Preparedness for when

blindman

Butterfly_Brain wrote: »

This is worrying

http://www.theguardian.com/commentisfree/video/2015/feb/04/another-economic-crash-is-coming-how-did-this-happen-video

What

The fact that some lady stored naked pictures of herself on the Internet and was suprised when they were publicly published?

Or that Governments lie and bankers steal?

Or that we're "All doomed" (Frasier from Dad's Army.)

Surely everyone on here must be rubbing their recycled mittens together whilst huddled under a war time newspaper watching-In candle light "When the wind blows"

And thinking they'll be alright?

Perplexed_Pineapple

I don't think you are entering into the spirit of the thread, blindman. Some might consider it trolling. However, since you ask:

blindman wrote: »

Did you pack
a shovel?
mobile Phone?
Wellington boots?
Common sense?

!!!!!! do you think you will be stuck for "a day or two?"
Surely after a rough night (possible ) you would have the gumption to leave the car and find an alternative?

Where the Hell were you driving?
Outer Monglia?

The spade (not a shovel, a spade can shovel but a shovel can't spade) lives in the car all year round in case I stop off at the lottie. The mobile phone is on my person at all times. I prefer stout hiking boots to wellies. Common sense is suprisingly uncommon but I think you'll find quite a lot on this thread if you care to look. As to where I drive, a relative of mine was stuck in a snowed-in car for 16 hours within 10 miles of the M25 a few years ago and where I drive is a lot more rural than that. I know it's not likely to happen, but if it does I will be safe and comfortable. You think it won't happen to you? It probably won't, but it could.

GreyQueen

Blindman probably hasn't ever tried walking miles in heavy snow, or may not have considered that some people who drive may not be able-bodied, may have infants or young children with them, and may be too far out to get to safety on their own two feet, no matter how sensibly shod those feet may be.

Blindman may not know that the emergency services' advice if stranded in snow is to stay in your vehicle, because it is much easier for rescuers to find a vehicle than a person outside of one. Blindman may also never have noticed the reports of deaths in heavy snow are more likely to be of heart attacks caused by shovelling snow (unaccustomed heavy work in cold temps) than as a direct result of the weather itself.

My take on it is that Blindman also didn't read the bit at the top of the page which says Be Nice to All MoneySavers and just likes to have a pop without the ability to contribute anything positive to the thread.

Not that I care what he thinks, just putting my two'pennorth in before bedtime.

nuatha

blindman wrote: »

What

The fact that some lady stored naked pictures of herself on the Internet and was suprised when they were publicly published?

The naked pictures tale wasn't in the sidebar earlier

Or that Governments lie and bankers steal?

It may not be news to you - though an impending economic crash that even the Prime Minister is expecting is likely to be a cause for concern.

Or that we're "All doomed" (Frasier from Dad's Army.)

Surely everyone on here must be rubbing their recycled mittens together whilst huddled under a war time newspaper watching-In candle light "When the wind blows"

And thinking they'll be alright?

I gather you don't approve of people preparing for foreseeable problems?

Perplexed_Pineapple wrote: »

I don't think you are entering into the spirit of the thread, blindman. Some might consider it trolling. However, since you ask:

The spade (not a shovel, a spade can shovel but a shovel can't spade) lives in the car all year round in case I stop off at the lottie. The mobile phone is on my person at all times. I prefer stout hiking boots to wellies. Common sense is suprisingly uncommon but I think you'll find quite a lot on this thread if you care to look. As to where I drive, a relative of mine was stuck in a snowed-in car for 16 hours within 10 miles of the M25 a few years ago and where I drive is a lot more rural than that. I know it's not likely to happen, but if it does I will be safe and comfortable. You think it won't happen to you? It probably won't, but it could.

Having the choice to stay safely and in some comfort with your vehicle or walk out of a situation could make a big difference between safety and serious injury - and not just to the stranded, rescuers are also put at risk.
Some of us would rather rely on ourselves than presume that somebody else will get us out of problems that we could foresee and mitigate. Not everyone thinks the same way and I may well be wrong, but I will be wrong in more comfort than huddling under newspapers watching a pastiche of government propaganda.

daz378

operation bakedbeans/hoops and similar continues work tomorrow but friday and continue to increase stock ... have to clear new shelf....as i eat through 2015 shelf........10,000 bc has been quite good ...took them hours to start a fire with bow drill and like the simple traps they laid ......spending double on gas/heating in this cold spell.

stay safe

Frugalsod

Butterfly_Brain wrote: »

This is worrying

http://www.theguardian.com/commentisfree/video/2015/feb/04/another-economic-crash-is-coming-how-did-this-happen-video

Well this is what I have been warning here for ages. The private debt is the problem. What that report failed to do was mention the financial debt problem which if added to the private and government debt takes total UK debt to nearly 1000% of GDP. It is all going to crash but when? So make use of your time to prepare.

When that happens deflation will kick in with gusto and debts will become completely unsustainable for most people. Income will be pushed down rapidly and we could end up with a drop in incomes of 25% or more just as in Greece. So will that £300 000 mortgage be affordable when your income is down another 25%? Of course not. What it will mean even if you can afford the repayments is that you will be either in negative equity or have a mortgage multiple that is too high to get you a decent interest rate of interest on refinancing. You will become a sub prime borrower. Expect your interest rates payable across the board to increase as you become a sub prime borrower.

What can be done? Well cut your debts, eliminate them if you can. If a bank has no claim on your assets by way of a mortgage they cannot seize them. This is what RBS has done to many customers to make easy profits. Seized assets that were slightly behind on payments and sold them, pocketing the difference to boost their balance sheet at the expense of the customer. So clear high interest debts first and roll over savings into other debts clearance.

Eventually you should look at over paying your mortgage and trying to clear it faster. This will save you money over the long run as you may eventually get better interest rates as a safer borrower and increase your safety margin as asset prices fall, as they will eventually as incomes are insufficient to support them. The longer term demographics are also lousy for such assets as populations fall or age.

Try and cut your living expenses now before it becomes tougher. I made small changes that saved money that did not cause my standard of living to fall. Things like swapping out fancy cleaning agents for traditional vinegar and bi carb. Ditching the water filter and expensive de-scalers for descaling with vinegar regularly. A water filter might be more than £1.50 a month but the vinegar will cost 40p and I can get nearly a years descaling out of a bottle.

Cut out the waste. These savings are immense for some and are absolutely free. If you were average and threw away 25% of your food then by cutting out the waste you could eat for an extra three months for nothing. Think of 3 months grocery shopping each year just accumulating in your savings.

Lots of these sorts of savings add up, and do not effect your standard of living. Switch away from processed foods and make more yourself. You will save money on many items or at least get much healthier as a result of cutting out the additives. I now make my own pasta I do not save any money as dried pasta is very cheap but I now have fresh pasta which costs 5 times as much in the shops. That I treat as a lifestyle boost. I make more and more items now from scratch and buying a top of the range food mixer has paid for itself within 18 months, as I use it now more than 7 times a week, making bread soups and anything else. In a big family I suspect it would pay for itself in months.

Build up some cash savings for an extended bank holiday because it will happen one day. It might be a few years but that gives you time to do everything to be prepared. As my food savings increased the balance stayed within my bank account. I kept my standing orders the same and so any savings boosted my bank balance without even noticing.

Longer term look at investing at home rather than on the stock markets as you will get very good returns from home insulation and other such changes. These will over the longer term reduce your cost of living and have a much higher rate of return than a bank deposit.

Also remember that the new bail in rules mean that you are treated as a unsecured creditor should the bank fail and so keep bank balances at a minimum. Use the excess to pay off debts faster.

GreyQueen

:T Excellent post, Frugalsod.

I fear a lot of people are sleepwalking towards personal catastrophe, in respect of the economic crash which is bearing down on us. It has long since ceased to be just a preoccupation of the tin hat section of the community and is a very real fear expressed, if you know where to look for it, by the movers and shakers in the worlds of finance and politics.

If Camermoron thinks it's coming (he's a third generation stockbroker, remember) and is prepared to say so on the record, then I think it's closer than ever.

I'm debt free (have always been debt free) and am used to living on a low income, yet have savings, a well-cultivated veggie plot and a network of handy friends with multiple handy skills. I'd have a lot less to lose than many people, although I will continue to move towards greater efficiency and resilience in my life, whenever possible.

Time to keep a watchful eye on events, plan and prep thoughtfully, and be ready that the banks could lock down your money at any time with zero notice. I expect something to give, big time, later this year.

moneyistooshorttomention

I can certainly see that there are a lot of people out there with personal debt and to the extent there are many with a triple burden of debt and mortgage and student loan.

I am puzzled as to why other peoples personal debt could mount up enough to affect Society as a whole though? People in debt going bankrupt affects those they owe money to obviously (and I do feel very sorry for creditors of people who've gone bankrupt obviously).

What is the reasoning behind reckoning that debtors could drag down Society as a whole though? Can anyone explain that?

nuatha

Frugalsod wrote: »

Also remember that the new bail in rules mean that you are treated as a unsecured creditor should the bank fail and so keep bank balances at a minimum. Use the excess to pay off debts faster.

One minor niggle with an otherwise cracking post.
You've always been (or at least several centuries) an unsecured creditor.

moneyistooshorttomention wrote: »

I can certainly see that there are a lot of people out there with personal debt and to the extent there are many with a triple burden of debt and mortgage and student loan.

I am puzzled as to why other peoples personal debt could mount up enough to affect Society as a whole though? People in debt going bankrupt affects those they owe money to obviously (and I do feel very sorry for creditors of people who've gone bankrupt obviously).

What is the reasoning behind reckoning that debtors could drag down Society as a whole though? Can anyone explain that?

Private debt is not the same as personal debt. Its private as opposed to Public, ie non governmental debt. Though given the banks are substantially owned by the government at the mo, the lines are more than a little blurred.
Where personal debt comes into the equation depends on the economist you favour - however when the economy hits recession and moreso deflation the number of individuals defaulting on debts rises, the more that do this the more businesses are affected and the spiral accelarates and tightens. On top of the other pressures, once banks start foreclosing on mortgages property values drop adding more to the personal debt burden.

moneyistooshorttomention

nuatha wrote: »

Where personal debt comes into the equation depends on the economist you favour - however when the economy hits recession and moreso deflation the number of individuals defaulting on debts rises, the more that do this the more businesses are affected and the spiral accelarates and tightens. On top of the other pressures, once banks start foreclosing on mortgages property values drop adding more to the personal debt burden.

So, put another way then, what you would foresee is more people whose finances are okay of themselves being affected by a steadily increasing number of debtors going bankrupt and maybe Mr/Mrs Okay With Money comes a cropper because of being victim of someone else's bankruptcy (as they are one of the debtors' creditors).

So there might be more people suffering because of being owed money by a bankrupt. The housing market suffering affects those who aren't yet "settled" and/or have a mortgage.

Do you foresee any other ways someone could be affected then - either of themselves or as knock-on from someone else's finances being dicey and affecting them?

I'm rather taking your post as if you protect yourself from any risk of other people owing you money then they couldn't affect you. If you do what you can on the housing front to make sure you are "settled" and clear of mortgage as far as you can, then anything happening to the housing market cant affect you.

So, if someone protects themselves from being owed money by others (just in case they defaulted on them) and is safe against housing market changes, then do you foresee any ways people might still find themselves vulnerable to financial changes in Society as a whole? We've already established its wisest not to have too much money in a bank in case of a bail-in. Is that all bases covered then do you think?