Is there anyone else looking forward to the challenge of leaner times.

DervProf

I`ve always planned ahead for tougher times.

During the "good times", when most people seemed to be going a bit crazy with the credit cards, I was living well within my means (without going without denying myself a few "luxuries"). I was one of the few people I knew that could see that the fun wouldn't last forever.

Now my work has gone quieter, I realise that my previous actions were wise. A big mortgage/credit card bill + large outgoings would be the last things I need right now. Living on a tighter budget isn't such a challenge, as I`ve always tried to spend less than I earn.

ILW

ruggedtoast wrote: »

I wasn't.

...

Me neither, but collectively we were if you include government spending.

abaxas

Fork you evil person.

Stop thinking that quality of life might be better if you cant spend money on tat you dont need, your house doesn't increase in value without you doing anything and you don't buy a new X5 every 2 years of you look like a cheapskate.

Sorry for being out of sorts there, I'm not used to being positive.

On the negative side, it's great news isnt it. Make your own stuff, grow some veggies, spend more time with family etc. Loving it.

Sorry again for being so negative about spending on things I dont need/want.

pararct

londondealer wrote: »

When people say "tough times ahead" and "we haven't seen anything yet" - just how bad do people think its going to get?

Depends on a number of things. For example the Bond Markets is all about confidence. At the moment they have confidence that the UK can pay down its deficit and bring everything back to an even keel.
In the case of Italy and France they have less confidence and as such insist on much larger interest rates when lending them money. In the case of Greece it is almost certain they will default on their debts so they cannot borrow at all on the money markets.

The UK deficit is give or take a little as large as Greece's, the difference between us is the markets confidence in the Governments economic plan.

If that confidence were to erode to say a point where we started paying interest on foreign debt at the same level of Italy then a couple of things would happen. Our own internal interest rates would be forced up (quite significantly) and we may be obliged to turn to the IMF ourselves in search of a bailout. The IMF would impose stinging terms for the bailout and these could include very significant reductions in benefit spending and or spending on the Health service for example.

In one respect we are different to the troubled Euro nations as we have the ability to set our own monetary policy, interest rates, QE and the like but QE is basically all about printing (devaluing) Sterling and it cannot go on unchecked for any length of time. It is the fact the Eurozone depends on centrally enforced monetary policy re interest rates (along with the unchecked excess) which have led the likes of Greece and Italy being where they are.

So things have the potential to get bad, very bad indeed in a worst case scenario.... It is no coincidence that the Police are testing revolutionary new riot control equipment nor the fact they have started training firing baton rounds.

homelessskilledworker

ruggedtoast wrote: »

I wasn't.

...

Or me....




p.s ... Biggest observation I made last week was a public sector worker that I know of who took out a self cert for over £200k when he was earning £18k back in 2005, who is now on the picket line screaming about the injustice of a an uncaring government, mmmm

Davesnave

I thought, "Things will get worse" a few years ago, which is one reason why I moved out of a city and into a place which has the capacity for some self-sufficiency.

However, I wasn't the sort of person who wanted the latest gizmo, or to spend in a conspicuous way, so a simpler life holds no particular terrors.

I think my main worry is just how 'challenging' things might become. Last week, a power outage of seven hours made me realise just how dependent we still are on the infrastructure of civilization. Petrol at £stupid a litre wouldn't be much fun either.

Anyone like to swap a bar of soap for a parsnip?

nearlynew

A lower standard of living doesn't have to mean a lower quality of life.

Thrugelmir

ruggedtoast wrote: »

I wasn't.

...

But even you enjoyed the benefits of everybody else spending money that wasn't there.

homelessskilledworker

nearlynew wrote: »

A lower standard of living doesn't have to mean a lower quality of life.

The exact same point I am trying to make on this thread. I would even go a step further and say that for those who think they can only feel satisfaction from wealth and for example their property rising in value will always be vulnerable, and will never know the feeling of real joy or happiness. Some of these people who forever ramp property prices make me go cold, I cannot even read certain boards on Motley Fool now, ugly dead people.

For example, try picking up sacks of free pears or apples with your mates and then pressing them and making alcholic beverages, and then months later and even though it might be awful(usually not though) sitting in an old shed or barn if you are lucky and sampling your new vintage, male bonding gets now better than that:)

Of course you could go down Tesco's and pick up your cheap plonk

suburbanwifey

kabayiri wrote: »

What's the odds of the situation you describe, or ...

"the rich get richer, the poor get poorer"

I actually think the rich are getting richer and the poor poorer to be honest. I am not embarassed to admit this recession has been AMAZING for me. My mortgage payments virtually halved and thus my whole mortgage is tens of thousands lower than it was.

I've been able to buy premium electrical goods, clothes, boots, all sorts of goodies at stupidly low prices. As the months go by things are getting cheaper and cheaper, I have never been richer than over the last 4 years to be honest. I'm loving this recession :j as I imagine many are but are ashamed to admit.

But there again, I didn't take on debt I couldn't pay, didn't run up thousands on credit cards I couldn't afford to pay back, didn't buy a house I couldn't afford. The recession in my opinion is hitting the low paid, those on benefits and those that 'spent spent spent' on easy credit they really shouldn't have been given. There is a reason people like me have AAA credit ratings and a reason those like me are prospering in the recession.

I'll wait to be attacked now