA allowance, and then max out my 10% overpayment allowance on the mortgage, I’d be happy with that.  This would need approximately £38,000 which isn’t unrealistic.

Patience

I’m at that stage where there aren’t, seemingly, any shortcuts.  It’s just like the old trains where you keep shovelling coal to keep the engine going.  The formula for FI is so simple; money invested + time = FI.  If I keep investing and let compound growth work its magic I will get there eventually.

What can be frustrating in the middle/late-middle part of this timeline is that each contribution you make to your investment pot can feel like a drop in the bucket.  When you first start, investing £500 on top of a current balance of £500 is huge as you double your investment.  Now, when looking at an overall pot of a quarter of a million, throwing a few hundred into the mix can feel futile. 

When these feelings appear, it’s vital to remember that every unit of a fund that’s purchased is like a new soldier in your army that’s working tirelessly to earn you even more money.  Adding one soldier at a time might not seem like much, but much like gravity, compound growth is relentless.  It’s just a matter of being patient.

That’s all for this week.  Thank you 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 

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.

Part 264: Five Years Later

Hello and welcome back to Mortgage Advisor on FIRE.  It’s the five-year progress post.  There are the usual financial updates, both for the week and looking back over the past five years.  Also, thoughts about fireworks in light of the death of animals at Edinburgh Zoo, and some more developments in my job search.  First, though, a little message from me to you.  

Five Years Later – A Message to My Readers  

The past five years have been a whirlwind not just globally, but personally as well. When I first started dreaming up the idea for this blog, I was leaning against the glass balcony panels of a cruise ship in my cabin somewhere off the Norwegian coast. The horizon stretched endlessly before me, just water and sky, calm and infinite. I’d position myself just so, blocking out the ship and everyone else, so it was just me and that vast expanse. It was in that stillness that the first seeds of Mortgage Advisor on FIRE were planted.  

That was 2019. Since then, the world has changed in ways we couldn’t have imagined. A pandemic. War in Ukraine. Economic chaos with inflation spiralling out of control and interest rates rocketing to match. We’ve had a parade of politicians who seem determined to fumble every opportunity to do the right thing. And through it all, society has shifted, with more people demanding something better from work than just stress and burnout.  

On a personal level, it’s been a journey of highs and lows. I’ve faced physical health challenges that saw me hospitalized more than once with one trip even by ambulance. Mental health hasn’t spared me either, with two major episodes in the past five years. The most recent one, just last year, knocked me harder than I could’ve anticipated. I’m still coming to terms with it. Maybe “recovered” isn’t the right word because I’m not sure I’ll ever go back to who I was before. But perhaps that’s not a bad thing.  

This blog and the community around it have been a lifeline. Writing has given me clarity, purpose, and focus, especially when life feels overwhelming. My financial health is stronger than ever, and that’s largely because of the lessons I’ve learned and shared here. But it’s more than just the numbers. It’s the people – you.  

The support I’ve received from readers has been overwhelming in the best way. The private messages, the comments, the emails: they’ve meant the world to me. Knowing that my words resonate with others and that this blog has helped even one person, is a reward greater than I ever expected. I’ve met incredible people through this journey, and your encouragement has lifted me when I needed it most.  

So, thank you. Thank you for reading Mortgage Advisor on FIRE. Thank you for your support, your kind words, and your time. Every interaction, every message, is a reminder of why I started this in the first place. I am truly humbled and endlessly grateful to have you here.  

Here’s to the next chapter – together.  

David Scothern

Mortgage Advisor on FIRE, November 16th 2024.

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Weekly Update

My week started with some progress on the job front.  As I mentioned last week, I was offered the job with the high street lender, but I was not happy with their attempt to lowball me.  I took some time to think about it and went back to them earlier this week to formally decline the offer.  I explained that the offer was simply not good enough and that I’d got other offers on the table.  So, I thanked them for their time and the opportunity and wished them all the best.

Shortly after sending that email, they replied asking what I would accept.  The thing is, what I want is not something I think they can offer.  It’s not just about the salary.  I explained that my priority is full-time working from home and that I don’t want hybrid working or to be based in an office.  I want to work from home because the coffee is good and my cat is here.

So I think they may come back with a better salary but I don’t think they’ll budge from their stance of 40% working from the office.  I mentioned that I’d consider extra paid holiday, but I think this would be declined by their HR team. 

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The one that I want…

The job I do want may have fallen into my lap, or at least I hope it has.  I received a call on Tuesday from a recruiter who had spotted my CV online.  We had a good chat and he ran through a role that seemed like a great fit; it’s working from home, appointment-based, as a mortgage and protection advisor.  I confirmed I was interested and the following day I had a meeting booked with one of the area managers from the company.  We had a good chat for just over an hour, and I’m waiting to arrange another meeting with the business this coming week when the person I need to speak with is back from leave.      

I’m trying not to count my chickens but I’m excited by this opportunity and can feel some of the energy coming back that I feel has been waning for a while now.  

Oana has been offered a job this week also, and whilst it’s not the dream job it’s a foot back on the ladder.

Christmas Markets

The Christmas markets are open in Sheffield, and Oana and I went for a walk around after it had gone dark on Friday.  Credit where it’s due, but the council have done a great job with the city centre this year.  There are still bits of the centre that are being rebuilt as part of the “grey to green” initiative, but it’s looking good so far.  

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The only thing lacking was decent street food, with the available stalls smelling of grease.  What I wanted was a nice Poutine place, or somewhere doing a decent pie and mash. 

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Poppy

Our little Pops is getting better following her surgery.  She’s had to go back to the vet twice since the op, and she’s due to go back on Monday for, hopefully, her last post-op checkup.  

She had two teeth removed and we got to see her scans at the last appointment:

We’ve also noticed that she’s stopped drooling since having the teeth removed.  She’s such a sweet, loving, cat and we’re so relieved at how she’s bounced back from all this.  

It’s always difficult taking Poppy to the vet.  I used to walk over to the tram with her inside her carrier.  She was fine with this but then started to panic the last couple of times, and she’d be panting and visibly distressed.  So, we started getting Ubers to the vet and the vast majority of drivers are fine with it.  Every so often we get an asshole.  If you’re allergic, I get it.  No problem, we’ll get a different driver.  I would argue that Pops is a better passenger than most kids as she doesn’t fidget, touch and kick everything, or climb over seats with shoes on.  She just sits in her carrier.  

Uber for Pets

Under normal conditions, an Uber is around £7 from our apartment to the vet.  Last week we had a driver lecture us about having to book a specific “pet Uber” via the app.  We’d not heard of this, but sure enough next time we checked there’s an option for an Uber for a pet.  

On the face of it, this is a great idea as it allows drivers who are comfortable with pets to make money, but when I saw the price I was pissed.  At a time with no price surging, an Uber for a pet was more than five times as expensive as a regular Uber, and it had to be booked in advance.

There’s making a reasonable profit, and then there’s taking the piss.

There are also incredibly sweet cats called Poppy…

Luke Smitherd

I have been rereading the Stone Man series as the new book was recently released.  The author, Luke Smitherd, is active on X (what a stupid AF name to replace Twitter, but I digress) and I’ve had a few interactions with him in the past.  Anyway, I mentioned I was going through the series again and he invited me to a video call Q&A he hosted on Thursday evening.  The race was on to finish the series before the call as there were sure to be spoilers.

The whole series is excellent.  It’s fairly common for the quality of a series to drop over time, and the ones that manage to stick the landing are rare.  Luke Smitherd joined that elite list of authors who craft a story that both ends well but leaves you wanting more.  

The Q&A call was good fun and it’s always nice when you get to interact with people from around the world who share your interests.

If you are interested in The Stone Man series, there’s a trailer for the books shared by the author on Twitter and YouTube:

The Number Five

The science is too complex to explain in a simple blog post, but I need to confirm that the number five is an honorary even number, but only in certain contexts.  It’s like adoption; five might not be biologically an even number, but it is when you think about it.  Five has been welcomed into the family of even numbers.  

For example, the volume on the television either has to be set at an even number, or at a number ending in five so long as it’s at least a two-digit number.  Setting the volume at “5” is just weird but “15” is perfectly acceptable.  

We also have £5 notes, but then no other value of note that does not end with a zero.  As we operate on a base ten number system, half of ten is five, and to arrive at five from ten, you divide by two; an even number.

As I said, the science is too complex to explain, but five is an honorary even number.

To preempt any reader questions…

No, I’m not drunk.

No, I’m not actually being serious.  

I will not be taking further questions.   

Fireworks

I get it, fireworks can look cool when part of an organised display.  The noise is fucking annoying though, and the impact of fireworks on wildlife is an issue that, whilst it is becoming more widely recognised, is still ignored by many people.  

A few weeks ago I mentioned that Oana and I stopped attending an event in Sheffield that refuses to switch to silent fireworks.  They argue that nobody wants silent fireworks.  A few days later our local newspaper ran a poll which showed most people would prefer silent ones.  

Anyway, on Thursday this week, The Guardian reported that a baby red panda, Roxie, died at Edinburgh Zoo following the stress caused by fireworks.  She reacted with extreme stress to the noise, vomited, and choked to death.  This was not the only death at the zoo linked to fireworks this year.  

The link between loud fireworks and harm to wildlife is not up for debate; it’s crystal clear.  If you buy fireworks that make noise, which cause huge amounts of stress to dogs, cats, other animals, and those struggling with anxiety and/or PTSD like combat veterans or those fleeing war, you are admitting that your desire to use loud fireworks is, in your mind, more important than the suffering of other life.  It’s even more abhorrent to me when there is another option, silent fireworks, that have almost no impact on the enjoyment of the fireworks, but remove most of the harmful factor.  

We don’t need fireworks.  We’ve been conditioned to use them because some dude wanted to blow up Parliament over four hundred years ago.  It’s weird.

Movember

I’ve had to bow out of my Movember challenge this year.  The problems with my ear, which was causing a lot of pain, and other factors in my personal life, have made it impossible to give my all to the effort.  So, I’ve had to back out.  When the month started, it was already a tough, but achievable, goal.  However, each day that I failed to hit the step target, meant that every other day had an even higher target.  It got to the point where I’d need to be out walking for four hours each day which is not possible when you have other commitments such as work.  

What I’m Doing

Listening: March of the Stone Men: Stone Man Book 4 by Luke Smitherd.

Watching: Star Trek: Deep Space Nine; MasterChef: The Professionals

MasterChef has started up again, and we’ve been racing through the episodes on iPlayer that we didn’t catch as they were aired.  We don’t watch much live TV so we often miss when new series start. The professional version of MasterChef is my favourite, and I particularly enjoy the skills challenge.  This is where a chef is presented with a brief, and some ingredients, and has twenty minutes to make it happen.  It might not sound like much, but when a chef is asked to do something they’ve never done before and you see their soul leave their body, it’s one of those things which you can’t stop watching.

On the subject of MasterChef, a few people have asked for my recipe for apple and blackberry crumble.  Well, here it is…

Apple and Blackberry Crumble (less grumble, more crumble)

Ingredients: 6-8 servings

Crumble Topping

240g plain flour

150g oats

150g flaked almonds

20g each of; caster sugar, soft brown sugar, and dark brown sugar

120g salted butter

Fruit Mixture

4 Bramley apples

A pack of blackberries

100g salted butter

135g demerara sugar

One teaspoon of cinnamon. 

Process

The first thing to get done is the crumble topping.  In a mixing bowl, mix the flour, butter, and three sugars by hand until you have a breadcrumb consistency.  Then, add the oats and flaked almonds, stir through and leave to one side.

Warm up the oven to 170c.  

Peel and chop the apples into rough cubes approx 1cm-2cm across.  Chop the blackberries in half.

In a frying pan, over medium heat, mix the butter and demerara sugar to create a caramel.  Then add the apples, mixing through so the fruit is coated.  Add the cinnamon and mix again.  After the apples have softened a little, add the blackberries and stir.

Add the fruit mixture to an oven dish, and then add the crumble topping making sure it’s evenly spread.  

Cook for 40 minutes or so.  Serve with custard or ice cream.

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Financial Update

Assets

Premium Bonds: £15,100.00.

Stocks and Shares ISA: £90,058.70.

Fuck It Fund: £34.94.

Pensions: £87,802.18.

Residential Property Value: £237,447.00. 

Total Assets: £430,442.82.

Debts

Residential Mortgage: £185,094.90. 

Total Debts: £185,094.90.

Total Wealth: £245,347.92.

So, it’s been just over five years since I started this blog.  Except for a small break last year when my mental health wasn’t great, I’ve posted pretty much every single week since that first post in 2019.  It’s strange how much my thoughts and feelings have changed over that time.  

When I first started the plan was to build a property portfolio.  Now, the idea of doing that fills me with a cold dread.  I think I could have made it work but for a really unfortunate series of events, like Brexit, Covid, war, and one clusterfuck of a Tory government after another leading to rampant inflation and sky-high interest rates.  Trying to make it work was an impossibility against all those conditions.  

However, it’s not all doom and gloom.  I’ve made some great progress over the last five years, and I think I’ve learned a massive amount as well.  Another positive to come from this blog is that, at least from what I’ve been told, my writing has improved significantly.  At the risk of sounding incredibly cheesy, the real value of this blog isn’t reaching the destination…

*looks wistfully at the horizon*

…it’s about the journey.

Right, let’s all pretend I didn’t just write that and move on to the Annual FI Review.  Here are the three main figures for each anniversary of this blog; Assets, Debts, and Total Wealth:

Annual FI Review

Week 1 (November 1st 2019)

Assets: £188,119.96

Debts: £134,279.11

Total Wealth: £53,840.85

Week 53 (November 1st 2020)

Assets: £221,230.88

Debts: £142,590.19

Total Wealth: £78,640.69

Week 106 (November 7th 2021)

Assets: £462,259.05

Debts: £260,297.98

Total Wealth: £201,961.07

Week 158 (November 6th 2022)

Assets: £509,769.84

Debts: £285,660.42

Total Wealth: £224,109.42

Week 210 (November 5th 2023)

Assets: £518,569.84

Debts: £279,600.57

Total Wealth: £238,969.27

Week 263 (November 10th 2024)

Assets: £429,623.50

Debts: £185,094.90

Total Wealth: £244,528.60

The first thing that jumps out at me from those figures is that my total wealth continues to increase year-on-year, despite selling the BTL between the 2023 and 2024 updates.  I calculated the wealth value of the BTL as the index value minus the mortgage outstanding, but in reality both the value and debt were shared.  It’s nice to know that I’ve continued the five-year trend of growth even with that bump in the road.

A few milestones are coming up which are sure to boost my morale going forward.  The first one is pushing my assets above £500,000 again, and seeing my total wealth figure break through the £300,000 barrier for the first time.  As I look ahead, I’m predicting I’ll hit those milestones by the end of Q2 2025, assuming I am employed relatively early in the new year.

Embracing Simplicity

As my Financial Independence (FI) journey has evolved, I’ve noticed my approach has become laser-focused. In the early days, I dabbled in a bit of everything, property, stocks, bonds, crypto, you name it. I was chasing quick wins, thinking diversification in every direction was the key. But over time, I’ve stripped it all back. Crypto? Gone. Property? No thanks. These days, my energy is fully channelled into stocks via my ISA and pension, with any surplus sitting in premium bonds or cash.  

What I’ve come to realize is this: the simplicity of a solid FI plan is actually one of its biggest barriers for many people. It feels almost too easy. Spend less than you earn, and invest the difference in low-cost index trackers. That’s it. No complex strategies, no secret sauce. And yet, this straightforward approach is the backbone of most successful FI journeys.  

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But simplicity can be deceptive. People often assume that if it’s not complicated, it can’t be effective. Or they second-guess themselves, worrying they’ve missed some crucial detail. The truth? FI doesn’t need to be fancy. It just needs to work, and it does.  

Too Passive?

Another hurdle is the passive nature of the process. Once your ISA and pension accounts are set up, investing becomes almost hands-off. You can automate most of it. And here’s the thing: many people want to feel like their success is directly tied to constant effort. The idea that success could come from simply staying the course feels counterintuitive. But inaction is a choice too, and a powerful one.  

By choosing not to tinker, not to overcomplicate, and not to chase every shiny new opportunity, you’re making a decision. That choice, that restraint, is as much a part of the FI journey as the spreadsheets and the savings rate. Sometimes, doing less is the hardest thing of all.  Don’t be a magpie, and don’t be tempted by the shiny things that threaten to distract you.

Stay the course. Simplicity wins. Every time.

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 

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.

Part 263: America. Why?

Hello and welcome back to Mortgage Advisor on FIRE.  This week I discuss buying property at auction, and look back at the US election.  Also, a very busy week, getting birthdays wrong, and bleeding out of my ears. 

Weekly Update

Guess who’s back, back again.

Donald’s back, tell a friend…

Or, as a social media post stated;

“America.  What the fuck?”

Politics is an emotive subject and otherwise reasonable people can do stupid things in the UK like voting Tory.  In the US, we now have the orange manchild back in power.  I don’t understand what can drive tens of millions of people to vote for a misogynist, racist, narcissist.  He is not just stupid, he’s nasty and hateful.  I read that someone voted for Trump because they felt they could trust him with their child.  I have no words.

The Democrats made mistakes in this campaign, with the main one not pushing President Biden to one side much sooner.  Now, we have to endure another Trump term in office which will likely see less cooperation between Europe and the US, tensions rise with the US and China, and in all likelihood a reduction in the aid going to Ukraine.  

As I said above, Trump is not just stupid.  He can’t be trusted.  There’s a Wikipedia page titled False or Misleading Statements by Donald Trump.  In 2021 The Washington Post reported that their fact-checkers had compiled a list of all the times Trump had made false or misleading statements in the previous four years.  They catalogued over 30,000.  My mental calculation puts that at around 20 per day.  

Seriously, America… Why?

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Job Search

Anyway, moving on from politics to my week which has been quite eventful.  I’ve had several job interviews and received one formal offer, and I’m waiting to hear back from two which I think will be offered.  

The first job interview was in mortgages for a high street lender.  It wasn’t for an advised position though.  The job spec gave a salary range of around two-thirds of my current salary.  On the application, in response to the question about my salary expectation, I put a figure slightly above the range and would have paid 70% of my current salary.  When they called me for an interview I assumed this would not be a problem.

Low Balling

I smashed through the interview and received a call a couple of days later offering me the job.  During the call, I asked for more information about the offer, and they explained the salary would be £3,000 lower than what I stated as my expected salary.  I pointed this out to the recruiter and they offered to increase the salary by £500p/a.

They’ve given me some time to think about it, but I’m not feeling hugely enthusiastic about the role.  Not only is the salary lower, but the job requires 40% work from the office and the rest from home.  

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I also interviewed with a company I used to work for but I cut the interview short.  The person who called me did not seem to know anything about my background (all the info I was asked about was on my CV and in my application).  Then, I was told that the advertised salary range was not quite right and that they were only offering a flat salary at the bottom of that range; £17,000 less than what I currently earn.  The rest of the interview went like this:

Interviewer: Will that be a problem?

Me: Yes.

Interviewer: …

Me: …

Interviewer: …

Me: Ok then, thanks for your time I guess. 

I don’t necessarily expect to earn what I’m earning now, but I won’t be taken for a ride either.

The third interview took place Friday morning for a mortgage advisor position.  It sounds like an exciting opportunity with an up-and-coming business.  I spoke with the MD and I like their energy.  I should hear something this coming week, and I’m hoping for good news.

Ear Pain

A few days ago I started feeling a lot of pain in my left ear.  It felt like a mix of pressure and pain, almost like a foreign object was inside the ear.  It also itched and tickled a little.  I tried putting a cotton bud in there to see if there was something trapped or an errant hair, or maybe even a bug.  I did not expect the bud to come out covered in fresh blood.  

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It took a few days to get to the GP and my fear of a ruptured ear drum was unfounded.  I’ve got some sort of inner ear infection on both sides, with the left ear being much worse.  I’ve been prescribed a spray which feels very strange when used.  I will have to deal with the pain for a few more days, possibly weeks.

Poppy

Our sweet Poppy had to go for surgery this week.  She’s had some problems with her teeth and we tried some less drastic treatments initially but they were not effective.  So, on the vet’s guidance, we had her booked in.  Taking her to the clinic on Thursday morning was horrible.  She was yowling and panicking but calmed a little when we got there.  We had to be at the vet for 8:45 and we couldn’t pick her up until 16:00.

The operation went well and she had one tooth fully removed, with a second tooth partially removed. We brought her home and she was finally able to be fed, as she’d had to fast for a while before going in.  She ate, and ate, and ate some more.  She seems a little anxious but is still affectionate and spending time with us.  Her purr has changed and is now louder.  

It’s so strange when you have a cat but they’re not in the home.  They are so small but it’s almost like their presence permeates every part of the home.  You can almost feel them even when they’re in a different room.  When they are not there because they’re at the vet or the cattery, for example, the place just feels emptier.  

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We had to take Poppy back on Saturday as she’d not yet pooped despite eating a week’s worth of food in a day and a half.  She was checked out and prescribed antibiotics, and then as soon as we got back from the vet she must have heard drums in the deep as she went to her litter tray to summon the balrog.

A busy end to the week…

Between job interviews, work, GP visits, and multiple vet visits, it’s been a busy old end to the week.  I also managed to get the birthday wrong for a good friend of mine, sending them a happy birthday the day after their birthday despite speaking with them on the day itself.  As Oana said when I told her, I’m “useless with that stuff”.

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Loose Ends

My current employment is coming to an end in just a few weeks.  I’ve got loads of admin to do as part of that, like getting payslips saved and dealing with returning my laptop, and one of the tasks on my list is to speak with Bupa about continuing my health cover.  I have called them a few times and have not been able to get any information from them, but finally received a call back on Friday afternoon.    

I went through a few quotes as there are five different levels of cover.  The lowest two are basically pointless as hardly anything is covered.  The remaining three levels, which are not quite at the level of cover I have now, ranged from £186 to £277.  These are monthly figures.  I looked at other scenarios involving different excesses but increasing the excess by £250p/a lowered the premiums by £23, and as I will probably use a policy fairly regularly it’s just moving money from one pot to another.  Also, the premiums would increase each year, and it’s just a non-starter.  

Hello darkness NHS my old friend.

Wrapping up my weekly update, I will just mention I published a little impromptu post this week which you can find here.  I discuss paying for things over time, and how companies are extremely reluctant to give money back once they have it.

Movember

I’ve started a new walking challenge, this time for the Movember Foundation.  For those who don’t know about Movember, it’s a charity that primarily raises awareness for male mental health, suicide prevention, and male-related cancers such as prostate and testicular.  A few years ago I raised a few hundred pounds for them when I completed a virtual bike ride from Land’s End to John o’ Groats on a bike at the gym.  It was hard work but very satisfying.  

This time I’m aiming for 500,000 steps in November.  If you would like to follow my progress or donate, you can do so here.

Letters to Oana

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

Looking Back

Part 17 of the Looking Back series is also live.

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What I’m Doing

Listening: The Stone Giant: Stone Man Book 3 by Luke Smitherd

Watching: Star Trek: Deep Space Nine

I’ve enjoyed The Stone Man series again on my second run-through.  Once I’ve finished the third book, I’ll be in new territory with the fourth.  The story would make a fantastic show for the streaming era.    

I don’t want to spoil the books for anyone who might be interested, but if you like sci-fi/horror from a British perspective, you should give them a go.

Oana and I have started a watch of Deep Space Nine.  I’ve seen it a gazillion times since it ended in the late 90s, and Oana has seen bits and pieces but never watched it through fully.  So, we’re going to watch the whole thing.  

We’ve watched the feature-length pilot episode, Emissary, and it’s a bit rough around the edges.  The picture quality isn’t great and you can tell that everyone is just finding their feet.  The show doesn’t find consistent quality until partway through the second season, but then it’s off to the races.  I might try and skip the first season episode Move Along Home.  If you know, you know.

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Financial Update

Assets

Premium Bonds: £15,100.00.

Stocks and Shares ISA: £88,137.13.

Fuck It Fund: £1,234.94.

Pensions: £87,704.43.

Residential Property Value: £237,447.00. 

Total Assets: £429,623.50.

Debts

Residential Mortgage: £185,094.90. 

Total Debts: £185,094.90.

Total Wealth: £244,528.60.

First Trillionaire?

My ISA is back below £90k which is annoying, but it will bounce back.  Now that the US election is done and dusted, there should be some stability until Trump takes office.

It will be very interesting to see if Elon Musk is appointed to a formal position within Trump’s administration.  If it happens, it could see his net worth drastically increase as policies are changed to his advantage.  The first USD trillionaire, perhaps?

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The Bank of England lowered the base rate to 4.75% this week but there’s a note of caution that further cuts may take time.  I think that’s wise as we don’t want a situation where rates are moved too quickly in either direction, which would cause even more uncertainty.  Stability is vital at the moment.

One common result of lower interest rates is that mortgage rates come down, which in turn can lead to higher house prices.  The short, simple, explanation is that lower rates generally mean people can borrow more, and if they can borrow more they tend to look at the upper end of their price range.  Lower rates also mean that more people can get a mortgage, and the more demand outstrips supply, the more prices increase.

A common message in this blog is that people should only invest in what they understand.  The same thing applies to buying property.  If you don’t understand something about the purchase, you should seek independent advice to make sure you fully understand before going ahead.  

Buying at Auction

I was recently approached by a friend who wants to sell their current home and move, with the new property being sold at auction.  Unless someone is an experienced property investor or is extremely well-read in the auction process, I would not feel comfortable with them going down this route.  Auctions can be complicated, and it’s easy to get swept up in the excitement of competing against other people so you can “win”. 

If a property is being sold at auction, you have to ask yourself why.  It could be a repossession.  It could also have something very wrong with it.  

As I said to my friend, “Would you spend £2,000 on a device you don’t know how to use?  If not, why would you spend a hundred times that on a process you don’t understand?”  Many people view auctions as something they can benefit from.  This can be the case, but the auction is not there primarily to benefit the buyer; it’s there to benefit the seller.  

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One of the most common questions I get from strangers about property has to do with buying at auction, and my normal reply of “Don’t do it” never seems to dissuade them.  So I’ve put together a little list that expands on some of these points…

Limited Inspection and Research Time

Auction properties are typically sold “as-is,” and buyers have limited time to inspect the property and understand its condition. Issues like structural problems, unapproved alterations, or planning restrictions may not be obvious and can lead to unexpected repair costs. Inspections are essential, but with auction deadlines, there’s often not enough time to conduct thorough surveys.

Complex Legalities and Hidden Costs

Auction purchases are legally binding, so buyers need to have solicitors review the property’s legal pack beforehand. This includes checks for potential issues like restrictive covenants, disputes, or leasehold limitations. Legal packs can be complex, and inexperienced buyers may miss key issues that could lead to financial or legal problems later on.

Upfront Financial Commitment

Unlike traditional purchases, winning an auction requires an immediate deposit, typically 10% of the property price, with the balance due within a short time frame (often 28 days). This tight payment deadline can be difficult for buyers relying on mortgage financing, as mortgage approvals and valuations can take longer than the auction timeline allows. If the buyer fails to complete the payment on time, they risk losing their deposit.

It’s also important to understand if you are buying at auction with a mortgage, that the lender will need to issue a formal mortgage offer for that property before they will lend against it.  A formal offer will normally require a valuation/survey of the property.  Depending on the lender, you may not get a mortgage on a property that requires significant work to be habitable.  At the risk of sounding like a broken record, seek expert advice before committing to any course of action.

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Unpredictable Final Price

Auction properties sometimes start with low guide prices to attract bidders, but the final sale price can escalate quickly during bidding. Inexperienced buyers can get caught up in the bidding process, often resulting in overpaying.

Unlike private sales, there’s little opportunity for price negotiation, which can lead to paying more than the property’s actual market value.  Also, the cynic in me would worry about other bidders being there at the behest of the seller just to pump the bidding. Ask yourself if you have the knowledge or experience to accurately value a property.

Potential for Problematic Tenancies

Some auction properties may have sitting tenants or complex lease agreements. Managing a tenanted property, especially one with tenant issues or non-standard lease terms, can be challenging and require legal and property management knowledge. Inexperienced buyers may find these tenancies difficult to navigate.

I’m not saying that auctions are always bad, or that it’s impossible to get a good deal at an auction.  The key is to have enough knowledge and experience, either your own or borrowed from someone you trust, to understand what you are doing.  If you are considering buying at auction, please seek independent, impartial, expert advice before committing to anything.

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Random FI Thoughts

I was sent the following by a friend and it made me chuckle.

“Random FI thought of the evening…

35 hours a week on the new minimum wage will be £22,222.20 a year (surely someone started with that in mind and worked backwards. Bit weird it’s all 2s).

Anyway, £22,222.20 a year is £1626.78 a month net of tax and NI. 

Assuming a 6% return, to achieve £1626.78 a month you’d need a portfolio of £325,356. 

So, hit that figure and at 6% compounding, it’s like having a little minion who goes out, works a full-time job, and gives you all the money for free.”

The key to FI is having minions working for you.

That’s all for this week. Thank you for reading.

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 

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.

Time and Money

It’s time for a little bonus post about time and money. I want to touch on two key ideas: first, when you pay for a product or service that’s promised but not delivered for some time; and second, when you spread out payments on something over a longer period. These situations highlight how businesses can handle your money and how some might actually leverage it to their advantage.

My Experience: The Display Delay

Back in September, I spent over £300 on display equipment for my LEGO Titanic and Venator models. These sets are among my favourites, so I wanted to give them a little extra flair. I ordered from a well-known online retailer that specializes in display cases for collectables, which are made-to-order. They quoted a delivery time of 6-8 weeks, which seemed reasonable at the time.

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Initially, I didn’t mind the wait; I understood that made-to-order items take time. But as the weeks passed, the lack of communication started to bother me. My order status simply showed as “paid” and “unfulfilled” without any updates. I emailed them a few weeks in, only to be reminded of the 6-8-week window, and when I followed up closer to the six-week mark, they responded that I was still a couple of days early. 

When the six weeks finally arrived, they informed me of an indefinite delay. No new timeline, no clear answer. By October 30th, after days of silence, I decided to contact my credit card company and initiate a chargeback. At that point, they had held onto my money for over six weeks with no product to show for it.

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Eventually, I got a reply saying they’d process a refund in ten business days. Then, confusingly, they emailed again, saying the refund was cancelled due to my chargeback request. I clarified that I just wanted my money back once, not twice, but still haven’t received a response. According to both the retailer’s timeline and Amex, it could take over two months from the date they took my money to get it back.

Talking to others, I found that similar issues aren’t uncommon—especially with niche retailers. On the flip side, I recently had an issue with Amazon, which refunded me within one working day when an item wasn’t delivered. The difference is staggering.

How to Make Money (the Ferengi Way)

The Ferengi in Star Trek have a set of business principles called the Rules of Acquisition. The first rule: “Once you have their money, you never give it back.” This rule sounds comedic, but it’s alarmingly similar to how some companies seem to operate.

So, here’s a tongue-in-cheek, completely unethical business strategy for making money that’s inspired by my experience. Please note, this is NOT serious advice—just an illustration of a concept.

1. Advertise a luxury or designer product and let customers know there’s a two-month lead time.

2. Take their money and do… absolutely nothing.

3. Wait for inquiries. When customers reach out, respond with, “There’s been a delay.”

4. Delay some more until they’ve had enough and demand a refund.

5. Agree to refund, but tell them it’ll take 10 working days.

6. After a further delay, return the money, reassuring them it’s “on its way.”

Using this strategy, you could theoretically hold onto their money for two or three months. If you have 1,000 customers each paying £500, that’s half a million pounds sitting in your account, earning interest, for potentially several months. Yes, there are overheads, and you’d need to fulfil some orders to maintain credibility, but it’s a striking example of how holding onto funds, even temporarily, can be lucrative.

Are some businesses knowingly using this approach? It’s hard to say for sure, but the pattern is frustratingly common. Reviews don’t always help either, given the proliferation of fake reviews.

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Online shopping is a modern convenience, but it’s also a minefield of companies that may exploit your trust. Stay vigilant and keep an eye out for red flags.

Monthly Payments and Utility Bills

I recently vented to someone about my Lego display case saga, and they compared it to how utility companies charge more than your actual monthly usage to build up a credit balance. I get the similarity, but I think there’s a fundamental difference.

Let’s look at electricity as an example. With utilities, you’re typically billed monthly or quarterly. But your actual consumption varies by season, so monthly bills might not match actual usage. To keep your expenses steady, companies often “smooth out” payments by estimating your annual usage and dividing by 12. This benefits customers by avoiding steep winter bills, and it helps companies maintain a regular income stream.

This type of arrangement is mutually beneficial: customers get consistency, and businesses enjoy steady cash flow. The practice is based on the idea that a year has 12 months, which, let’s be honest, is just a human-made division. If we used the lunar calendar, we’d have 13 months. Utility companies essentially estimate an annual cost and divide it by 12 for simplicity.

However, problems arise when companies fail to estimate usage accurately. Years ago, I remember helping a family member whose bill unexpectedly jumped from £30 to £200 per month. I was incredulous as estimating usage is their core business, so how could they be off by such a huge margin?

So, while there are some surface-level similarities between paying monthly for utilities and the Lego display delay, the key difference is in the value exchange. With utilities, both parties benefit from the arrangement. But with companies that don’t communicate, fulfil, or refund on time, only one side seems to benefit.

In today’s world, balancing time and money requires vigilance and, often, a healthy dose of scepticism. As consumers, we should be careful about where we spend and whom we trust, especially when paying upfront.

Thanks for reading.

Part 262: David and The Chocolate Factory

Hello and welcome back to Mortgage Advisor on FIRE.  This week I look back at the fallout from the recent budget.  Also, updates on my job search and a busy week.

Weekly Update

Oana and I celebrated our seventeenth anniversary this week, and no we are not married and have no intention of inviting the government and/or church into our relationship.  Some people believe in marriage, but we do not.  For some reason, though, there are people who get bent out of shape about the fact we haven’t made the “conventional” choices in our relationship, like deciding to not get married, have kids, own a car, and so on.  It’s just not for us.

I think we understand each other, and that our wants in life are different.  That’s why we work.  We have our ups and downs like any couple, but we always come back stronger and get ready to face our next adventure.  I’m sure we have many more ahead of us.  We’re a team, and we love each other, and we don’t need a sticking plaster.  I see the same mistakes made time and time again when a couple are struggling and they decide to get married because that will, in their mind, fix the relationship.  It does, for a while, but when problems arise again the next “fix” is to have kids.  Eventually, the tipping point is achieved and the relationship ends explosively.

Anyway, getting back to my original point; Happy Anniversary to Oana and I; my best friend and partner on life’s journey.  Te iubesc x.

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Tell me you did not just say that…

Certain phrases in life bring about a physical sense of discomfort, like when people refer to something as “lush” and they’re not talking about rolling green hills or a vibrant orchard.  Another example would be when people argued that Boris was “trying his best.”  One that winds me up is when Americans (citizens of the United States of America, a young nation between Canada and Mexico) refer to any pasta as “noodles”.

Does rigatoni look like a noodle? What about conchiglie? Farfalle?

None of these, annoying as they are, hold a candle to a phrase that was printed on the wall of a small gym near our apartment.  

Drum roll…..

“Achieve your limits.”

What in the goddamm deep double-fried fuck does “achieve your limits” mean?

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In a vaguely related bit of news, I was at the hospital this week for an appointment with a consultant about my elbow which has been causing pain since the summer of 2022.  This all started when we were refurbing our apartment, and I was doing lots of DIY and keeping up with regular gym visits.  I think I just overworked the elbow joint and it’s never recovered.

I’ve had scans, physio, lots of rest, and it’s not improved.  I’m now seeing a specialist in sport and exercise medicine who, I hope, can help me get back to some form of exercise.  

Russia fines Google more than the whole world’s GDP

Some headlines just sound like the set-up to a joke, and this is definitely an example.  I struggle to see a point to this because it’s not like Google will pay the fine, and all this has done is give people another reason to point at Russia and laugh.  This fine is the result of Google blocking content on YouTube from Russian sources relating to the war in Ukraine.

I’m not sure what the end game is for Putin but I can’t see a way for Russia back into the international community whilst he holds on to power.  There’s no way for Russia to “win” here.  Their actions in Ukraine, and numerous other incidents, have isolated them from civilised society.  They can’t conquer Ukraine and occupy it.  This sort of thing doesn’t work in a modern, digital, society.  War has changed.  It’s no longer primarily about territory.  What good are buffer zones when you can launch a missile from anywhere on Earth to any other point on the planet?

I had this conversation earlier this week and I was asked how I think Putin remains in power and why people support him.  I think it boils down to money, like most things do.  Putin remains in power because it still benefits his supporters.  They help keep him in power, and he rewards them.  It’s the same story throughout human history.  

Does the war suit the west?

The cynic in me wonders whether the Western powers are happy to let Russia bleed itself dry against Ukraine.  Russia keeps throwing soldiers and money at the conflict and doesn’t seem to be getting much for it.  The whole war just seems utterly pointless, as most wars are.

Anyway, I’m sure you want to know how much the fine was for.  Here goes…

$20,000,000,000,000,000,000,000,000,000,000,000.

If I was the US President I’d have the treasury print a single bill for that amount and then ship it to the Kremlin with a compliment slip attached.

David and The Chocolate Factory

There is a craft chocolate company in Kelham Island that has been expanding in recent years.  They now have a cafe in the city centre which sells these incredible chocolate brownies topped with cornflakes.  We recently found out they offer tours of their factory, and Oana and I booked for one on Saturday.  It ended up being less of a tour, as the factory is very small, and more of a lecture but it was still good fun.

We were worried we’d be the only ones there but five pairs of visitors turned up.  We sat on stools in the food prep area whilst the cocoa beans were being ground into a paste in four metal drums.  Note; one thing we learned was the difference between cacao and cocoa.  The former refers to the bean before it’s roasted and the second refers to it after roasting.  

It was explained that moisture is the enemy of chocolate and when they are preparing the beans they have to make sure it’s as dry as possible, and when they add milk to the mixture it’s only powdered milk.  We had some samples of the different varieties of chocolate they produce and it was just a nice, chilled event where we learned some cool stuff.  

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The thing is, although Oana and I love their brownies, we don’t like the chocolate bars they produce.  The chocolate is very rich and very intense.  I can see why some people would enjoy it, and I would happily have the odd piece here and there, but I wouldn’t pay the £6-£8 for a 50g-60g bar that is charged.  

Fireworks

Have you ever thought “I can’t wait to hear those fireworks.”?

I doubt anyone has ever thought this as the spectacle of fireworks comes from how they look, not how they sound.  In an age where we can make silent fireworks, I don’t understand why they are not the norm.  The noise scares animals and is annoying, and recent polls have suggested that most people favour silent fireworks.  

There’s an annual event in Sheffield at the Botanical Gardens called Illuminate the Gardens which has street food vendors, music, and a fireworks display.  Oana and I have attended a couple of times but the fireworks always make us feel uneasy because we know how it scares the wildlife and household pets.  We’ve opted out of attending recently because of this, and this year we thought about going but decided to reach out to the organisers to ask about silent fireworks.  Their response was frustrating.

The long and short of it is they don’t see a problem with traditional fireworks because the event always sells out.  Due to this, they argued that those wanting silent fireworks are in the minority.  Bullshit.  Over 550,000 people are living in Sheffield.  This event typically sells around 10,000 tickets.  The “link” between the event selling out and the general opinion on silent fireworks only exists in the minds of the organisers.  It’s impossible to say one way or the other.

When you have options, choose the one that causes the least harm.

If I summarise my argument as simply as possible, it’s like this: there are two types of fireworks.  One creates stress and panic for wildlife and those with sensory issues, veterans and/or refugees of conflict with PTSD.  The other type doesn’t.  Removing the sound of explosions from the experience has minimal impact on the enjoyment but creates a better experience for those vulnerable sections of society and the creatures we share this planet with.

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Poppy

We had to go to Ikea a couple of times this week for one or two things we needed, and we came out with lots of things we didn’t realise we needed until we saw them on display.  A typical Ikea visit.  We have multiple Kallax units in our flat, and I saw a new type of insert which is a box with a porthole on the front.  The first thing I thought was that Poppy would love it.  So we picked one up, and Oana put a cushion in there and a blanket.  Sure enough, Poppy loves it and has taken to staying in there in the evenings.  She looks absolutely adorable.

Movember

I’ve started a new walking challenge, this time for the Movember Foundation.  For those who don’t know about Movember, it’s a charity that primarily raises awareness for male mental health, suicide prevention, and male-related cancers such as prostate and testicular.  A few years ago I raised a few hundred pounds for them when I completed a virtual bike ride from Land’s End to John o’ Groats on a bike at the gym.  It was hard work but very satisfying.  

This time I’m aiming for 500,000 steps in November.  If you would like to follow my progress or donate, you can do so here:

https://movember.com/m/13607662?mc=1

Letters to Oana

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

Looking Back (new post)

Part 17 of the Looking Back series is also live.

What I’m Doing

Listening: The Stone Man: Stone Man Book 1 by Luke Smitherd

Watching: Fool Me Once (Netflix).

The Stone Man series is mostly brilliant with just a few concerns about how autism is handled.  The protagonist describes himself as having Asperger’s, and the terms “mild autism” and “severe autism” are used by characters.  I’m not sure if this is supposed to highlight the opinions of the characters or if it’s a sign of the author’s views.  Either way, as an autistic guy it’s uncomfortable having these terms in a work of fiction you otherwise really enjoy.

Anyway, as the latest book has just come out I’ve decided to go back and revisit the previous books before starting the new one.  The story starts with a large Stone Man appearing in the centre of Coventry.  No one knows how it appeared or what it is.  Then, it starts to move.  Much of the first book takes place in, and around, Sheffield which is cool to see in this type of work. 

I highly recommend this series and it seems I’m not alone.  The first book was an Amazon and Audible number-one bestseller and was shortlisted for Book of the Year in 2015.  If you like sci-fi with a bit of horror thrown in, you’ll enjoy it.  

Another thing I find refreshing in this is that it depicts a male friendship that is not built on machismo or toxic masculinity.  Mike Gayle, another author I like, is pretty good at writing these relationships as well.  

Fool Me Once, shame on you…

Fool Me Once is another Netflix adaptation of a Harlan Coben book.  I’ve read a few books by Coben and they’re entertaining enough but not particularly memorable.  Richard Armitage is linked with these Netflix adaptations, and I seem to remember when I attended a talk with him last year he mentioned he’d signed a multiyear deal to produce and star in some of these shows.  However, to say he “stars” in this show would be a bit of a stretch as he’s hardly in it. 

There is a trope in storytelling known as the Idiot Trope, which refers to when the plot only progresses because the characters act like idiots, and it’s closely related to the trope Failure to Communicate.  You’ll have seen this several times in films and shows where you’re screaming at the TV, “just tell them!”  The whole plot would be wrapped up in minutes if people just behaved like, well, people.

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Financial Update

Assets

Premium Bonds: £15,100.00.

Stocks and Shares ISA: £89,147.51.

Fuck It Fund: £1,234.94.

Pensions: £86,309.78.

Residential Property Value: £237,447.00. 

Total Assets: £429,239.23.

Debts

Residential Mortgage: £185,094.90. 

Total Debts: £185,094.90.

Total Wealth: £244,144.33.

My ISA has taken a real hammering in the last couple of weeks.  Since Week 260 my ISA has dropped over £6k.  It’s never nice seeing that sort of drop but it’s just an emotional reaction.  The reality is that any drop or increase from week to week doesn’t mean that much in the grand scheme of things.  Over the long term, the value will steadily increase, and it’s important to not get swept up in panic.  

I was asked this week if I’ve ever been tempted to sell as the market drops and the honest answer is not a single time.  When you’re investing regularly you want to buy as many units as possible, and the occasional drop in prices is like a sale on those units.

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The Budget

For all the nerves and worry the budget ended up being a bit of a non-event for me.  ISA allowances were not reduced and have been frozen for the next few years.  There was also no cap on the overall balance of an ISA account.  

A few people have expressed confusion about different messages they’ve been getting in the media about whether taxes have increased or not.  The answer is yes.  Let me explain…

Income Tax

Income tax bandings were frozen by the Tories which means the amount of money we can earn before being taxed will remain the same.  Labour are continuing with this policy.  The rate of income tax has not been changed either, so it can be argued from one perspective that we are not paying more tax. 

However, it’s also accurate to say we will be paying more tax with the bands and thresholds being kept the same.  It’s best to explain with an example…

If you are a basic rate taxpayer with a tax code of 1257, it means the first £12,570 of earned income is free of tax; this is your personal allowance.  If you have a salary of £25,000, you are only being taxed on the amount above your personal allowance.  In this example, you are paying tax on £25,000 – £12,570 = £12,430.  The basic rate of income tax is 20%, meaning you would be liable for £2,486 of income tax.

Fast forward to the end of your financial year, and you find out you are getting a pay increase to £28,000.  You have the same personal allowance meaning £15,430 is now subject to income tax, and your tax liability would be £3,086.

In short, the rate of tax doesn’t change, but you pay more tax because more of your earnings are subject to tax.  Labour will begin reviewing personal allowances and the tax bandings in a few years, but for now, every pay increase you get means more of your income may be subject to tax.

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Job Search

I’ve had a few chats with recruiters this week but I keep running into the same issue.  Most positions I’m seeing advertised are for mortgage brokers who have experience working across the whole of the market.  As an advisor working for a bank, I worked only for that bank.  I know many people who have worked as an independent broker, and the fact I’ve not done that before shouldn’t be a major issue, yet here we are.

My original plan was to take some time off, but Oana’s job ending unexpectedly has thrown a wrench in that.  It’s not that big of a deal, as I can have time off later, and as the saying goes, “a change is as good as a rest.”  I just need to find something that isn’t going to suck completely.

Change of career…

I’m open to a career change but it doesn’t make sense to invest a lot of time, energy, and money into formal training or qualifications as I’ll only need a job for a few years at most.  So I need something which will be open to me with the skills I can transfer from being a mortgage and protection advisor. Any suggestions would be welcome!

I don’t even need to earn as much as I was earning in mortgages.  I’ve done the heavy lifting with my FI plan, and even if I just coast from now, I’ll still get to a decent FIRE number in 10-15 years.

One thing that infuriates me on sites like Indeed and Reed is where a job is filtered as remote working, and when you read through the description it says it’s an office-based role.  So far I would estimate at least half the roles that come up on a “working from home” search actually require in-person attendance at an office.  

I have an interview for a job on Tuesday which should be interesting.  On my application, when I was asked about my salary expectation, I put down a figure 25% higher than the advertised salary.  The fact they’ve called me in for an interview means one of several things…

The first possibility is they’ve not paid attention to the figure I put down.  The second is that they are happy to offer a higher salary for the right person.  The third is that they think they can just disregard the preference and offer whatever.

That’s all for this week.  Thank you 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 

You can now find all my social media pages by checking out my Biolink:

bio.link/davidscothern.