Inflation in a recession?

purch

There are loads of people on MSE, in fact the majority, live in the same world as me - i.e. choosing to reduce their costs while maintaining their standard of living. That's all inflation is, an increase in the cost of maintaining your standard of living.

Quite so.

My Solar Panels have been a great MSE Investment.

I have managed a "free" Nespresso at least 15 times this summer :eek:

MFW_10Yrs_3

purch wrote: »

Quite so.

My Solar Panels have been a great MSE Investment.

I have managed a "free" Nespresso at least 15 times this summer :eek:

What sort of payback are you looking at with the panels? I was chatting with LiR about the various Green technologies and, except with the FIT payments, I just couldn't get the sums to add up.

purch

Hopefully my Grandkids will reach "break even"

MFW_10Yrs_3

purch wrote: »

Hopefully my Grandkids will reach "break even"

It'll make up for some of the 'debt cans kicked down the road' (beloved phrase of the bulls on here) to at least get a bit of free electricity.

purplelila-2007

MFW_10Yrs wrote: »

Cutting costs reduces your inflation, you can't get away from this Graham. If you lived in a zero-bill passiv haus and worked from home you would not be hit by heating costs, electricity costs or communting costs. A huge amount of the imported inflation hitting this country would not hit you.

The train analogy you are using is someone who has the same income at the end of the year as he does at the start, so I agree that he is just deferring the inflation for 12 months. However I have had an inflationary payrise so my pay has factored in the rises in inflation but my personal finances have not been hit. I therefore have a net increase in my income that can be saved up, making next year's season ticket that little bit cheaper.

Blimey an inflationary payrise! You're one of the lucky ones.

However I do have to say if you hadn't had such a great payrise , your 'personal' rate of inflation would be affected contrary to what you think!:eek:

Loughton_Monkey

I started work in 1972. If I had stuffed £100 in £ notes under my mattress for exactly 10 years, it would have been worth precisely £26.50.

In no way am I saying this is ideal, but it is within the 'gift' of virtually everyone to create their own personal 'inflation'. It's a novel idea called 'budgeting'. If you are earning only 1% more than a year ago, then spend only 1% more.

There is a key factor here, that many people forget. By doing what I have advocated, you have a 'bad year' to the tune of 'inflation minus 1%'. The 'mistake' occurs for those who 'suffer' the full inflation. The trouble with this is that your 'deficit' directly affects your savings/investments/pension etc. and thus accumulates for the rest of your working life.

Work it out. It makes a big difference!