Jobs in construction affected by Credit Crunch

Bestthingsinlifearefree

wot_a_life wrote: »

We are in exactly the same position as you Blue,

My husband is a self employed builder/plasterer, when we bought our house, we didn't even have to think about money as it was always there, now, we like you are living week by week.

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I think one of the lessons to be learnt is during the good times put as much by as possible for the bad times.

Quite often when people have a good run financially e.g both husband and wife working or their industry is doing well e.g IT or building trade or they are in Sales and earning good commissions etc etc they spend more as the money is flowing in rather than save. You get lulled into a false sense of security.

If you are doing ok now put away as much as possible before the rainy day arrives.

Not having a go, I just think as a society we have moved away from saving for a rainy day and now many people are paying the price for having no cushion / safety net.

Dinah93

Hi all,

I am a planning officer working in the local authority, and the work here is really drying up. As far back as october news filtered through to us that two major housebuilders in the area had laid off all subcontractors, and we have had no applications come in from the major housebuilders in the last 12 months, when pre-application discussions had been ongoing for 4 sites. Today I heard of the first private firm dismissing all their planning staff. In our office the case load is down approximately 60% since November, yet we have the same number of employees. We discussed what we thought would happen in the office a few months back, and those who had been in planning long enough to remember it said in the early 90's their workload didn't dip much as people extended their homes instead of moving, although new homes didn't go up very fast. Whether this will happen in time waits to be seen. If it does plasterers, electricians, planners, architects etc might not have the same sort of workload, but at least something will be happening compared to this nothingness. So far though we have a tally of conservatory companies in our area who have stopped trading. 4 in the last 12 months. Here's hoping there isnt more for everyones sake.

D x

swampduck

I think of the lessons to be learnt is during the good times put as much by as possible for the bad times.


If you are doing ok now put away as much as possible before the rainy day arrives.

Not having a go, I just think as a society we have moved away from saving for a rainy day and now many people are paying the price for having no cushion / safety net.

We did this and unfortunately the rainy day money is gone!! with no hope right now of saving for the next rainy day. We have been aware of a credit crunch since last summer and 'cut our coat according to our cloth' as they say.

Swampy

ZTD

Bestthingsinlifearefree wrote: »

I think one of the lessons to be learnt is during the good times put as much by as possible for the bad times.

Quite often when people have a good run financially e.g both husband and wife working or their industry is doing well e.g IT or building trade or they are in Sales and earning good commissions etc etc they spend more as the money is flowing in rather than save. You get lulled into a false sense of security.

If you are doing ok now put away as much as possible before the rainy day arrives.

Not having a go, I just think as a society we have moved away from saving for a rainy day and now many people are paying the price for having no cushion / safety net.

There are a number of reasons why society have moved away from doing that - the primary one being: It's not worth doing for anything other than a short blip.

If you have capital, it removes you from obtaining benefits, which is quite a major downside. Also, contrary to what the Government would like you to believe, all savings accounts are losing accounts. You're encouraged not to believe that by falsifying the inflation data - but if you have capital put away over long periods of time, then you will pay hand over fist to inflation.

In short, things are stacked such that the easiest option is that you spend up to your limit, then throw yourself at the mercy of the State when things go wrong. Self-reliance is possible, but more expensive.

But what do you expect from a country when insurance is taxed, and gambling is not?

Bestthingsinlifearefree

swampduck wrote: »

We did this and unfortunately the rainy day money is gone!! with no hope right now of saving for the next rainy day. We have been aware of a credit crunch since last summer and 'cut our coat according to our cloth' as they say.

Swampy

Well if you saved during the good times you can't do any more than you did.

I was thinking more of those who live beyond their means during the good times and as soon as there is any change / dip in their financial circumstances they are in deep trouble straight away (and I think there are millions in this position in the UK).

Bestthingsinlifearefree

ZTD wrote: »

There are a number of reasons why society have moved away from doing that - the primary one being: It's not worth doing for anything other than a short blip.

If you have a mortgage etc then the govt is not going to help. If you have no assets then I agree you have nothing to lose and can throw yourself on the mercy of the benefits system.

If you have assets, family home, a life style you want to keep, e.g pets, activities for children, holidays, use of a car etc etc you are better of saving for a rainy day and be in control of your own destiny / financial future.

I think the public has binged on debt and now faces the big hangover.

ZTD

Bestthingsinlifearefree wrote: »

If you have a mortgage etc then the govt is not going to help. If you have no assets then I agree you have nothing to lose and can throw yourself on the mercy of the benefits system.

If you have assets, family home, a life style you want to keep, e.g pets, activities for children, holidays, use of a car etc etc you are better of saving for a rainy day and be in control of your own destiny / financial future.

Yes, but that was the point I was making. A rainy day is OK. A rainy fortnight is too long to save for and you were better off spending it all, because the benefits system will penalise you until your savings are gone.

Bestthingsinlifearefree wrote: »

I think the public has binged on debt and now faces the big hangover.

But just the ones with assets. The ones who didn't try to better themselves end up with no hangover.

What do you think that encourages?

Bestthingsinlifearefree

ZTD wrote: »

Yes, but that was the point I was making. A rainy day is OK. A rainy fortnight is too long to save for and you were better off spending it all, because the benefits system will penalise you until your savings are gone.

Nope wrong again. If you don't save for the rainy fortnight, month, year etc.

You go straight on to the mercy of the state and your standard of living plummets accordingly.

The bigger reserve you have the longer you can maintain your standard of living and hopefully buy enough time to find a new job etc etc

If you live in a nice area, paying a mortgage on your house, kids happy in school, pets, car etc etc you are better to save for a rainy fortnight than for a rainy day.

It is up to you to protect your familys standard of living and the more you have saved the better.

To think I won't save because then I won't get any benefits is a loser mentality and leaves you more not less financially vulnerable and less in control of your own destiny.

Or to put it another way do you think most people would like to have 6 months of savings or do you think they would prefer to have one days worth?

(just my opinion;) )

wot_a_life

Thanks for that jimm24, have pm'd you

ZTD

Bestthingsinlifearefree wrote: »

Nope wrong again.

No. There is no right or wrong - it's a gamble, simple as that. You place your money - you roll your dice.

Bestthingsinlifearefree wrote: »

If you don't save for the rainy fortnight, month, year etc.

You go straight on to the mercy of the state and your standard of living plummets accordingly.

The bigger reserve you have the longer you can maintain your standard of living and hopefully buy enough time to find a new job etc etc

I note the word "hopefully" there. Roll the dice - take your chances.

Bestthingsinlifearefree wrote: »

If you live in a nice area, paying a mortgage on your house, kids happy in school, pets, car etc etc you are better to save for a rainy fortnight than for a rainy day.

It is up to you to protect your familys standard of living and the more you have saved the better.

To think I won't save because then I won't get any benefits is a loser mentality and leaves you more not less financially vulnerable and less in control of your own destiny.

Or to put it another way do you think most people would like to have 6 months of savings or do you think they would prefer to have one days worth?

Well let's expand that question. Would most people like to forgo holidays, nights out, hobbies etc for two years in order to build up six months worth of savings (assuming a 25% surplus of income over expenditure - which pretty high) in order for them to end up on benefit (albeit after six months)?

Or would they like to have all of those things and have enjoyed themselves for two years in order to end up on benefit? I.e. the exact same place.

Or were we talking about magic savings which accumulate without having to forgo expenditure?

Bestthingsinlifearefree wrote: »

(just my opinion;) )

If you believe hard times are going to last longer than your ability to save, and you don't have all that much to lose - then you choose one option. If not, then you choose the other.

Indeed there is a certain amount of fudge-factor in the middle.

But never lose the sight of the fact that is a rational choice - and not a "loser mentality".