Issue #010: how anyone can save £100,000 💸

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👋 Hey Money Peeps,

This week I found myself clicking on YouTube video’s titled ‘How anyone can make £100,000’ or ‘5 easy step to make £10k/month’… you know the kind. There’s something weirdly addicting about watching these videos even though for 99.999% of people, those 5 easy steps won’t end up being so easy.

So then why have I titled this week’s newsletter along the same lines?

Turns out I’m a massive sc*mmer… (that was a joke, please tell me you realised that 😅)

No the real reason is because there are actually ways to save/make these volumes of money, but they are so ‘unsexy’ that most people won’t talk about them (they aren’t clickbaity enough).

So if you’ll allow me to bore you for the next 2 minutes of your life, then sit back and check out an actual way you can save yourselves HUNDREDS OF THOUSANDS OF POUNDS.

📈1% Better Every Day

Let’s get FILTHY rich…and bored at the same time. 😴

For the majority of you reading this newsletter, the largest asset you are ever going to own in your life is your house. In order to bag yourself one of those, you are most likely going to be needing a mortgage.

Mortgage - a fancy term used to describe an f***ing huge loan that the banks give you so you can actually afford to buy a house.

Now for the example I’m about to give, I’m gonna use averages so please don’t be offended because I know you reading this are anything but average 😉.

The average house price in the UK at the time of writing this is:

£291,385

The average deposit is:

15% - £43,707

Therefore the average mortgage is:

£248,000

The average mortgage length is:

31 years

And finally the average interest rate (5 year) at the time of writing is

5.29%

If you’ve got to this point, then you’re probably wondering where I’m going with this. Let me explain.

Under the conditions above, over the length of your entire mortgage, you will pay back the bank:

£509,089

However, if you have BAD CREDIT, you should expect to be offered an interest rate at least 2% higher, meaning over the length of your mortgage you will repay the bank:

£631,397

I’m hoping most people’s brains just clicked as to how you are going to save, ON AVERAGE:

£122,308!!!!! (we got there in the end)

Now if I was a bad human, I would end the newsletter here. But I think I’m a realtively good person, so here are 5 tips to start improving your credit score today:

1. Get a credit card (a responsible one for your circumstances)

   1. never spend more than 30% of your credit limit

   2. pay it off in FULL every month

   3. repeat every month

   4. GETTING A CREDIT CARD AND NOT FOLLOWING RULES 1-3 WILL REDUCE YOUR CREDIT SCORE SIGNIFICANTLY

2. Put yourself on the electoral role (dunno why, just do it)

3. Pay off as much debt as you can

4. Keep your oldest current account open as long as you can

These are just a few quick ideas but you can check out a full guide here

Oh and quickly - if you’re interested in playing around with the mortgage figures from above to apply to your own personal circumstances, here a link to the mortgage calculator I use.

👋 Outro

See You Next Week

Thanks again for reading another issue. I really want to make these as good as possible for you, so as always:

PLEASE HIT "REPLY" TO THIS EMAIL WITH ANY QUESTIONS OR TOPICS YOU WOULD LIKE ME TO COVER - I WILL DO MY BEST!

Till next time!

DISCLAIMER: None of the above is financial advice. This newsletter is strictly education and should not be taken as investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and always do your own research.