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Len

‘Save for a rainy day’

‘Save for a rainy day’

 

Things have changed since our grandparent’s days…..

Back then it was common to hear the term “Save for a rainy day” or “You can’t keep buying things on the never never”

For some reason almost everyone (no matter what their income) now live beyond their means, ‘saving for a rainy day’ has completely disappeared - Instead we all live on credit.

I understand things are tight for some people; they have no choice other than to live ‘hand to mouth’, and have no chance of saving.  The difference in wealth is so wrong - How did we allow this to happen?

This personal finance thinking has also seeped in to the way businesses are run, and I think businesses having to be so competitive have stopped them making the profit that could have been put away ‘for a rainy day’

When I started my small business, I was told that the rule of thumb for a good business is to have three month’s turnover in the bank.  This is so you have security - You may have a bad month or two, machinery may need repairing, new kit, holidays etc.

Had this kind of thinking still been with us, businesses (and some people) could have rode three months without the devastating effects this virus is going to have on our economy.

When this is all over, I wonder if this old fashioned way of thinking will return / Also, I wonder if the wealth gap will somehow be addressed - Those cleaners, porters, bus drivers, etc are worth their weight in gold!

I just hope we don’t have short memories of what these low paid workers do for us.

Len :thumbsup:

 

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Posted (edited)

Len. I am lucky enough to have saved for a rainy day,  can't remember the last time I bought something on credit,  even bought my last two cars cash. I don't even have a credit card.  Am I the exception in this day and age  ? 

Steve 

PS. My mobile phone is a pay monthly contract so I do have something on credit. 

Edited by Winsford Soul
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This is a good subject, in my own circumstances me and my wife got married when we were both very young 17yrs.at a cost of £11,60p

We've never had credit never been in debt, even if we miss the window cleaner we panic. So we just save something every month not a set amount but something. Everything now involves credit of some sort. I was watching a programme on managing your cash, and all they went on about was to change this credit card for another one, get rid of them period 

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27 minutes ago, Winsford Soul said:

Len. I am lucky enough to have saved for a rainy day,  can't remember the last time I bought something on credit,  even bought my last two cars cash. I don't even have a credit card.  Am I the exception in this day and age  ? 

Steve 

PS. My mobile phone is a pay monthly contract so I do have something on credit. 

I'm glad you have that piece of mind mate - I struggled because of the recession, obviously my personal and business finances going 'hand in hand'. But I have had a good run for about two years, and although I still have debt to pay off ref the recession, I squirreled a relatively small amount away in my 'safety' business account which built up, and will see me OK for a couple of months.

Like everyone, I am still worried. Not only for myself, but also for my two staff - But I am so glad I did so instead of buying a brand new Range Rover or something.

This virus is enough to deal with, worrying about friends, family, as well as missing that human interaction - I can't imagine what some people are going through also being worried sick about their lack of money (Personal and business) Just awful.

Len :thumbsup:

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19 minutes ago, Stephen Houghton said:

This is a good subject, in my own circumstances me and my wife got married when we were both very young 17yrs.at a cost of £11,60p

We've never had credit never been in debt, even if we miss the window cleaner we panic. So we just save something every month not a set amount but something. Everything now involves credit of some sort. I was watching a programme on managing your cash, and all they went on about was to change this credit card for another one, get rid of them period 

Yes my young staff are always explaining the swapping credit card thing - It's unnecessary in lots of cases, but that's the way this generation live.

You should panic if you miss paying the window cleaner! :D

Len :thumbsup:

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I saw a quote on a old box of matches, swan vesta I think that read. YOU CAN BORROW ENOUGH NOW TO GET COMPLETLY OUT OF DEBT,     class

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Over the years I've often spoken with my father in law about my money worries......."Len, If you're gonna go down, you may as well go down for lots".......

It was some comfort :D

Len :thumbsup:

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saving for a rainy day only works if you live long enough to suffer the rainy day..............

as  our old late friend on here  "salmon " the burnley regular told me..........." i was born with nought and spent most of it "

i value living over saving myself.....

.....tried to do a bit of both ............but it hasnt worked ......🤨

".events dear boy, events"

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Like 100,000 others, for me the miners strike of 1984/5 was a shock to the system of having plenty of money and then not.

Like death by a 1000 cuts, slowly selling your car, records, bla bla bla. Luckily I had no debt except a small mortgage, and with a mortgage holiday, I kept the house.

The 2008/9 financial crash for many resulted in the same result for millions of folks. 

This latest disaster could well dwarf anything we've seen in our lifetimes.

Very few will gain from it.

Ironically folks on benefits will fare best since financially little may change.

If (when?) mortgage holiday / protection is withdrawn and rent arrears evictions are allowed, all hell could break loose.

I sincerely hope this curse on humanity is removed asap. Health and Wealth are inextricably linked, and if this virus does not get you one way, it's doing it's best to get you the other way.

Sorry to sound so pessimistic, but as the author of the thread points out, living on tic as lots have got used to is disastrous in the current situation.

Ed

 

 

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Also crime inevitably rises - Let's hope us humans overcome this and become better, and more appreciatte of life.

Happiness isn't in material things, happiness is in us (I read that somewhere)

Len :thumbsup:

P.s - Excluding records :huh:

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I always try to be empathetic and sympathetic to folks and their financial situations throughout life.

This is an interesting subject and i have read all of the posts with interest too.

 

In normal times providing you have disposable income available,it is possible to " save for a rainy day "

and have hobbies and holidays etc: also,although financial discipline is paramount to achieve this.

There is no reason to dismiss having a credit card or cards in your financial system,providing you

or both of you are disciplined in your attitude and approach.Fair enough if the person or couple

don't want or like them,everyone to their own,it is a democratic society.

Our golden rule of thumb in using a credit card is to pay the whole amount off immedietly so

you are not paying interest,so basically you have the cash in the bank beforehand to do this.

A big positive for the credit card is that you get financial protection if things go wrong,say a

holiday company going out of buisness,here you should get your money back from the credit

card company,you don't get this protection if you use a debit card.There are other situations were

use of the credit card is better than paying with cash or a debit card.

Also we use PayPal and the credit card or both for financial security,protection in this day and age

of cyber crime and fraudsters,we employ full PC protection against the criminals.

 

One interesting scenario is when you want to hire a vehicle in another Country,which i normally

do annually,the car hire company will not action a contract/agreement unless you pay with a

credit card,they will not accept debit cards or cash.

Also,on holiday we have a single credit card "back up" in Europe,if travelling long distance

like the USA we use TWO credit cards,just in case there are problems,all have zero balances

and are used primarily for purchases and Medical bills,together with full travel insurance inclusive

of £10 million medical liability protection.On return to the UK all bills are paid immedietly and are

reset to zero with no carrying of debt.

The credit card is a very useful tool if used correctly,but you must have discipline,if you can't control

your spending and payment budgeting then forget it,otherwise you will find yourself in alot of

uncontrollable debt.

The rainy day balance will continue to grow independent of the other outgoings,but it will be

variable "as and when",all bills will be paid early and on time.Also,it is prudent if you can to

have a "float" in your current account, for arguments sake £1K to take care of any "bumps" like

a washing machine failure and buying a new one.

 

Yep,make sure the window cleaner is paid,that would be a pain or is that pane. :wink:

 

Stay well and keep safe,all the best,Ron. :thumbsup::hatsoff2:

 

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30 minutes ago, Mustang said:

I always try to be empathetic and sympathetic to folks and their financial situations throughout life.

This is an interesting subject and i have read all of the posts with interest too.

 

In normal times providing you have disposable income available,it is possible to " save for a rainy day "

and have hobbies and holidays etc: also,although financial discipline is paramount to achieve this.

There is no reason to dismiss having a credit card or cards in your financial system,providing you

or both of you are disciplined in your attitude and approach.Fair enough if the person or couple

don't want or like them,everyone to their own,it is a democratic society.

Our golden rule of thumb in using a credit card is to pay the whole amount off immedietly so

you are not paying interest,so basically you have the cash in the bank beforehand to do this.

A big positive for the credit card is that you get financial protection if things go wrong,say a

holiday company going out of buisness,here you should get your money back from the credit

card company,you don't get this protection if you use a debit card.There are other situations were

use of the credit card is better than paying with cash or a debit card.

Also we use PayPal and the credit card or both for financial security,protection in this day and age

of cyber crime and fraudsters,we employ full PC protection against the criminals.

 

One interesting scenario is when you want to hire a vehicle in another Country,which i normally

do annually,the car hire company will not action a contract/agreement unless you pay with a

credit card,they will not accept debit cards or cash.

Also,on holiday we have a single credit card "back up" in Europe,if travelling long distance

like the USA we use TWO credit cards,just in case there are problems,all have zero balances

and are used primarily for purchases and Medical bills,together with full travel insurance inclusive

of £10 million medical liability protection.On return to the UK all bills are paid immedietly and are

reset to zero with no carrying of debt.

The credit card is a very useful tool if used correctly,but you must have discipline,if you can't control

your spending and payment budgeting then forget it,otherwise you will find yourself in alot of

uncontrollable debt.

The rainy day balance will continue to grow independent of the other outgoings,but it will be

variable "as and when",all bills will be paid early and on time.Also,it is prudent if you can to

have a "float" in your current account, for arguments sake £1K to take care of any "bumps" like

a washing machine failure and buying a new one.

 

Yep,make sure the window cleaner is paid,that would be a pain or is that pane. :wink:

 

Stay well and keep safe,all the best,Ron. :thumbsup::hatsoff2:

 

Ron. That's a fantastic post. I personally have not had a holiday abroad for 20 plus years,  don't even own a passport anymore it expired over 12 / 15 years ago . So I personally don't think I need a credit card anymore but yes I did have one for the very reason you state regarding holidays abroad,  even then I tended to use a lot of cash for trading with locals. When sterling was as good as the dollar. Visa was back up.

I used to travel a bit for work so I always had a card with me for emergency situations and i told them this, but after many year's of non use because I didn't have any need for it. They cancelled on me. 

I clean my own Windows so Lou must owe me a fortune.  🤔😂

Steve 

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Well explained ref the credit cards Ron.  Being as I have never had a credit card I only recently leaned of the protection thing, and can't believe that paying by debit card is the worst option (That's how they getcha I suppose) It feels better to me paying with debit card - My money straight out of my account, no complicated 'pay with card then pay the card'.......It's not as if the air-lines are going to be in trouble two weeks before me and my family are due to fly to America surely? Doh! :huh: 

I like your term 'financial disipline', I was taught this by my mother. I was on a YTS scheme back in the 80's earning £27.00 per week, and even now I vividly remember the awful row in our house when my mum insisted I pay her £7.00 board and lodgings out of that - I was absolutely livid! (As well as the time my parents refused to sign as guarentor of a loan for a scooter, of which I obviously needed!) 

I now know that these were valuble lessons - Often my apprentices have said that their parents don't charge them board from their wages, and I wince at the life lesson they are missing out on (Understandably, their parents thinking they are doing right by their kid)

Talk about life being turned on it's head - I'm looking forward to us all looking back on this.  But for now, we are all in this moment...

Happy Easter (2020) :wink:

Len :thumbsup:

P.s - Window cleaners rule! I couldn't imagine anyone not paying them on time :elvis:

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Another worry in recent times is squirelling away to where?

The collapse of usa, uk, and iceland banks was bad, but what happened in Cyprus was incredible.

Even with guarantees it's safe up to £80k per bank has still to be tested.

A lockdown on getting your savings out!

I can imagine lots of folks have savings under the mattress and not just drug dealers...

Ed

 

 

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Posted (edited)
11 hours ago, Winsford Soul said:

Ron. That's a fantastic post. I personally have not had a holiday abroad for 20 plus years,  don't even own a passport anymore it expired over 12 / 15 years ago . So I personally don't think I need a credit card anymore but yes I did have one for the very reason you state regarding holidays abroad,  even then I tended to use a lot of cash for trading with locals. When sterling was as good as the dollar. Visa was back up.

I used to travel a bit for work so I always had a card with me for emergency situations and i told them this, but after many year's of non use because I didn't have any need for it. They cancelled on me. 

I clean my own Windows so Lou must owe me a fortune.  🤔😂

Steve 

Cheers Steve,totally understand what you are saying if you don't need one,then why have one.

I hope you still have a UK holiday though,everyone needs something to get away from the rat race for a while.

Ron :thumbsup:

Edited by Mustang
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Posted (edited)
10 hours ago, Len said:

Well explained ref the credit cards Ron.  Being as I have never had a credit card I only recently leaned of the protection thing, and can't believe that paying by debit card is the worst option (That's how they getcha I suppose) It feels better to me paying with debit card - My money straight out of my account, no complicated 'pay with card then pay the card'.......It's not as if the air-lines are going to be in trouble two weeks before me and my family are due to fly to America surely? Doh! :huh: 

I like your term 'financial disipline', I was taught this by my mother. I was on a YTS scheme back in the 80's earning £27.00 per week, and even now I vividly remember the awful row in our house when my mum insisted I pay her £7.00 board and lodgings out of that - I was absolutely livid! (As well as the time my parents refused to sign as guarentor of a loan for a scooter, of which I obviously needed!) 

I now know that these were valuble lessons - Often my apprentices have said that their parents don't charge them board from their wages, and I wince at the life lesson they are missing out on (Understandably, their parents thinking they are doing right by their kid)

Talk about life being turned on it's head - I'm looking forward to us all looking back on this.  But for now, we are all in this moment...

Happy Easter (2020) :wink:

Len :thumbsup:

P.s - Window cleaners rule! I couldn't imagine anyone not paying them on time :elvis:

Cheers Len,you are right,we all need lessons in life and agree that the apprentices parents should take board

off them so they can learn.Alot of the young ones don't listen until they are in trouble,even then i am not sure

that the lesson sinks in,many seem to go from one crisis to another,robbing Peter to pay Paul and all that.

 

Yep,life has changed for us all completely,absolutely awful,heart goes out to the sick and those

who have lost the battle and a big thank you to the NHS staff and all front line workers.

 

Ron :thumbsup:

 

Edited by Mustang
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On 09/04/2020 at 16:39, Ezzie Brown said:

saving for a rainy day only works if you live long enough to suffer the rainy day..............

as  our old late friend on here  "salmon " the burnley regular told me..........." i was born with nought and spent most of it "

i value living over saving myself.....

.....tried to do a bit of both ............but it hasnt worked ......🤨

".events dear boy, events"

I had a mate that worked hard all is life was frugal, always put a bit back. He got ill and on his death bed to me he was bitter and full of resentment. He said to me never save more than 3 months money......he added I wished I lived a bit more when I had the chance.

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I think your mate was right - 3 month's worth of outgoings saved acts as a nice 'buffer' (You may need a new Boiler or something) Getting the right balance is key, rather than getting too obsessed and saving everything / working too hard to do so.

Len :thumbsup:

 

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The financial ramifications of CoV are huge, but won't pan out for some time yet..... 

Cash - interest rates slashed /safety of banks / rising inflation. 

Equities - UK dividends being slashed or withdrawn / capital losses / collapse of sectors or companies 

Fixed Interest - coupon default risk across the board / Issuer collapse

Property - many property funds shuttered again / Tennant rent default / drop in property values / lack of mortgage availability. 

Hopefully it will be painful but relatively short. Hopefully *fingers crossed*

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As far as property prices are concerned...

It depends how far our government will go to stop a crash.

In 2008 to 2012 we saw about a 20% drop which was just enough to keep the banks from rushing to foreclose homes where mortgage defaults occurred. Most of europe followed this semi protected strategy.

However in the USA prices dropped well over 50% in many places and banks foreclosed very quickly and 'held on' to those properties instead of selling off too cheap, and losing billions. They have since made billions in the last 5 years.

The USA homeowners forced to give up the home or sell cheap to avoid foreclosure lost pretty much everything.

So...it remains to be seen which way it goes this time.

The Cyprus 'run on the banks' was very scary so as much as we all detest banks...without protection they could go the same way as Cyprus and then panic will set in.

Expect more money printing very soon.

Ed

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On ‎09‎/‎04‎/‎2020 at 20:56, Tomangoes said:

Like 100,000 others, for me the miners strike of 1984/5 was a shock to the system of having plenty of money and then not.

Like death by a 1000 cuts, slowly selling your car, records, bla bla bla. Luckily I had no debt except a small mortgage, and with a mortgage holiday, I kept the house.

The 2008/9 financial crash for many resulted in the same result for millions of folks. 

This latest disaster could well dwarf anything we've seen in our lifetimes.

Very few will gain from it.

Ironically folks on benefits will fare best since financially little may change.

If (when?) mortgage holiday / protection is withdrawn and rent arrears evictions are allowed, all hell could break loose.

I sincerely hope this curse on humanity is removed asap. Health and Wealth are inextricably linked, and if this virus does not get you one way, it's doing it's best to get you the other way.

Sorry to sound so pessimistic, but as the author of the thread points out, living on tic as lots have got used to is disastrous in the current situation.

Ed

 

 

I think it will be hard all round for some terrible and there are many potential bad outcomes across the board.Where folks on benefits are concerned I think they will also be getting hit hard as prices for food for example are climbing like Himalayan Sherpas  up the shelves of supermarkets and shops you can see this in the three weeks already we have been in lockdown.Rent evictions if allowed wholesale would have a dramatic effect on our streets.America well Trump is now talking about getting up and going again very soon,it seems to me a no brainer that many inside that administration are quite happy to see a trade off in elderly and the poor dying in exchange for a healthy economy ,after  all isn't that what neo liberalism economics is after all capitalism red in tooth and claw.

Len says it is not the material things( cept records of course Len) that make us happy but of course we do need certain things lets just hope that when we come out of this we do it in a way that links a healthy economy to healthy people no reason it should not be that way.

One  thing about a material thing like a record Len is all that massive happy,emotional,soulful feeling it can evoke and keep on doing so in the human spirit

 

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On 10/04/2020 at 13:16, Mustang said:

Cheers Steve,totally understand what you are saying if you don't need one,then why have one.

I hope you still have a UK holiday though,everyone needs something to get away from the rat race for a while.

Ron :thumbsup:

Ron. Regarding the holidays mate yes I do have plenty,  spend them all in Pembrokeshire,  Hopefully will be retiring down there in a few years time

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13 hours ago, thladmead said:

I think it will be hard all round for some terrible and there are many potential bad outcomes across the board.Where folks on benefits are concerned I think they will also be getting hit hard as prices for food for example are climbing like Himalayan Sherpas  up the shelves of supermarkets and shops you can see this in the three weeks already we have been in lockdown.Rent evictions if allowed wholesale would have a dramatic effect on our streets.America well Trump is now talking about getting up and going again very soon,it seems to me a no brainer that many inside that administration are quite happy to see a trade off in elderly and the poor dying in exchange for a healthy economy ,after  all isn't that what neo liberalism economics is after all capitalism red in tooth and claw.

Len says it is not the material things( cept records of course Len) that make us happy but of course we do need certain things lets just hope that when we come out of this we do it in a way that links a healthy economy to healthy people no reason it should not be that way.

One  thing about a material thing like a record Len is all that massive happy,emotional,soulful feeling it can evoke and keep on doing so in the human spirit

 

Welcome back Manus always a rational well thought out post ,, hope yourself and the old fella are keeping well in these troubled times ,, hopefully see you soon ,, Christine sends her love ,, Stay Safe pal ,,Stephen 

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7 hours ago, Winsford Soul said:

Ron. Regarding the holidays mate yes I do have plenty,  spend them all in Pembrokeshire,  Hopefully will be retiring down there in a few years time

Good to hear Steve,a lovely region of South Wales,very nice.

All the best with the retirement move,sounds amazing mate,certainly a nice relaxing way of life

to be had down there for sure. :thumbsup::yes::hatsoff2:

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Hiya, beautiful but any roach, Dace and chub to trot my stick and wagglers ? Be great to be there now, moaning about another mini trout grabbing my bait, ooh err missus, cheers

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Hiya, what a lovely thought. Trotting 'john dean- Pete warren' sticks down a lovely gravel glide. Fishing folk only, cheers

 

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8 hours ago, Pga1 said:

Hiya, what a lovely thought. Trotting 'john dean- Pete warren' sticks down a lovely gravel glide. Fishing folk only, cheers

 

That sounds wonderful right now, even though the season is shut. Think I still have some original John Dean wire stemmed sticks somewhere.  Even the puddle chucking seems good, and I can't stand the places. 

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I wonder if ALL the life insurance company bosses are thinking......exclusions for the future !!!!, I bet they are, having worked in the industry

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