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Led by Penelope Smythe-Bottomley Simulacrum
Eight tutorials on managing your own money, led by Penelope Smythe-Bottomley with Solomon Huebner on insurance and risk pooling. Covers budgeting, saving and investing, debt, insurance, pensions, tax-efficient wrappers (ISAs, SIPPs), home ownership versus renting, and the long arc of financial life. UK-specific where jurisdictional (PAYE, ISAs, pensions, NI) but the underlying logic — compound interest, risk pooling, the time value of money — is universal.
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Led by Penelope Smythe-Bottomley Simulacrum
The question
The first work of personal finance — finding out where your money actually goes, accurately and without flinching. The module covers the gap between perceived and actual spending, the thirty-day observation exercise (record without judgement, classify after), the standard categories (housing, utilities, food-in/food-out, transport, debt service, savings, insurance, subscriptions, leisure), the *Latte Factor* caveat that large fixed costs usually matter more than the small drip, the difference between needs/wants/savings, why budgeting before observation almost always fails, and the 50/30/20 rule as starting reference rather than law. The closing scenario reads the books of a friend who claims to have no money.
Outcome
The student can describe the thirty-day observation exercise, name the standard spending categories, calculate their own actual spending in each (if they want to do the work), and articulate why "where does the money go?" precedes "what should I do?" (Foundation: observation)
Practice scenarios
A close friend earning roughly £2,800 a month after tax has confided that they "have no money", live cheque to cheque, and feel anxious about it. They do not know where their money goes, but they suspect they spend "too much on Deliveroo and stuff like that". They have asked for your help. You suspect — based on knowing them — that the actual problem is not Deliveroo. You suspect there are subscriptions they've forgotten, an expensive phone contract, perhaps a car that's costing more than they realise, and possibly a level of social spending that they aren't tracking. Your job is to walk them through the observation exercise without making them feel shamed or interrogated.
Your goals
Led by Penelope Smythe-Bottomley Simulacrum
The question
The single most important concept in personal finance — what compounding does for you and against you. The module covers the compound-interest formula, the rule of 72 for years-to-double, the asymmetry of compounding (early matters disproportionately), APR vs AER vs nominal rate, how the credit-card minimum-payment trap works, the personal cost of high-interest debt, why the mortgage rate matters less than people think over the life of the loan and the early-overpayment effect, inflation as the silent eroder of cash savings, and worked examples at different ages (saving £200/month from age 25 vs from age 45). The closing scenario contrasts two friends with the same income and different trajectories.
Outcome
The student can calculate compound returns over different horizons, apply the rule of 72, distinguish APR from AER, identify when high-interest debt is an emergency, and articulate why time matters more than rate in long-horizon savings. (Compound interest)
Practice scenarios
Two friends, both 25, both earning £35,000. Friend A starts saving £200/month into a pension and stops at 35 (ten years of contributions, then nothing more). Friend B starts at 35 and saves £200/month until 65 (thirty years of contributions). Both achieve a 6% annual real return. The student's job: calculate who has more at age 65, and use that calculation to explain to a third party (themselves, perhaps, or a friend asking for advice) why "I'll start saving when I earn more" is the most expensive mistake in personal finance.
Your goals
Led by Penelope Smythe-Bottomley Simulacrum
The question
The discipline of distinguishing productive debt (a tool that pays for itself) from consumption debt (a slow trap that compounds against you). The module covers the question *what is this paying for, and will it pay for itself?*, the UK debt products (mortgages — fixed, tracker, variable; student loans Plan 1/2/5; credit cards; overdrafts; BNPL; payday loans), the FCA's caps on payday lending, the priority order for paying down debt (highest-interest first, almost always), snowball vs avalanche approaches, when consolidation helps and when it just resets the trap, the credit file (Equifax, Experian, TransUnion), and the UK debt-advice resources (StepChange, National Debtline, Citizens Advice). The closing scenario advises a friend with five different debts.
Outcome
The student can classify a piece of personal debt as productive or consumption, identify the priority order for paying down multiple debts, recognise the products that are mathematical traps, and name the UK debt-advice resources for someone in difficulty. (Debt)
Practice scenarios
A friend is overwhelmed by debt and has shown you their balances and rates: (1) Mortgage £180,000 at 4.5% (twenty-five years left); (2) Student loan £30,000 at the standard plan-2 rate; (3) Credit card A £4,500 at 22% APR; (4) Credit card B £2,800 at 28% APR; (5) Personal loan £8,000 at 11% (three years left). They have £600/month of "spare" capacity after essentials. They have been paying minimums on all five and feel they are getting nowhere. Their question: where do I put the £600?
Your goals
Led by Solomon Huebner Simulacrum
The question
The most counter-intuitive product in personal finance — paying money expecting not to get most of it back — and when it is rational. The module covers risk pooling as the underlying mechanism, why insurance is ever rational (the loss is large, the probability is small, the cost is bearable), why it is sometimes irrational (extended warranties, pet insurance for healthy young animals, life insurance for unmarried childless adults), the four types worth understanding (life, income protection, critical illness, home and contents), Huebner Simulacrum's *human life value* method for sizing life cover, term vs whole-life, and the UK insurance market with the Financial Services Compensation Scheme. The closing scenario buys cover for a young family's first home.
Outcome
The student can articulate the risk-pooling mechanism, decide whether a particular insurance product is rational for them, calculate roughly how much life cover they need using Huebner Simulacrum's method, and name the UK insurance products worth having and the ones that are mostly profit margin for the insurer. (Insurance)
Practice scenarios
A friend has just bought their first home with their partner. They have a baby on the way. They are 32, both work — partner earns £42,000, friend earns £55,000. The mortgage is £280,000 over thirty years. They have £8,000 in savings. They are about to be inundated with insurance offers from the mortgage broker, the lender, and various comparison sites. They are asking you what they actually need to buy and what they can decline.
Your goals
Led by Penelope Smythe-Bottomley Simulacrum
The question
The UK tax-efficient wrappers and the priority order for using them. The module covers the workplace pension under auto-enrolment (5% employee + 3% employer minimum) and why tax relief at source matters, ISAs (Cash, Stocks and Shares, Innovative Finance, Lifetime) and the £20,000 annual allowance, the LISA and its strings (must use for first home or retirement after 60; 25% penalty otherwise), the SIPP and its mechanics, the priority order (workplace pension to matched level → emergency fund → high-interest debt → LISA bonus if eligible → ISA → SIPP → non-tax-efficient investing), the lifetime-allowance abolition in 2024, and the dangers (pension scams, *free pension review* calls). The closing scenario decides where the next £400 should go.
Outcome
The student can name the three main UK tax-efficient wrappers, explain how each works, articulate the priority order for using them, and decide for themselves where their next £100 of savings should go. (UK tax-efficient wrappers · jurisdictional)
Practice scenarios
A friend has £400/month they can save. Their situation: 28 years old, earning £42,000, currently in their workplace pension at the auto-enrolment minimum (5% from them, 3% from employer). They have £6,000 of credit card debt at 19%. They have £2,500 in a Cash ISA earning 4%. They have no emergency fund beyond the ISA. They are about to start saving for a first home (they think 4-5 years away). They have heard about LISAs, SIPPs, Stocks and Shares ISAs, and are confused. They want your advice on where their next £400/month should go.
Your goals
Led by Penelope Smythe-Bottomley Simulacrum
The question
Once debt is settled and tax-efficient wrappers are used, how do you actually invest the money — in a way more boring than the financial-services industry would prefer. The module covers diversification as the single free lunch, passive vs active management and why passive wins on average, the cost-fee compound effect over decades, time horizon and risk tolerance and why they are not the same thing, the difference between volatility and permanent loss, the major asset classes, global vs domestic equity (UK home bias is overrated), the role of bonds, the major UK platforms (Vanguard, iWeb, AJ Bell, Hargreaves Lansdown, InvestEngine, Trading 212) and what each costs, the major fund choices (Vanguard LifeStrategy, FTSE Global All Cap, BlackRock MyMap), and the behavioural traps (selling in crashes, chasing performance, FOMO). The closing scenario invests the first £500/month.
Outcome
The student can articulate the principles of long-term investing, choose between platforms and funds with informed criteria, recognise the behavioural traps, and decide whether they need professional advice. (Investing)
Practice scenarios
A friend has finally got to the position where they have £500/month available to invest beyond their workplace pension. They have an ISA allowance untouched (£20,000/year). They have looked at Hargreaves Lansdown, Vanguard, and InvestEngine, and are paralysed by choice. They have read articles about "stock picking" and "alpha" and "hedge funds" and are slightly intimidated. They are 35 years old and the money is for retirement (so 25-30 years away). They want your advice — not on what fund will go up most, but on how to make a decision they will actually stick with.
Your goals
Led by Penelope Smythe-Bottomley Simulacrum
The question
The largest single financial decision most UK households make, with the popular wisdom (*renting is throwing money away*) wrong as often as it is right. The module covers the rent-vs-buy comparison done correctly (full ownership cost vs full rental cost with deposit-as-investment counterfactual), the seven-year rule of thumb (transaction costs need ~7 years to amortise), the UK mortgage market (fixed 2/5/10-year, tracker, variable, offset), LTV and how it affects rates, stamp duty in 2024–25 with first-time-buyer threshold, leasehold vs freehold and the leasehold-reform legislation in train, service charges and the *rich-flat trap*, shared ownership and its hidden costs, the LISA bonus, energy efficiency (EPCs, the cost of a poorly-insulated house), and climate exposure (flood risk, subsidence, future planning). The closing scenario decides whether to buy now.
Outcome
The student can run the actual rent-vs-buy comparison for their own situation, identify when buying is and is not the right decision, navigate the UK mortgage market, and understand the specific UK products (stamp duty, LISA, leasehold, shared ownership). (Housing decisions)
Practice scenarios
A friend is 31, single, earning £58,000, has £35,000 saved (combination of LISA at £15,000 and Stocks and Shares ISA at £20,000), and is debating whether to buy a £320,000 flat in their current city or keep renting (currently £1,400/month for a similar flat). They are not sure they want to stay in the city more than another two or three years; their job is in tech and they could easily relocate to London or remotely. The mortgage they could get: £285,000 at roughly 4.6% over thirty years (2-year fixed). Friends are pressuring them to "stop wasting money on rent". Their actual question: am I being foolish?
Your goals
Led by Penelope Smythe-Bottomley Simulacrum
The question
Personal finance as a continuous practice that runs through the whole arc of a working life rather than a problem to solve once. The module covers the financial life-cycle by decade and what shifts at each stage, the role of life events (relationship, children, divorce, redundancy, illness, inheritance, parental care, retirement), the importance of writing a will (everyone over 18 with anything to leave or anyone they want to provide for), the lasting power of attorney for financial and health-and-welfare, the State Pension forecast at gov.uk/check-state-pension, when an IFA pays back (typically age 45–55), the long-term care question with no good UK answer, and inheritance tax basics (£325,000 NRB plus £175,000 RNRB, 40% on excess). The closing scenario produces the student's own financial life plan.
Outcome
The student leaves with a sense of personal finance as a multi-decade practice rather than a one-time problem; with a working understanding of what each life stage requires; with a will, a power of attorney, and a State Pension forecast on their list of things to do this year; and with one specific habit they will install in the coming month. (Closing perspective and personal action plan)
Practice scenarios
This is the closing scenario of the course. You will work with Penelope Simulacrum to build your own personal financial action plan. You have met eight modules' worth of frameworks; you cannot apply all of them at once. The goal is to identify *the single habit* that, if you actually installed it in the next thirty days, would do the most for your financial life over the next decade.
Your goals