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There Is No Cushion For The Crash

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After reading the motley fools article (see blog news feed) even I was surprised at the level of personel savings:

'9. We don't have enough to fall back on

Although UK residents have around £541 billion on deposit, this money is massively unevenly distributed, with the rich and super-rich owning about three-quarters of this pot. Sadly, three out of ten adults (30%) have £500 or less in savings, and almost one in eight (12%) have no cash cushion whatsoever. Ouch!

Without a few months' wages in the bank, you're up the proverbial creek without a paddle if things take a turn for the worse. If you fall ill, have an accident or lose your job, you can't rely on the State, because the government safety nets are practically non-existent! I warned how little State support there is for homeowners...'

Less than £500 and some with none :blink:

I mean...I know there are a lot of numpties out there. But for goodness sake this is riduculous, and I bet half of these people are over the age of thirty. Now I saved didly squat when I was in my twenties. Either wouldn't when I had it in the early part and couldn't when I didn't in the later. But the young are notorious for partying hard and buying every little thing to keep up.

But when you reach thirty, you kind of think well I should save for an emergency or a rainy day or my retirment. Yet I just know from personel experience of most of my freinds and family age group that they are still partying, or where up untill a few months ago and buying the latest gadget, garden stuff ...whatever...and looking at me like a nutter when I am saying save.

But I never realised it was this bad. I just thought my peers were an especially irresponsible lot. :D

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At the age of 25, Im coming round to the idea of saving (and preventing the onset of cirrosis). Mind you, my student debt adds up to 13k. :o I just hope interest rates stay low for the next two years , in order for me to clear this.

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I am surprised that it was so high. I remember hearing that the median savings was about 750 in the late 90s.

Edited by gone west

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Guest growl
At the age of 25, Im coming round to the idea of saving (and preventing the onset of cirrosis). Mind you, my student debt adds up to 13k. :o I just hope interest rates stay low for the next two years , in order for me to clear this.

Yes. Now is the time to really cut those student debts. But at the same time save, even if its only a little bit a month. Its not always easy. But when I was your age I had to have everything that my freinds had. Every one was always keeping up with everyone else. It was like who has the biggest ***** or tits :D

But really we were all insecure, just trying to show how grown up we were.

Make saving a habit. It can even be fun in its own way. Basically the way to do it, is to become frugal. Your mates will say miserable or tightfisted. But really ask yourself...do you need that special from the local caf at lunchtime. Or could you make your own lunch and take it to work. Do you need to go out to the local boozer. Or could you have your freinds round for a little girl party, boys night in...they have to bring something.

Basically the way to save is to first find ways to cut back, then with the extra money... you save.

Can't trust yourself...choose an account that makes it hard to get at your savings...or buy premium bonds. Basically do anything that makes it hard.

Then when you've got the habit...and you know that you can trust yourself...and you've turned into a little home accountant. Then...

the bigger stuff. The fun really begins. The proper investing...and for that...read Dr. Bubb. ;)

It was like who has the biggest ***** or tits :D

Oh now come on moderators. Get the web developer to sort out their code. I mean the program is just too strict. I wasn't slagging anyone off.

Tits is allowed but P E N I S isn't?

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The bigger the boom, the bigger the bust.

History has taught us this lesson over and over again.

Why should it be any different this time?

Unless someone can prove that it is, I think it's prudent to go with history.

ie this country and it's overinflated housing market are in very severe financial trouble.

Edited by BandWagon

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Guest growl
The bigger the boom, the bigger the bust.

and this one is going to be a biggie.

finished reading the 'Grapes of Wrath' the other day. On nearly every page there was an anecdote or phrase that I wanted to quote here. but I didn't because HPC would have got the whole book.

But the main lesson, was that the characters of the book did not save and got themselves indebted to the bank so much. That when the depression came thay had nothing to fall back on. It had happened over generations of course. Owning less of their land and becoming indebted more. Then believing everything the VI's told them.

This housing bubble is massive, the debt is massive and there's nothing to back it.

:unsure:

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and this one is going to be a biggie.

finished reading the 'Grapes of Wrath' the other day. On nearly every page there was an anecdote or phrase that I wanted to quote here. but I didn't because HPC would have got the whole book.

But the main lesson, was that the characters of the book did not save and got themselves indebted to the bank so much. That when the depression came thay had nothing to fall back on. It had happened over generations of course. Owning less of their land and becoming indebted more. Then believing everything the VI's told them.

This housing bubble is massive, the debt is massive and there's nothing to back it.

:unsure:

The main lesson wasn't that they hadn't saved but that they couldn't. Perhaps you'd better re-read it.

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Guest Alright Jack
After reading the motley fools article (see blog news feed) even I was surprised at the level of personel savings:

'9. We don't have enough to fall back on

Although UK residents have around £541 billion on deposit, this money is massively unevenly distributed, with the rich and super-rich owning about three-quarters of this pot. Sadly, three out of ten adults (30%) have £500 or less in savings, and almost one in eight (12%) have no cash cushion whatsoever. Ouch!

Without a few months' wages in the bank, you're up the proverbial creek without a paddle if things take a turn for the worse. If you fall ill, have an accident or lose your job, you can't rely on the State, because the government safety nets are practically non-existent! I warned how little State support there is for homeowners...'

Less than £500 and some with none :blink:

I mean...I know there are a lot of numpties out there. But for goodness sake this is riduculous, and I bet half of these people are over the age of thirty. Now I saved didly squat when I was in my twenties. Either wouldn't when I had it in the early part and couldn't when I didn't in the later. But the young are notorious for partying hard and buying every little thing to keep up.

But when you reach thirty, you kind of think well I should save for an emergency or a rainy day or my retirment. Yet I just know from personel experience of most of my freinds and family age group that they are still partying, or where up untill a few months ago and buying the latest gadget, garden stuff ...whatever...and looking at me like a nutter when I am saying save.

But I never realised it was this bad. I just thought my peers were an especially irresponsible lot. :D

Economic downturns have a very nasty habbit of taking everyone by surprise. At least those who 'partied' did something with their money before it dispeared into the swamp of inflation, unemployment, stocks crash, banking crises. Nothing can be ruled out if you are to be party to the HPC concesus.

Surely you'd rather spend it than have it taken away with nothing to show for it?

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Economic downturns have a very nasty habbit of taking everyone by surprise.

That's because people quite irrationally base there expectation of the near future on their experience of the recent past. This is why people repeatedly buy into asset bubbles at or near the peak, just before they pop.

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After reading the motley fools article (see blog news feed) even I was surprised at the level of personel savings:

'9. We don't have enough to fall back on

Although UK residents have around £541 billion on deposit, this money is massively unevenly distributed, with the rich and super-rich owning about three-quarters of this pot. Sadly, three out of ten adults (30%) have £500 or less in savings, and almost one in eight (12%) have no cash cushion whatsoever. Ouch!

Without a few months' wages in the bank, you're up the proverbial creek without a paddle if things take a turn for the worse. If you fall ill, have an accident or lose your job, you can't rely on the State, because the government safety nets are practically non-existent! I warned how little State support there is for homeowners...'

Less than £500 and some with none :blink:

I mean...I know there are a lot of numpties out there. But for goodness sake this is riduculous, and I bet half of these people are over the age of thirty. Now I saved didly squat when I was in my twenties. Either wouldn't when I had it in the early part and couldn't when I didn't in the later. But the young are notorious for partying hard and buying every little thing to keep up.

But when you reach thirty, you kind of think well I should save for an emergency or a rainy day or my retirment. Yet I just know from personel experience of most of my freinds and family age group that they are still partying, or where up untill a few months ago and buying the latest gadget, garden stuff ...whatever...and looking at me like a nutter when I am saying save.

But I never realised it was this bad. I just thought my peers were an especially irresponsible lot. :D

Housing costs are massive (mortgage or rent). I am accumulating cash savings in 5 figures but still feel insecure. I am not likely to be out on the streets any time soon but worry about having nothing much to live on when i reture.

It illustrates how most of the population are sheeple having a "shared psychosis" about their finances.

Edited by penbat1

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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