What are challenger banks and what is driving them?
What are challenger banks?
These are financial service companies that began in the last few years that are competing with the offering of traditional banks. Examples of challenger banks include Monzo, Starling, Atom. Examples of traditional banks include HSBC, NatWest, Lloyds Banking Group.
No Spend Month Money Challenge
What is it?
For one month you only spend on essentials such as rent, bills, groceries. Any necessities are allowed but no eating out, clothes, coffees, Netflix subscriptions etc. This can even extend to walking / cycling to save on transport. The idea is to use what you already have.
Environmental, Social and Governance (ESG) Investing
What is it?
ESG investing is the idea of investing in companies that are better for the environment, society and have responsible management.
What is the debt snowball method?
Method:
List out all your debts by balance from smallest to largest, regardless of interest rate
Work out your budget to make minimum payments on all of them
With your remaining budget pay off the debt with the smallest balance first
Once the smallest is paid off, then take the next smallest and so on
What is the debt avalanche method?
Method:
List all your debts by interest rate from largest to smallest, regardless of the balance
Work out your budget to make minimum payments on all of them
With your remaining budget pay off the debt with the highest interest rate first
Once the one with the highest interest rate is paid off, then take the next highest and so on
What UK taxes do I pay?
“In this world, nothing is certain except death and taxes” Benjamin Franklin
How do I get out of debt
Firstly, not all debt is bad, and in fact it can be a useful financial tool. The difference between good and bad debt is whether the debt is worth getting yourself into; and whether it benefits you in the long term. If there is a specific reason for taking on the debt and a clear affordable plan to pay it back, it is more likely to be classed as good. For example, over the long term it is likely to be beneficial to take out a mortgage, student loan or invest in your business using a loan.
What is the FIRE (Financial Independence, Retire Early) movement?
It is a lifestyle movement where the goal is to achieve financial independence and retire early, rather than depending on the traditional 9-5 lifestyle. An individual drastically cuts down on expenses, increases their income and invests their savings wisely to grow their assets. The aim is to grow their assets enough that they can live off small withdrawals from this; they live off their passive income. Often individuals aim to retire in their 30s or early 40s.
Human Economic Lifecycle
This is the stereotypical traditional pattern of spending humans have in their adult lifetime.
How can you tell the health of an economy?
Governments aim to grow the economy, keep employment high and prices stable. The economy is what enables individuals to have goods and services, which includes housing, food and recreational activities.