OS is going to be needed more than ever

[Deleted User]

There is talk of another interest rate very soon and we all know that inflation is rising. Northern foods has issued a statement that their food prices will be going up. I sense that we are on a verge of some kind of recession.

We are all going to feel the effects in our own pockets. Rising energy prices has greatly affected profitability and companies of all sorts will be passing their costs onto us, the consumers

Now I don`t want to scaremonger but some of us have been through recession and somehow we coped whilst others went under. Basically it is about tackling things the os way ie using minimum energy and cooking from fresh and making do with clothes and primarily making sure that the mortgage was paid before anything else

I started this thread a while ago and I believe that we are going into that situation now

http://forums.moneysavingexpert.com/showthread.html?t=147067&highlight=if+things+get+worse

Besides the above I drew cash out every month and put it into envelopes in a drawer. We went camping one summer, small company car and company petrol and we were so broke that my dh drove home to pick the vegetables from the garden. We were very vegetarian at that time and it was loads cheaper than eating meat although we ate liver from time to time because of the vitamins

If you have a great big mortgage then can I gently suggest that you do some thinking right now. I deal in shares etc and the stockmarket is looking very very wobbly and if it slides, it will drag everything else with it

tawnyowls

Already happened - up a quarter of a percent. As for inflation, the Office of Statistics website now shows the real rate of inflation depending on an individual's particular circumstances, and it's a lot higher than 3%!

Well done for your efforts, but perhaps separate bank accounts would be better than envelopes? Not earning any interest in the drawer.

moggins

Looks like Martins new book has come out at just the right time

liz.._4

I agree that things are looking bleak but interesting psychology of the general public seems to still be a 'feelgood' factor type view.

My workmates think I'm potty because I'm always harping on about bargains, paying off the mortgage, interest rates going up etc and they had the opposite view.

I remember negative equity in the '80s and interest rates of around 15%. Nice for savers but if this happens now it would cripple all those people who have stretched themselves.

Thanks for bringing up the point Kittie

[Deleted User]

tawnyowls!!
that was a long time ago but sometimes it is better for a person on a very tight budget to hold only a finite amount of cash. It is easier to see how much is really left rather than having a virtual amount in a bank.

[Deleted User]

I`m glad it isn`t just me Liz. I am actually in the process of re-arranging my dh`s sipp as he retires soon and he needs to be in safe investments. I am preparing for the slide, which I believe will happen within the next three months or so.

Interestingly shares tend to turn down when there is a feelgood factor and after lots of people have piled in. Then there is the panic to get out and that causes the `whoosh` that can lead to a de-stability. It affects the price of everything and us all as individuals and that is why the boe is trying to stop this happening via the higher interest rates

natzini

We're preparing for the slide too... we're 24 and 25 but remember the recession all so well.

The cards will all be paid off soon, and the loan and mortgage are both fixed rate.

We are thinking of getting a dishwasher so that the flat will be sorted if we need to take on extra jobs... I'll have my BM by then, and am learning so well with my cooking, we should get right down with our weekly food spend soon.

I hate the fact that people our age are always tarred with the same brush-spend, spend, spend and all that... hopefully us OSer young uns will be showing the rest of them how to do it!!

[Deleted User]

good on you natzini

MrsTinks

You know I have been saying this for a few years now I knew it was coming, but I never knew exactly when it would come (who does) but thankfully our repayment protection (all independant from our debts) are up to date, we're just about to finish the re-arrangement of our mortgage at a lower rate than it was hehe and fixed for 2 years.
I can only hope and pray that my gut feelings do not come to fruition but I really do fear that I might be right and you too in saying that a slide is on the cards. How big and how bad I don't know... I just hope me and mine will come through ok

DawnW

natzini wrote:

We're preparing for the slide too... we're 24 and 25 but remember the recession all so well.

The cards will all be paid off soon, and the loan and mortgage are both fixed rate.

We are thinking of getting a dishwasher so that the flat will be sorted if we need to take on extra jobs... I'll have my BM by then, and am learning so well with my cooking, we should get right down with our weekly food spend soon.

I hate the fact that people our age are always tarred with the same brush-spend, spend, spend and all that... hopefully us OSer young uns will be showing the rest of them how to do it!!

People of your age are just as capable of being careful with money (or otherwise) as older people. Age does not make a difference. I am over 50 now, but have always had to be careful as there was much much less credit available back then, though expectations and peer pressure were less important too (which made it easier). Even so, bringing up my 3 children on a low wage, and still having to pay for them all to go to college, put us in debt for a number of years, now thankfully paid off.
Now, much more credit is available to young and old, expectations are higher, and all are 'free' to decide whether or not to spend as if there were no tomorrow, and pay the price like some of those people on the DFW board, I really feel for them, some of them are really going through hell. Not that all people in debt are irresponsible spenders of course; many find themselves in difficulties because of illness, relationship breakdowns, failed businesses, and because everything is so damned expensive nowadays, especially things to do with children, as so much is expected of young parents now! Whatever the cause, you are fortunate in that your attitude will make you less likely to fall victim.
Perhaps you were very well brought up moneywise my daughters (24 and 30) are like you, very careful with money, good cooks and the elder one makes lovely things as well, which I can't do (no talent that way)! She gave me lovely home made chocs and a beautiful patchwork quilt for Christmas. Much better than bought presents, and so nice that they would have been really, really expensive had she bought them.

LJM

well after reading all these posts im glad that ive sorted my self out moneywise and ive learnt alot from this site and have cut down our spend by quite alot,so basically living within our means