As a single blerk with few responsibilities, I dinnae really care - as long as I have access to trails and a decent library.
That will all change when Sandra Bullock wants kids with me, of course.
Chat Forum
Record drop in disposable income - will it affect what you do?
-
Posted 5 months ago #
-
I earned more in 1994 than I did last year
I don't feel any poorer but I'm less tired for sure
Posted 5 months ago # -
I think my biggest single disposable/luxury expense is beer each month. To be honest I have in the last 6 months begun to wince how much a pint is now (I drink real beer in real pubs so not thinking of places where you can get god knows what at dirt cheap prices). Plus I have been of work 4 days this week ill (hopefully will make it in tomorrow) with what I hope is no more than IBS which I am sure is linked to going out more than my usual once per week in the last 5 weeks or so. So I think I will be needing to be more sensible about how much I do drink at a time which will hopefully increase my spending power for other things. Though to be honest following 20 months unemployment I have learned to buy far less unnecessary crap. I'm lucky in that I am a life long single so my personal financial position only affects me, I'd hate to have others relying on me.
Posted 5 months ago # -
My life has changed massively (similar to some above). Self employed on earnings half what they were pre-recession, at the same time two children came along, wife working part-time and term time (so earning 1/4 of what she did before we had children).
We have gone from saving £1k a month and buying what we wanted when we wanted (within reason - never being ones for fancy labels and expensive luxuries) to having spent all our savings.
Fortunately our one loan (apart from our mortgage) finishes in February and we have no other debts.
That and given I am about to come into an inheritance that will mean I can substantially reduce my mortgage is making me look at life entirely differently (having lost both parents, a much-loved auntie and my last remaining grandparent in the last few years) as well as currently going through some worry over the health of one of our daughters as I type is meaning I am now of the view I don't want or need nice things and that I would rather enjoy my life for what it is without undue pressures from work and/or debts.
And I do honestly think the world would be a much better place is a significant number of people start to have similar views.
Posted 5 months ago # -
I'm going to find it really tough. How can I fund all the borrowing I did.
Posted 5 months ago # -
One thing I do think this is going to seriously impact on is the housing market. To a huge degree
First time buyers are virtually non-existent now. So with a real-terms decrease in income for most people, year-on-year, for the foreseeable future, then even the prospect of owning a home is going to become an impossible dream to an increasingly significant percentage of the population
Posted 5 months ago # -
Earlier this year I had a huge cash-flow impact after two very well-paying corporate clients strung me out then didn't pay at all. I learned how to pare everything back to the bare minimum, I still had a nice life but based on doing things rather than buying things. And also IME the iDave diet is pretty cheap to follow. Applied the Pareto principle to most things in terms of what I need and what work I did. That also helped.
Posted 5 months ago # -
House prices will have to come down if people need to sell, they are only worth what people will pay. Most properties have been over valued for years for various reasons (mainly easy credit) but now it's time for a revaluation and it could be a big one. For some of us this will hurt if we want to move (like me) but for those that intend to stay at the same house in the long term then it will make little difference as long as they can pay the mortgage. Perhaps the time of mass house ownership is ending, perhaps house prices are going to drop massively. Time will tell...........................unfortunately.
Posted 5 months ago # -
But (according to Nationwide BS) house prices continue to rise...
Posted 5 months ago # -
Not caused by demand, but limited supply. Increase the supply & prices will start to fall. But because an awful lot of people are in negative equity, or very low LTV, they can't move & therefore supply is restricted.
If interest rates stay low, then house prices will be reduced in real terms (by high inflation) & eventually become "affordable". If interest rates rise then the sudden increase in supply (from reposessions) will push the prices down.
Posted 5 months ago # -
"But (according to Nationwide BS) house prices continue to rise... "
certainly not coming down thats for sure ..... im looking at the moment.
if its not dross then it sells quick .... i looked at a nice house on tuesday. went on the market last thursday - closing date today.
looked at one that went on on saturday and its closing next wednesday !
only stuff i see not selling is the ex council in complete dives of areas/folk who cant sell as they dont have the right paperwork in place for extensions or people trying to sell up to escape the incoming dual carridge way - but for the top dollar that they paid for their house it seems !
Posted 5 months ago # -
Do you think that's because of people with money investing in property? Return on investment is pretty minimal on most things. Interest on savings is nowt. I'd imagine if you're looking long-term, the right property might still be a fairly safe investment. Well... as safe as anything at the moment.
Posted 5 months ago # -
i wouldnt have said they were your average buy to lets really ...
country/suburb 3 beds with garages and gardens - sounds like my idea of hell for a rental .....
Posted 5 months ago # -
Well... as safe as anything at the moment
We might have to re-think the expression 'as safe as houses...'
'As safe as old school deore XT thumbshifters' would be my personal preference - they are the only things of lasting value in this world.
Posted 5 months ago # -
trail rat - 3 bed houses are apparently what the rental sector is short of, and prices are rising accordingly. I suppose it stands to reason at the moment
City centre flats being somewhat over supplied
Posted 5 months ago # -
House prices round here are falling, some looking stupidly cheap like the bottom is about to drop out of the market completely. Fixer-upper three bed semi in cheaper but not disastrous area going for £60-65k, two bed terraced for £45-50k.
As for disposable income, not a vast change, but noticing some things getting dearer, but mostly the effect of keeping three growing kids going that grabs my cash mostly. Trouble is with these studies, people move on, what we're doing now with our money isn't going to be exactly the same as five years ago. Teenagers cost more to run than younger ones
Posted 5 months ago # -
how am i going to afford my iphone and starbucks?
Posted 5 months ago # -
Depends if its a 4s os some povvy, council 3g thing
Posted 5 months ago # -
"certainly not coming down thats for sure ..... im looking at the moment"
Oh really, are you a BTL landlord or Estate Agent by any chance?
You might want to take a look at the Land Registry figures, not some skewed Nationwide/Halifax/Rightmove index with all their vested interests.
Alternatively this report from Moneyweek seems to sum up the situation perfectly:
How Much Further Will House Prices Fall
Still think house prices are going to rise? Pull the other one!
Posted 5 months ago # -
Don't feel as if my disposable income has dropped that much.. If anything earning more now than ten years ago.
But then my life has changed almost immeasurably, married with a young child, a bigger mortgage and more outgoings..
Never been loaded but consider ourselves well off in other ways. I have a nice bike but just one, sold others to fund the purchase of it just prior to the wee one arriving. Upgrades are usually taken care of easily by Christmas and birthdays so all good in that respect.
Have noticed increased cost of living though, food prices, petrol, bills, all going up. Shame about the wage freeze/cap....Posted 5 months ago # -
I've always disliked consumerism (other than bikes) and always thought we were in an unsustainable boom throughout 2003-2007 so saved as much as i could. I just dont get designer labels, fancy restaurants, flash cars, new kitchens, white hgoods, consumer electricals etc etc.
I still fear my job imploding but so far its gone fine over the last 4 years since recession / credit crunch started and if it does implode i will be debt free, house owner so should be able to survive.
I have loads of clients who are worth tens of millions and its a myth that such people all flash it about. Most of them drive old cars, wear M&S clothes, eat out in Harvesters (really amazing I know) and holiday in Spain or Cornwall etc, not Necker Island!
Posted 5 months ago # -
Intesting read northernstar but very london centric life does exist outside the bubble
Ive been looking at the figures for the area which i live in ....
In the last year its up 0.2% in the last quarter its up 3.9% and the average price of a property is 190k......taken from the registars scottish executive agency
Oh and no im not involved in finance all just an engineer trying to buy my first house ... Doing the engineer thing of looking at facts and figures first .....
Posted 5 months ago # -
I'm working away more - thus wearing out less drivetrains.
Actually I think I need less and less new stuff as this decade wears on.
Posted 5 months ago # -
holiday in Spain or Cornwall
Cornwall in the summer is probably more expensive than Necker Island Posted 5 months ago # -
I don't know M-F, we had a week's camping holiday in Cornwall this summer and i think we spent just over £300 between the two of us!
Weren't skimping either.Posted 5 months ago # -
I WAS being slightly tongue in cheek! But we did decide against Cornwall as 2 weeks in a holiday cottage was around £2400+ for a nice 2 bed with views. Ended up going off-season to Devon.
Posted 5 months ago # -
Selling my t4 camper in the new year which i've spent 1000's on getting to my spec
My enduro full suss has been split ready to sellFixie has gone to my mates shop to get sold.
So yes, i'm tightening my belt and thinking about my spending a lot more.
Posted 5 months ago #
Reply
You must log in to post.
