Part 280: Haters gonna hate, doubters gonna doubt…

Hello and welcome back to Mortgage Advisor on FIRE.  This week I discuss job interviews and recruitment in general.  Also, a dive into Quantum Immortality.  Finally, thoughts on motivation with FI.

Weekly Update

Another full week of work, which left me exhausted.  I’m finding this new job, and the training, difficult but in a good way.  I feel like I’m being challenged after many years of coasting.  I’m not quite yet at full mental fitness but I’m getting there.  One thing that has helped is Poppy coming and staying with me whilst I’m working.  She’ll come into the home office and reach up with her front paws to my leg.  She’ll do a little meow and that’s my signal to sit back so she can jump up into my lap.  Then, she climbs up my chest and rests on my shoulder.  Once she’s comfortable she’ll start purring until the purrs give way to little snores.  It’s such a nice feeling.

As much as I’m finding success with my new employer, several good friends are having no end of trouble with their searches for new employment.  The whole system of recruitment and interviewing feels backwards.  It’s a similar issue to exams in school, where the aim is not to educate for the adult world but simply to train you to pass the exam.  With jobs, the emphasis is on passing the company’s mystery criteria for being offered an interview, followed by the artificial nature of an interview.

Tell me about a time when…

One of the things that sold me on my new employer was their approach to interviewing.  It was a conversation; a two-way dialogue, which was professional, curious in nature, and left us all with a much better idea of what we all brought to the table.  This allowed me to be completely honest in my thoughts, opinions, and behaviours.  The business followed through on every promise and claim made, which was also a major point of difference.

Advertisements
Advertisements

In my experience, and the experience of those around me, some employers like to play stupid games when it comes to recruitment.  I’ve lost count of how many times I’ve asked about an interview a friend had, only to hear that the interview revealed nothing about the job, the pay, the hours, or anything else of substance.

Job interviews are not just about you selling yourself to an employer.  It’s also about the employer selling themselves to you.  You would think that an employer would want to discover how qualified you are for the job, rather than finding out how good you are at passing an interview.  The two things are not the same.

Why Competency Based Interviews Suck

Competency-based interviews (CBIs) can be frustrating for several reasons, especially if you’re someone with strong experience who prefers a more natural conversation. Here are some of my thoughts on why they often suck:  

Rigid Format

CBIs force candidates to use the STAR (Situation, Task, Action, Result) method, which can feel robotic and unnatural. It doesn’t allow for real, flowing discussions about your skills and experience.  It’s less a conversation, and more like a riddle where you have to break down a real life event to fit the STAR format.  It’s bullshit and from what I hear from other people, examples are rarely based on their own history.  

Doesn’t Always Reflect Real-World Performance

Just because someone can structure an answer well doesn’t mean they’ll be good at the job. On the flip side, someone great at their role might struggle to recall a neatly packaged example from years ago.  Sometimes, people are great at a particular type of job without being able to explain why; it’s just something that comes naturally to them.  Think of a work-based skill you are really good at, and try to break down the specific components that come together to explain your ability.  It’s often more difficult to explain properly than you might think.   

Encourages Overthinking & Rehearsed Responses  

Candidates often spend more time worrying about structuring their answers than actually demonstrating their capabilities. It rewards those who memorise stories rather than those who think on their feet.  Anyone can learn these examples like they’re reading a script.  It doesn’t mean you understand what you’re saying.  Hand me a script in Italian and I can rehearse it over and over.  I won’t understand the concepts behind what I’m saying, but I’ll have a decent crack at reciting the words.  These types of interviews focus on your ability to pass an interview, not your ability to do the job.  

Advertisements
Advertisements

Fails to Assess Potential

Many roles require adaptability, quick learning, and problem-solving, but CBIs focus on what you’ve done before, not what you could do in a new role with new management and/or autonomy.  These interviews, despite focusing on what you’ve done previously, pay little attention to the restrictions you may have been working under.   

Bias Towards Certain Personality Types

Extroverts or those with strong storytelling skills often perform better in CBIs, even if they’re not the most qualified. Meanwhile, highly capable but introverted candidates might struggle to articulate their examples convincingly.  

There are many jobs now that don’t even require that much verbal communication.  Many home working jobs, for example, may rely more on email or live chat.  Someone could be anxious when talking to someone face-to-face, but be a calm and clear communicator via email or chat.

Can Feel Like a Memory Test

If you’re asked, “Tell me about a time when…”, it can feel like a quiz rather than an evaluation of your actual skills. If you forget a specific example under pressure, it can unfairly impact your chances.  

Some Questions are Just Stupid

Questions like, “Tell me about a time you had a conflict with a colleague,” assume everyone has experienced these situations. If you’re naturally diplomatic or haven’t faced major issues, it’s hard to answer without sounding fake.  

That said, CBIs are popular because they try to standardise interviews and reduce bias. But in reality, they often favor those who are good at interviews rather than those who are best for the job.  

Advertisements
Advertisements

Quantum Immortality

Is death the end? This is the question at the heart of an excellent YouTube video from one of my favourite channels, Cool Worlds.  The idea discussed is Quantum Immortality, which is a thought experiment that comes from the many-worlds interpretation of quantum mechanics.  

The Many-Worlds Interpretation: A Brief Overview

To understand quantum immortality, we first need to grasp the many-worlds interpretation (MWI) of quantum mechanics. Proposed by physicist Hugh Everett in 1957, MWI suggests that every quantum event with multiple possible outcomes results in a branching of reality. Each possible outcome plays out in a different, parallel universe.

For instance, if you flip a coin, MWI posits that in one universe, it lands heads, while in another, it lands tails. This concept extends to every quantum interaction, meaning an infinite number of parallel realities exist where different versions of you are living out countless possibilities.

Schrödinger’s Cat and the Nature of Observation

The famous Schrödinger’s cat thought experiment illustrates quantum superposition: a cat in a box with a quantum-triggered poison is both alive and dead until observed. In MWI, there is no single “collapse” of the wave function; instead, the cat lives in one universe and dies in another. The observer is also split into different versions where one sees a living cat, the other a dead one.

Enter Quantum Immortality

Now, apply this idea to yourself. If you were in a situation where death was a possible outcome, like say, a lethal quantum experiment, then MWI suggests that there will always be at least one branch where you survive, no matter how improbable. While observers in other universes may witness your demise, your conscious experience continues in the reality where you live.

The implication? Subjectively, you might never experience death. Each time you face a life-threatening event, you find yourself in the version of reality where you miraculously survive. Others around you might see you die, but “you”, the conscious observer, will always find yourself in a branch where you’re still alive. This is quantum immortality in action.

Does This Mean We Live Forever?

At first glance, quantum immortality seems to suggest you’ll never die. However, there are problems with this idea. While quantum mechanics does allow for improbable survival scenarios, it doesn’t mean you’ll be invulnerable to aging or suffering. You may find yourself in increasingly improbable and painful situations such as growing old, deteriorating, surviving freak accidents, but never truly reaching a point where you cease to exist.

Advertisements
Advertisements

Is There Any Proof?

No experimental evidence supports quantum immortality. It remains a speculative, philosophical extension of the many-worlds interpretation. Most physicists are skeptical, as MWI itself is still just one of many competing theories in quantum mechanics.

However, some proponents argue that our continued survival in seemingly miraculous situations could be anecdotal evidence. Have you ever narrowly avoided a fatal accident? Is it luck, or did you just shift into a universe where you made it through?

The Implications of Quantum Immortality

Consciousness and Reality

If quantum immortality is true, it challenges our fundamental understanding of death and existence. What does it mean to be an individual if you exist across infinite realities?

Ethical and Psychological Effects: The idea that death is impossible for the observer could impact how people perceive risk and danger. Would it lead to reckless behavior, or existential dread as one’s future becomes an eternity of improbable survival?

The Fate of the Universe: While you may continue surviving, the universe itself is not immortal. Eventually, all matter will decay, and energy will spread out. Even if you live indefinitely, what happens when there’s nothing left?

Quantum immortality is a deeply unsettling and fascinating idea that forces us to question the nature of consciousness, death, and reality itself. While it remains purely theoretical, it offers a unique perspective on existence; one that suggests we may never truly face the void, at least from our own point of view.

Whether this thought experiment brings you comfort or dread depends on how you interpret it. Either way, it’s a reminder that reality may be far stranger than we can currently comprehend.

Religion and Afterlife

The idea of quantum immortality is not that new, and has featured in a roundabout way in some of the biggest films in the recent history.  Take The Prestige; are you the man waking up in the box or on the stage?

These sorts of discussions fascinate me, and have done for decades.  One point in particular has plagued my thoughts for a long, long time.  It’s a bit long winded but I’ll break it down as best I can.

A reward-based afterlife, such as heaven, depends on you behaving in a certain way during life.  You have to make all the right choices and when you die, you are granted a place in heaven.  This depends on the idea of free will and that we are responsible for what actions we take.

With the MWI all possibilities happen.  If we are confronted with many different options, and we end up taking all of them in different branching timelines, we haven’t actually made a choice.  There’s no free will.  So if all possible outcomes happen, it stands to reason that at the end of every branching timeline there would be a balancing of sorts, where your deeds are weighed against the criteria for getting into heaven.  In some timelines you will, and in others you will not.  But this isn’t fair because no choice has been made.  A reward based afterlife offered by an all-powerful deity can’t be just under the MWI because no one is making a choice when all possibilities happen.

So, let’s look at another option whereby MWI is real and timelines branch off.  However, the path you choose sees your soul progress along that branch, whilst the other branches have a copy of you but not your true self, i.e. not your soul.  

Advertisements
Advertisements

This is a troubling possibility for another reason because after enough splits in the timeline, you could be the only real person in that timeline; just one soul surrounded by NPCs.  You could even see timelines where there are no souls present.  Would this result in complete waveform collapse? There is a theory that our whole universe is just one giant waveform.

I can just about grasp the idea of a multiverse through the MWI.  I think if it was ever proven, it could be the single most destructive scientific discovery in the history of our species.  If everything that can happen, does happen, what is the point of life?  In this scenario, is life just an unintended side effect of existence?

The question of existence is crazy.  Have you ever tried to imagine nothingness?  It can’t be done.  Most people, when they try to imagine nothing, picture a dark void.  A dark void isn’t nothing though; it’s still something.  When I try to imagine nothing it sends my brain into an error 404 state.  It’s still a question that gnaws away at me; why is there something rather than nothing? 

What I’m Doing

Listening: Wool by Hugh Howey.

Watching: Cool Worlds (YouTube), In Deep Geek (YouTube).

Support Mortgage Advisor on FIRE

Financial Update

Assets

Premium Bonds: £30,200.00.

Stocks and Shares ISA: £89,202.25.

Fuck It Fund: £6,766.54.

Pensions: £93,282.54.

Residential Property Value: £237,228.00. 

Total Assets: £456,698.83.

Debts

Residential Mortgage: £184,200.23. 

Total Debts: £184,200.23.

Total Wealth: £272,498.60.

Due to Trump being a complete moron and seemingly wanting to antagonise everyone else, the markets have taken some hits.  The cynic in me thinks it could all be deliberate to try and drive the markets down, allowing the already wealthy to accumulate even more assets at knock-down prices.  Or maybe he’s just a fucking idiot.  

Advertisements
Advertisements

I won £125 on the Premium Bonds this month.  Since April 2020, which is as far as I can look back, I’ve won £1,550 on them.  I could probably get a better return with another type of investment, but I like the (relatively) instant access nature as well as the possibility of winning a huge sum.  It’s not something I am pinning my FI hopes on, it’s just a convenient way to store funds whilst I wait for the ISA window to open again.

Haters gonna hate, doubters gonna doubt

Anyone who has ever seriously pursued financial independence knows that the doubters will come. They show up at family gatherings, in the workplace, or even in casual chats with friends. At first, their scepticism might seem harmless, with just a raised eyebrow or a dismissive laugh when you mention early retirement. But as you get deeper into your FI journey, the doubts often become louder, more pointed, and, at times, even discouraging.  

I’ve lost count of how many times I’ve heard:  

– “You’ll never have enough.”  

– “What if the stock market crashes?”  

– “You’ll be bored within a year.”

– “Why not just work like everyone else and enjoy life?” 

– “The stock market is bullshit.”

At first, I tried explaining the numbers, showing how careful planning, investing, and a frugal but fulfilling lifestyle make FI not just possible but practical.  However, I quickly realised that most people aren’t actually asking for a logical breakdown.  Instead, they’re projecting their own fears and doubts onto me. They’re stuck in a system that tells them to work until 67, then enjoy what’s left, and the idea of breaking free from that narrative makes them uncomfortable.  

Instead of letting their scepticism shake me, I’ve learnt to use it as fuel. Every doubtful comment reminds me why I’m doing this, which is to create a life of freedom, not just for the future, but right now. The more people push back, the more determined I become to prove, not to them, but to myself, that this path is worth it.  

Doubt also serves as a litmus test for my plan. If I can’t answer their concerns with confidence, maybe there’s a weak spot I need to address. Have I built enough of a buffer for market downturns? Do I have a plan for how I’ll spend my time post-FI? Their doubts don’t derail me.  They sharpen my strategy.  It’s almost like a middle finger to the doubters.

At the end of the day, I’m not on this journey to convince anyone else. My goal isn’t to argue or seek validation. The best response to doubt isn’t words – it’s action. It’s getting to FI on my own terms, living a life that aligns with my values, and proving, through my own freedom, that financial independence isn’t just a dream. It’s real. And it’s worth it.  

One of the biggest misconceptions about FI is that it’s just about money.  But the truth is, FI is a mindset shift first and a financial goal second. If you don’t rewire how you think about money, work, and freedom, you’ll never break out of the cycle that keeps most people trapped.

Advertisements
Advertisements

At first, FI feels like a numbers game of cutting expenses, maximising savings, and growing investments. But as you get deeper into it, something changes. You start to see spending differently. The idea of upgrading your car every few years or chasing status symbols stops feeling like an achievement and starts looking like a financial trap. You realise that most people aren’t working to fund a life they love.  They’re working to fund a life that looks good on the surface but keeps them tied to their job forever.

The mental shift isn’t just about rejecting consumerism, though. It’s also about redefining success. Society tells us that success is climbing the career ladder, earning more, and buying bigger and better things. But on the FI path, success is measured in freedom.  It’s measured in the ability to say no to things that don’t align with your values, to walk away from toxic workplaces, and to spend your time how you actually want.

Another huge shift is how you think about risk. To most people, staying in a job until retirement feels safe. But after shifting to an FI mindset, you realise that depending on a single employer for decades is actually the biggest risk of all. Market crashes, job losses, health issues; any of these can pull the rug from under you. FI isn’t about taking wild risks, rather it’s about removing risk from your life by creating options.

Once you’ve made this shift, there’s no going back. You stop seeing FI as some extreme lifestyle choice and start seeing traditional retirement as the real gamble. While others are hoping they’ll have enough at 67, you’re building a life where work is optional far sooner. And that mental freedom? That’s the real win.

That’s all for this week.  I hope you have a great week ahead.

Advertisements
Advertisements

DISCLAIMER

The views and opinions in this blog are my own, and do not represent the views or opinions of my former, current, or future employers, 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.

Pension Matching: Don’t Leave Free Money on the Table

When it comes to building long-term wealth, one of the easiest and most effective strategies is to take full advantage of your employer’s pension matching scheme. Yet, many employees either don’t contribute enough to unlock the full match or ignore it altogether, effectively leaving free money on the table.

In this post, we’ll explore why employer pension matching is such a valuable benefit, how to make the most of it, and what missing out could cost you over time.

What Is Employer Pension Matching?

Many employers offer to match a percentage of your pension contributions up to a certain limit. For example, your employer may pay the minimum of 3% of your salary if you only pay your minimum of 5%. However, if you increase your contributions to 6%, your employer may contribute 8% instead. There are lots of different permutations to this, and the best I’ve personally had was when I invested 6% of my salary and my employer put in 15%.

Advertisements
Advertisements

Let’s assume something basic though, and assume that if you put in 7% your employer will match this, meaning your pension is getting 14% of the value of your salary. The basic cost to you isn’t 14% though. It’s not even 7%. Why? Because your pension contributions are taken pre-tax, which reduces your tax liability.

So, by taking advantage of the pension matching you’ve had an instant 100% return on your money before investments and reduced taxes even come into play.

Why You Should Always Maximise the Match

First of all, it’s free money. If your employer is willing to contribute to your pension, why wouldn’t you take full advantage? It’s part of your total compensation package. Remember, your reward for working is not simply your basic pay.

Another reason, which I touched on earlier, is tax efficiency. If you pay more into your pension, your taxable income drops and so you pay less tax. This means that every £1 you pay into your workplace pension only costs you 80p. You are getting free money again.

Advertisements
Advertisements

So far you’re getting free money from two sources; the employer matching your contributions, and from the tax relief. Then, there’s compound growth which is working on your contribution, your employer’s contribution, and the tax relief.

It’s a pay rise in disguise and if you don’t contribute enough to get the full match, you’re effectively taking a voluntary pay cut.

The Cost of Not Maximising Your Pension Match

Let’s consider a simple example:

  • Salary: £30,000
  • Employer matches like for like once you invest at least 6% up to a maximum of 10%.
  • Your contributions at 5% £1,500 per year
  • Employer contributions at 5%: £1,500 per year

You are paying into your pension £250pm in this example. Now, for the sake of simplicity I’m going to ignore inflation and fees on all sides of the equation. After 20 years of working, assuming growth at 6%, your pension would be worth over £115,000 from just £30,000 of your own money (20 years x £1,500 per year).

Let’s tweak the example a little and assume you go for the maximum 10% which your employer matches. After 13 years at 6% growth you would have already surpassed the figure from the previous example, and have a little over £117,000 in your pension.

The crazy thing here is that if you did the 10% matching on that salary for 30 years at 6% growth, you could have just over half a million in your pension.

Advertisements
Advertisements

How to Maximise Your Employer Pension Contributions

Check your employer’s scheme. That’s the first step. Log into your pension portal or speak to HR to understand the matching structure.

If you have room in your monthly finances, increase your contributions. If you’re not contributing enough to get the full match, adjust your percentage accordingly whilst making sure you still have enough for all your expenses.

Increasing your pension contributions in this way may also require a mental shift. You may feel like you are missing the money now, and it can be hard to feel the benefit of investing into something you may not be able to use for decades. It can create a real sense of mental conflict. Just remember it takes decades for an acorn to grow into a fully developed Oak tree.

Final Thoughts

Employer pension matching is one of the simplest and most effective wealth-building strategies available. Yet, many people fail to capitalise on it, leaving thousands, if not hundreds of thousands, of pounds behind over their careers.

If your employer is offering free money, take it. Your future retirement lifestyle will be significantly better for it.

Are you making the most of your employer’s pension match? Let me know in the comments!

Part 279: Trump = Idiot

Hello and welcome back to Mortgage Advisor on FIRE.  This week I discuss some cognitive biases when it comes to financial decisions.  Also, a look at the fiasco in the Oval Office, and the end of another busy week.   

Weekly Update

I’ve now completed my fourth week in my new job and the pace has slowed slightly in the last couple of days.  I’m expecting it to ramp up again from next week as we enter the second half of training.  

On the whole I’m enjoying the new job, but the hours are tough.  It’s Monday to Friday, 9am to 6pm.  I’m used to working an eight hour day with an hour for lunch, and it’s only an extra hour here, but it does make a difference.  Now that I’m a month in to it, I think I’m starting to adapt.  Finishing at 6pm doesn’t leave much time to chill out once you’ve showered, had dinner, and tidied up, but it’s so much better than finishing at 6pm and having to travel home from an office.

We had a good evening on Friday as we had my Dad over to watch the football and Oana and I made a Brazilian dish with black beans, and lime and chilli chicken.  The football didn’t exactly go according to plan, but that’s the life of a Sheffield Wednesday fan.  

Advertisements
Advertisements

On Saturday Oana and I did some food shopping and then spent a solid six hours doing various bits of DIY in our apartment.  We put together some Ikea Kallax units so we can display more Lego, and some more shelves on the walls so we can, you guessed it, display even more Lego.  Some people say I have a Lego problem, but my only Lego problem is not having enough room for all the sets I want.  

We are looking forward to Sunday afternoon as we are going for a pub lunch with a friend we’ve not seen for a while.  We all chat on WhatsApp fairly regularly but adulting means we only get to hang out in person once every so often.  

The Oval Office Clusterfuck

In light of the recent Oval Office confrontation between President Donald Trump and Ukrainian President Volodymyr Zelensky, Trump’s approach to the Ukraine war appears increasingly reckless and counterproductive.  Or, to put it less diplomatically, Trump and Vance are a couple of dumbfuck bullies who set a trap for Zelensky to try and embarrass him. 

The February 28th meeting, allegedly intended to solidify a minerals agreement and advance peace efforts, devolved into a heated exchange, culminating in the deal’s abrupt cancellation.

Advertisements
Advertisements

During the meeting, Trump accused Zelensky of “gambling with World War Three,” a statement reflecting a profound misunderstanding of the complexities surrounding Ukraine’s defense against Russian aggression. Such comments not only undermine a key ally but also embolden adversarial powers like Russia. From now on, whenever I’m even mildly inconvenienced I will explain to the other party they are “gambling with World War Three.”

It’s often useful in life to try and see the other side of the argument, but in this situation there isn’t much moral ambiguity.  Russia invaded Ukraine.  Ukraine is fighting for survival, and for its sovereignty.  This is not a situation where both sides have a valid point; it’s a simple case of right and wrong.

Trump’s actions during the meeting have strained relations with European allies, who continue to support Ukraine’s sovereignty. His confrontational stance threatens the cohesion of NATO and undermines collective efforts to counter Russian expansionism. One potential impact of all this could be the creation of a European military to take charge of a unified European defence against external aggressors.

The Orange Muppet of Doom

The orange muppet’s recent behavior also underscores a disregard for democratic principles and international alliances. By alienating allies and failing to stand firmly against authoritarian aggression, he risks destabilising global security and emboldening Putin.

Advertisements
Advertisements

Trump’s handling of the recent meeting with Zelensky was utterly ridiculous.  For some reason, many Americans love him and I just can’t understand it.  Trump is a horrible human being.  He exemplifies many of the worst qualities of our species.  Now, he’s the leader of the most powerful nation on the planet, but he’s got the emotional intelligence of a potato.  Zelensky handled himself with as much dignity as anyone could in that meeting.  He looked shellshocked one moment, to completely confused the next.  

I’m at the point where I simply despair.  If this war worsens, it will be because of narcissists like Trump.  I would love to know what Putin has on Trump to have him dangling like a puppet on a string.  One day I hope we find out.

In case you missed it…

I published a couple of posts midweek which you can find below:

“Two is one, and one is none.”

A Kind Word and a Gun.

What I’m Doing

Listening: Tools of Titans by Tim Ferriss

Watching: Zero Day (Netflix).

Zero Day has a huge cast but just really badly made.  The writing is awful, and the show is full of tired tropes and cliches.  It’s the cheapest feeling show I’ve seen since the first season of Rings of Power.  We made it to the end of the second episode and I was done.  

I have just finished Tools of Titans and I’m about to start Wool, the first book in the Silo series.  I would say that I enjoyed some of Tools of Titans, but there was also a lot of bullshit in there.  The book contained many instances of successful people giving no acknowledgement to the contribution of chance to their success.  I’ve written several times before about survivor bias and I think anyone reading this book should keep that concept in mind.  

Advertisements
Advertisements

Support Mortgage Advisor on FIRE

Financial Update

Assets

Premium Bonds: £30,000.00.

Stocks and Shares ISA: £91,448.80.

Fuck It Fund: £6,766.54.

Pensions: £94,480.99.

Residential Property Value: £237,228.00. 

Total Assets: £459,924.33.

Debts

Residential Mortgage: £184,200.23. 

Total Debts: £184,200.23.

Total Wealth: £275,724.10.

If you’ve ever spent an hour scrolling through comparison websites to save a fiver on your phone contract but barely blinked before following someone’s “hot stock tip” on social media, you’re not alone. There’s a strange paradox when it comes to money: people will meticulously research the small stuff but take massive financial risks based on little more than gut feeling or a random recommendation.

When it comes to money, people tend to exhibit two conflicting behaviors:

1. Extreme diligence over small, recurring expenses with hours spent switching energy providers, hunting down the best broadband deal, or stacking promo codes to shave a few quid off a takeaway.

2. Blind trust in strangers for major financial decisions and acting on investment advice from an influencer with no credentials, buying crypto because a friend of a friend made money on it, or jumping into a mortgage lender without comparing deals.

Why? Because the small stuff feels tangible, familiar, and easy to compare. The big stuff? It’s overwhelming, complex, and often intimidating, and so people take shortcuts.

Advertisements
Advertisements

The Cost of Ignoring Big Decisions

The irony is that optimising big financial choices can have a significantly greater impact than micromanaging small expenses. Consider these examples:

Mortgages: A 0.5% difference in mortgage interest rates can mean paying thousands extra over the lifetime of a loan. Yet, some people just go with whatever their bank offers rather than seeking out the best rate.

Investments: People will blindly follow Reddit or Twitter advice on stocks and crypto without understanding the risks, potentially losing thousands in the process.

Pensions: Many workers don’t even check where their pension is invested, let alone consider whether they’re getting the best returns.

Insurance: A poorly chosen life or income protection policy could leave a family financially devastated, yet people will sign up without checking exclusions or terms.

Advertisements
Advertisements

Meanwhile, the “small wins” like switching car insurance might save £50 a year, not insignificant I grant you, but nothing compared to the thousands lost through poor financial planning.

Why Are We Like This?

Several psychological biases explain this behavior.  People can experience decision fatigue, where big financial decisions feel overwhelming.  These people then fall back to what is easiest or most familiar.

Another example is where people follow in the footsteps of friends, family, or a social media personality or influencer.  People brag about success but generally hide their failures.  It’s like survivor bias again; people see others succeeding and what a piece of the action too, all while ignoring many others who lost money doing the same thing.

There’s also a bias towards the present, where an immediate saving now is more impactful than a potentially bigger saving in the distant future.

How to Break the Cycle

To avoid falling into the trap of misplaced priorities, consider the following steps:

Prioritise High-Impact Decisions First

Before spending an hour haggling over a broadband deal, make sure your mortgage, pension, and insurance are optimised.  Tackling these three things can save thousands in interest, and also make sure you’re not leaving free money on the table by not taking full advantage of pension matching.  

Advertisements
Advertisements

Vet Your Sources

If you wouldn’t take medical advice from an unqualified TikToker, don’t take financial advice from one either.  Also ask yourself if the person giving the advice will make money from you doing what they are advising.  If they will, it’s not only advice but sales at the same time.  This doesn’t automatically mean it’s bad advice, but it’s always a good idea to put advice in the right context.

Think Long-Term

Cutting down on subscriptions is great, but making sure your investments and retirement plans are on track is even better.  The accumulation of wealth is often simple but it takes time and can’t be rushed.  It’s like the old proverb, “How do you eat an elephant? One bite at a time.”

Be Smart With Your Time and Money

There’s nothing wrong with being savvy about everyday expenses but if you’re spending more time choosing a Netflix plan than selecting a mortgage, something is off. By shifting your focus to the big decisions first, you can make a real difference in your financial future while still enjoying the small wins along the way.

Advertisements
Advertisements

Another way to think about this is to use the example of rocks, pebbles, sand, and a jar.  If you fill the jar with sand, you won’t have room for the bigger rocks and pebbles.  This would be like spending all your time and energy saving a few quid here and there on TV packages, phone contracts, and the like. Once finished with this, you will not have the mental energy to tackle your mortgage and other big financial commitments.  

Instead, fill the jar with rocks; the big items like your mortgage, loan payments, and investments.  You can then pour in the smaller pebbles and sand, which will fill in the gaps between the bigger rocks.

That’s all for this week. Thank you for reading and I hope you have a great week ahead. Just be sure not to do anything that could risk World War Three.

DISCLAIMER

The views and opinions in this blog are my own, and do not represent the views or opinions of my former, current, or future employers, 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.

A Kind Word and a Gun

The Power of Leverage in Financial Independence  

There’s an old quote attributed to Al Capone:  

“You can get more with a kind word and a gun than with just a kind word.”

On the surface, it’s the kind of line you’d expect from a notorious gangster; blunt, ruthless, and a little dark. But strip away the criminal connotations, and what remains is a fundamental truth about success, whether in business, life, or financial independence: leverage matters.

A kind word, charm, effort, or goodwill, can take you far. Being nice, working hard, and following the rules will get you somewhere. But add a “gun” i.e. something that gives you real leverage, and suddenly, the game changes. You’re not just playing; you’re playing to win. Or, to use wrestling speak, you’re not a jobber, you’re a headliner.

Advertisements
Advertisements

The Illusion of Hard Work Alone

We’ve all been sold a simple story: work hard, save diligently, and eventually, after decades of effort, you’ll be rewarded with financial security. And to some extent, that’s true. Hard work is essential. Saving is crucial. But effort alone isn’t enough. Someone banging their head against a wall might be putting a lot of effort in, but it’s all going in the wrong direction.  

Countless people grind away for decades, saving what little they can, only to find that inflation, taxes, and the sheer cost of living keep them stuck in the same place. They’re playing fair, but they’re playing without leverage. They’re relying on kind words alone.   

Contrast that with those who understand the power of leverage. These are the people who don’t just save; they invest aggressively. They don’t just earn a wage; they build systems that generate income. They don’t just work hard; they work smart, using knowledge, money, and strategy to accelerate their progress. They turn money from the goal, into a tool which provides them leverage.   

The Forms of Leverage

Leverage comes in many forms, and the most successful people, whether in finance, business, or any other field, use it to their advantage. Money itself is leverage. The more capital you have, the easier it becomes to make more. A person with £10,000 to invest has far fewer options than someone with £1,000,000. Compounding rewards those who start early, and it also rewards those who start big.  

Knowledge is another form of leverage. The difference between an average investor and a savvy one isn’t just luck, although it plays a part. It’s education. Regular readers will have seen me say it multiple times; if you invest in something you don’t understand, you are just gambling.

Advertisements
Advertisements

On the other hand, understanding tax efficiency, market cycles, and risk management separates those who barely scrape by from those who thrive. The same applies to career choices. The people who negotiate better salaries, seek out high-value skills, or start their own ventures aren’t necessarily working harder than others; they’re just leveraging information more effectively.  

Then there’s the power of networks. Who you know can often be as important as what you know. Surrounding yourself with like-minded, driven individuals opens doors that wouldn’t be accessible otherwise. Whether it’s getting a job, learning about investment opportunities, or simply being exposed to new ideas, your network can be a powerful multiplier.  This is something I’ve witnessed, but something I’m generally poor at because of my autistic wiring.

The Difference Between Playing and Winning  

There’s a stark contrast between those who approach financial independence with nothing but hard work and those who add leverage to the equation.  

A person who simply saves and hopes for the best might eventually reach FI, but it will take decades. They’ll follow the conventional path and work for 40 years, max out a pension, and retire at 65. Meanwhile, someone who actively invests, optimises taxes, and uses financial tools to accelerate their wealth-building might get there in half the time, or even sooner.  

The difference isn’t luck. It’s leverage.  

Advertisements
Advertisements

Finding Your “Gun” in Financial Independence  

So, what does this mean in practice? It means looking beyond the obvious. It means not just earning, but earning strategically. It means not just saving, but investing in a way that maximises growth. It means understanding tax structures, making use of financial tools like ISAs and SIPPs, and not being afraid to take calculated risks.  

It also means questioning the status quo. Too many people assume they have to follow a set path and work until a certain age,  before they retire with a certain amount.  They do this without considering alternative strategies. The truth is, if you’re smart about how you use leverage, you can reach financial independence far sooner than most people think possible.  

Hard work alone won’t get you there quickly. But hard work combined with leverage will.

“Two is One, and One is None”

Two is One, and One is None: Building Redundancy into Your FI Plans

In the world of survivalists and the military, there’s a simple but powerful saying: “Two is one, and one is none.” It highlights the importance of redundancy, in other words, having a backup plan for anything crucial. If you only have one of something and it fails, you’re left with nothing. But if you have two, you have a safety net.

When it comes to Financial Independence (FI), this mindset can be a game-changer. It’s not just about reaching your FI number; it’s about ensuring your plans are resilient enough to withstand life’s inevitable curveballs. Let’s explore how applying the “Two is one, and one is none” philosophy can fortify your FI journey.

Advertisements

Income Streams: Don’t Rely on Just One

Many of us start our FI journey relying on a single source of income which is usually our job. But what happens when that one income stream disappears? I’ve been there. After more than a decade at Lloyds Banking Group I was made redundant. Fortunately, I had a sizable range of investments even without counting the payment I received for leaving the bank. Some of these investments pay a regular income, and that gave me peace of mind knowing that I could still afford the essentials.

Relying solely on one employer is the definition of “one is none.” Diversifying your income, whether through side hustles, freelance work, rental properties, or even dividend-paying investments turns that single point of failure into a robust system. If one stream dries up, others keep you afloat.

Investment Diversification: Don’t Put All Your Eggs in One Basket

The same principle applies to investments. Putting all your money into a single stock, or even a single asset class, can be risky. Markets fluctuate, sectors fall out of favour, and companies go under. However, global index trackers can do a lot of the work for you when it comes to diversifying your investments. I don’t think you need to get bogged down in huge amounts of technical analysis with this. A simple split between low-cost index funds with an emergency fund in cash, with a few other investments is enough for me.

Advertisements

Mental Health & Resilience: Safeguard Your Mindset

The road to FI isn’t just about numbers. It’s also a psychological marathon. Burnout, stress, and even post-FI identity crises are real.

Building mental health redundancy means having coping mechanisms and support systems in place. For me, adopting and caring for elderly cats has been a huge source of fulfilment and stress relief. It’s a reminder that life isn’t just about reaching FI – it’s about enjoying the journey. Being able to give a loving home to Sweep, Bobbity, and Poppy has brought us so much love and joy, even if the ending is always heartbreaking.

Similarly, having hobbies, mindfulness practices, or a strong social network can act as emotional buffers. When one coping strategy fails, another is there to pick up the slack. Also, Lego. Lots of Lego.

Emergency Funds: The Ultimate Backup

An emergency fund is the epitome of “Two is one, and one is none.” If your main income stops or unexpected expenses pop up, having a cash buffer means you won’t need to tap into long-term investments or rack up debt.

Advertisements

Aim for at least 3-6 months of living expenses in a readily accessible account. Some even advocate for a tiered emergency fund—cash for short-term needs and low-risk investments for longer-term emergencies.

I’m content to have a cash lump sum in an easy-access account, and a couple of credit cards with sizable credit limits. As I write this, I’ve got £20k of credit available to me, but less than 5% of it is currently used and will be repaid in full tomorrow when I’m paid.

If you’re going to have credit cards as an emergency fund, you must be disciplined enough to not spend recklessly on them. If you don’t have that discipline, credit cards are a risky proposition.

The Bigger Picture: A Resilient FI Plan

The ultimate goal of FI isn’t just to stop working. It’s to build a life that’s resilient, adaptable, and fulfilling. By embracing redundancy, you’re not just protecting your finances; you’re safeguarding your mental health, lifestyle, and future.

Advertisements

Life is unpredictable. But with the right safety nets in place, you can navigate those twists and turns without losing sight of your goals.

Remember: Two is one, and one is none. When applied to your FI plans, it could make all the difference between financial freedom and financial fragility.

If you enjoyed this post please share it on your social media. Donations are gratefully accepted on the form below, and if you have any thoughts on what I’ve written please leave a comment.

Part 278: Problem or Solution

Hello and welcome back to Mortgage Advisor on FIRE.   This week I discuss some new ways to look at my FI progress. Also, thoughts on Sheffield Wednesday, and more thoughts on survivorship bias.

Weekly Update

It’s been another exhausting week.  Although it’s a relief to have some work and money coming in, I’m still exhausted.  I will adapt in time but it’s hard going through that adjustment.  All in all, though, it’s still a great result to get a respectable redundancy payment and then walk into a job paying a good chunk more.  

I’ve been struggling with feelings of being overwhelmed at times.  I know I’m autistic but I also suspect there’s some ADHD in the mix as well.  When I scan down the list of common symptoms of ADHD, I find myself mentally ticking them off.  It’s very common for autistic people to also come with ADHD as part of the package.  The label doesn’t bother me, but I’d love to have a little more focus on things that aren’t Lego or FI-related.

Advertisements
Advertisements

On the subject of Lego, we finished a new set this week.  We bought the Jazz Club from the Modular Building line, and it’s great.  It looks amazing when connected to the Tudor Corner set.  If only we had the room to build and display a full street of buildings…

img_0495
img_0483
img_0478
img_0477
img_0465
img_0464
img_0466
img_0481
img_0492
img_0479

Sheffield Wednesday

I don’t talk a lot about football in this blog but I have some things I want to get off my chest.  I’m a lifelong Sheffield Wednesday supporter.  I went to my first match in the 1990/1991 season.  I’ve seen us play up and down the country, and I have many good memories of watching us play.  

Football has changed a lot in the past thirty years or so.  The year before the Premier League started, Wednesday finished 3rd in the top division, above Chelsea, Arsenal, Liverpool, and Manchester City.  We were a top club with England international players in the squad in the early to mid-90s, including Des Walker, Chris Woods, and the legendary Chris Waddle.  We got to three cup finals in the space of three years, beating Manchester United for the League Cup, and losing to Arsenal in the FA Cup and League Cup finals.  

Advertisements
Advertisements

The Steady Decline…

As the 90s drew to a close the club slowly started sinking with one bad decision after another.  We utterly failed to capitalise on the way the game was changing.  We fell out of the top division and started the early 2000s out of the Premier League.  We’ve never been back since.

This club has so much potential but has gone from crisis to crisis, and false dawn to laughing stock.  A decade ago we were taken over by Chansiri.  We got to the Championship play-off final, just one game away from promotion, and we lost.  Again, it’s pretty much been all downhill since.

I’m not going to list all the mistakes made since the 2015/2016 season as a simple Google search will give you all the information.  The club is a mess though and I can’t see a way forward unless we are under new ownership.  Sadly, frustratingly, and completely in the style of Sheffield Wednesday that doesn’t seem to be happening any time soon.  

In football, to some extent, you get the club you deserve.  The Wednesday fan base is huge and loyal.  I would also suggest that, in general, we’re completely apathetic and we are part of the problem.

Traffic Jams…

I was chatting with a friend about something completely different but he said something that applies here: if you’re sat in a traffic jam, you’re part of the traffic jam.  It’s the same with supporting a club, and it’s the same with Chansiri’s ownership.

Advertisements
Advertisements

As a group of supporters, we could force his hand and get him to sell the club quite easily, and quite quickly.  The answer is so simple but no one wants to act on it because they refuse to see themselves as sitting in the traffic jam.  The answer is to stop going to matches and to completely stop giving the club any more money.  If that flow of money was to suddenly stop, how long would it be before he was forced to sell?  

It’s like the human brain; all you have to do is cut off the supply of oxygen for a few minutes and it’s game over.  

Stop Spending…

I stopped spending money on the club just before covid when I saw the way things were going.  I know many others who also stopped but the majority haven’t.  That’s the problem.  They can’t see how they’re part of the problem, and I’m sorry to be that blunt but this is one situation where you’re either part of the problem or part of the solution.  The main reasons people say they will not stop going to the matches is because they don’t want to give up seeing their friends, having a drink, or other similar things.  Fair enough, but you have to understand that by continuing to do this you are supporting the status quo.  

Another reason people say it’s not worth doing anything to protest the way the club is run is because many have already paid in advance for season tickets for upcoming seasons.  Granted, that is not ideal, but you can still commit to not spending anything more and not attending games in the meantime.  This isn’t a lifelong change that’s being asked, but a short-term stand until Chansiri is gone.

We get the club we deserve.

Advertisements
Advertisements

Birthday Meal

It was my Mom’s birthday recently and four of us (me, Oana, my Mom, and her husband) went for a meal at a restaurant in our area called Domo.  Oana and I ate there when it first opened in 2019 and it was not a great experience.  I had pretty bad food poisoning and spent much of the evening throwing up.  Since then, we avoided it despite the place getting rave reviews.

Anyway, we were looking for somewhere to go for food and we all like Italian food.  Our normal choices for Italian have declined in quality over the years, and so we decided to give Domo another try.  

The food was decent, ranging from good to great with no weak dishes.  I had polenta with mushrooms and fresh truffle for the starter, and ox tail with pecorino mash for my main.  We all ate different dishes from the menu and between us had seafood stew, pasta, arancini, and calzone.  We were all, for the most part, happy with the food.

For four of us, considering none of us had alcohol, the bill was a little high at £192.  I would say the food was good, but not worth that amount.  If the restaurant was not in Kelham Island I suspect the prices would be 10%-20% lower.  

I would go back but would order less food as the portions were pretty hefty.  Overall, not a meal that blew me away but still good in general.  

img_0505
img_0507
img_0504
img_0503
img_0502

What I’m Doing

Listening: Tools of Titans by Tim Ferriss

Watching: Nothing – not had the time.

I’ve found Tools of Titans a frustrating book so far.  There are some nice little anecdotes presented but, as is often the case when reading about successful people, there’s little attention given to luck, chance, or whatever you want to call it.

Advertisements
Advertisements

Success stories often captivate audiences with narratives of hard work, determination, and skill. However, these stories frequently downplay or entirely overlook the role of luck. This omission can lead to distorted perceptions of success, heavily influenced by survivorship bias; the logical error of concentrating on people or things that made it past a selection process while overlooking those that did not.

The concept of meritocracy suggests that success is purely the result of individual talent and effort. While hard work and skill undoubtedly play significant roles, ignoring the impact of luck creates an incomplete picture. Factors such as being in the right place at the right time, chance encounters, or even the socio-economic conditions into which one is born can dramatically influence outcomes.

Survivorship Bias

Survivorship bias exacerbates the underestimation of luck by focusing on winners while ignoring the vast majority who, despite similar efforts and talents, did not succeed. For example, entrepreneurial success stories often highlight the few startups that became global giants, while thousands of failed ventures are forgotten. This selective focus reinforces the belief that success is entirely self-made, dismissing the randomness and external factors involved.

In the business world, people like Steve Jobs or Jeff Bezos are frequently cited as paragons of visionary success. While their talents and drive are undeniable, luck played roles in their journeys be it in meeting the right co-founders, securing critical funding, or entering markets at opportune times.

In sports, survivorship bias can be seen in the narratives of professional athletes. Stories often focus on the dedication and talent required to reach the top but rarely acknowledge the role of genetic predisposition, access to elite training facilities, or sheer chance in avoiding career-ending injuries.

Advertisements
Advertisements

People often downplay luck because acknowledging it challenges the notion of control over one’s destiny. Accepting that randomness plays a role in success can be unsettling, leading individuals to favour narratives that emphasize skill and effort. This cognitive bias reinforces the myth of meritocracy and perpetuates unrealistic expectations.

Back to the book…

Tim Ferriss’s Tools of Titans exemplifies the tendency to highlight strategies and habits of successful individuals while underplaying the role of luck. The book compiles insights from high achievers across various fields, suggesting that adopting certain routines or mindsets can lead to similar success. While Tools of Titans offers valuable advice on productivity, health, and wealth, it often glosses over the randomness and external factors that also contribute to success.

The book reinforces survivorship bias by focusing solely on those who have “made it,” implicitly suggesting that replicating their habits guarantees similar outcomes. It neglects to explore how luck, such as being born into advantageous circumstances, encountering the right opportunities, or even avoiding major setbacks, played a role in the success stories it celebrates. This omission risks perpetuating the flawed belief that success is entirely within one’s control.

Recognising the role of luck doesn’t diminish the importance of hard work but fosters a more nuanced understanding of success. It promotes empathy for those who struggle despite their efforts and can lead to more equitable systems that account for structural disadvantages.

Also, a little bit of humility goes a long way.

Advertisements
Advertisements

Support Mortgage Advisor on FIRE

Financial Update

Assets

Premium Bonds: £30,000.00.

Stocks and Shares ISA: £92,321.40.

Fuck It Fund: £6,566.54.

Pensions: £95,524.56.

Residential Property Value: £237,228.00. 

Total Assets: £461,640.50.

Debts

Residential Mortgage: £184,200.23. 

Total Debts: £184,200.23.

Total Wealth: £277,440.27.

No major changes in my finances this week, and just the usual fluctuations in the stock market.  I’m inching closer to the £100k mark in my pension and ISA, and when the ISA allowance refreshes I should see my balance finally go into six figures.

I should receive my first wage from my new job this coming week, but it won’t quite be a full month as I started a couple of days into February.  Still, it’s going to be nice having that regular salary again.  I did receive a payment from Lloyds this week, which was a nice surprise.  Quite what I will do with the 47p they sent me I don’t know; how much is a Freddo these days?  I have absolutely no idea why I got this payment and if I get a chance I’ll give their payroll a call and ask about it.

Advertisements
Advertisements

State of the FI

If you are anything like me, your FI number probably changes daily.  On a good day when things are all going well, you might feel like working longer.  On a bad day, you may start thinking about how you’d be happy with lean FI if it meant you could give up work sooner.

Realistically, I’m still some distance away from full FI, but maybe not as far as I’d feared.  One common way to judge progress towards FI is to work out how much you could live on based on a 4% withdrawal rate.  However, the 4% rule has come under increasing scrutiny with some people suggesting it’s too conservative.  I would feel comfortable with a higher withdrawal rate during my ISA bridge phase, perhaps 5% or even 6%.  Once I was living off my pension I would probably be more comfortable with 4.5% to 5% initially, but the reality is as I get older my spending will probably reduce anyway.

Based on the assumption that I’ll be working for at least a few more years, I think a bridging fund of £400,000 would be more than enough, and this is made up of my ISA and Premium Bonds.  I’m almost halfway there.  My pension has more time to grow but it will hopefully have to support me for longer than my bridging fund.  £600,000 at 5% would provide an income of £30k p/a, which would be enough for a decent enough living when retired.  More would be better, obviously, but £600,000 is a nice goal to aim for.  

How far along am I with these two goals?

Bridge Fund

Pension Fund

Although it looks like my pension is not far along, the percentage is misleading.  If you were starting from £0 and aiming for £600,000 by investing £1,000pm at 6%, it would take 23 years to get to just shy of £600k.  However, after 12 years, so more than halfway along the timeline, you’d only have £210,000.  That’s the beauty of compound growth.  

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 former, current, or future employers, 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.

FIRE and Boredom

Following my latest post yesterday I received an excellent comment from a regular reader. I thought it was good enough, and important enough, to build a separate post around. Here is the comment:

MaximTsigalko wrote…

I honestly don’t understand the “won’t you get bored” angle and it feels like an excuse people make to themselves to justify why they shouldn’t take control of their life. 

And I genuinely mean take control. An interesting thought process / question to ask someone who is part of the “won’t you get bored” brigade would be to ask why they work the 37.5/40 hours a week they currently do? Was it by a design that you asked your employer to work these hours as that perfectly hits the amount of entertainment you need from work, or was it because nearly 100 years ago Henry Ford chose that amount of hours for his employees and employers have stuck to that idea ever since?

And do you want to work until your mid to late 60s by design, because by that age you’ll have some how figured out how to avoid being bored and it would be impossible to work it out before then, or is it because politicians in Germany designed that to be the age when someone has outlived their usefulness and need be to be paid to not work so that job can go to someone younger and more productive which benefits the wider economy?

The fact that people ask that question actually shows how little they understand about the lack of control they have taken within their life, and highlights the lack of planning and foresight they have given to their existence. 

It genuinely does frustrate me when people give that response and shows such a level of shortsightedness over their options. 

In reality, I ask these people if they get bored on the weekend, in their annual leave etc. I ask if they enjoy the crammed shops and restaurants outside of standard office hours, or if they’d prefer to do these things when less people are around. 

I also find it fascinating people say about getting bored, when out of a year, assuming 40 hours a week like Henry Ford said, that a person works 2080 hours out of the total of 8736 hours, and that ignores annual leave and public holidays. That means a full time worker taking zero leave works 23.8% of their year. The real question to ask someone who says that, do you get bored in the circa 76% of the year you’re not at work? Does that 24% of the year light you up more than anything else and are you sad that you don’t work more than 1 in every 4 available hours each year?

On the “it must be nice to be rich” my actual response is “yes, yes it is. It gives such a high level of contentment and security.” 

My final point of what is a lengthy comment is, most people want to be rich so they can spend themselves poor. The amount of people who I’ve mentioned about having money and they say something along the lines of “you could buy x” or “if I was you I’d spend more on y” is incredible. That is the very reason you’re not in the financial position I am, because you would spend money and I wouldn’t.

My thoughts…

One of the biggest misconceptions about financial independence is that those who achieve it will inevitably become bored. This assumption often comes from people who have spent their entire lives working full-time, structuring their days around employment and haven’t had the opportunity to consider what life outside of work could look like.

Advertisements

But here’s the truth: boredom in early retirement or financial independence is not a given – it’s a choice. It’s simply a lack of imagination. Please don’t misunderstand the point I’m making. I’m not saying that if you can’t afford to retire early, you lack imagination. I’m saying that if you have the means to retire early and you don’t because you think you’ll be bored, you lack imagination.

People who worry about being bored after reaching FI often fail to realise just how much of their lives are currently dictated by work. They wake up early, maybe commute, work for eight or more hours, and then return home exhausted, often spending their evenings recovering rather than engaging in fulfilling activities. Because of this routine, they haven’t developed hobbies, passions, or goals outside of their careers.

What FI Is Not…

Financial independence isn’t about stopping life; it’s about starting it on your own terms. With the constraints of work lifted you gain the ability to explore interests you never had time for. Whether it’s travelling, learning new skills, starting a business, volunteering, or simply spending more quality time with loved ones, FI provides endless opportunities to pursue a meaningful and fulfilling life.

Advertisements

It’s also worth noting that people who achieve FI are often driven and goal-oriented individuals. The same discipline that led them to financial independence is the same mindset that will drive them to seek purpose and fulfilment beyond work. They aren’t the type to sit around doing nothing. Instead, they find ways to challenge themselves in new and exciting ways. FI followers aren’t escaping work; they’re escaping work that doesn’t provide them with purpose.

Boredom in FI is only a reality for those who lack the curiosity to explore the world beyond their job. The key to avoiding it is to cultivate interests and passions long before reaching financial independence. By doing so, you ensure that when the time comes, you’re not stepping into a void but rather a world full of possibility and excitement.

The real challenge of FI isn’t avoiding boredom, it’s deciding which of the many possibilities you’ll pursue first.

What do you think? Leave a comment and join the discussion.

Part 277: What don’t you understand?

Hello and welcome back to Mortgage Advisor on FIRE.  This week I discuss how to deal with people who don’t understand FIRE.  Also, a look back at my second week in a new job.  

Weekly Update

It’s the end of my second week in the new job and I’m tired.  The training is intense but in a good way, and it’s fascinating to see how the intermediary world works when all my experience has been in banking.  

What I like about this new role is that everyone I’ve met in the business is focused and driven.  There’s a real sense of wanting to get things done.  It feels professional, and there’s a vibe I’m finding refreshing.  

Advertisements
Advertisements

My attitude towards work is simple but to some, controversial.  Employment is a business transaction. You get my time and I get your money.  There are terms of employment laid out, and that’s it.  You do the job you are paid to do, and both sides treat each other with respect.  That’s how it should work.  

When a business starts going on about being a family, or a fun place to work, I view that as a red flag.  Fun is not the primary goal; earning money is.  That’s what I work for – money.  What I’m willing to put up with correlates with how much I’m paid.  As soon as that equation becomes unbalanced to my detriment, I’m out of there.

I explained this during my interview with this company, and the person interviewing me said he heard nothing controversial in what I outlined.  Business should not be personal.  There should be a basic level of respect and consideration. However, we’re not paid to think of each other as family or to be anything other than cooperative colleagues.  If you make lasting friends, it’s a bonus.  

Amazing Lunches

Oana has been doing her part to look after me whilst I’ve been working.  She’s made me some amazing lunches, with my favourite being inspired by a burger I once had in Malta; chicken, peanut butter, fried egg, and chillis.  

It may have been missed in the week but I published a bonus post about the gamification of FI.  You can check it out here.

Groke

A new cafe, Groke, has opened in our development and we tried it for lunch the other day.  The inside of it is cool and nicely designed.  The food was a bit of a let down though.

Advertisements
Advertisements

I had chicken and waffles and it was underwhelming.  The chicken felt like it had been oven-cooked from frozen.  Whether it was or not, I don’t know.  Fried chicken has a distinct texture, and when a place does it right it’s a thing of beauty.  Oana had their version of huevos rancheros and it was pretty bad.  There was a huge chunk of gristle in the sausage, and the beans had a strong smokey taste that was, if I’m being polite, unappealing.  

Oana’s Thoughts…

I’d be tempted to try again and eat something else off the menu, but Oana was less charitable in her review;

“We had the misfortune of trying Hggye in Castle Sq last year, which is possibly in the top 3 of worst plates of food I have ever been served (Turkish eggs, if you can call them that).

Groke today was a step up from that, so, not great. I ordered huevos rancheros and there was little to nothing that took me to that part of the world when tasting the dish. The beans felt like they had been thrown into a pot of cumin seeds or something similar, and were far from pleasant. The egg was ok, but, at the risk of sounding gross, I despise when the slimy part on top of the yolk isn’t fully cooked and left on the plate, it makes me gag.The added sausage I ordered separately seemed to be made from some sort of tasteless mush rather than actual meat.

It was presented nicely, and the crockery was nice too, but sadly that’s where it starts and ends. Oh, actually, the bread was ok. 

Sorry Groke, but I won’t be coming back. Shame, as the way it’s been designed and set up inside is inviting.”

Advertisements
Advertisements

Baker’s Yard Bakery

At the other end of the spectrum, we have Baker’s Yard Bakery which is awesome.  It’s expensive, there’s no denying that, but I’ve yet to have a bad bit of food or drink from them.  Their range of breads, cakes, and savoury bakes is extensive and changes weekly.  I would happily have their aubergine flatbread every day, as well as their cheese and marmite buns.  The staff are always friendly and it’s just an inviting place in general.

What I’m Doing

Listening: Tools of Titans by Tim Ferriss

Watching: Godzilla Minus One.

We watched Godzilla Minus One last Sunday and it was brilliant.  I love my Kaiju movies generally but this was something special.  Set in the dying days of the Second World War the story follows a young Japanese pilot who returns home to find his country devastated from the war.  As they try to rebuild they’re faced with the titular creature.  

Advertisements
Advertisements

The effects in this movie are incredible, and the setting is refreshing as most monster movies are set present day.  I don’t want to say too much about this film for fear of spoiling it, and I would highly recommend it.  As I write this it has 99% on Rotten Tomatoes, and I don’t think that’s too far off.

I’m about halfway through listening to Tools of Titans and it’s ok, but not really grabbing me.  There are some cool stories but a bit too much woo-woo bullshit in general for my taste.  I’ll finish the book, but I’m already looking forward to my next series.

Support Mortgage Advisor on FIRE

Financial Update

Assets

Premium Bonds: £30,000.00.

Stocks and Shares ISA: £92,533.54.

Fuck It Fund: £6,566.54.

Pensions: £94,602.90.

Residential Property Value: £237,228.00. 

Total Assets: £460,930.98.

Debts

Residential Mortgage: £184,200.23. 

Total Debts: £184,200.23.

Total Wealth: £276,730.75.

There’s not much to report on the finances for now.  There are still a few weeks until the ISA allowance renews, and it’s just a case of ticking along until then.  My first wage in this new job will not be a full one, and I’m supporting myself, Oana, and Poppy from it.  

When I get my full, normal, monthly pay it will be enough to cover the basics but not really any investing.  When Oana finds something we’ll then be laughing.

Our priority for this year is to hammer the mortgage down because we’ll need a new rate in November/December time.

Advertisements
Advertisements

I’ve been thinking about changing how I report my figures, and possibly binning off my Fuck It Fund.  The savings allowance for UK taxpayers is very low, and there’s a good chance I’ll finish the financial year 25/26 in the higher rate tax bracket.  At that level, the savings allowance is £500p/a, and that doesn’t allow for much to be held in cash.  

Assuming an interest rate between 3%-4%, I would have to keep no more than £12,500 in cash, and that’s not even taking into account cash Oana and I keep in savings for service charges, ground rent, vet bills for Poppy, and other household expenses.  

The way forward would be to keep the money in Premium Bonds, as they’re fairly easy to access, and just rely on credit for any emergencies which can then be repaid from Premium Bonds or household savings as appropriate.  

How to Handle People Who Don’t Understand FIRE

One of the biggest challenges on the journey to Financial Independence, Retire Early (FIRE) isn’t just saving money or investing wisely.  Rather, it’s dealing with the reactions of friends, family, or colleagues who don’t understand (or even actively oppose) your goals. 

Why People Struggle to Understand FIRE

The traditional path involves working until 65, relying on a pension, and retiring only when deemed ‘acceptable’ by society. FIRE disrupts that narrative.  Getting people to buy into FI isn’t just as simple as going through the numbers.  It’s as much an emotional argument as a data-driven one.  

Advertisements
Advertisements

Another point that comes up is the fear that money will run out if you don’t have a regular income.  Many people worry that early retirement isn’t sustainable and that when the cash runs out, they’ll struggle to get by.  Thorough planning can mitigate this risk.  Early retirement isn’t just deciding you’ve had enough and then walking out of work.  It’s a systematic approach to building the financial foundations that will provide the funds for life for decades.

Some oppose FI because they are too scared to go for it themselves, and they feel resentment because they’re stuck in a job they dislike.  There’s not much you can do about this.  As the saying goes, you can lead a horse to water…

Much of this doubt comes from a lack of financial education and literacy.  People learn about money from their parents.  If your parents held certain opinions about money, you’ll probably have those opinions as well.  I had to overcome a certain level of mental resistance when I first started down this path, and I know other people have too.    

“That’s not realistic.”

Some will dismiss FIRE as an unrealistic dream. Instead of arguing, you can lead with facts and personal experience. You can explain how compound interest works, how you’ve optimised expenses, and how many people have successfully done it.  In the end, though, some people will still scoff and walk away.  The only thing to do is stick to your guns and prove them wrong.  

“Won’t you get bored?”

This is something that makes me, and a good friend of mine, laugh and shake our heads.  How can one get bored when there’s a whole universe out there?  We have access to almost the entirety of human knowledge, and we live in an age where technology is advancing at lightning speed.  Yes, there are concerns and challenges facing our world, but there’s also so much to do, see, and experience.  If work is the only thing keeping boredom at bay, then in the words of Obi-Wan Kenobi, “You need to go home and rethink your life.”

Early retirement is not about doing nothing all day.  It’s about having the freedom to do what you want without having to answer to an employer.

Advertisements
Advertisements

“What if the stock market crashes?”

I don’t mind questions like these because it’s a valid concern, and it signifies genuine curiosity.  The stock market could crash but these downturns are built into FI planning.  If your FI plan fails, it shouldn’t fail overnight assuming it was well-designed.  One should not go from a comfortable early retirement to zero funds like flipping a switch.  Course corrections may need to be considered, and if you have to pick up a part-time job to supplement retirement, it’s no big deal.

“You’re just being cheap.”

FI doesn’t have to be about frugality or deprivation.  Mindful spending should be a core part of FI planning, but it’s not about sitting in the cold and dark while eating beans out of a tin.  I would say it’s more about avoiding impulsive spending, and really thinking through spending habits.

For example, do you need the latest iPhone, or will the previous year’s model suffice?  Do you need a flashy car, or will something more basic do the job?

“Must be nice to be rich.”

When I’ve been featured in the media, I’ve had some of these comments aimed at me.  I wasn’t born into money; I come from a lower working-class background.  My parents worked hard to make sure I had a solid education, and they’ve given me all the emotional support I could ask for.  

Advertisements
Advertisements

Financially though, I’ve earned my wealth.  I’ve done it through research and discipline.  I’m not going to criticise other people’s life choices, but every person who has expressed negativity about my wealth accumulation has had cars, kids, and some form of expensive habit like weekly binge drinking, drugs, or something similar.

If you want to prioritise these things, I have no problem with it.  I am where I am because of the choices I’ve made, as are we all.

There will always be haters and doubters, but remember you are under no obligation to keep those people in your life.  I think it was Jim Rohn who said you are the average of the five people you spend the most time with.  Which five people do you spend the most time with?  Do you like them?  Do you share the same core values?  Do you celebrate each other’s successes, or are you envious and bitter?

If you look at the five people you spend the most time with and you are unhappy with those people, find new people.

Not everyone will understand or support your FIRE journey, and that’s okay. What matters is staying focused on your goals while maintaining healthy relationships. Have you faced scepticism about FIRE? How do you handle it?  Let me know in the comments. 

DISCLAIMER

The views and opinions in this blog are my own, and do not represent the views or opinions of my former, current, or future employers, 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.

Gamifying FIRE: Motivation or Risky Obsession?

The FIRE (Financial Independence, Retire Early) movement has transformed how people approach work, savings, and investing. For many, the journey toward FIRE is a long and often monotonous road, which is why gamification, i.e. turning the process into a challenge or game, has become increasingly popular. 

However, while gamification can boost motivation and engagement, it also introduces risks such as reckless investing, unhealthy frugality, and financial gambling. So, join me for a while and let’s explore both sides of gamifying FIRE; the benefits and the pitfalls.

Advertisements

The Benefits of Gamifying FIRE

Gamification, when done right, can make the FIRE journey more enjoyable and sustainable. Here’s how:

Boosting Motivation and Engagement

Tracking progress, setting milestones, and celebrating financial wins can create positive reinforcement. Apps and spreadsheets that chart net worth growth or expense reduction can make the process feel rewarding and engaging.

I haven’t met a FI follower yet who doesn’t love a good spreadsheet.  Keeping track of your numbers can be enjoyable, and I don’t think there’s a right or wrong answer as to how often you should do it.  I think it’s all down to what feels right.  I’d find tracking my numbers daily a little too much work.  Weekly, on a Friday afternoon, is what I enjoy.  I look forward to putting the numbers in my spreadsheet and seeing what’s happened to my total wealth.  Weekly might work for you, or maybe monthly works better.  

Advertisements

Encouraging Smart Financial Habits

Turning saving and investing into a game can help reinforce good habits. Challenges like “no-spend months” or aiming to increase investment contributions each year can lead to improved financial discipline.  However, it’s important to remember that the point is to enhance the FI journey and not to turn it into an unhealthy obsession.  Challenges should be difficult, but not so difficult you lose motivation. Make them too easy, and it becomes pretty pointless. You want the porridge to be just right.

Building a Supportive Community

The FIRE movement has a strong online community where individuals share goals, strategies, and progress. Seeing others succeed can be motivating and offer new insights into effective financial strategies.

In my experience, most FI followers are a great source of support and inspiration with just a couple of exceptions.  There’s one Facebook group that is administered by an asshole who I’ve had a few disagreements with, and I think some of the subreddits have more than a few trolls, but I believe the community is generally more supportive than some other online groups.

If you are trying to walk this path alone, you may succeed, but sharing the journey can help you avoid obstacles.  The important thing is to remember not everyone is who they claim to be, and not all advice is equally valid. 

Advertisements

Enhancing Financial Literacy

Through gamification, people often dive deeper into financial education. Learning about compound interest, tax efficiency, and investment diversification becomes more engaging when tied to a goal.

This is one of the best ways to gamify FIRE.  Share books, blogs, podcasts, and YouTube channels, and talk about them with your friends.  Make learning a game in its own right and challenge each other on what you’ve learned.  

The Risks of Gamifying FIRE

While gamification has its advantages, it can also lead to problematic behaviours that undermine financial security.

The desire to “win” FIRE faster can tempt people into speculative investments like crypto, meme stocks, options trading, and leveraged investments. These assets can deliver massive gains but also catastrophic losses. True investing is about long-term stability, not short-term bets.  If you don’t understand it, it’s gambling.  If you can’t explain it without using terms you don’t fully understand like “blockchain”, it’s gambling. 

Advertisements

Gambling vs. Investing: Where’s the Line?

Many investment platforms use gamification features such as confetti animations and instant trades to make investing feel more like a game. This can encourage impulsive decisions rather than thoughtful, strategic investing. If investing feels like gambling, it’s time to reassess your approach.  

I think that the feeling of success, of getting a reward, should be a slow-burn type of feeling, like the sense of satisfaction you get from a long hike or run.  Not the instant release like celebrating a last-minute winner in football.  You should feel like you’ve achieved something, rather than like you’ve won something.  

Any investment should be easily understood and be able to pass the ELI5 (Explain like I’m 5) test.  If it can’t pass this test, then you may very well be gambling.  

Burnout & Obsession: The Dark Side of Optimisation

Hyper-focusing on reaching FIRE can lead to burnout. Constantly tracking expenses, optimizing every financial decision, and trying to shave years off your retirement timeline can become exhausting. At some point, the pursuit of FIRE may feel more like an all-consuming job than a path to freedom.

The pursuit of FI should not come at the expense of living life in the moment.  There’s a balance between preparing for the future and enjoying the here and now.  FI does not have to be about frugality or limiting oneself.  I prefer to think about mindful spending and sensible investing.  Oana and I live a good life, and we’ve eschewed many of the trappings of modern society like cars, kids, and a recreational drug habit.  If we were spending hundreds a month on car finance, petrol, insurance, and road tax, then we’d probably have to be more frugal about food, holidays, and Lego.  It’s about priorities.  

Advertisements

FOMO & Social Media Comparison

The rise of FIRE influencers showcasing rapid success stories creates unrealistic expectations. Seeing someone retire at 30 or triple their investments in a year can make it tempting to take bigger risks or adopt extreme frugality. However, survivorship bias means we often only see the success stories, not the failures.

Survivorship bias is such an important concept and it doesn’t get anywhere near enough mainstream attention.  If someone succeeds it is not always down to hard work, effort, determination, and intelligence.  These things will play a part, but I rarely see a successful person stand up and say, “I was lucky.”  For every successful person, many had the same attributes, tried the same things, and worked just as hard.  However, luck, fortune, fate, or whatever you want to call it can undo all your effort.

Neglecting Real Life: The Cost of Hyper-Focus

Extreme frugality and over-optimization can lead to missing out on meaningful life experiences. Skipping vacations, avoiding social outings, and delaying happiness until after reaching a FIRE number can result in regret. Financial independence should improve your quality of life, not make it miserable in the short term.

FI is a race to the stars and not a mad dive to the bottom.

Advertisements

Finding a Healthy Balance

Gamification can be a powerful tool for staying motivated on the FIRE journey, but it needs to be used responsibly. Here’s how to maintain balance:

Set realistic goals.

Focus on sustainable progress rather than racing toward an arbitrary retirement date.

Stick to sound investment principles and avoid high-risk speculation.

Prioritise well-being.

Financial independence should support a fulfilling life, not replace it.

Limit social media influence.

Take inspiration from FIRE influencers but avoid comparing your journey to others’.

Enjoy the journey.

Focus on the process, not short-term results.

Make room for life experiences along the way instead of postponing happiness until FIRE is achieved.

Final Thoughts

Gamifying FIRE can make the journey more engaging, but it also carries risks that can derail financial independence. By maintaining a balanced approach, i.e. one that values financial stability, personal well-being, and long-term success, you can enjoy the benefits of gamification without falling into its traps. FIRE is not just about reaching a number; it’s about designing a life you love, before and after financial independence.

If you have any thoughts on this post, please leave a comment. If you want to support Mortgage Advisor on FIRE, consider donating towards the costs of this site using the form below:

Part 276: Recognising Misleading Statistics

Hello and welcome back to Mortgage Advisor on FIRE.  This week I discuss misleading statistics and how they can impact investors.  There are the usual financial updates, and some more thoughts on customer service.  

Weekly Update

It’s been my first week in my new employment and it’s been mentally exhausting.  The training is detailed and full on.  There’s little downtime and it’s much more enjoyable as a result.  In many previous jobs, the training has been laid back with no real sense of urgency.  Everything about this new business seems much more professional, and everyone seems to be on the same page.  

On Monday I travelled to Milton Keynes.  It was an early start and fortunately, there were no major issues with the trains.  I took one train to Tamworth and then changed for my train to Milton Keynes.  I can’t say much about it other than of all the cities I’ve visited, Milton Keynes was one of them. 

The timing of the trains was a little awkward as I could either get there an hour early or a little late.  I had a wander around the area around the station, bought a coffee, and then requested an Uber to the office.  My driver was great; friendly but not too chatty.

Advertisements
Advertisements

Meeting the team…

The office was small and well looked after compared to many other offices I’ve attended.  It’s always a bit nervy when you start a new job.  I’ve seen a post on social media where it’s likened to being a new character on a TV show that’s already five seasons in.  It’s always easier when you start as part of a group, and I’m glad that’s the situation here.

My fellow new starters are all experienced advisors from the banking world, so we have that shared experience and knowledge base.  Being in a “whole of market” world is different though, and that’s where much of the training is focused.  Rather than just offering mortgages from a specific lender, we are looking at dozens of them.  I’m feeling fired up for the challenge though.  Lloyds were a great employer in general terms, but the job itself was very frustrating.  There was little opportunity to use your initiative, and the advice aspect of it could easily be done by ChatGPT in the majority of cases.  

I know I’ve got a lot to learn, and to unlearn before I can be successful in this new environment, but so far I’m getting good vibes.  I’ve got a few more weeks of training for systems, processes, and policies before I start the job properly.

Did you know you can do this online? (Maybe).

We’ve all been there. You need to update your account, cancel a service, or make a simple change. The website proudly declares:  

“You can do this online!”

“Managing your account has never been easier!”

“Self-service available 24/7!”  

Advertisements
Advertisements

But after clicking through endless menus, getting stuck in a loop, and being told to check the FAQs (which, of course, are useless), you finally hit a dead end:  

“To complete this request, please call our customer service team.”

It’s one of the most frustrating aspects of modern customer service. Companies push online self-service as the ultimate solution, but more often than not, it’s just a smoke screen. They want you to try solving your problem online, knowing full well that in many cases, you can’t.  

It’s made even worse when you call the number and are told, repeatedly, that can complete your request online via their app or their website.

The Worst Offenders: Where “Do It Online” is a Lie

Cancelling a Service  

Want to cancel a subscription? Good luck! Many companies make the “Cancel” button as hard to find as possible – if it even exists at all. Instead, you’re sent on a wild goose chase through menus that always seem to lead you back to the home screen. Some services (looking at you, gym memberships) even require written letters to cancel, despite being able to sign up in seconds online.  

Advertisements
Advertisements

The Good: Netflix

The Bad: Hellofresh

Updating Personal Information

Need to change your email, address, or phone number? Some websites will let you update the minor things but suddenly require a phone call or even a physical visit for anything important. Even banks who claim to be digital-first will sometimes force you into a branch for changes that should take seconds online.  

The Good: Starling

The Bad: Halifax/Lloyds Banking Group

Chatbots Pretending to Be Helpful

Many companies have replaced customer service reps with chatbots that pretend they can help – until they can’t. After five rounds of “I think I can help with that!” followed by generic answers that don’t solve your problem, the bot finally admits defeat:  

“I’m sorry, I can’t help with that. Please call us during business hours.”

Why not just say that from the start?  

The Good: Is there one?

The Bad: Amazon 

Advertisements
Advertisements

Being Forced to Call—Then Being Put on Hold  

After exhausting all online options, you reluctantly call customer service, only to hear:  

“Our call volumes are currently higher than normal. Your wait time is approximately… 45 minutes.”

So not only could you not do it online, but now you’re stuck on hold listening to terrible hold music, regretting every life choice that led you to this moment.  

The Good: Hargreaves Lansdown

The Bad: Virgin Money

Why Companies Do This 

If online self-service were genuinely effective, it would be a win-win: customers get quick solutions, and companies save money on support costs. So why is it often so useless?  

Cost-cutting (but not really) – Companies want to reduce customer service costs, but they don’t want to invest in actually making online systems work well. Instead, they push you toward a half-baked self-service system that just frustrates you.  So many businesses have systems that are held together by patches and workarounds, where upgrades are just new skins over an existing set of software.    

Retention Tricks – The harder they make it to cancel or change your service, the more likely you are to stay. It’s almost as though some companies even deliberately remove online cancellation options to force you into a sales call where they try to talk you out of leaving.  

Pretending to Be Modern – They market themselves as “tech-savvy” and “customer-focused” with sleek websites, chatbots, and apps. But behind the scenes, their systems are outdated, and they still rely on phone-based customer service for anything important.  

Advertisements
Advertisements

How to Fight Back 

Go Straight to the Phone

Sometimes, skipping the website circus is the best option. If you know from experience that a company’s online system is useless, save yourself the headache and just call directly.  It’s not ideal having to wait all that time in a queue, but if you’ll only end up having to do that anyway you may as well cut out the middleman and ignore the website altogether.  

Social Media Complaints 

Many companies will ignore you when you call or email, but a public complaint on Twitter (I am not calling it X) or Facebook? That gets their attention. Nobody wants bad PR, so customer service teams often respond much faster to public posts.  It’s a pain that it comes to this, but sometimes it’s the only way.  For some reason, I find the standard reply of “DM us with your details” annoying though.

Vote with Your Wallet

If a company makes it hard to manage your account, maybe it’s time to take your business elsewhere. Companies that truly care about customers will make self-service easy and efficient, not an obstacle course.  I resisted switching from Hargreaves Lansdown for a long time because I liked their app and website.  Sadly, the costs were too much to continue with them, when a competitor was much cheaper.

Final Thought: If You Offer It, Make It Work

Self-service should make life easier, not harder. If a company loudly advertises that you can manage everything online, they should follow through. Otherwise, it’s just another frustrating case of:  You can do this online!” (Except when you try to.)

Advertisements
Advertisements

Peddler Market

On Friday evening Oana and I went to Peddler Market because our favourite food truck was there; Kebab Cartel.  We went for the usual; an Escobar bowl each.  As expected the food was great and we had a little chat with the guys after.  They recognise us as we’ve been eating with them for years.  Their food is very good and if you ever see them at an event, you should definitely give them a try.  

The market was smaller than usual and there wasn’t much else grabbing us.  We decided to try an Indian stall as the staff were friendly and we had a good laugh with them.  Sadly, the chicken naan was not good.  It all tasted a bit cheesy, and not in a pleasant way.  It reminded me of some awful pancakes we had in London a couple of years ago.  We binned most of it and felt bad because the people working there were really nice.  

What I’m Doing

Listening: Apostles of Mercy by Lindsay Ellis.

Watching: Rings of Power (Amazon).

The second season of Rings of Power isn’t that bad.  The first season was rubbish, and the second season is a definite improvement.  It’s still not great but it’s watchable at least.

I finished the third book in the series by Lindsay Ellis, Apostles of Mercy.  I enjoyed the series and it’s left the door open for a fourth book, which I think the author is working on.

Advertisements
Advertisements

Support Mortgage Advisor on FIRE

Financial Update

Assets

Premium Bonds: £30,000.00.

Stocks and Shares ISA: £92,428.17.

Fuck It Fund: £6,566.54.

Pensions: £94,522.30.

Residential Property Value: £237,228.00. 

Total Assets: £460,745.01.

Debts

Residential Mortgage: £184,200.23. 

Total Debts: £184,200.23.

Total Wealth: £276,544.78.

I used some of the money in my Fuck It fund to pay for a couple of things, but I shouldn’t need to use any more savings to pay for our daily cost of living.  I’ll get my first pay from this new job later this month and it will be almost a full month’s pay.  I was always going to have to use some savings and it could have been much worse.  As it stands, I’ll have only used a small proportion of my redundancy pay from Lloyds.  

It’s time for another look at stats and why you should always be careful when looking at trends…

Tracking the growth of your ISA can be exciting, especially in the early days when the percentage gains seem huge. But here’s the catch – those early growth figures can be misleading, and if you’re not careful, they can lead to unrealistic expectations about the future.  

Let’s say you start with £1,000 in your ISA and add £200. That’s a 20% increase before the market has done anything. Throw in a bit of market growth, and you might see a 25-30% rise in your total balance. Sounds great, right? But the reality is that this “growth” is largely driven by your own contributions, not compounding returns.  

This becomes a problem when people project those early gains forward. If you assume your portfolio will keep growing at 20-30% per year, you’re in for a reality check. As your balance grows, percentage gains naturally slow down because new contributions become a smaller part of the total. Over time, real growth comes from investment returns, not from topping up your account.  

Advertisements
Advertisements

Investing is a long game. In the early days, it’s your own contributions doing the heavy lifting. Later on, compounding takes over. The key is to stay consistent, manage expectations, and let time do the work.  

Intentionally misleading…

If there’s one thing that is guaranteed to get my back up, it’s when misleading stats are cherry-picked to try and make a point.  I remember getting into an argument with someone who was an anti-vaxxer.  They just didn’t understand, well, anything.  I made a comment to test how well they could pick apart dubious claims and it was like banging my head against a brick wall.  I stated the following;

“Everyone who has a covid vaccine will die.”

In isolation, that statement is true, just like how everyone who is born will die.  Some people look at the statement above and process it as though I’ve said this instead;

“Everyone who has a covid vaccine will die because of the vaccine.”

Another one that is doing the rounds and makes me facepalm relates to autism.  There are people out there who are incredulous that more and more people are being identified as autistic.  They put this down to everything from vaccines to 5G signals.  Here’s the thing; it’s not that there are more autistic people as a proportion of the population.  It’s simply that we are getting better at identifying them.

Or as Trump would argue, there were only more positive covid tests because we tested more people.  If you don’t test people, the number of positive cases drops.  The missing point is that the cases are still there, they’re just not identified.  

Some stats are propagated in an intentional attempt to shape the narrative for ideological agendas.  Some of them spread because people just don’t understand.  It’s frustrating because you often can’t reason someone out of an unreasonable belief.  

Coming back to statistics and investing, here are five examples of mistakes that are made:

1. The “100% Growth” Illusion

Example: You start with £500 in your ISA and add £500. Suddenly, your balance has doubled – 100% growth! But that’s not market performance; it’s just your own contribution. If you expect that kind of growth every year, you’re in for a disappointment.

2. Monthly Returns That Look Huge

Example: Your ISA starts with £2,000, and the market gives you a £100 return in a month. That’s a 5% gain, which annualised would be a staggering 60% return! But markets don’t work like that – short-term percentage gains don’t always scale up neatly over a year.

Advertisements
Advertisements

3. Focusing Only on “Best Year” Performance

Example: You check your portfolio after a strong year where it grew by 20%. You then assume, “If I get 20% per year, I’ll be a millionaire in no time!” But markets don’t deliver linear returns – some years will be down, and some will be flat. A single good year doesn’t mean the same performance will continue indefinitely.

4. “Look at My Amazing Percentage Gains!” (on a Small Portfolio)

Example: A beginner investor with £1,000 sees a £200 return and proudly announces a 20% growth rate. Meanwhile, an experienced investor with £500,000 makes £25,000, which is just a 5% growth rate – but the second investor actually made way more money. Percentage growth looks exciting on small balances but matters less as your portfolio scales.

5. The “Perfectly Predictable Growth” Trap

Example: You see an online calculator that shows if you invest £500 per month with a 7% annual return, you’ll have £1 million in 30 years. Sounds great! But the market doesn’t return 7% neatly each year—it fluctuates wildly. Some years might be +20%, others -10%, and smooth averages don’t reflect real investment journeys.

Another example of why the gambling industry is evil…

An article published in The Guardian this week reports on how many betting companies are tracking users who visit their websites, before sharing that data with Meta, the company that owns Facebook.  This then leads to users seeing adverts for betting sites, and if proven, would demonstrate a clear breach of data protection laws.  The users here are not given a choice of opting in or out before the data is shared.  

Gambling addiction is a very serious problem, with addicts much more likely to take their own lives when compared to those fighting other addictions.  Problem gambling is almost an invisible addiction.  After all, you can tell when someone has been drinking to excess, or when someone is a heavy user of hard drugs.  Someone who is in a serious gambling addiction may not show any outward signs; all they need is a smartphone and internet connection and they can lose thousands in seconds.  

Advertisements
Advertisements

Make no mistake, the gambling industry is not about fun.  It’s about greed; greed at the expense of human lives.  

That’s all for this week.  Thank you for reading, and if you have any thoughts on this week’s post please leave a comment.  

DISCLAIMER

The views and opinions in this blog are my own, and do not represent the views or opinions of my former, current, or future employers, 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.