So there’s this brilliant place called the metaverse, which has received renewed interest recently when the world’s largest social network, Facebook, announced that it has rebranded its corporate company name to Meta. I know the term has been used to a dizzyingly promiscuous level, but for those who know what the metaverse is, it refers to a combination of virtual, augmented and physical reality. For those who don’t know, it can seem like a vague place that is strange or foreign to the real world. But realistically, there is no single, unified entity called the metaverse; rather there are multiple mutually reinforcing ways in which virtualisation and 3D web tools are embedded into a virtual environment. 

It’s common to be at a loss for what the metaverse is because there is still debate as to whether it really does constitute a significant chapter of human evolution or if it’s just another overhyped fad. In this moment, the vector of change points towards the metaverse being a revolutionary force that could permanently transform how we interact with the digital world. 

While Facebook has rather aptly described the metaverse as “the ultimate dream of social technology”, this month Bill Gates went as far as to say that within two or three years, most office meetings will go from 2D camera image grids to a 3D space with digital avatars. I know what you’re thinking: “unlikely”. But if you told the owners of a Nokia 3310 mobile phone in 2000 that they’d have the entire contents of a computer sitting within their pockets seven years later in the form of a smartphone, they may have had the same reaction.  

Here’s what Gates had to say in his blog post on 7 December:

“You will eventually use your avatar to meet with people in a virtual space that replicates the feeling of being in an actual room with them. To do this, you’ll need VR goggles and motion capture gloves to accurately capture your expressions, body language and the quality of your voice”. 

Gates also mentioned that since most people don’t own the aforementioned tools as of yet, it could slow adoption somewhat, but Microsoft is planning to roll out an interim version of this next year, which will use a webcam to animate an avatar that’s used in a 2D set-up. 

You might be wondering what the benefit of a metaverse-themed office meeting is. Well, data published by Altus shows that remote working can save businesses up to £10,000 annually per employee. The evidence is even more compelling if you look at how of the 17 million millennials living in the UK (a quarter of the total population), 70% prefer remote working to office-based roles — and since millennials will contribute to 75% of the workforce by as early as 2025, it’s clear that flexible working is the future. 

To add to this, millennials have proven to be the most diverse generation yet, with most considering themselves to be politically independent and interested in a wide variety of different cultures and ideas. As the world of work becomes increasingly digital with many employees spending more time away from their offices as a result of the Covid-19 pandemic, this youthful millennial open-mindedness could translate into new, productive and more rewarding forms of work being created as part of this digital transformation. If Gates is right, 3D avatars may well be integrated into your office meetings in such a way that it could change how you work forever. 

Overall, Brits saved on average £500 a month working from home during the lockdowns, and while the impact of the metaverse does largely depend on the uptake of such new technologies, 3D avatars could lead the edge of the shift to more flexible and distributed work that is also exciting and technologically innovative. Personally, I don’t feel that Gates is too far off, and we will see teams collaborating in the 3D metaverse using customised avatars with the help of motion capture and spatial audio technology in the very near future. 

The post Your office meetings within three years will move to the 3D metaverse, says Bill Gates appeared first on The Motley Fool UK.

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It’s not exactly news that inflationary pressures in the UK have been rising as the pace of economic recovery from the pandemic steadily slows down. It’s a headline that no one wants to read and I guess moderate inflation is not a bad thing since it can prompt people to spend their cash if they think it will buy less in the future. But high inflation is a monster of its own, and the Bank of England has stated that it expects annual price rises to peak above 4% and stay at the level into the second quarter of 2022. 

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We’re all facing a serious squeeze on living standards, not least because the annual rate of inflation rose from 2% in July to 3.2% in August this year (its highest level since 2012) but because we know that UK prices have increased 2.7% in the past six months alone as a result of this. We’re not alone, though: in the U.S, consumer prices increased by 5.4% in September, hitting a 30-year high. 

With the higher UK charges for goods and services dominating the news, some might find themselves falling into a trap of catastrophic thinking. But before you spiral, take heed to this quote:

“A budget is telling your money where to go instead of wondering where it went”. 

I like this quote by Dave Ramsey as it encourages us to take a proactive approach to spending and learn for ourselves what it means to make our money go further. 

On to the first strategy. 

1. Get a true and accurate picture of how you spend your money

Find out exactly where your money goes by saving all your receipts, tracking your purchases via your online bank account or using a money management service that gives you an in-depth breakdown of your spending. For example, MoneyHelper, the body sponsored by the Department for Work and Pensions, offers a Budget Planner with a colourful chart that presents a breakdown of your finances, which can be visually simpler than a list. 

I personally prefer this to manually tracking my expenses because the Planner does all the heavy lifting for me by grouping my spending into categories like household bills, living costs, finance and insurance, family and friends and travel. If your income isn’t steady throughout the year, estimate the annual total and average it per month.

Also, you’ll need to add up your assets, including the amount you have in savings, investment and retirement accounts. Then add up the value of your liabilities, such as credit card balances, student loans, mortgage and car loans. Where your finances currently stand lies in the answer to this equation: assets – liabilities = net worth.

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2. A simpler way to save: the 60% Solution

With this budgeting strategy, the first 60% of your gross income (all the money you have coming in for the month) goes to committed expenses, which includes all taxes, housing costs (rent/mortgage, utilities), credit card bills and everything else that you must pay each month. 

The next 30% goes to savings: 20% to long-term savings and 10% to short-term savings, like your emergency fund and a looming big purchase.

The remaining 10% is yours to spend on whatever you want. 

Try it and see the results. Traditionally, with a budget what you’re attempting to do is to prevent overspending. Yet, it’s not often the little luxuries here and there that get you in a bind – it’s the larger, irregular expenses like holidays and major repairs. To avoid overspending, the 60% Solution encourages you to do a better job of preparing for those.  

3. Dine out – at home

You don’t always need to eat out to help out when you can eat in and help yourself. Shockingly, it was once reported that the average price of dinner for one person in London stands at a whopping £59.28. If that’s anything to go by, you might be better off cooking for yourself, which has the added benefit of tracking the nutritional intake of your meals.

4. Rethink your spending

One thing to try is cutting at least one recurring expense and saving what you would have spent. If you commute, consider taking the bus to cut down on the cost of petrol. 

You may not need three streaming services, so you can reduce it to one. Put that extra money in a special account for new splurges or spending priorities. 

5. Finally, put your plan in action

For one month, try to budget using my five hand-picked strategies for smarter spending. Once you reach a goal, review your plan and tailor it to fit your next savings goal, giving you the power to purchase what you want while also paying extra attention to how you’re spending your money. 

The post The only 5 strategies you need for smarter spending amid fears of inflation appeared first on The Motley Fool UK.

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You probably heard that rent prices in London dropped by as much as 28% in some postcodes earlier this year. The government-enacted coronavirus restrictions were a large factor in this. Still, we were all astonished by the idea of a Covid rental exodus, especially when a series of surveys came out confirming that many city dwellers have either moved out or are planning to do so in the near future. 

What stood out the most during this time of Covid-induced turbulence was that many of the people who were viewing London as less desirable to live in were those aged between 23-29, according to data from Spareroom. The flat-sharing service found that almost a quarter of 23-29 year olds left their rented accommodation during the height of the pandemic to save money after losing their jobs, with most moving back into their family homes. The survey found that a third of 23-29 year olds now live with their parents compared with 18% of thirty-somethings. 

What’s been pushing city renters out of the capital and will they ever return? New data from Spareroom tells us just that. 

Shockingly, ‘room wanted’ ads have outnumbered ads for ‘rooms available’ on SpareRoom for only the third time in six years. The last time this happened was in September 2019 and before that, August 2015. Out of the UK’s 50 largest towns and cities, London has seen the biggest increase in demand vs supply, with buyer demand up 14% in August 2021. This translates into a 25% rise in demand for houses across London and a 6% rise in demand for flats. 

Source: Zoopla

The imbalance is the most acute in London than other parts of the UK as enquiries to rent are up 165% this autumn on the previous year. LonRes has 2,800 properties registered for rent versus 13,000 this time last year.

A poll by Spareroom also found that out of 6,206 respondents, more than nine in ten people (96%) who are currently looking to move to London are struggling to find available rooms.

Indeed, London is coming back to life. Demand is unusually high because people are moving back out of their parents’ houses and overseas students (as well as students in general) are starting to return to the city. If you want further proof of this, Transport for London (TfL) reported that almost 4 million people travelled on the Underground during the last week of September. Compared with pre-pandemic figures for September 9 2019, travel was up 45% on the Tube and 64% on the buses amid the end of the summer holiday period and the return of schools.

In fact, the number of Tube and bus journeys has increased every week since coronavirus restrictions were lifted in July; on Thursday September 30, 2.6 million Tube journeys were made, the highest weekday total since the pandemic began.

With the widespread return to office working, the rental market looks back to apparent normality or even tighter. Gone are the times when opportunistic renters could pick up bargains with the massive drops in private rent. Now strong rental growth, fuelled by increased demand and limited supply has put a stop to the softening of rents in London. According to the property portal Zoopla, demand for London rental properties in August was up almost 80% on the average for 2017-19 and Rightmove reports that the cost of renting a home was 3.6% higher this summer than the previous year.

Source: Zoopla

It’s not all doom and gloom though. While demand remains higher than typical for this time of year, Zoopla predicts that this could start to unwind by the end of the year. Also, other parts of the UK are being hit with high rental prices too, for example Liverpool’s average prices are up +9.8% in the 12 months to September, while Manchester and Sheffield have registered high levels of growth, at +8.1% and +7.6% respectively.

If you’re a soon-to-be city renter or already living in London and searching for accommodation that’s more suited to your budget, remember to balance your wants and needs. For example, you might dream of having a great window view overlooking the River Thames, but what you really need is a place with a washing machine. Think realistically and reasonably, and also consider rent negotiation with a landlord or living with multiple housemates to save money. 

But above all else, do your research before moving to London to ensure you find the best priced rentals. As offices reopen and global travel resumes, supply is sparse at the moment so set up as many viewings as possible and do your due diligence. 

The post London’s rental supply is the lowest in almost a decade, pushing prices up appeared first on The Motley Fool UK.

More reading

• With a P/E of 5.9 is this a once-in-a-decade opportunity to buy dirt-cheap easyJet shares?
• Think the soaring Tesco share price is too good to be true? Read this…
• BAE Systems shares are up 274% in 46 months. And I reckon there could be more to come
• 5 years ago, £5,000 bought 218 Greggs shares. How many would it buy now?
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