The cost of friendship
Plus election pledges, scams and long mortgages.
One thing about me is that, if we’ve vibed in person, I will follow up until we meet again. I’m writing this on my way to southwest London, to meet up with someone I met at a party last summer. It’s why this edition is a little late; I didn’t get my usual chunk of time this morning to write. Apologies! But I hope you have some lovely Sunday plans.
This week, I’ve been lucky enough to see friends every single day. I know that nothing beats an evening in and early bedtime, but sometimes it’s fun to shake it up.
Things I’m so grateful for: Friends like family, a place of my own, a fancy gym membership that means I can take friends to the spa on a Tuesday evening, the joy of watching a BBC show live1 without paying the license fee, and making plans with friends without having made any reservations. Spontaneous fun is so lovely.
But when was the last time you spent time with someone without any purpose? There was a piece in The New York Times about how just hanging out with your friends isn’t something that’s commonplace anymore. It’s the concept of doing nothing, or nothing remarkable, together. One comment I saw about this was that we don’t have third spaces2 where you can simply be, without having to pay.
Just doing errands together can be a nice way to shake things up. After a coffee on Saturday, I suggested that my friend and I pop into some shops to get some things checked off her admin list. It was fun!
I’d be curious to know when you last ‘hung out’ with someone. Let me know in the comments?
1. What the election might mean for your finances
Even though there’s no UK General Election announced, the two major political parties have started to make pledges that are designed to curry votes in their favour.
This week, the Labour party unveiled its six point platform. This article breaks down some of its commitments, including:
Simplifying the ISA landscape to make it as easy as possible for people to feel the benefits of saving and investing their money, including through increased utilisation of stocks and shares ISAs
Reviewing the pensions and retirement savings landscape, inlcuding working with industry and consumer groups to ensure savers are getting the best possible returns
Potentially bringing back the ‘lifetime allowance’ on pensions - which puts a cap on how much you can put into a pension, and benefit from the associated tax breaks
Renationalising nearly all passenger rail services within five years, including delivering automatic refunds for train delays and better internet connection on trains
Meanwhile, Chancellor Jeremy Hunt blamed the pandemic and a rise in energy prices for having to increase taxes during the current parliament, but pledged to introduce more tax cuts, if the Conservative party gets another five years.
“In a political speech he hit out at Labour and accused the party of planning on increasing taxes, which the Labour party has since rejected.”
2. When in the week you’re most likely to get scammed
Afternoons and midweek (Wednesdays and Thursdays) are when you’re most likely to get scammed. This comes from a survey of 3,000 people who have been the victims of scams, so it’s a good PR story.3
Why is this an issue? In the UK, between April 2023 and March 2024, the 833 people who contacted a dedicated helpline lost a total of £13.6 million. That’s an average of over £16,000 each 😟
So, what’s the takeaway for you?
Scammers will target people when they’re most likely to be busy, to take advantage of your lack of focus
So if you do get any odd calls or texts etc while you’re checking your phone during work hours, be super vigilant
Don’t feel compelled to act urgently - this is what they want you do. Instead:
Stop – Taking a moment to stop and think before parting with your money or information could keep you safe.
Challenge – Could it be fake? It is OK to reject, refuse or ignore any requests. Only criminals will try to rush or panic you.
Protect – Contact your bank immediately if you think you have fallen for a scam and report it to Action Fraud.
3. Surge in ultra-long mortgages among under-30s
The traditional view of finance is that you buy a house, pay off the mortgage during your working life, and then go debt-free into retirement. But, at the end of 2023, 42% of new mortgages will end when the mortgage holder has gone past retirement age.
A longer-term mortgage may be replaced by a shorter-term one as someone's income rises, or they find other ways to pay off their mortgage.
It’s illustrated by this case study of a 35 year old who says, “she's grateful she has been able to get on the housing ladder at all. While mortgage costs take up a large part of her income, she thinks it is still cheaper than renting in her local area.”
It brings to light the UK’s obsession with home ownership, and suggests that more alternative ways of living and financing our lives will likely evolve in the next few decades.
If you are struggling, here are some ways to make your mortgage more affordable
Make overpayments. If you still have some time on a low fixed-rate deal, you might be able to pay more now to save later.
Move to an interest-only mortgage. It can keep your monthly payments affordable although you won't be paying off the debt accrued when purchasing your house.
Extend the life of your mortgage. The typical mortgage term is 25 years, but 30 and even 40-year terms are now available.
Some other things.
MONEY
Equity release is when you give away part of your property in exchange for cash. Of course, it comes at a cost. But three in five homeowners are looking at this to finance them in later life
In the past 12 months over five million women have experienced economic abuse. More needs to be done to help survivors
A third of (US) bridesmaids went into debt for their friend’s wedding
The UK’s child poverty scandal deserves more attention, but former Prime Minister Gordon Brown is working on it
CULTURE
Even finding calm costs you these days.
The Rules - a deep dive into one of the leading dating bibles for women respectively, and a bigger look at dating culture, from If Books Could Kill, one of my absolute favourite podcasts
Rich Dad, Poor Dad is just a grift (also from If Books Could Kill)
Know someone who would enjoy this in their inbox on a Sunday morning?
I watched my pal Jess Phillips MP at a taping of Have I Got News For You on Thursday (well, I met her on the tube on Monday). Did you know that if you want to get tickets to shows with a studio audience, you can always have a look at platforms like SRO Audiences and Applause Store?
The irony of my fancy gym being called Third Space is not lost on me…
Usually it’s a nationally representative survey of 2,000 UK adults, and the results can be… quite something. Including one I worked on years ago, which found that 1 in 10 homeowners has a hot tub (they do not).