If things get tougher?

pavlovs_dog

whilst i dont for a moment think that a recession will be pleasant for anybody, i think it does come with its own silver lining; it is a chance to take stock.

its a given fact that some will always be 'better off' than others, but for many of us at the moment the only crunching going on is an adjustment of lifestyle, rather than genuine scrimping and saving to make ends meet. for example you might now buy own brand beans instead of finest, walk to town rather than jumping in the car, and have a cheaper coffee in a smaller local cafe rather than a superdeluxe thingyamywhatsit from starbucks. we are in effect being coerced into trying out many of the things that martin has been preaching about, but we've perhaps chosen not to try because we could afford not to, so why bother?

the silver lining comes when the recession ends (and it will end, eventually). its our choice whether we go back to finest beans, taking the bus and having our starbucks luxuries, or whether we realise that we managed the recession just fine without them, and so can do without them now. the result? an instant increase in disposable income that is yours to do with as you please. you could save to ease the burden of the next recession, pay off debts to increase your financial freedom, treat the kids - whatever. as a fully fledged old style convert (albeit perhaps unwittingly) you will have become an expert in getting the most bang for your buck. whether you continue on that path or go back to more frivolous ways will be your choice to make. but whatever your decision it will be an informed decision.

i guess what i am trying to say is that, longer term, there is a positive to all the current doom and gloom. there isnt a lot that you can do to change the current economic climate, however we can all try to see some positives rather than just negatives. your cup may not runneth over for quite a while to come, but its up to you whether that cup is half full or half empty in the mean time.

Sarahsaver

That is a fantastic, positive post

ceridwen

unixgirluk wrote: »

Isn't VAT only supposed to be for luxury non-essential items (sorry could be wrong here)? So they think heating and food is a luxury?

Thats the theory!;) The practice is that it IS put on fuel bills (since when was household fuel a luxury???). It didnt use to be - it was some point in the last few years that this happened - cant remember what the justification for that was.

Household fuel isnt the only essential this "luxury (huh!)" tax is on - think on once a month for the women amongst us....(since when was dealing with THAT particular monthly event a luxury for women of childbearing age? You'd soon be pretty darn unpopular if you didnt deal with this "medical necessity".)

Rabbit

We have started making lists for what we want on our next trip into town and try to go twice a month. We used to nip and pop up there a few times a week maybe but with the increased fuel costs it needs to be planned so we can visit Aldi for the bargains and anywhere esle we want. We've been working on 15p a mile as a cost for every trip but I expect this is a lot more now.

I am being very strict now about menu planning and going once a week to our local supermarket. We now have a "when it's gone, it's gone - you'll have to wait 'til next week or find something else to eat" attitude rather than refilling the fridge midweek (apart from apples, bananas & milk). I am keeping to budget (just) and I put a list of prices of what I can pay maximum for each item on my shopping list. This helps me so much, I tick stuff off with my pen and make notes as I go round the store, god knows what I must look like. Last week by making savings on lots of things by buying a brand lower or offers I treated us to some cakes.

Try to keep smiling and let's hope we can all get through these harder times. We are thinking the worst and being very careful with every penny. We are growing some veggies too in the hope they will help us through the year.

p.s I'm cutting my own hair too, it's very thick but I'm managing with my OH's clippers, scissors and thinning scissors. It's short and random buy hey-ho at least it's free. I just can't justify paying to have it done anymore. Last year I cut it to a very short
crop and kept it short and got a cold head all winter but this year it's coming off soon and then being regrown throughout the winter to keep my ears warm LOL.

I'm so pleased to have found this site, the old style board has helped me save a fortune over the last few years.

suki1964

ceridwen wrote: »

Thats the theory!;) The practice is that it IS put on fuel bills (since when was household fuel a luxury???). It didnt use to be - it was some point in the last few years that this happened - cant remember what the justification for that was.

Household fuel isnt the only essential this "luxury (huh!)" tax is on - think on once a month for the women amongst us....(since when was dealing with THAT particular monthly event a luxury for women of childbearing age? You'd soon be pretty darn unpopular if you didnt deal with this "medical necessity".)

There are different levels of VAT and heating fuel is at the lower rate of 5% as is sanitary protection .

Heres another link that goes a bit further to explaining what VAT is and why we pay it
http://www.politics.co.uk/reference/issue-briefs/economy/taxation/vat/value-added-tax-$366603.htm

ceridwen

Thats true - as in the 5% VAT rate on these things.

But - even so - one should not have to pay ANY VAT at all on necessity items - and that means household fuel and womens necessities. Also it does not alter the fact that the Govt has a bit of a disincentive to do anything to help us householders deal with fuel bills (eg adequate grants for alternative energy purposes)

Sarahsaver

Same as they have no real incentive to curb smoking or car use;)

Rabbit

I bet this financial state will do a lot to make people give up their cars or use them less, we consider every trip and if it's really necessary.

Curv

pavlovs_dog wrote: »

whilst i dont for a moment think that a recession will be pleasant for anybody, i think it does come with its own silver lining; it is a chance to take stock.

its a given fact that some will always be 'better off' than others, but for many of us at the moment the only crunching going on is an adjustment of lifestyle, rather than genuine scrimping and saving to make ends meet. for example you might now buy own brand beans instead of finest, walk to town rather than jumping in the car, and have a cheaper coffee in a smaller local cafe rather than a superdeluxe thingyamywhatsit from starbucks. we are in effect being coerced into trying out many of the things that martin has been preaching about, but we've perhaps chosen not to try because we could afford not to, so why bother?

the silver lining comes when the recession ends (and it will end, eventually). its our choice whether we go back to finest beans, taking the bus and having our starbucks luxuries, or whether we realise that we managed the recession just fine without them, and so can do without them now. the result? an instant increase in disposable income that is yours to do with as you please. you could save to ease the burden of the next recession, pay off debts to increase your financial freedom, treat the kids - whatever. as a fully fledged old style convert (albeit perhaps unwittingly) you will have become an expert in getting the most bang for your buck. whether you continue on that path or go back to more frivolous ways will be your choice to make. but whatever your decision it will be an informed decision.

i guess what i am trying to say is that, longer term, there is a positive to all the current doom and gloom. there isnt a lot that you can do to change the current economic climate, however we can all try to see some positives rather than just negatives. your cup may not runneth over for quite a while to come, but its up to you whether that cup is half full or half empty in the mean time.

Nominated for Post of the Month.

sharronloves2spend

Curv wrote: »

Nominated for Post of the Month.

i couldn't agree more!!!! fab upbeat post, well said by the op:T