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Notes

The mechanics

Short notes that sit next to the engines. Skip anything you already know.

Core

Interest vs Currency Debasement

Nominal growth is not purchasing power. Interest expands a balance; debasement erodes the unit.

Opens: Compound Engine

Growth

The Power of Compounding

Returns on returns. Frequency, contributions, and time turn a linear path into a curve.

Opens: Compound Engine

Valuation

Nominal vs Real Returns

The number on the statement is nominal. Wealth is what that number still buys.

Opens: Compound Engine, Runway Matrix

Macro

Primary Drivers of Inflation

Demand-pull, cost-push, and monetary expansion — three mechanisms, one erosion of cash.

Opens: Runway Matrix, Compound Engine

Liabilities

Avalanche vs Snowball

Highest rate first versus smallest balance first. Same budget, different interest paid.

Opens: Debt Payoff Engine

Property

Section 24 and BTL Tax

UK landlords cannot deduct mortgage interest in full. Model the 20% credit and SPV alternative.

Opens: Buy-to-Let Yield

Wrappers

ISA versus GIA Tax Drag

Identical portfolios, different tax. Dividend tax, CGT and turnover compound into a silent leak.

Opens: ISA / GIA Optimiser

Independence

FIRE Number and Safe Withdrawal

Annual spend divided by a withdrawal rate is the target. Savings rate sets the date.

Opens: FIRE Matrix

Liquidity

Emergency Runway

Fixed burn is survival. Variable burn is lifestyle. Dependants and income risk stretch the target.

Opens: Runway Matrix

Business

Unit Economics and Billable Time

Price minus variable cost funds fixed cost. Unbillable hours are a tax on every hour you sell.

Opens: Billable Rate Engine, Break-Even Engine

Extraction

Salary, Dividends and Corporation Tax

A low salary near the NI threshold plus dividends is the classic UK director split — until bands move.

Opens: Dividend / Salary Splitter

Applied

The Empire Lab

A paper empire that forces the same choices the engines quantify: cash vs assets, heat vs yield, wages vs growth.

Opens: Compound Engine, FIRE Matrix, ISA / GIA Optimiser