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What caught my eye this week.

After compiling this list of the best money and investing reads for over a decade now, it’s rare I come across anything super new.

But I loved this fresh idea from Pete The Planner on how to borrow money from your own emergency fund.

Hold up – borrow your own money?

That’s right. Sort of.

Pete explains it’s down to one of those endearing tics of being human. Many people would rather borrow from a lender – and pay interest – because they prefer to see a repayment schedule in place, rather than raid their own emergency fund that they’d diligently saved for a rainy day.

Even when it starts to rain!

One reason is they don’t trust themselves. But research provides a possible solution, says Pete:

In a lab experiment, researchers found that when subjects were given the option of taking money from savings and entering into a “pay-back” agreement, they were more willing to use their savings rather than borrow money.

So simple. See Pete’s blog for a quick example with numbers.

As somebody who got a mortgage because I couldn’t bear to spend the money I’d socked away in ISAs for this very purpose (okay, and to lose the tax wrapping) I can relate.

Anyone else found any leaks in their mental accounting buckets?

Let us know in the comments below.

From Monevator

The stock market is wilder than you think – Monevator

Get out of debt to unleash your inner money maker – Monevator

From the archive-ator: Why factor return premiums can be disappointing – Monevator

News

Note: Some links are Google search results – in PC/desktop view you can click to read the piece without being a paid subscriber. Try privacy/incognito mode to avoid cookies. Consider subscribing if you read them a lot!1

Brexit: ‘Very little progress’ in negotiations with the EU, UK says – Sky News

Coronavirus furlough scheme extended to end of October 2020 – Which?

UK scheme for self-employed signs up 440,000 workers on first day – Guardian

London congestion charge comes back Monday, with a price rise from 22 June – BBC

Opening of English housing market catches estate agents on the hop – Guardian

Housebuilding to fall by a third as construction sites reopen with strict distancing rules – ThisIsMoney

Seven out of ten dentists could go bust by the end of summer without state aid – ThisIsMoney

Strategists query sudden ‘sprint’ in US stocks. Bear rallies over the past 150 years have been gradual and often rocky, says SocGen [Search result]FT

Products and services

Bounce back loans: How to apply for this helping hand from government – Much More With Less

Help to Buy ISAs vs Lifetime ISAs: which will get you on the property ladder first? – Which?

Mortgage rates drop to their lowest ever average level – ThisIsMoney

Sign-up to Freetrade via my link and we can both get a free share worth between £3 and £200 – Freetrade

Market-leading easy access savings rate slashed from 1.2% to 1.05% – ThisIsMoney

Homes with income potential [Gallery]Guardian

Comment and opinion

Nothing fails quite like success in the stock market – A Wealth of Common Sense

Is it indefensible not to take out a pension? – Indeedably

Why liquid net worth is so important for your finances – Of Dollars and Data

The people who beat the stock market – Banker on FIRE

The Long Road to Financial Independence: Kat’s Journey – A Chat With Kat

The stock market is [not] ignoring the real economy – The Reformed Broker

Larry Swedroe: Is it really stocks for the long run? – The Evidence-based Investor

We need to talk about ergodicity – Behavioural Investment

Naughty corner: Active antics

Ichigo Ichie – All Star Charts

Can stocks and bonds both be right about this crisis and the global economy? – CNBC

Tips for stock pickers in a coronavirus world – UK Value Investor

A deep dive into the Herald Investment Trust – IT Investor

The stock picker who delivered a 2,550% return: Marlborough’s veteran UK small cap fund manager Giles Hargreave to step down after 22 years… – ThisIsMoney

…while Invesco dumps Woodford protege Mark Barnett after he fell 30% behind the market – ThisIsMoney

It could be a good time to buy Buffett’s lackluster Berkshire Hathaway – Tiho Brkan via Twitter

The illusion of alpha in active bond management – The Evidence-based Investor

Wall Street heavyweights sound the alarm about stock prices – Bloomberg

Why the most futuristic investor in tech wants to back society’s outcasts – The Hustle

Is (systematic) value investing dead? – AQR

Covid-19 corner

[Click to enlarge the good/bad news]

Where Covid-19 is rising and falling around the world… – Visual Capitalist

…and up-to-date graphs of case rate rises and falls in different countries – End Coronavirus

The risks – know them – avoid them [Excellent]Professor Erin Bromage

A summary of all the major vaccine and treatment contenders – CNBC

Covid-19 ‘R’ rate for various areas of England, compiled in real-time – PHE/Cambridge University

Public Health England approves Roche’s antibody test as accurate – Guardian & BBC

Without a vaccine, herd immunity won’t save us [Includes a cool interactive tool]FiveThirtyEight

App shows promise in tracking new coronavirus cases, study finds – New York Times

‘Weird as hell’: the Covid-19 patients who have symptoms for months – Guardian

The co-morbidity question – The Actuary

Dutch official advice to single people: find a sex buddy for lockdown – Guardian

Kindle book bargains

The Basic Laws of Human Stupidity by Carlo Cipolla – £0.99 on Kindle

Digital Transformation: Survive and Thrive in an Era of Mass Extinction by Thomas Siebel – £0.99 on Kindle

Money: A User’s Guide by Laura Whateley – £0.99 on Kindle

The Hating Game [‘The very best book to self-isolate with’] by Sally Thorne – £0.99 on Kindle

Off our beat

“I got fired over Zoom”The Atlantic

The virtual reality winter [On the technology]Benedict Evans

How the coronavirus turned a pilot shortage into a surplus overnight – Abnormal Returns

And finally…

“The hungrier one becomes, the clearer one’s mind works— also the more sensitive one becomes to the odors of food.”
– George S. Clason, The Richest Man in Babylon

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  1. Note some articles can only be accessed through the search results if you’re using PC/desktop view (from mobile/tablet view they bring up the firewall/subscription page). To circumvent, switch your mobile browser to use the desktop view. On Chrome for Android: press the menu button followed by “Request Desktop Site”.

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