Financial diets, ISAs, Bank of Mum and Dad - and Britney
The sun is shining here in London, and I'm writing this from my bed. Happy Sunday indeed!
One thing that came up at last week’s Money Brunch is that investing in yourself is something we should think about when thinking about investing. That means skills, yes, but also investing in your health and wellbeing. It’s why I spend a lot of money on a gym. And I’m now thinking about getting a mattress topper for better quality sleep.
So, a question for you. How do you invest in yourself?
Also, do you have any mattress topper recommendations..?!
1. No-spend January - the latest financial diet
If you’re on TikTok, you’ve probably heard of it. If you’re not on TikTok… wait, why aren’t you?! (I’m talking to you, Instagram scroller. TikTok is heaps better. Trust me!).
The rules of #nospendjanuary are simple. You commit to not spending outside of the essentials for the whole month, and you share your updates with others.
Rules, guidelines, and collective momentum are often helpful when you’re trying to form a new habit
But - like dieting - it can lead to inconsistent behaviours, and yo-yo spending
What we all should be aiming for is a thoughtful, sustainable approach year-round
There are a couple of interesting case studies in the article - but they’re from content creators. More interesting (and useful) would be to hear from people who are just watching and sharing their own updates in the comments. Because that’s real life.
ACTION: Reflect on whether or not you have any spending rules for yourself. Would you like to? Why/why not? 🛍️
2. 25 years of ISAs - here are the best performing ones
ISAs turn 25 in April. I’m sure there will be more stories about this over the coming weeks, especially since the annual onslaught of ISA adverts will be coming out soon (every provider wants you to open and deposit into their own ISA products).
The top performing funds were Marlborough Special Situations (smaller, innovative UK firms) and HSBC Indian Equity (Indian companies)
But they were also the most volatile; “while they provided notably higher returns than a global tracker fund, they did so with a lot more ups and downs.”
The best cash ISA products now are offering 5%!
Stocks and Shares ISA options are harder to pick. It’s up to you to figure out what you’re most comfortable with (do you pick your own products, or go for a more managed solution (managed by humans and/or technology)? (I’ve gone for a tech ‘robo-adviser’ product) 🚀
ACTION: Figure out your ISA strategy. Have you opened up your ISA? What’s your plan to use up as much of your £20,000 annual allowance (ie money you can put into an ISA each tax year)?
3. First time buyers relying less on parents
Moneybox surveyed 1,000 would-be first time buyers, and pulled data from its own users:
76% are planning to buy using only their own savings (this is a 57% increase on last year)
Wannabe first time buyers were saving £344 per month, but this has gone down to £287
Last year, the average deposit paid was £66,000
There’s something here about how rising costs are making it hard for parents to support their adult children financially. But there’s probably also a lot going on with the amount of wealth parents have - full stop. So many more people are unable to retire because they can’t afford to, and, unfortunately, this situation is going to keep getting worse 😟
ACTION: If you are hoping to buy your first property, consider getting a Lifetime ISA. This can be in either cash or stocks/shares (cash is probably more secure!) - and it means you can get up to £1,000 free money from the Government. Free!
If you’re unsure, Martin Lewis says you should open a Lifetime ISA with £1, so at least you have it. And you can always move money into it later.
Bonus!
And a bonus story this week, illustrating the true power of money.
Justin Timberlake (who has now been recognised for his unacceptable behaviour toward Britney Spears, which included profiting from her) released his single called Selfish this week.
Britney’s seventh album Femme Fatale (2011) has a song called Selfish.
So her fans decided to buy said song and send it up the charts! 💁♀️
It’s important to remember that the act of spending is a political act - where you spend is a statement.
Boom, boom, baby indeed.
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