THE Prepping thread - a new beginning :)

pennib

Just catching up with you all. I have just had the first Brussel sprouts I've ever grown.....albeit in the polytunnel. The ones outside were ity bity things. We had a good harvest in there this year, not so good on the outside plot. (Bearing in mind we are at the top of Scotland)
Apples seem to be doing OK tho.

Wonder if anyone can remember the laundry liquid soap recipe, can't find it. Plenty of US ones but I think last time I made it was just grated soap and soda crystals, but I don't know the quantities.

moneyistooshorttomention

I'm not sure whether I think the newspaper columnists are right or no re a possible 2nd Crash.

Within the last couple of weeks or so I've been reading through articles about the huge number of low-interest loans around at the moment (particularly on cars) and the high risk of many people never paying them back and drawing parallels to all those that were loaned money for mortgages (sub prime) that never should have been (as realistically many of those people were vastly over-estimating their ability and/or willingness to pay them back).

It's true that many people do overestimate how good they are with money and/or how secure their finances are. Logic would seem to indicate that, if enough of those people come a cropper at the same time, then who knows what might happen?

I don't know just how I would rate the odds personally of a second Crash - but tend to think it's more than 50/50 on it.

I know it's fashionable to jibe at articles in the Daily Mail and I could say there is cause for some of it - but, actually, I think their financial articles (Money Mail) are usually pretty sound and I can only speak for the fact that I am personally quite a lot better off for following some of them than I otherwise would be. It's been the difference between being badly off (as I am:() and cripplingly badly-off (as I think I probably would have been otherwise). It's basically where I learnt to be cynical about endowment mortgages/cynical about employers trying to persuade staff out of existing pension schemes into worse deals/open rather a lot of building society accounts at one point/re-mortgaged my last house at one point. I've saved or earned myself thousands of £s over the years - and hence I will read and think about what they say financially.

So - I'd say look up "Money Mail" articles for the last few weeks, read them and make up your own mind what you think - as they do actually have some quite good brains writing those particular articles. Not infallible - I've read a couple of the years that struck me as dubious....but, on balance, it's been worth reading them and taking note.

[Deleted User]

I don`t think there will be a crash, money. Trading curbs are put in place nowadays if something bad happens and there is a run. Panic also set in last time, people and consortiums sold every share they owned and that caused what is called an exhasustion gap, at which point the market started to become stable again. Banks have had to undergo stress tests and put safeguards in place. This was not the case before the last crash

I always err on the side of caution however, have no debts and any savings are spread amongst various banks and building societies. It is the personal financial crashes I would worry about, rather than anything on a larger scale. The rug can be pulled from under and it is good to be taking a good, no holds barred, look at personal finances. Write everything down on paper and become realistic about the psychology of using a card as it does not feel like real money and is all too handy for a splurge or a pick me up

Personal financial circumstances change throughout life, my husband had a private pension pot and no golden final salary pension. I took the pension over in 2005 and managed it since then vesting it etc. It is about cutting the cloth accordingly, in the early days I would buy and sell shares, buy low, sell high. Nowadays the risk factor is completely changed and I run a cautious balanced portfolio. This is what ideally should happen in real life ie world financial stability is rocky, so a stable personal base is what is needed, starting with getting rid of debt, building up a safety net of food stocks and other essentials and trying to save for that important financial cushion. I am still saving, live well but not expensively, do not go on expensive holidays (I like the uk), have no mobile phone and my hobbies are inexpensive but very satisfying and simple

[Deleted User]

We're the same, no mortgage, no outstandings and no debts and we live as frugally as we can only making purchases when we've saved up the cash to do so and having carefully debated the need for whatever it is that we've bought. I think it's more comfortable for us to KNOW just how much we have to play with and stay within its boundaries, we've never done other than outright purchases with cash, we've never considered 'finance' it's not our way. We paid off the mortgage as the first thing we did when He Who Knows was made redundant many years ago and were lucky to get continued employment with the company who took over his old employers work although it meant the relocation here to the south coast. Our needs are few, our wants are fewer, we're content we eat well from our own efforts, we stay warm from our own efforts and we buy sensible clothing and shoes that last years rather than follow anything resembling current fashions, all of these things mean that when we want to have the holiday of a lifetime as we just have we've been able to have it and not come back to the bill of paying it off. It's our way, not for everyone but we sleep sounder at night for having it!

fuddle

Your way is THE way Lyn as the alternative is not even worth thinking about. All family members around us continue to live the other way. They haven't learned via our mistakes and our consequences. If they won't change then there's no hope. Don't forget that the crash was littered with 125% mortgages being the norm.

GQ I read your post ages ago but I've been twirling around my locality and only just stopped. *Grins! I garden like GQ! Head held high, confidence restored and on I go.

moneyistooshorttomention

There is a time and a place for all things - and, carefully considered debt for a definite necessity purpose, can have its uses if one is quite sure it:
- is necessity
- knows your income is secure and have had a lot of years "under your belt" to figure out how good (or otherwise) you are with money.

Imo taking on debt for anything other than the direst necessity (eg the boiler/washing machine/cooker has just blown) is not a wise thing to do if there is any income insecurity at all. If you rely on a job/career/your own self-employed efforts/State benefits for your income then it's best to regard it as insecure to all intents and purposes.

So - whilst working I would allow myself a limited amount only (based on being a Civil Servant for a large chunk of the latter part of my worklife) and it was for necessity purposes only and kept to a level that could have been dealt with within the long time period it takes the Civil Service to get rid of staff for any reason. If I'd worked in the private sector - then I very much doubt I'd ever have felt safe enough to take on any debt ever (even though it was for necessities - not consumer goodies).

Now the income is State Pension and Civil Service Pension then it's secure (except, possibly, against inflation). Add that at my age (retirement age) if one waits that long for something then you don't land up getting that much use of it before you "kick the bucket" at an estimated 80 something years old. So - I did take advantage of the current very low interest rate loans to get the new kitchen the house badly needed (and needed all the more with me being a keen cook and needing a more "Home like home" than when I lived in my home area). Ditto to having to get the large sofa bed I decided to have many years back and still hadn't got (for friends staying from home area). So those two things are necessities and are being paid back automatically each month and the payments will go down in real terms with inflation.

Though, in theory, home equity schemes are possible at my age - in practice I can't (because I'd be paid less courtesy of having a female body) and I want to keep all my house equity to put towards swopping the house for another one and moving again should I ever have the money to do so.

So there is an element of "horses for courses" and figuring out what one's individual circumstances are/security or otherwise of income is/how good (or otherwise) one is with money.

Thankfully the rest of The List (ie of things still to get) can wait indefinitely until I have the money saved up for it.

So - yep...debt overall is a Bad Idea and not to be taken on overall - but there are circumstances in which it's an apt "business decision" to make for oneself personally.

moneyistooshorttomention

Re "confidence chippers" - I've realised I learnt to be pretty confident. But "confidence chippers" do happen occasionally - since moving:cool:

Personally - I'm now writing down a list of useful phrases in my diary ready to come out with one at the "chipper" if someone says "summat they shouldnt" to me and am practising them ready for if one or two of them are needed for response to any "chipping" comments.

If (when:cool:) I hear "you should......." comments again - I'll be ready for 'em.:cool:

fuddle

Definitely horses for courses. It makes no odds how old you are or how clever you think you are with money stuff goes wrong, life doesn't work out. I learned my lessons early on in my life and I wouldn't be taking out a loan to get a new kitchen when I'm in retirement because of that. That doesn't mean you're wrong and it doesn't mean I'm right but it means that life has taught us different things. You can justify it to yourself as being a savvy business decision and I just couldn't, that's all. In my eyes the boiler isn't even worth a loan and if I ever got to the point where I had to borrow to maintain my home I would be wracked with worry.

As you say it's a different perspective due to different life experiences.

[Deleted User]

Life is a very different experience for each of us, NOT a one size fits all. We are the people we are because of the experiences we've had in life and the scars they leave and the successes also. Finance is an individual subject too, and one persons opportunity is another persons perceived risk, some folks are more prepared to take risks and some are not. No one is right and no one is wrong it's not 'one size fits all' but choice and we all differ, so let's agree to do so amicably?

fuddle

I think so Lyn. Myself and money talking about debt is a recipe for disaster. :rotfl: