Good afternoon and welcome to the 99.

The 99 is the home of financial news and insights made simple. Don’t worry - your favourite round-up remains the same. You can still count on accessible, trustworthy, and unbiased news insights every Monday.

Introducing The 99’s Explainers…

Each month, we'll explore a specific theme over a month; sharing knowledge in bite-sized and actionable guides that are easy to grasp and apply to your own financial journey. This month’s topic…The Fundamentals

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Alice x

Did you see the most heartwarming confession of all time?

“My Grandad’s For When I’m Gone File Changed My Life”

A reminder that you have until the 31st to claim your free will.

Octopus Legacy is a brilliant company helping plan for death and find support after loss.
They’ve partnered with charities from across the UK to cover the cost of your will so you can write or update your will for FREE, saving you up to £250.

You can write your will in whatever way suits you best:
🌐 Online
📱Over the phone
👥 In person

Many choose to leave a gift to charity as a thank you, but it isn’t required to claim the free will offer.
Click the button to claim your free will before October 31st 📝

£200,000

The annual salary that former cabinet secretary Lord O'Donnell has described as "massively underpaid".

The role is the top-ranking civil service position in the government, and is “incredibly demanding”. O'Donnell said he’d “been paid a lot more since, to do a lot less.”

Read More on BBC

Being considered wealthy isn’t just about your salary—it’s your income, savings, property, and pensions. Comparison might well be the thief of joy but if you want to know where you stand versus the rest of the UK, here are the stats:

What’s Considered a High Income in the UK?

Income vs. Wealth: What’s the Difference?

They worked out that if you’ve got….

£90,000 in savings

a mortgage-free house worth £310,000+

and a £627,000 pension…..

you’re officially considered ‘wealthy’.

How Wealth Changes With Age

Interestingly, an individual’s wealth tends to peak between the ages of 60-64.

People in this age group have an average wealth of £380,100, which is 9 times more than someone in their early 30s.

In fact, wealth grows slowly until you hit your mid-50s, then it climbs rapidly before hitting a peak and declining during retirement.

Do We Know When We’re Wealthy?

People earning high salaries often don’t feel rich. Research shows many people making between £80,000 and £100,000 think they’re “average.”

Even 27% of those earning over £100,000 say they don’t feel wealthy.

Are You Rich?

Wondering where you stand on the wealth scale?

There are tools to help you figure that out.

It’s the month of the Budget we’ve all been waiting for and Chancellor of the Exchequer Rachel Reeves is facing the daunting task of finding billions more pounds to keep the government’s pre-election promises.

What Promises Did Labour Make?

🕳️

But they inherited the so-called “£21.9 billion black hole” - Basically, a financial gap due to previous governments’ questionable maths and forecasting.

Where Did £16 Billion Figure Come From?

Each year, the IFS publishes a “Green Budget” report to offer independent scrutiny of key decisions regarding taxes, spending, and public policy.

How Could She Pull It Off?

🗓️ The Chancellor is finalising her first budget, set to be unveiled on 30 October.

🥶 Recently, Labour announced that it would limit winter fuel payments to those on certain benefits. This change means that about 90% of British pensioners will miss out, saving an estimated £1.5 billion annually.

🔁 Labour’s ‘fiscal rules’ require day-to-day government spending to be funded only by tax revenues, so borrowing more isn’t an option to fill the gaps. Although the rules aren't expected to change, technically Reeves could adjust how debt is officially calculated, which could unlock up to £50 billion in extra borrowing capacity.

💼 There’s chat about what taxes might need to increase, but with promises not to raise income tax or VAT or worker National Insurance contributions, Reeves is limited on what she can do.

📑 However, in a recent interview, Prime Minister Keir Starmer didn’t rule out National Insurance contributions to be added to employer pension contributions. Analysts have suggested this could raise as much as £17 billion for the exchequer if the full 13.8% rate was applied.

 📈 Other taxes likely to be on the agenda include:

• Capital gains tax - Capital gains tax - which already raises £15 billion a year from just 369,000 people - is a tax on profits when you sell something.

• Inheritance tax - currently 40% of the value of a deceased person's assets above the £325,000 threshold.

🎓

A tale of two degrees:

The £85,000 Salary Gap

If you or a family member are considering your options for the future and earning potential matters, looking at post-uni financial outcomes might be useful.

Same Fees, Different Fates

🔖 

Both the Allied Health degree from the University of Sunderland and the Computer Science degree from the University of Cambridge come with the same price tag: £9,250 a year.

🥊 

However, the salary difference 5 years post-graduation? £85,000.

Are Degrees Worth It? The Apprentice Alternative

In 2023, about 480,000 students enrolled in undergraduate programs in England, a 23% increase since 2013. Apprenticeships aren’t far behind, with about 350,000 people training each year.

Apprentices also typically see salaries that can outstrip their degree-holding counterparts. For instance, apprentices in engineering earn an average of £39,200 5 years post-training, while engineering grads make less at £36,500.

With apprentices, there’s no student debt and they get paid while they learn and are often guaranteed jobs with the same employers they trained with.

They get paid while they learn and are often guaranteed jobs with the same employers they trained with. 77% of apprentices are in sustained employment 1 year after finishing their training, compared to only 62.5% of all graduates.

Why Are People Still Opting For Uni?

A recent survey showed that 59% of teens aged 13 to 17 are considering apprenticeships and search interest has spiked by 62.4% year-on-year.

✍️ The Application Process ✍️

However, applying for an apprenticeship can be tricky. Only 50% of applicants reported a positive experience, compared to a staggering 90% for university applications.

 📍 Opportunity Shortgage 📍

About 61% of those interested in apprenticeships cited a lack of local opportunities as their reason for not completing one. 3 in 5 that want one, cannot find one.

Imagine spending 30 days in space with just 3 other people, surrounded by breathtaking views of Earth, while lounging in what looks like a swanky office lobby.

What is Haven-1?

🗓️ Haven-1 is set to launch into low-Earth orbit in 2025 aboard SpaceX’s Falcon 9 rocket.

🛏️ Initially, Haven-1 will serve as a space experience, offering paying customers a once-in-a-lifetime 30-day trip in space.

🚀 The journey will last 10 days, and passengers will receive training on safety procedures, spacesuits and supplies for their time aboard.

👩‍🚀 The station will house up to 4 crew members, who will enjoy private rooms complete with built-in storage, a vanity, and custom amenities.

October 101

The Fundamentals - Getting Organised

1. Most people don’t budget

59% of households don’t have a budget they stick to.

1 in 5 couldn’t say how much they’d spent at the end of each month.

14% of those people said they don’t have the time to budget and 5% said they simply don’t know how. Let's simplify the process and make it quick while we’re at it.

2. Making A Budget

Pay Yourself First 🫵

For those who want a simple, no-fuss approach to budgeting.

Pay a designated amount into your savings/retirement pot/goal account first and then allow yourself to spend the rest throughout the month. This is the simplest way to prioritise savings without creating a detailed spending plan.

Zero-Based Budgeting 👌

Every pound must have a purpose.

This makes sure you plan where every pound you earn goes. The goal by the end of the month is to have income - expenses = 0 exactly.

Start by noting down all the money you expect to receive in a month, and then note everything you need to spend money on, from bills to groceries to fun stuff. You also include savings and debt repayments in this list. Subtract your expected expenses from your income, and the goal is for the result to = zero. If you have money left over, assign it to something—like extra savings or paying down debt—so nothing is left unplanned.

50/30/20 Rule 🍰

For those who like to categorise.

This budgeting technique allocates 50% of your income for needs (e.g., rent, groceries), 30% for wants (e.g., holidays, eating out), and 20% for goals (e.g., paying off debts, saving for the future).

Look at your spending from the last 2-3 months, split your expenses into three categories and work out their total as a percentage of your post-tax income. This will help you see if you're already close to the 50/30/20 split or if you need to make adjustments.

If 50/30/20 doesn't work exactly for your situation, adjust it a bit. For example, if you have high rent, maybe your needs are 60%, or if you’re saving aggressively, you might put more than 20% towards your goals.

3. Making it Happen

So, you’ve now got a budget in mind—great! The challenge is making it happen

How To Plan Your Spending

Listen to the GFY Community: How to Stop Spending Money

This question was shared and answered in the GFY community, and we’ve collated all the best answers from you guys on how to stop spending unnecessarily.

General Tips

Hindsight: Look at the stuff you have that’s underused and think, “that was a waste.” Use the principle of opportunity cost: "If I spend on this now, what am I denying myself later on?”

Start Small & Avoid Denying Yourself Everything: Focus on the next four weeks and see how you go. Keep it realistic with a "luxuries budget" for stuff that makes you happy after you’ve covered your usual bills.

Think of a Cause: Whether it’s reducing carbon consumption or cutting down on plastic waste, having a cause can motivate you to avoid unnecessary purchases. It gives you a good reason not to buy things you don’t need.

Eating Out/Delivery

Meal Kits & Batch Cooking: Try meal kits like Hello Fresh/Gousto or batch cooking, which can be cheaper than buying individual meals out and help you cook at home more often.

Schedule a Fixed Weekly Grocery Delivery: A massive time saver and spending tip - scheduling a fixed weekly grocery delivery is quicker than going to the supermarket each day and reduces reliance on takeaway apps. And whilst we’re on the subject, you could even…

Delete Food Delivery Apps Altogether.

Clothes 

Shop Second-Hand or Upcycle DIY: Check Vinted before buying new.

Reduce your exposure to marketing: Cleanse your following list and unsubscribe from marketing emails

Avoiding Impulse Buys

Make a ‘To buy’ List and Check It Twice: Add items you want to buy to a list with prices and close the tab. Then…

Wait 48 Hours: Delay your purchases for 48 hours.

Week 2 - Checklist

Easy and quick actionable life admin you can do right now:

⬜️ Carve Out Time - Set up a recurring invite in your calendar for a monthly financial admin session. Ideally on or just after payday.

⬜️ Track Your Spending - Connect to an open banking app or use a spreadsheet to keep a simple log of all your expenses. We ❤️ the apps Snoop and Emma.

⬜️ Automate Savings - Choose what to save and set up a direct debit to transfer a fixed amount into your savings/investment account each month. Treat it like a bill for consistent saving.

Sources/Read More:

How Much Does It Take to Be Rich?

• Read More on This Is Money

• Read More on Forbes

• Read More on The Times

Rachel Reeves Needs To Find £16 Billion More In Her Budget

• Read More on Sky News

  Read More on BBC - Article 1

  Read More on BBC - Article 2

  Read More on The Independent

  Read More on IFS Green Report

  Read More on The Guardian

The Great Degree Divide: The £85,000 Salary Gap

• Read More on The Telegraph - Article 1

  Read More on The Telegraph - Article 2

Inside The World's First Commercial Space Station

• Read More on Wired

  Read More on Futurism

  Read More on Vast Space