Preparedness for when

Frugalsod

1Tonsil wrote: »

The travel agents here are giving 1.41 euros to the pound on exchange. We are reluctant to hold too many at any time, as I still think we may suddenly be out of the euro, and it would devalue very quickly if that happens. That is why we have asked her to bring sterling for us. If all else fails we can exchange it for other currencies in an emergency.

Actually I think that is a good strategy. The euro particularly the Greek notes might have no value at all. Further out in time I suspect that the Euro anywhere will be history it is only a matter of time. I think that more than half a dozen countries will exit the euro eventually. So sterling and dollars will still be useful.

I think that Greece will be out of the EU by the end of the year. Either pushed or voluntarily.

1Tonsil wrote: »

This is very interesting... http://www.globalresearch.ca/why-is-the-eu-forcing-european-nations-to-adopt-bail-in-legislation-by-the-end-of-the-summer/5465265

The fact that they are rushing through the legislation gives a hint that trouble is expected in the credit markets very soon. There are already signs of tightening credit in numerous markets and if there is a credit event Germany will collapse because of the volume of derivatives owned by Deutsche Bank. Barclays would take down the UK for the same reason. There are numerous concerns that something big is going to happen in early October, and it will be very big. No idea what it that people are talking about but it could be anything.

1Tonsil wrote: »

Greece has already agreed to this happening here. It looks like our current government may be forced to collapse very soon. The ex finance minister has been charged with High Treason. They are refusing to do any more changes besides those agreed on at the summit as it will definitely lead to new elections here. It is such a bloody mess!

Not just the ex finance minister but the entire previous governments who approved the previous bail outs. You might need to add the central bank board as well.

1Tonsil wrote: »

Meanwhile we are all trying to act optimistic and hope better things are on the way.

Unfortunately I think things are going to get worse before there is any improvement. Though having access to another currency outside the Euro or even Drachma will be beneficial to you.

moneyistooshorttomention

On what grounds are they trying to have them for High Treason?

Frugalsod

moneyistooshorttomention wrote: »

On what grounds are they trying to have them for High Treason?

Possibly because the whole bail out deal was fraudulent and they were effectively robbing the nation to bail out their friends in the banks. Remember that the initial problems were in the banks. So they effectively bailed out insolvent and possibly fraudulent transactions, which could make them co-defendants at the very least. The governor of the central bank is also responsible for bank regulation and to maintain the solvency of the banks which he has clearly failed to do.

What they could have done is allow the banks to collapse then, stopping any cash transfers out of the country then. The banks payment system would have been nationalised and the banks liquidated and sold. In their place the central bank could have maintained the accounts until a new bank was created and criminal proceedings against the former owners and managers had been completed. Clearly there main have been losses but bond holders and shareholders would have been wiped out. The directors could then be chased for all their assets as the banks would have been trading while insolvent which is criminal act. If there were going to be losses they could have bailed in big depositors and lowered the protection limit to a manageable amount.

Remember now that the rule is bail in then the term deposit protection limit could be meaningless.

miss_corerupted

Wondering if I could join? I'm starting to build up a store of things at least 2 years worth depending on what it is. I have civil service job (formerly) this job no longer seems dependable and with the internal changes etc it's no longer a job I enjoy So looking to be in a position to leave/made redundant whichever without having to panic. I am currently paying of my mortgage and will be done within 5 years as long as nothing changes.

An extra £250 a month will make it 3 years but I don't want to overstretch myself.

Butterfly_Brain

Welcome miss_corerupted

GreyQueen

Butterfly_Brain wrote: »

Welcome miss_corerupted

Ditto from me. Sounds like you've had a good hard look at your workplace situation, and don't much like what you see.

Mortgage-free in five and a good deep storecupboard sounds the way to go. I'm also reading some blogs about Greece, inc one translated from the Greek into English, and the message which is re-iterated is that cash is king.

So have stocks, but also have cash, preferably outside the banking system, in case a catastrophe happens there and deposits are locked down. Good luck with your prepping.

Rummer

miss_corerupted wrote: »

An extra £250 a month will make it 3 years but I don't want to overstretch myself.

Why not put that money into savings and then you can access it if needed or after a period of time use it as another lump off the mortgage?

Frugalsod

GreyQueen wrote: »

Ditto from me. Sounds like you've had a good hard look at your workplace situation, and don't much like what you see.

Mortgage-free in five and a good deep storecupboard sounds the way to go. I'm also reading some blogs about Greece, inc one translated from the Greek into English, and the message which is re-iterated is that cash is king.

So have stocks, but also have cash, preferably outside the banking system, in case a catastrophe happens there and deposits are locked down. Good luck with your prepping.

That would be the route I would follow.

Though if you have scope for making additional cuts to cost of living, not standard of living then do those as well. A good way is to drop all brand cleaners and opt for variations of vinegar baking soda etc to do the bulk of your cleaning with. Green and cheaper.

If you like to cook then cut out the ready meals and make everything from scratch also saves money, maybe entertain more at home so saving money. In fact these forums have plenty of idea for cutting the costs without sacrificing your standard of living and maybe you could be debt free sooner.

If your job looks vulnerable look at cutting costs now while you can before you have to. The objective is to be cash flow positive even if you have a lower paid job. Then you will have some spare cash for luxuries if you want.

Ultimately you have to decide what level of savings, food stores to keep and it might be better to stock up now before any crisis so that you are not panic buying.

nuatha

miss_corerupted wrote: »

Wondering if I could join? I'm starting to build up a store of things at least 2 years worth depending on what it is. I have civil service job (formerly) this job no longer seems dependable and with the internal changes etc it's no longer a job I enjoy So looking to be in a position to leave/made redundant whichever without having to panic. I am currently paying of my mortgage and will be done within 5 years as long as nothing changes.

An extra £250 a month will make it 3 years but I don't want to overstretch myself.

Welcome to the particular form of insanity where you prepare for things that you hope won't happen.
Unfortunately the days when a Civil Service job was a secure job for life are long gone, and the changes that have already occured have left a lot of people unhappy with their position. Given the continuing plans of this government, I suspect there is very little likelihood of things improving.

Rummer's suggestion is worth considering if that wouldn't be too much of a stretch (and the money would double as an emergency fund meanwhile).

Two years food stocks requires a lot of planning and space, not trying to put you off - we aim for 12 to 18 months in most things, though we're running at about half those levels currently.

S_Wales_Saver

And a warm welcome from me. You sound to be going down the right path.

I'm another who would take up Rummer's suggestion. Having an emergency fund is common sense if you can and if you keep adding to it, part of it could then be diverted to the mortgage paydown.