Winners / Losers / Future

kriss_boy

I work for local government and my girlfriend the NHS. As far as jobs go ours are pretty safe compared to others.

Our mortgage has fallen like a tonne of bricks meaning we are now overpaying it by £400 per month. Realistically would could afford to over pay it by a further £200/250 although for now £400 is a big enough chunk.

What can I do to future proof myself against the tough times ahead? Will people like myself with reasonably secure jobs suffer at all?

The money Im saving on my mortgage amounts to £4,000 per year.

I had to replace my old beat up car a couple of months ago and as the car market has also fallen like a tonne of bricks the replacement was very cheap.

Will taxes go up? Because as things are Im benefiting greatly...

amcluesent

>Will people like myself with reasonably secure jobs suffer at all?<

Yep. Inflation will sky-rocket and then so will interest rates, but public-sector wages will be frozen in real terms for years, so your standard of living will plummet.

Chances are your pension scheme T&C will be altered to do away with index linking.

Dan:_4

Interest Rates will go up at some point in the future (know one can tell you when) so you need to be prepared for higher mortgage costs. i.e. don't get too used to all that extra dosh! Anyway, you sound as if your head is screwed on and doing absolutely the right thing by overpaying the mortgage balance.

Might want to start looking for a nice 5 year fixed term shortly (assuming your tied in to anything right now)

ad9898_3

kriss_boy wrote: »

I work for local government and my girlfriend the NHS. As far as jobs go ours are pretty safe compared to others.

Our mortgage has fallen like a tonne of bricks meaning we are now overpaying it by £400 per month. Realistically would could afford to over pay it by a further £200/250 although for now £400 is a big enough chunk.

What can I do to future proof myself against the tough times ahead? Will people like myself with reasonably secure jobs suffer at all?

The money Im saving on my mortgage amounts to £4,000 per year.

I had to replace my old beat up car a couple of months ago and as the car market has also fallen like a tonne of bricks the replacement was very cheap.

Will taxes go up? Because as things are Im benefiting greatly...

You and your girlfriend are laughing compared to most, but the public sector is going to get hammered after the election, so my advice would be keep overpaying, no one is safe in the medium term, but your safe for now while Crash is in charge.

kriss_boy

amcluesent wrote: »

Yep. Inflation will sky-rocket and then so will interest rates, but public-sector wages will be frozen in real terms for years, so your standard of living will plummet.

Doesnt that depend on the lifestyle you lead in the first place though?

My girlfriend and I are pretty frugal. I haggler every bill/contract we arrange when it comes to insurance, phone/broadband etc. We arent fussy what we eat either which is perfect as I nip into Sainsburys everday at the back of 5 for some cheap out of date stuff hah! My speciality is fish pie which comes all in at under £2.50 per head!

pink_princess

Id overpay everything possible we are,and our major earner is now redundant.Our savings are worth carp intrest wise so the more we pay off the better.

Dan:_4

kriss_boy wrote: »

Doesnt that depend on the lifestyle you lead in the first place though?

My girlfriend and I are pretty frugal. I haggler every bill/contract we arrange when it comes to insurance, phone/broadband etc. We arent fussy what we eat either which is perfect as I nip into Sainsburys everday at the back of 5 for some cheap out of date stuff hah! My speciality is fish pie which comes all in at under £2.50 per head!

Ignore it. Just a soundbite with no real substance or advice.

kriss_boy

I always joke that inflation doesnt really apply to me... as I buy a lot of goods second hand and try to think of more ingenious ways of getting things cheaper!!

When fuel kept creeping up I got my amex to get cashback on it, as well as running my student account permenantly at negative £2000 with that very £2000 in an ISA.

kriss_boy

Dan: wrote: »

Ignore it. Just a soundbite with no real substance or advice.

What, ignore that posters advice? Im confused!

chucky

amcluesent wrote: »

Yep. Inflation will sky-rocket and then so will interest rates, but public-sector wages will be frozen in real terms for years, so your standard of living will plummet.

Chances are your pension scheme T&C will be altered to do away with index linking.

why will inflation sky rocket?
why so why will rates?
can you explain how you came to this deep economic theory?

kriss_boy

Is it not possible inflation may slow or level off?

I mean isnt inflation basically based on the rise in the cost of goods... so given how many markets have shrank wont that contribute to a lower rate of inflation.

The car and housing market have both notably fall greatly.