4 Comments
May 3Liked by The FAT Software Engineer

Paying down the mortgage seems the best approach to me, you can beat the interest rate for savings and you're creating a cushion for the future.

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May 3Liked by The FAT Software Engineer

> even with a 3.4% interest rate in my cash ISA, I am still losing buying power every month

Yikes inflation is wild right now

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Just remember that inflation is over the last 12 months not forward looking. How much you have lost in real terms is 10.4% minus whatever rate your earnt in interest over the last 12 months. Let’s assume you get 3.4% in interest over the next 12 months. Then if inflation is less than 3.4% in 12 months time, you have done better in real terms. I don’t think it will fall that low but over the next 12 months I dont think those who hold cash will be losing as much in real terms as people have over the last few years.

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