This week: What tough times taught me. What Mortgage & Gilt rates rising means. Billionaire exodus. Investor Starter Pack. Build your own cookie jar.
THE BIGGEST LESSON:
I work in sales, and those who work in sales or a similar field will know it has similarities to entrepreneurship, in the sense that it is a rollercoaster. You have peaks and troughs.
I took on a new territory at the start of 2025, and for about 18 months, I felt like I was in a trough. It felt like nothing was happening. Then, all of a sudden a few months ago, things just clicked into place. I’ve been closing deals, creating new relationships, and getting future commitments from customers.
I’ve been reflecting on this and thinking back to this exact time last year. I was getting so frustrated, to the point I nearly threw the towel in. I wanted to move roles and was actively investigating new opportunities. Fortunately, I have an amazing wife who reminded me that this wasn’t the first time I felt this way, and usually, once you push through this period, good times come out of it.
So, I decided to dig in. A few structural changes took place which helped, and my determination to keep pushing has led to this fruitful period I am currently in now. Don’t get me wrong, I’m not complacent; I’m aware that as quickly as it changes one way, it can change the other. So, I’m trying to stay on top of my game and capitalise on the current highs.
If I had moved this time last year, I would’ve missed out on two things:
- The good times and the money I’ve made today.
- The feeling of pride in overcoming tough times.
This is now a story I can tell myself in the future when tough times come around again (a “cookie,” as David Goggins would call it – more info on this if you read on).
I believe it’s true that the hard times make you value the good times. Every hard time has lessons to teach you. Learn them once, reuse that lesson for the rest of your career, and let it bring out the best in you.
If you’re currently going through a hard time at work, at home, or in your personal life, this is your reminder to keep pushing through and keep doing the right things. The good times are closer than you think.
WHAT YOU NEED TO KNOW:
UK 5-year mortgage rate hits 6%
Many homeowners who fixed into a 5-year low rate in 2021 are having a rude awakening to nearly 6% mortgage rates upon their renewal. For a generation that has gotten used to low rates, the recent rise (which doesn't look like it will stop any time soon) will be hurting the wallets of many across the country.
A second-order consequence of this may be that UK house price growth is slowing. It feels very much like a cash-buyers market right now. The problem, however, is that people buying their first home don't have the cash. Additionally, increased regulation is making it harder to get a return on BTL (Buy-to-Let) investments. It will be interesting to see how this one plays out...
$160 Billion UK Exodus
Half of the UK's billionaire wealth has been lost in two years. That is a sickening statistic. With relocation barriers lower than ever and "tax the rich" becoming a reality under the Labour government, the ultra-rich in the UK are voting with their feet. It's not a certainty that they are the highest tax contributors, but it's certain that a significant level of tax is lost.
The impact of this will be felt by many in the middle class. The real impact should be realised in this month's budget. Brace yourselves.
UK 30-year gilt yields hit 6%
What does this mean? A 30-year gilt is a loan to the government lasting 30 years. The yield is what investors demand to lend that money. On 1 October, it hit about 6%, the highest since 1998. Investors will only lend for that long if they get roughly 6% a year. This is not the Bank of England rate—that is still 3.75%. It just means government borrowing has gotten more expensive.
What is the impact us? Fixed mortgages are priced off rates that move with gilt yields. So, mortgage rates have risen even though the Bank has not put rates up yet. Coming off an old, cheap fix can mean hundreds of pounds more a month. It also squeezes the Budget. Dearer debt leaves less room for tax cuts and makes tax rises on 28 October more likely.
SOMETHING YOU CAN COPY:
I've had a few people reach out who are new to investing and want to get started.
So, I created a starter kit following the best advice I've collated over the years. If this is you, you can grab it here: https://thewealthwire.kit.com/newinvestorstarterpack
It includes the 6 steps you should take, some key terms to understand, and some info on the type of accounts you can set up.
QUOTE OF NOTE:
THE TAKEAWAY:
A lot of this issue is about pushing through the tough times, and it's something we've all done. David Goggins calls these collective stories and anecdotes the "Cookie Jar". When you're going through a tough time, remind yourself that you've gone through tough times before and survived. It gives you the motivation to go through tough times again and come out stronger.
So this week, I want you to list down all the tough times you've gone through as a reminder. Here is the man referencing the "cookie jar".
It's well worth 90 seconds of your time:
