This week:
The most expensive stock market in history → Why we're staying invested through the noise → Britain's stealth tax on its highest earners → The $500K club with $0 saved → Monetising the sawdust in your house → Owning your income like Buffett.
THE BIGGEST LESSON:
If you found this newsletter, it's likely you came across my content on X. This week, out of the blue, X changed its content rewards program — and it annoyed a lot of people.
For me, it was a timely reminder: make sure you have control and ownership over your income. Anyone relying on a single source could have seen that income eroded by one decision they had no say in.
The moral of the story: control and own as much of your income as possible.
No one ever has full control, but you can move the needle by:
- Diversifying income streams
- Building assets that pay you
- Structuring your primary income
WHAT YOU NEED TO KNOW:
The stock market is " the most expensive" it's ever been
The Cyclically Adjusted Price-to-Earnings ratio (CAPE) is now higher than at any point in history. Historically, ratios like this precede major corrections. That correction has been "coming" for years — and it still hasn't arrived. If you'd sold when you first heard the warning, you'd have missed out on the S&P 500's incredible run since.
Sure, you could sell now. The correction could hit, and it might turn out to be one of the smartest calls you ever made. Or it might not happen for years, and you'd miss out on further gains.
What gives me confidence is history: markets have always bounced back, and I have no doubt they will again if a correction comes.
Personally, I'm staying invested. I have a long-term strategy and don't want to interrupt compounding. A dip won't hurt me — I have enough of a time horizon to ride it out, possibly more than once.
🔗 Yahoo Finance: Stock market sending "chilling" warning
Are we disincentivising out highest contributors from having kids?
Stealth taxes are everywhere. Thresholds haven't moved in years while inflation quietly erodes every pound.
Case in point: a recent Times article showed how many families have lost eligibility for free nursery hours — something I've been through myself. It's bizarre that a dual-income household can out-earn me, pay less tax, and still qualify for nursery support.
It made me think about the second-order consequences. Incentives drive behaviour. This policy effectively tells the biggest tax contributors that having kids will cost them more — while people on benefits, contributing little or no tax, face the opposite incentive. UK welfare spending now sits at £336 billion, or 10.9% of GDP.
41% of people earning $300k-$500k in the US have nothing saved
I believe lifestyle inflation is real — but this isn't that. At some point we have to call it what it is: a spending problem, driven by entitlement or "keeping up with the Joneses."
That said, it's not fully binary. Some people do have worse spending habits than others, but it's also true that inflation is pushing up the cost of living and taxes keep growing — often through stealth.
The bigger lesson: enough is never enough if you haven't fixed your financial habits. Learning the value of money early — including the discomfort of being broke — compounds over a lifetime, and it's what stops money from becoming a source of anxiety later on.
🔗 NewsNation: Workers living paycheck to paycheck
SOMETHING YOU CAN COPY:
Monetise the sawdust.
Most people only focus on the main "lumber" of their finances — salary and big investments. The smarter move is to turn the sawdust into cash too. Look around your house for idle assets that could start paying you this month, with almost no extra effort:
- Spare parking space or driveway → JustPark
- Garage, loft, or under-stair storage
- Unused tools, ladders, or equipment → Fat Llama
- Spare room or sofa for short stays
- Your car, on the days you're not using it
Pick one this week. List it, then set the income to auto-transfer into a high-interest account or ISA. You've just created a small asset that pays you while you sleep.
QUOTE OF NOTE:
“Never depend on a single income. Make an investment to create a second source.”— Warren Buffett
A single income makes you reliant. A diverse set of incomes gives you leverage.
THE TAKEAWAY:
This week is about gaining more control over how you build wealth. Ask yourself: what's one thing you could do to increase your income with minimal extra effort?
More invested. A side hustle. Selling something you own but never use.
Pick one. Start this week.
