The Financial Dashboard – January 2019

The goals for January were:

  • Sell five more childhood toys. Sell five more car parts – Failure
  • Develop a single spreadsheet for all my financial data/ graphs etc – Success
  • Finish my Investment Strategy Statement – Success
  • Check our household green credentials – Success
  • Check utilities for potential savings – Success

Checking the assets and liabilities:

Assets

Liabilities

These are taken from my Beast Budget spreadsheet. This month my net worth grew by £867 (~3%), so that I’m now sitting just under £30k. It was a pretty poor month on the savings front with no overtime or extra shifts, the added expense of a holiday and the GMC and Royal College both deciding to take their pound of flesh. I’ve saved another £200 on my 5% Santander saver, and started paying down our wedding loan to a family member, but the Royal College bill went on the credit card (slap on wrist) nudging my debt up. February will also be lean as I start a new job and wait for a new payday. Luckily my new pay should be a fair bit more thanks to the vagaries of the NHS. Got to love a nationalised monopoly!
Goals:
Goal failed: Sell five more childhood toys. Sell five more car parts

I continue to fail here, and I wonder if that’s because I’m trying to sell lots of unusual oddments and expecting everyone else to want my old shit. I have gradually increased the amount of stuff listed on eBay, and have sold ~£20 quid worth of kit. I’ve also braved Facebook and Gumtree, with some success. I’m going to change this for next month and make it a more achievable sell £50 worth of stuff.
Goal achieved: Develop a single spreadsheet for all my financial data/ graphs etc

I’ve streamlined our various household spreadsheets into a new, improved Beast Budget, adding some new functions and graphs at the same time.

Jan Net Worth

Jan Credit Card
Goal achieved: Finish my Investment Strategy Statement

Now complete and to be found here.
Goal achieved: Check our household green credentials

This was a really interesting exercise, and exposed where I’m lying to myself in my bourgeois way. I ran our household information through the WWF Carbon Footprint calculator (1).

Carbon Footprint

Oh dear. Where’s it all going?

Breakdown

Ah. Breaking it down:

Home – We’re doing pretty well. Our energy is supplied by Bulb (message me for a £50 referral bonus), which is 100% renewable electricity and 10% renewable (bio)gas. All our lightbulbs are LED, our boiler is old but regularly serviced, our white goods are low-energy and the whole house is well insulated with double glazing etc.

Stuff – We don’t buy much in the way of clothes or consumerist claptrap, and I think this is mainly raised by the fact we bought new appliances when moving into our house.

Food – We’re doing reasonably here too. We eat meat three or four times a week, but I want to get this down to two. We eat a varied seasonal diet from local organic sources, and I want to grow and preserve more at home.

Travel – Oh bugger. This’ll be the (count ’em) four short haul, four medium haul and two very-long haul flights we’ve made in the last year. Seriously bad for the environment and won’t be doing that in 2019! I also need to get my bike serviced and start using it for local journeys.

This has been useful enough as an audit exercise that I’m going to check my progress quarterly for 2019 to see how I get on improving matters.
Goal achieved: Check utilities for potential savings

I try to check for potential savings every 3-6 months. Uswitch and MoneySavingExpert reckon we can save £45 over the year if we switch to EDF, Lumo or Octopus (2). I’m really happy with the customer service with Bulb (fanboi), and I’m willing to suck up £45 to know my energy is coming from renewable sources. Our previous Plusnet connection went from £27 to £38 in December, so I called their retention department who couldn’t match Virgins 100mbp for £22/month offer. We’ll wait and see whether the reality matches the quoted service.
Budgets:

  • Groceries – Budget £300, spent £185.03, last month N/A. We had lots of Christmas food left over, but happy with this!
  • Entertainment – Budget £300, spent £97.30, last month N/A. Going to look into entertainment spending this month.
  • Transport – Budget £460, spent £103.12, last month £233.69. Remarkably little this month, but MOTs and tuning costs loom.
  • Holiday – £150, spent £133.09, last month £0. Went skiing, fully catered chalet kept £ costs low and moods high.
  • Personal – £50/ £0/ £0
  • Loans/ Credit – £350/ £400/ £556.67. Upped payments to credit cards now.
  • Misc – £50/ £30/ £20.

In the garden:

I’m mid-way through building the raised beds and I’ve prepared the greenhouse ready for seedtrays next month. The raised beds are 2 foot high (to ward off carrotfly) and constructed from old pallets I’ve scavenged with tanalised upright supports. I’m collecting a load of free topsoil found on Gumtree next week to fill them up and then they should be ready for planting.

Goals for next month:

  • Sell £50 worth of stuff
  • Calculate and set a budget for Entertainment
  • Reduce consumption of single use plastics
  • Finish the raised beds
  • Set up an account with an investment platform

What’s in the pipeline:

  • Stoicism, Ascetism and the modern world
  • Property Renovation Lessons Part III
  • Frugal Motoring – Should I buy a Hybrid?
  • Plus the usual Full English Accompaniments and other drivel…

Happy February everyone,

The Shrink

References

  1. https://footprint.wwf.org.uk/
  2. https://www.moneysavingexpert.com/utilities/you-switch-gas-electricity/
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Investment Strategy Statement – Part 4 – Accounts, Funds, Taxes & Rebalancing

Wrapping up my ISS with the mechanical stuff.
Taxes

Exploit tax-free allowances where possible

MrsShrink and I are both UK resident fully compliant UK taxpayers. 2018/19 I have been on the cusp of higher rate tax, and will need to review once I get my year end P60 for the three (actually sort of four) jobs I’ve been on PAYE (1). From 2019/20 onward it looks like I’ll be in the higher rate 40% bracket.

I plan to exploit four tax-sheltering methods:

1. Interest from cash savings and emergency funds will stay within my Personal Savings Allowance

This latest weapon in the public’s tax armory allows for £1,000 tax-free savings for basic rate tax payers and £500 for higher rate (2, 3). Interest from our high interest current accounts holding our cash emergency fund will aim to be held within this limit.

2. Filling up ISA allowances

Once our emergency fund is topped off we will contribute to ISAs (4, 5). In the short term all my stock market purchases will fit within the £20k/year wrapper (6). MrsShrink is likely to use Cash ISAs (7). We will utilise the Marriage Allowance if such circumstances arise (8).

We are considering using LISAs as well, but their benefit appears limited to the government bonus (9). We’re not first time buyers, so such an account would be for the long-haul and intended to supplement our income post-60. They’re a complex product and I’m not sure I’m happy with the lack of flexibility, so this will be another area to think about in the future (10).

tax efficiency

3. Pensions Contributions

I will maximise my tax relief on my pension contributions. I’m in the enviable position of having pensions held in two of the most generous funds left in the country; the NHS Pension Scheme and the Universities Superannuation Scheme. Both are sort of defined benefit schemes. The NHS Pension Scheme functions as a career average revalued earnings (CARE) scheme (11). The USS is a hybrid defined benefit and contribution scheme, where DB is paid on salaries up to £57,216.50 and DC over that figure (12, 13). I will detail both schemes in separate future posts. I shouldn’t really have both (this has happened due to some HR oddness) and so I need to sit down and unpick. The complexities of my professional life mean that I am likely to be bouncing between services for the foreseeable future, so this will remain a headache.

The secondary headache in this is that both pensions may be hard up against the lifetime allowance cap (14, 15). As a defined benefit scheme my NHS pension is multiplied by 20 and added to any lump sum to give a capital value (16). Many of my senior colleagues have been hit with substantial (five-figure) unexpected tax bills since the reduction in the lifetime allowance. It’s therefore not clear to me yet if making further contributions will be tax effective, or which pension scheme will be the most advantageous for a potential early retirement (17, 18, 19, 20). A matter for future reading.

4. Other investment structures

Longer term areas of interest:

  • Venture Capital Trusts
  • Enterprise Investment Schemes
  • Seed Enterprise Investment Schemes (21, 22)
  • Premium Bonds (I dared to speak thy name!) (23, 24)
  • Property (25, 26, 27, 28)

Accounts and Funds

Split holdings across multiple providers and platforms to reduce risk

We will use the bank account savings website (or similar if superseded) to maximise returns on liquid cash holdings (29). This will be split across multiple accounts to remain within the FCSC £85,000 limit (30). Tax-free accounts will be the preferred method for holding passive equities, bonds and stock.

Assets will be allocated across investment accounts to reduce costs, provide further security and reduce platform risk (31, 32). Initially I will aim to keep investments within the £50,000 FCSC protection limit (33). As stated in my ISS part 3, I intend to allocate ETFs across fund holders to meet allocation targets. No provider will hold more than 25% of my holdings after year five (to give me time to actually build the damn thing up!).
Rebalancing

Rebalance quarterly using Swedroe’s 5/25 through purchases

A basic tenant of my investment plan is to sell rarely, if ever. My stock purchases are for the long haul. Therefore I aim to check and buy back to allocation each quarter through purchases (34, 35). Boundaries for this are set using Larry Swedroe’s 5/25 rule; 5% absolute or 25% relative percentage variance (36). If this implicates selling I will wait until year end to optimise Capital Gains Tax. Allocations will be balanced annually against global markets plus my own weighting. On the active naughty step portfolio investments are free to do their own thing but will be re-evaluated against the overall portfolio yearly at the 10% stocks, 10% active target.

I’ll revisit this and update periodically, but for now that about wraps it up.

Take care,

The Shrink

References:

  1. https://www.gov.uk/income-tax-rates
  2. https://www.gov.uk/apply-tax-free-interest-on-savings
  3. https://www.moneysavingexpert.com/savings/personal-savings-allowance/
  4. https://www.gov.uk/individual-savings-accounts
  5. https://www.moneyadviceservice.org.uk/en/articles/isas-and-other-tax-efficient-ways-to-save-or-invest
  6. https://www.fool.co.uk/investing-basics/isas-and-investment-funds/stocks-and-shares-isas/
  7. https://www.fool.co.uk/investing-basics/isas-and-investment-funds/isa-basics/
  8. https://www.gov.uk/marriage-allowance
  9. https://www.fool.co.uk/investing-basics/isas-and-investment-funds/lifetime-isas/
  10. https://youngfiguy.com/why-the-lifetime-isa-is-not-a-simple-to-understand-product/
  11. https://www.moneywise.co.uk/managing-your-pension/pensions/the-lowdown-nhs-pensions
  12. https://www.imperial.ac.uk/human-resources/working-at-imperial/pension-schemes/uss—universities-superannuation-scheme/changes/pension-schemes-explained/
  13. https://www.uss.co.uk/members/members-home/the-uss-scheme
  14. https://www.gov.uk/tax-on-your-private-pension/lifetime-allowance
  15. https://www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-pension/pensions-and-tax/the-lifetime-allowance
  16. https://www.bma.org.uk/advice/employment/pensions/lifetime-allowance
  17. http://www.legalandmedical.co.uk/3-reasons-to-have-a-pension-pot-that-is-over-the-allowed-limit/
  18. https://chasedeveremedical.co.uk/2018/02/22/beware-the-lifetime-allowance-charge/
  19. https://www.telegraph.co.uk/money/special-reports/should-i-retire-at-55-because-of-my-125m-nhs-pension/
  20. https://www.uss.co.uk/members/members-home/retirement-articles/2018/the-easy-way-to-keep-track-of-your-annual-and-lifetime-allowances
  21. https://www.moneyobserver.com/how-to-invest/how-to-invest-tax-efficiently-beginners-guide
  22. https://www.fool.co.uk/investing-basics/how-shares-are-taxed-2/tax-efficient-investing/
  23. https://www.moneysavingexpert.com/savings/premium-bonds/
  24. https://www.nsandi.com/premium-bonds
  25. https://www.moneyadviceservice.org.uk/en/articles/tax-and-property-investment
  26. https://www.out-law.com/topics/tax/property-tax-/tax-treatment-of-reits/
  27. https://www.investorschronicle.co.uk/tax/2017/08/31/how-farmland-is-taxed/
  28. https://www.whatinvestment.co.uk/how-to-invest-in-forestry-2134293/
  29. https://www.bankaccountsavings.co.uk/calculator
  30. https://www.fscs.org.uk/what-we-cover/
  31. https://www.bogleheads.org/wiki/Asset_allocation_in_multiple_accounts
  32. https://www.thisismoney.co.uk/money/experts/article-2553851/How-I-know-DIY-investing-platform-safe.html
  33. https://www.fscs.org.uk/what-we-cover/investments/
  34. https://www.investopedia.com/articles/stocks/11/rebalancing-strategies.asp
  35. https://www.bogleheads.org/wiki/Rebalancing
  36. https://awealthofcommonsense.com/2014/03/larry-swedroe-525-rebalancing-rule/

Full English Accompaniment – Is financial independence achievable by anyone?

What’s piqued my interest this week?

The above question appears to be a recurring theme in our little niche of the financial blogging community. High-profile, mainstream public-facing blogs like MMM and the Frugalwoods argue that anyone and everyone can potentially be financially independent and retire early, if they take the right steps (1). It’s great for selling the story and motivating potential readers, but to me it’s selling an impossible dream.

To explain let’s draw up some basic sums. The amount most people can save towards an early retirement can be defined as:

Amount saved = (Defined pension + take-home Earnings) – (Basic living + lifestyle Costs)

A = (D+E) – (B+C)

For the sake of simplicity we’ll ignore tax rebates, dividend payments, inheritance etc. I’m not even going to bother running this on a minimum wage. Instead we’ll start at the UK Living Wage, currently £9.00/hr (2). This is built on the Minimum Income Standard, which calculates the cost of the average basket of goods required for a household to afford an acceptable standard of living (3).

A 23 year old working a 37.5hr week on £9/hr that will see a yearly salary of £17,550. Plug that into a salary calculator, incorporating 8% pension contribution with an 8% employer match. That’s D and E. The Living Wage is based upon a minimum acceptable standard of lifestyle, so we’ll use that figure again for B, with £0 lifestyle inflation cost and we get (4):

A = ((£76.79 X 2)+£1214.81) – (£1214.81+£0)

How does that lifestyle cost compare? Well the average UK 1 bed flat costs £600, but that’s skewed by London’s ridiculous prices (5). Say instead you’re sharing or living in an area with cheaper housing, it’s more likely to be £400/month, this represents ~30% of your earnings and so if a fairly accurate representation given the UK average is 25% of earnings spent on accommodation (6). If you get can by on another £600/month for all other expenses then well done, you can save £215. Add in your generous pension contributions and you’re up to £365/month put aside for the future, or £4,380 annually. Run that number through a rough early retirement calculator and we get that you can retire in 33 years. So that’s early retirement at 56 for a lifetime spent in a one bed flat and minimum acceptable standard of living.

Not realistic? Lets work another example. Example 2:

30 year old earning median UK disposable household income (2017) of £27,300 (7). Same sums, same aggressive pension match, £1715.31 take home. This time our 30 year old has got bored of living in digs, and is instead renting a two bed new build in a LCOL area. £750/month for rent gets you access to homes in 67% of the UK, so compared to Example 1 you’ll pay £350 more/month (8). Your lifestyle has inflated a bit, but not much, just a few beers now and then, a better phone, a decent tv and slightly better food. Say £100/month? So, let’s punch that into our equations and calculators:

A = ((£141.79 X 2)+£1715.31) – (£1214.81+£450)

A = £334

Retire in 44 years

Ouch. That lifestyle inflation has hit hard. Your early retirement age is now 74. So what do you do? Cut back on the house size or go back to shared accommodation? Stop drinking and eat 7p basics noodles? We know that actually, due to the benefits from our taxation system and social support services, a moderate increase in income in the lower quartiles makes little difference to disposable income (available for savings). Lifestyle inflation at this end quickly gobbles up the extra earnings as you are now comfortable, not just-about-managing. Do you make yourself uncomfortable to retire early? That requires a special type of motivation (9, 10, 11).

You have to be a high earner to achieve the % savings rates required for early retirement without living uncomfortably in some way. Ignoring this fact is dreaming. Most people will not achieve early retirement without either lifestyle discomfort or a serious increase in their earning power. That’s FIREs dirty little secret (11). To say otherwise is to sell a dream.

I don’t think this is a bad thing.

Because the world is driven by soundbites and nicely packaged information, easily digestible and understandable. The majority of the FI blogs pitched to the mainstream do just that, make it easily digestible, understandable and relate-able. A cynic would argue it funds their early retirement through a customer-facing monetised website (12). But I’m not that cynic, this is a good thing, more people should be thinking about their money matters. The UK household savings ratio is currently stuck around 4%, and has been for several years (13):

capture

The financial choices required for early retirement are for everyone. 

The’ye just a good idea. Just by thinking about your finances you’re ahead of those ignoring their accounts. To crib my fellow medical colleague, the female money doc (14):

  • Know your numbers
  • Build assets
  • Get out of debt
  • Buffer it
  • Consider extra income streams

Anyone could achieve financial independence, but not everyone can. The effort can only be a good thing. No shame in trying!

Have a great week,

The Shrink

Side Orders

Other News

Opinion/ blogs:

The kitchen garden:

What I’m reading (now affiliate links):

Tombland – C.J. Sansom – I love the Shardlake series, detective novels set in the Tudor period with a crippled lead character. Beautifully written.

Food Of The Gods: The Search for the Original Tree of Knowledge: A Radical History of Plants, Drugs and Human Evolution – Terence McKenna – An ethnobotanist explores humanity’s’ fascination with hallucinogenics, and the role of altered states of consciousness on the development of human society.

Enchiridion by Epictetus – Bedside reading for a bad day

References:

  1. https://www.theguardian.com/money/2018/mar/08/how-to-retire-early-frugal-spending
  2. https://www.livingwage.org.uk/calculation
  3. https://www.lboro.ac.uk/research/crsp/mis/
  4. https://www.thesalarycalculator.co.uk/salary.php
  5. https://www.bbc.co.uk/news/business-46072509
  6. https://www.bbc.co.uk/news/business-44046392
  7. https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/householddisposableincomeandinequality/financialyearending2017
  8. https://www.bbc.co.uk/news/business-23234033
  9. https://www.thisismoney.co.uk/money/news/article-4110482/How-rich-Work-income-wealth-sits-UK.html
  10. https://www.financialsamurai.com/the-average-savings-rates-by-income-wealth-class/
  11. http://www.flannelguyroi.com/dirty-little-secret-early-retirement/
  12. https://theoutline.com/post/3840/frugalwoods-frugality-millennials?zd=2&zi=kjpt6k5u
  13. https://tradingeconomics.com/united-kingdom/personal-savings
  14. https://thefemalemoneydoctor.com/reach-financial-freedom/
  15. https://www.marketwatch.com/story/guid/FC86FC66-19DD-11E9-84BA-7B8C470F8CAB
  16. https://www.theguardian.com/money/2019/jan/17/uk-house-prices-fall-at-fastest-rate-in-six-years-on-back-of-brexit-rics
  17. https://www.gov.uk/government/news/uk-house-price-index-for-november-2018
  18. https://www.dailymail.co.uk/money/markets/article-6578873/Renewable-power-provider-Bulb-Energy-slumps-24m-loss-amid-squeeze-small-suppliers.html
  19. http://www.bbc.co.uk/news/business-46900918
  20. https://www.theguardian.com/environment/nils-pratley-on-finance/2019/jan/17/government-isnt-quite-ready-drop-obsession-with-nuclear-greg-clark-business-secretary
  21. https://www.theguardian.com/business/2019/jan/12/subprime-timebomb-back-companies-lighting-the-fuse/
  22. https://www.independent.co.uk/news/business/comment/metro-bank-profit-warning-new-branches-mortgages-challenger-banks-santander-uk-branch-closures-a8742301.html
  23. https://www.theguardian.com/environment/2019/jan/15/immediate-fossil-fuel-phaseout-could-arrest-climate-change-study
  24. http://www.bbc.co.uk/news/health-46865204
  25. https://www.theguardian.com/business/2019/jan/16/marks-spencer-selling-loose-fruit-veg-plastic-waste/
  26. https://www.bbc.co.uk/news/business-46793506
  27. http://www.bbc.com/future/story/20181217-the-best-time-of-year-to-x
  28. https://www.theguardian.com/technology/2019/jan/17/breached-data-largest-collection-ever-seen-email-password-hacking
  29. https://www.bbc.co.uk/news/business-46958560
  30. https://landlords.org.uk/news-campaigns/news/tenant-fees-bill-provisions-come-effect-june-2019
  31. https://www.express.co.uk/life-style/cars/1076669/kia-e-niro-car-of-the-year-electric-vehicle/
  32. https://www.theguardian.com/society/2019/jan/15/junior-doctors-working-past-shift-end-nhs-data-england/
  33. https://monevator.com/weekend-reading-the-house-that-jack-built/
  34. https://monevator.com/venture-capital-investing/
  35. http://www.frugalwoods.com/2019/01/18/this-month-on-the-homestead-burning-brush-and-the-life-and-times-of-firewood/
  36. http://www.frugalwoods.com/2019/01/25/hacked-sodastream-seltzer-reload-and-other-december-2018-expenditures/
  37. https://ournextlife.com/2019/01/14/one-year-adventures/
  38. http://www.retirementinvestingtoday.com/2019/01/2018-in-review-let-decompression.html
  39. https://monevator.com/the-pension-protection-fund-ppf/
  40. https://youngfiguy.com/patisserie-valerie-what-happens-now/
  41. https://youngfiguy.com/mrs-yfg-why-i-stay/
  42. https://youngfiguy.com/podcasts-like-buses/
  43. https://firevlondon.com/2019/01/20/avoiding-tax-in-the-uk/
  44. https://www.msziyou.com/2018-review/
  45. https://www.msziyou.com/2019-goals/
  46. https://ditchthecave.com/prioritisation/
  47. https://ditchthecave.com/marginal-gains/
  48. https://www.ukvalueinvestor.com/2019/01/why-i-sold-glaxo-dividend-yield.html/
  49. https://www.ukvalueinvestor.com/2019/01/thin-profit-margins-bad-investments.html/
  50. https://www.ukvalueinvestor.com/2019/01/capital-employed-growth-instead-of-earnings-growth.html/
  51. http://thefirestarter.co.uk/damp-squib-december-income-expenses-report/
  52. http://thefirestarter.co.uk/2018-review-plus-2019-goals-the-year-of-keeping-calm-and-carrying-on/
  53. https://theescapeartist.me/2019/01/17/what-to-expect-when-youre-expecting/
  54. https://thesavingninja.com/how-to-work-in-the-city-on-a-budget/
  55. http://quietlysaving.co.uk/2019/01/17/changes-afoot/
  56. http://diyinvestoruk.blogspot.com/2019/01/one-million-pageviews-for-blog.html
  57. http://diyinvestoruk.blogspot.com/2019/01/aberforth-smaller-final-results.html
  58. https://gentlemansfamilyfinances.wordpress.com/2019/01/18/geoarbitrage-how-to-survive-in-london-with-less-than-a-million-quid-in-the-bank/
  59. https://littlemissfire.com/side-hustles-report-december-2018/
  60. https://littlemissfire.com/paying-off-the-mortgage-jan-2019/
  61. https://littlemissfire.com/how-to-heat-your-home-for-free-with-a-wood-burner/
  62. https://pursuefire.com/the-power-of-compounding-the-rule-of-72/
  63. https://pursuefire.com/monthly-net-worth-report-7-december/
  64. http://www.thefinancezombie.com/2019/01/prime-your-mind.html
  65. https://indeedably.com/left-behind/
  66. https://lifeatno27.com/2019/01/23/winter-cool-calm-and-collected/
  67. http://twothirstygardeners.co.uk/2019/01/how-to-make-rhubarb-and-ginger-shrub-easy-alcohol-free-cocktail-recipe/

The Financial Dashboard – December 2018

The goals for December were:

  • Sell five more childhood toys. Sell five more car parts – Failure
  • Set a realistic monthly budget target for motoring – Success
  • Establish weekly and monthly joint grocery account expenses – Success
  • Finish reading Tim Hale’s Smarter Investing – Success

Checking the assets and liabilities:

Assets Dec

Dec Liabilities

These are taken from my Beast Budget spreadsheet. This month my net worth grew by £1392 (~5%), briefly hitting £30k. I’m happy with this considering it’s Christmas and so a lot of gifts, hosting and celebrating meant I spent more going out and cooking in than most months. I saved another £200 on my 5% Santander saver, £200 into a Starling 1% interest emergency fund pot, plus the usual pensions etc

Goals:.

Goal achieved:  Finish reading Tim Hale’s Smarter Investing

Done and dusted, and guiding me in the formulation of my Investment Strategy Statement.

Goal achieved: Set a realistic monthly budget target for motoring 

To do this I went back through my financial records for the whole year. In total I spent £6480.55 this year on transportation in varying guises. Of this I’m removing £179.36 which is what I’ve paid for public transport, parking and that bloody Severn crossing toll over the year. That leaves the following:

Car

The change in job in August really halved my petrol spend, but this will go back up with a further job change next month. I’m going to allocate £150/month to that, plus a further £50/month for car tax. I gave up my second garage last month, which will see me save £120/month. My insurance costs aren’t terrible as I keep one car garaged, live in a reasonable area and have 10 years of NCB. Rather than taking it on the nose I’m going to put £60 aside a month for 2019 to hold enough on hand to cover it as and when it arises.

The elephant in the room is the parts and labour costs. My reliable daily cost me £1031.16 over the year for it’s ~10,000 miles, which is MOT plus related work, a major service, a large amount of suspension work, two tyres and various other cosmetic bits. It comes out to £86/month, competitive with any PCP or lease deal before considering depreciation. On that, the old girl depreciated about £300 over the year, so call it £110/month to run about in a powerful estate. Or to look at it another way, I spend 12p/mile on parts and labour, 16p/mile on fuel. Reasonable Bangernomics but could do better.

And then there’s the Red Car. This was £1650 spent to complete a restoration which still has some minor niggles to sort. Money that has been spent for a fun hobby, but in no way recoverable on a car worth £2500 on a good day. Bugger. I’m going to continue to tinker the final issues, but plan to sell and recoup some costs before replacing with something less of a financial sinkhole. I also plan to replace the green car next year with something a bit newer to keep in my perceived sweet spot of depreciation vs reliability (for me 10-15 years).

490

With the plan to sell both cars and buy replacements in 2019 I will assign:

  • £50/month Car tax
  • £150/month Fuel
  • £60/month Insurance
  • £200/month put aside for parts, labour, MOT and replacements

If I can keep to £460/month then by the end of 2019 I’ll have saved £980 over what I’ve spent in 2018 on cars. Not vast, but an achievable goal I think, whilst also retaining a fun little hobby.

Goal achieved:  Establish weekly and monthly joint grocery account expenses

I’m going to cover this in the Q4 Quarterly Returns update, as I’ve run a lot of numbers to complete an accurate budget.

Goal failed:  Sell five more childhood toys. Sell five more car parts

Not without trying. I’ve had a fair amount of interest on eBay, Gumtree and (shudder) Facebook marketplace. Despite lots of assurances people definitely want stuff, no-one has actually turned up to take it off me. I’ll carry this over and attack it next month.

Budgets:

  • Daily living and entertainment – Budget £600(!), spent £131, last month £?
  • Transport – budget £300, spent £233.69, last month £126.12.
  • Holiday – £150, spent £209, last month £lots. Going skiing this month, so paying in advance.
  • Personal – £50/ £42.21/ £20.64
  • Loans/ Credit – £200/ £556.57/ £571.77. Paying any new additions plus £350 off my credit card every month now.
  • Misc – £50/ £20/ £16.40.

In the garden:

We ate the last of our late potatoes with our Christmas dinner, which was a real treat. The last of the winter salad veg is running to seed or bolting now, so I’ve had to cut back the lettuces etc. Still a bit of spinach beet and lambs lettuce surviving. I’ve repaired broken panes in our greenhouse and started staking out the new raised beds.

Goals for next month:

  • Sell five more childhood toys. Sell five more car parts.
  • Develop a single spreadsheet for all my financial data/ graphs etc
  • Finish my Investment Strategy Statement
  • Check our household green credentials
  • Check utilities for potential savings

What’s in the pipeline:

  • Quarterly Returns Q4 2018
  • Property Renovation Lessons Part II
  • Investment Strategy Statement – Part 4 – Funds, Accounts & Rebalancing
  • Frugal Motoring – Should I buy a Hybrid?
  • Plus the usual Full English Accompaniments and other drivel…

Happy January everyone,

The Shrink

The Full English Accompaniment – A time for reflection

What’s piqued my interest this week?

With most blogs falling silent at this time of year, it seems we all go into a state of contemplative reflection. Or maybe it’s a cumulative cheese, booze, chocolate and sprout hangover. Because of this I’ve expanded my net of blogs in the side orders section, so readers may find someone new of interest.

Many blogs, including this one, are publishing year end posts looking back on all they’ve achieved. For me that included jumping aboard the financial independence bandwagon, and starting this blog as a journal and lodestone. It’s important to reflect and remember how lucky we are. Financial independence, despite what some people say, is not for everyone (1). While some of the frugal lessons run both ways, having an emergency fund in the bank is a dream for many. A study this year by the Social Metrics Commission found 4.5 million children in the UK are living in poverty (2). The number of people relying on food banks has risen by 13% since this time last year (3). Figures only tell half of the story, which is why I’d recommend reading last week’s ‘How I spend it’ in the Guardian (4). It’s a human story, the experiences of a mother, an asylum seeker, trafficked to the UK and now forced to live on a £100/week allowance.

As we sit in our warm homes, eating our Christmas dinner and swigging our New Year’s plonk, let’s not forget the message of that classic, A Muppet Christmas Carol. Love and care to our fellow people, lest we all become FIRE Scrooges.

Have a great 2019,

The Shrink

N.B. I’ve had a bit of a restructure of the top menu this week, to make the site easier to navigate. Apologies for RSS spam!

Side Orders

Other News

Opinion/ blogs:

The kitchen garden:

Nothing to report here, as all my usual blog suspects have shut up for the Christmas break.

What I’m reading (now affiliate links):

Rivers of London – Ben Aaronovitch – Absorbing stuff

Starting with Chickens – Kate Thear – A hint to a goal for 2019

Enchiridion by Epictetus – Bedside reading for a bad day

References:

  1. https://theescapeartist.me/2017/11/08/financial-independence-is-for-everyone/
  2. https://www.theguardian.com/society/2018/sep/16/new-study-finds-45-million-uk-children-living-in-poverty
  3. https://www.trusselltrust.org/news-and-blog/latest-stats/mid-year-stats/
  4. https://www.theguardian.com/money/2018/dec/22/im-an-asylum-seeker-ive-not-been-allowed-to-work-for-three-years
  5. https://www.telegraph.co.uk/news/2018/12/29/240000-nhs-workers-abandon-gold-plated-pension-plan/
  6. https://www.theguardian.com/business/2018/dec/28/exoskeleton-suits-can-superhuman-frames-cross-into-the-mainstream
  7. https://www.trustedreviews.com/news/samsung-s10-hologram-3637674
  8. https://www.morningstar.com/articles/906343/the-price-of-popularity-a-new-stock-market-model.html
  9. https://www.theguardian.com/business/2018/dec/30/the-uks-house-price-boom-is-slowing-and-thats-welcome-news
  10. https://www.bbc.co.uk/news/business-46708075
  11. https://www.bbc.co.uk/news/business-46690452
  12. https://www.theguardian.com/business/2018/dec/28/the-year-in-business-who-were-the-winners-and-losers
  13. https://www.bloomberg.com/opinion/articles/2018-12-27/federal-reserve-is-watching-world-not-just-its-domestic-mandate?srnd=opinion
  14. https://www.theguardian.com/money/2018/dec/29/im-a-knight-and-i-live-by-the-chivalric-code
  15. https://theescapeartist.me/2018/12/26/the-fundamentalists-are-fundamentally-wrong/
  16. https://thefemalemoneydoctor.com/goals-for-2019/
  17. https://ofdollarsanddata.com/kind-or-hostile/
  18. https://theirrelevantinvestor.com/2018/12/27/a-history-of-bear-market-bottoms/
  19. http://www.frugalwoods.com/2018/12/28/tractor-chains-and-other-november-2018-expenditures/
  20. http://www.frugalwoods.com/2018/12/18/this-month-on-the-homestead-snow-power-and-celebrations/
  21. https://littlemissfireblog.wordpress.com/2018/12/29/why-pay-off-the-mortgage/
  22. http://www.thefrugalcottage.com/december-2018-a-month-in-review/
  23. http://diyinvestoruk.blogspot.com/2018/12/portfolio-review-end-2018.html
  24. https://theenglishinvestor.com/the-english-investor-end-of-year-review-2018-edition/
  25. https://www.foxymonkey.com/stock-market-crash-good/
  26. https://www.shoestringcottage.com/frugal-year-shoestring-cottage-review-2018/
  27. https://debtcamel.co.uk/debt-advice-2018-round-up/
  28. https://cashflowcop.com/property-moose-why-property-crowdfunding-is-not-for-me/
  29. http://thecannycontractor.com/my-dress-rehearsal-with-post-fi-life/
  30. https://indeedably.com/take-flight/

 

The Full English Accompaniment – The rise and rise of P2P lending

What’s piqued my interest this week?

P2P leaves me puzzled. I understand the premise, I understand the attraction, but where does it fit in a balanced portfolio? Some of my fellow UK finance bloggers have dipped toes in the P2P waters; Monevator, Weenie and the other TFS to name a few (1, 2, 3). For many, including new reader the Obvious Investor, it appears to be separate from the rest of their portfolio, held as an independent entity or in an oddments corner (4). P2P has come a long way since the launch of the first platform, Zopa, in 2005, with 40+ platforms catering to different appetites (5, 6). As it comes of age and into the mainstream how do you classify P2P as an asset class in a mature portfolio? Here’s my amateur synthesis.

Risks

The appeal of P2P appears to be yield, projected at anywhere from 4-10% depending on the platform (6). This complies with the equity risk premium theory, and I’d be interested to find out if research supports this. P2P rose in popularity out of the 2008 recession. Banks clamped down on high risk lending, so those with poor credit histories or weak financial positions had to look elsewhere. P2P was safer for all concerned than loan sharks/ payday lenders. Savers chasing returns followed the risk premium to P2P seeking better rates than the crappy 1% offered by bonds and cash ISAs (7). P2P sits in the ‘Return Engine’.

Inflation Risk

This is primarily the reason for investing in P2P. With inflation running at 2.7% your money is actively being eroded in a Cash ISA. Currently the RateSetter offer will give you 14% for the first year. The 4% thereafter may not look so rosy if inflation jumps to 5% and standard bank interest rates track.

Default Risk 

This is primarily where P2P makes it’s returns over traditional bank loans. The theory argues that the platforms cut out the banks as middle-men and allow savers to loan out their cash to borrowers semi-directly. To attract savers you need decent returns, which means decent interest rates, which means the interest rates for the borrowers are necessarily high. Why would you choose those interest rates? From my laymans point of view there appear three reasons for a business to choose to borrow P2P:

  1. The act of borrowing P2P acts as proxy advertising as you have to attract funders from a pool of individuals who are by definition tech-savvy, cash-rich early adopters. They may well be your target market who are interested in your product.
  2. Your business pitch is disruptive, esoteric or quirky, and therefore relies upon a funding source which capture and project the emotive or story-driven level ignored by banks and other lenders. This is something lost with the move to centralised banks, and away from your friendly local bank manager.
  3. Your personal or business financial history is absent or poor, precluding larger or traditional funding sources.

Point 1 seems a fair trade off for certain industries. Point 2 and 3 seem classical default risk. Your story may be good, your disruptive idea genius, but if your number don’t stack up well… *whomp whomp*. Banks lending criteria became tighter because the numbers tell the score, and the casual lending of the early 00s led to a financial crisis. Plus they were straight up told to by governments. P2P fills the lending pool where banks daren’t or are legislated not to go. I should point out that the counterargument from P2P lenders is that rogue and risky lending continues to occur across all debt instrument markets (8).

Liquidity Risk

Another classic, but appears to depend on the lending platform. Some platforms (Abundance, House Crowd) allow you to pick who you lend to, others select a time period (RateSetter, Zopa) and pool your investment with other (9, 10, 11, 12). Of the options I’d prefer pooled investments as it decreases the above default risk, and diversification is always better. A few platforms offer in house secondary markets for resale if you decide to cash out. Where that’s not possible your P2P investment is tied up either for the time period, or until the project/ business is completed, or can be returned for a fee (13). Both the liquidity risk and the default risk have me making comparisons between P2P and junk bonds. These comparisons are made elsewhere as well, so perhaps P2P is a bit more palatable, or smartly wrapped (14)?

Legislation

Speaking of wrappers, the attention of governments is an indication of just how far we’ve come. First IFAs were able to recommend P2P lending options, and then in April 2016 the Innovative Finance ISA was born (6, 15, 16). These operate in parallel to traditional Cash and S&S ISAs, offering a tax-free wrapper for your investments. They have their own pitfalls and complications I won’t go into here.

Legislation is a work-in-progress for P2P, but already as companies have grown they have begun to expand. This month Zopa has been granted a banking license by the FSCS, and declared it’s intention to open a traditional savings arm as a challenger bank which will be protected by the FSCS guarantee (17, 18). The FSCS guarantee won’t cover Zopa’s P2P lending.

No P2P lending/ platform is covered by the FSCS guarantee.

All invested money is at risk.

Returns are not guaranteed. There are plenty of stories in the news of people losing out where their loans default (19). The lines blur with junk bonds further. After all, you can invest directly, P2P, in small companies by buying bonds/ shares/ investments. Monzo recently ran a round of crowdfunding (20, 21)Brewdog continues to run it’s Equity for Punks V, with an eye-watering valuation (22). Those investments would also sit in a little ‘oddments’ pile of your portfolio.

Counterparty Risk

Here’s the nub of my concerns. As we look at the coming bear markets, the rogue wave in our recent trade winds, how will P2P fare. The last week has been the worst since 2008, when Zopa etc were in their infancy (23). Those times place stresses on weak companies, which fold, and default. How will P2P platforms fare? Performances and default rates are entirely based upon the platform (24). Zopa expected a 4.52% default rate in 2017, the last time it approached that was 2008 (4.2%) (15). Some platforms have provision funds to protect savers (5, 13, 15). This hasn’t stopped black holes appearing in the ledger books of lenders such as Ratesetter, forced to buy out the debts of bad investments (25). Some are bullish in their outlook, seeking further institutional investment to expand (26, 27). It remains to be seen how many P2P platforms will succumb to bad loans.

Summary

These are merely an amateur’s thoughts and ramblings on P2P. YFG has also done an analysis from a more professional point of view (28). As always, do your own research.

Have a great Christmas,

The Shrink

Side Orders

Other News

Opinion/ blogs:

The kitchen garden:

What I’m reading:

Fools and Mortals – Bernard Cornwell – finished this – good but not Sharpe or Uhtred

Rivers of London – Ben Aaronovitch – the new bedside fiction

Smarter Investing 3rd edn – Tim Hale – very close to finishing this

Enchiridion by Epictetus – Bedside reading for a bad day

References:

  1. https://monevator.com/ratesetter-high-interest-offer/
  2. http://quietlysaving.co.uk/2017/06/08/investment-strategy-updated/
  3. http://thefirestarter.co.uk/november-income-expenses-report-well-the-run-had-to-end-somewhere/
  4. https://obviousinvestor.com/p2p-lending-portfolio-update-nov-2018/
  5. https://www.theguardian.com/money/2015/mar/06/peer-to-peer-lending-p2p-returns-investment
  6. https://www.which.co.uk/money/investing/types-of-investment/peer-to-peer-investing/innovative-finance-isas-explained-aq1tx2u2ms9j
  7. https://www.moneywise.co.uk/investing/peer-to-peer/how-p2p-can-be-high-income-kicker-investment-portfolio
  8. https://www.mortgagesolutions.co.uk/specialist-lending/2018/11/20/why-the-recent-criticism-of-p2p-lenders-is-misplaced-assetz-capital/
  9. https://www.abundanceinvestment.com/investments
  10. https://www.thehousecrowd.com/property-investment-opportunities
  11. https://www.ratesetter.com/
  12. https://www.zopa.com/lending
  13. https://www.moneywise.co.uk/investing/peer-to-peer/understanding-the-risks-peer-to-peer-lending
  14. https://www.proplend.com/news/bonds-vs-peer-to-peer-lending/
  15. https://www.moneyobserver.com/should-savers-be-seduced-peer-to-peers-strong-returns
  16. https://www.lendingworks.co.uk/innovative-finance-isa/setting-your-ifisa-what-you-need-know
  17. https://www.thisismoney.co.uk/money/saving/article-6458247/P2P-lender-Zopa-reveals-plans-digital-bank-launch-receiving-banking-licence.html
  18. https://www.bankingtech.com/2018/12/zopa-unleashes-uk-challenger-bank/
  19. https://www.theguardian.com/money/2017/jun/03/peer-to-peer-lending-funding-circle-promised-returns-losing-money
  20. https://monzo.com/invest/
  21. https://www.moneywise.co.uk/blog/edmund-greaves/investing-monzo-and-what-you-could-consider-instead
  22. https://www.brewdog.com/equityforpunks
  23. https://www.bbc.co.uk/news/business-46654064
  24. https://www.ftadviser.com/investments/2017/04/28/six-things-to-know-about-p2p/?page=1
  25. https://www.telegraph.co.uk/business/2018/12/09/ratesetter-falls-deeper-red-acquiring-carcass-motor-finance/
  26. http://www.p2pfinancenews.co.uk/2018/12/13/funding-circle-outlook-risk/
  27. http://www.p2pfinancenews.co.uk/2018/12/07/funding-circle-1bn-waterfall/
  28. https://youngfiguy.com/p2p-lending-a-review-of-the-market/
  29. https://www.theguardian.com/business/2018/dec/20/us-stock-markets-drop-interest-rates-hike-looming-shutdown
  30. https://www.theguardian.com/business/2018/dec/19/federal-reserve-interest-rates-raised-trump
  31. https://www.gov.uk/government/publications/tax-on-cryptoassets/cryptoassets-for-individuals
  32. https://www.which.co.uk/news/2018/12/should-you-consider-getting-a-seven-year-fixed-rate-mortgage/
  33. https://www.autocar.co.uk/car-news/industry/jaguar-land-rover-‘poised-cut-5000-jobs’
  34. https://www.bbc.co.uk/news/business-46590130
  35. https://www.theguardian.com/politics/2018/dec/16/brexit-is-a-business-bankrupter-small-firms-brace-for-no-deal
  36. https://www.bbc.co.uk/news/education-46591500
  37. https://www.moneywise.co.uk/news/2018-11-19/uk-house-prices-fall-more-5000-sharpest-falls-the-south-sellers-lower-expectations
  38. https://www.theguardian.com/society/2018/dec/16/vulnerable-teenagers-helping-hand-finances
  39. https://www.dailymail.co.uk/money/pensions/article-6507381/Im-saving-400-month-projected-pension-65-puny.html
  40. https://www.theguardian.com/commentisfree/2018/dec/18/ivan-rogers-brexit-bombshell-digested-home-truths
  41. https://www.theguardian.com/politics/2018/dec/22/frankie-boyle-review-2018-forget-brexit
  42. https://www.autocar.co.uk/car-news/advice/winter-tyres
  43. https://monevator.com/vanguard-readying-its-personal-pension-sipp/
  44. http://quietlysaving.co.uk/2018/12/18/very-muscular-and-other-things/
  45. https://www.ukvalueinvestor.com/2018/12/how-to-measure-a-companys-growth-rate.html/
  46. https://www.ukvalueinvestor.com/2018/12/why-dividend-investors-should-look-at-free-cash-flow.html/
  47. https://theescapeartist.me/2018/12/15/now-thats-what-i-call-financial-independence-14-2/
  48. https://theescapeartist.me/2016/01/21/the-3-numbers-that-can-make-you-a-millionaire/
  49. https://theescapeartist.me/2018/12/11/reset-how-one-family-changed-their-life/
  50. https://littlemissfireblog.wordpress.com/2018/12/15/the-problem-with-the-traditional-business-model/
  51. https://littlemissfireblog.wordpress.com/2018/12/18/tried-and-tested-can-you-make-money-with-be-my-eye/
  52. http://www.msziyou.com/female-money-doc/
  53. https://youngfiguy.com/healthcare/
  54. http://www.thefrugalcottage.com/dividend-income-november-2018/
  55. https://pursuefire.com/monthly-net-worth-report-6-november/
  56. https://gentlemansfamilyfinances.wordpress.com/2018/12/13/the-dangers-of-double-counting/
  57. https://gentlemansfamilyfinances.wordpress.com/2018/12/21/how-to-survive-a-bear-market-attack/
  58. https://indeedably.com/what-do-you-do-when-you-do-what-you-do/
  59. https://indeedably.com/fire-extinguisher/
  60. http://diyinvestoruk.blogspot.com/2018/12/finsbury-g-i-trust-final-results.html?m=1
  61. https://www.retirementinvestingtoday.com/2018/12/moving-to-cyprus-from-uk-part-1.html
  62. http://twothirstygardeners.co.uk/2018/12/christmas-gift-guide-2019-gin-beer-whisky-stihl-bauble/
  63. https://www.countryliving.com/uk/homes-interiors/gardens/g25624008/garden-trends-2019-society-garden-designers/

The Full English Accompaniment – Wealth whispers

What’s piqued my interest this week?

This picture, from meta-aggregation site Reddit, triggered me.

The Shrink comes from an old family. We have an extensive family tree taking up many interconnected A1 sheets, and several books have been written about both maternal and paternal ancestors. These families are not rich. They fell from grace long before my parents came around, and many of the extended family survive at the mercy of universal credit. This is one of the reasons for my peculiar attitude to wealth. I have learnt from my family that all that is won can be lost by your children. Attitude is more important than cash. The Shrink’s great x 5 grandfather may have been a Victorian Buffett, but he didn’t teach his grandson not to splash it all on fine wine and pheasants.

This created an underlying distrust of overt displays of wealth. Encounters with people classically defined as aristocrats reinforced this. No lord gives a damn about your 68-plate Landrover. Wealth whispers.

I feel this attitude sits well with financial independence. You don’t maintain great wealth by spending it frivolously. To an extent, I think the financial independence movement needs to credit the millionaire next door concept as part of it’s roots. The original 1996 Millionaire Next Door book found that millionaires were disproportionately clustered in blue-collar neighbourhoods due to white-collar professions spending on luxury goods and status items (1). The follow-up focused on how financial attitudes (and advertising/ cultural shifts) pushed people to live a pseudo-affluent lifestyle of “freedom to consume” (2). Credit and loans means you can consume whatever you want, when you want, and deal with the consequences later. Consumerism and debt props up a stagnating economy by borrowing from future prosperity. Lifestyle magazines and the media focus on self-made stars (footballers, rockstars etc) encourages people to believe that anyone can rise to the top and have everything. And even if you don’t get that million-pound AC Milan contract you can emulate your favourite footballer by buying a Merc C-class. You just have to get finance at 18.9% APR to do it, paid for by your job managing a Vodafone call centre. Other brands are available.

Across the ages debts don’t make a person rich. Greeks and Romans knew the value of saving. Samuel Pepys turned £25 to £10,000 by working hard and saving (3). The core concepts of saving, spending only what you can afford, keeping debts and credit lines small cross-cut history and movements. Modern articles on how to be the millionaire next door could be copy-pasted to FI (4). The lesson is that you can’t get rich by ‘flashing the cash’.

Have a great week,

The Shrink

Side Orders

Other News

Opinion/ blogs:

The kitchen garden:

What I’m reading:

Fools and Mortals – Bernard Cornwell

Smarter Investing 3rd edn – Tim Hale – hu-bloody-rah

Enchiridion by Epictetus – Bedside reading for a bad day

References:

  1. https://en.wikipedia.org/wiki/The_Millionaire_Next_Door
  2. https://thinksaveretire.com/the-next-millionaire-next-door/
  3. https://www.independent.co.uk/arts-entertainment/books/features/samuel-pepys-diary-a-decade-worth-recording-5515913.html
  4. https://www.marketwatch.com/story/heres-how-you-can-be-the-millionaire-next-door-2015-07-14
  5. https://www.bbc.co.uk/news/business-46505692
  6. https://www.bbc.co.uk/news/business-46502650
  7. https://www.bbc.co.uk/news/business-46505688
  8. https://www.independent.co.uk/life-style/gadgets-and-tech/news/bitcoin-price-collapse-cryptocurrency-latest-value-prediction-analysis-a8675766.html
  9. https://www.independent.co.uk/travel/news-and-advice/crossrail-delay-opening-latest-update-london-underground-elizabeth-line-tfl-sadiq-khan-a8676076.html
  10. https://www.reuters.com/article/us-usa-stocks-bears/almost-half-of-sp-500-stocks-in-a-bear-market-idUSKBN1O928G
  11. https://www.bbc.co.uk/news/business-46530860
  12. https://www.reuters.com/article/us-imf-economy-lipton/imf-warns-storm-clouds-gathering-for-global-economy-idUSKBN1OA0SG
  13. https://www.telegraph.co.uk/news/2018/12/11/commuter-victory-rail-firm-ditches-ironing-board-seats-new-trains/
  14. https://www.theguardian.com/us-news/2018/dec/12/as-climate-change-bites-in-americas-midwest-farmers-are-desperate-to-ring-the-alarm
  15. https://www.dailymail.co.uk/money/investing/article-6484131/The-best-worst-performing-funds-investment-trusts-2018-far-revealed.html
  16. https://www.telegraph.co.uk/business/2018/12/09/ratesetter-falls-deeper-red-acquiring-carcass-motor-finance/
  17. https://www.cnbc.com/2018/12/13/richard-branson-the-9-to-5-workday-and-5-day-work-week-will-die-off.html
  18. https://simplelivingsomerset.wordpress.com/2018/12/12/odd-christmas-sales-and-consumerism/
  19. https://monevator.com/weekend-reading-can-we-take-back-control-from-brexit/
  20. https://monevator.com/money-is-power/
  21. https://youngfiguy.com/mrs-yfg-how-my-poor-self-worth-costs-me-10000-a-year/
  22. http://www.msziyou.com/overlooked-slovenia-bulgaria/
  23. https://www.pragcap.com/3-reasons-hold-long-bonds-short-rates-rise/
  24. https://humbledollar.com/2018/12/first-impressions/
  25. https://www.financialsamurai.com/patient-capital-is-the-key-to-long-term-wealth/
  26. http://www.retirementinvestingtoday.com/2018/12/is-visible-fire-movement-changing-for.html
  27. http://quietlysaving.co.uk/2018/12/09/restarting/
  28. https://littlemissfireblog.wordpress.com/2018/12/11/november-side-hustle-report/
  29. https://littlemissfireblog.wordpress.com/2018/12/13/monthly-catch-november-to-december-18/
  30. https://littlemissfireblog.wordpress.com/2018/12/08/diversification-isnt-only-for-your-portfolio/
  31. https://gentlemansfamilyfinances.wordpress.com/2018/12/04/how-i-learned-to-stop-worrying-and-love-the-calm/
  32. https://gentlemansfamilyfinances.wordpress.com/2018/12/07/stocks-and-shares-more-like-shocks-and-scares/
  33. https://gentlemansfamilyfinances.wordpress.com/2018/12/11/graphs-i-like-income-vs-outgoings/
  34. http://www.thefinancezombie.com/2018/11/still-ere.html
  35. https://inspiringlifedesign.com/posts/2018-goals-review.html
  36. https://indeedably.com/financial-planning/
  37. https://indeedably.com/opportunity-cost/
  38. https://sharpenyourspades.com/2018/12/06/10-highlights-from-the-grow-your-own-blogs-november-2018/