Were/are you prepared for a recession?

Kipperhell

I was talking to a friend who seemed totally in shocked that a recession has happened or that we are in the middle of one. He is totally unprepared was literally working pay check to pay check paying a lot of loans off etc...

To me he seemed like many other people living beyond their means for a long time. Recent pay cuts are really putting him at risk and he is in a real panic. As he is a friend I did not criticise his situation and gave him time to vent and unburden. In my own view I feel he is responsible for his own decisions but none the less feel sorry for him.

I was saving when he was spending and he earned less than me and has much more expensive things in general. In my friends there seems to be a real mixed bag of people's approaches during the good and the bad times. How are other people prepared?

i came out of college last year with debt so i was very badly prepared.....

Wazdakka

Yup..

I promptly left the country to go on a world trip.

My name is URL

I was just back in Ireland in September after 2 years in the States. That was preparation enough for me. I had no car or house loans to pay off. Only downside is finding a job after been arsing about in another country for so long

branners69

I sold my car last April and cleared all debts apart from the mortgage and have bedded down waiting for the recession to get a hell of a lot worse before it gets better!!

johnp

Feel I'm prepared.
Had been saving for deposit for a house for a couple of years, so have a good chunk of cash saved. Although I'm not touching it, it's there if I absolutely need it.
Have the car paid off, and that was the only loan I have.

Still able to save, so the recession hasn't hit me yet.

Saibh

Stayed within my means - only have mortgage to pay back at the moment.

Inclined to save more now than I did before the recession

ParkRunner

Yes, thank god, as my income is taking a bashing. But like many others here I was saving for a house and used a small bit of that to clear a car loan. My uncle in SR Technics, with an apartment in Florida and a daughter about to do the leaving cert and hoping to go to college I have sympathy for.

My friend, who's fiance is in the building trade, has gone onto interest only payments on her mortgage for 2 years. I'm sure everyone knows someone having to make some major adjustments

Snowie

well ive got an ak47 6 mags 6000 rounds amo 60 suare ffeet of fencinf razor wire enough canned food to last 30 years 4 jenys, and preparing my spair fuel so yeah im ready

Saibh

Snow-Monkey wrote: »

well ive got an ak47 6 mags 6000 rounds amo 60 suare ffeet of fencinf razor wire enough canned food to last 30 years 4 jenys, and preparing my spair fuel so yeah im ready

Let the battle commence

galwayrush

I'm not too worried because i didn't expand my business, didn't buy any shares and didn't buy property to rent. Thankfully i was too broke to do any of the above during the 'boom time' A lucky break for me.:cool:

Snowie

Saibh wrote: »

Let the battle commence

awsome super soaker at the ready :cool:

cooperla

I said in the poll I was prepared, but I use that term somewhat loosely, because I didn't have any savings built up.

However, I did realise some time ago the job I was in wasn't the safest of jobs and there would be a good chance it would last no more than a few years. So, I found another job, still within the same organisation but it has a much better chance of being around for quite a while. I had to take a pay cut to take it, but very happy I did now.

Like many others I've also started changing my spending habits, so despite the pay cut I've started building up a small amount of savings.

MIN2511

I had a good bit of savings but due to family issues i used it all up, no savings and quite a bit of debt(credit card) no loans but sure i am lucky to be alive

Alessandra

No wasn't prepared at all, left college degree and post-grad, no prospects and in debt. Now have clawed back onto my feet but will be out of work in a couple of months again. Going back to college in September though so will try to keep head above water til then.

Hephaestus

Wazdakka wrote: »

I promptly left the country to go on a world trip.

That will be 1 mighty hangover when you get back though!

SoupyNorman

Still no sure...although I was prepared for another recession thread.

m5ex9oqjawdg2i

Saibh wrote: »

Stayed within my means - only have mortgage to pay back at the moment.

Inclined to save more now than I did before the recession

By definition, it is still outside your means

Paying a car loan and college loans. Not that big of a deal. Can still save a few pound, but I stopped drinking, and spending cash on things I didn't really need.

I graduated out of college at a bad time I guess... Not too worried, my parents are completely loaded thanks to their ability to work excessively hard. The celtic tiger helped them a little. Free rent for me soon enough My brothers unemployed too, but he has been offered a 4 year visa in Australia (Might be residency, not too sure).

I am not expecting to get a job within the next 6 months to a year. Which is pretty crappy. Not too worried though. Would love to be working and making some nice money though

Kipperhell

Juniper Square Marsupial wrote: »

By definition, it is still outside your means

Paying a car loan and college loans. Not that big of a deal. Can still save a few pound, but I stopped drinking, and spending cash on things I didn't really need.

I graduated out of college at a bad time I guess... Not too worried, my parents are completely loaded thanks to their ability to work excessively hard. The celtic tiger helped them a little. Free rent for me soon enough My brothers unemployed too, but he has been offered a 4 year visa in Australia (Might be residency, not too sure).

I am not expecting to get a job within the next 6 months to a year. Which is pretty crappy. Not too worried though. Would love to be working and making some nice money though

Really doesn't sound like you were actually prepared more like you are lucky that you are being taken care of. I was think prepared as in have the ability to withstand it from what you have done yourself. Not knocking your situation but it sounds more like your parents were prepared to help you. Nothing wrong with that just doesn't sound like you personally did anything to be prepared you know like saving money.

Sea Sharp

I have no car, no mortgage but a loan from the bank.
Will be finished college in a few weeks and then I'll have no job.
I wish I'd quit smoking two years ago and saved the money instead.

cashback

Hephaestus wrote: »

That will be 1 mighty hangover when you get back though!

I am currently suffering this hangover. Just home three weeks today. It's bad, very bad.

K4t

I have no sympathy for people who smoke, and get pissed more than twice a week tbh.

I'll be grand as my dad managed his money f**king expertly for someone who never even went to university and pays PAYE. I save an awful lot aswell.

Terry

Was never loaded. Earned enough to survive during the boom and I'm still doing the same now.

Didn't borrow money to buy needless and expensive crap, so I'm grand on that front.
I'm happy once I have food, cigarettes and my bills paid (currently in the black with about half of them). Anything else is a bonus.

Biggins

Sad to say, I seen it coming. Had been saying it on my sites for last 3/4 years alone.
Said it to others at the time but they thought I was talking through my arse.
They refused to think Fianna Fail wouldn't plan, take precautions and/or save for such an eventuality
Guess who's sorry now that they should have listened.

Have only small bill on my credit card to pay off and thats it (which I could pay in 5 minutes flat).
Rest is paid for, including home. I'm just one of the lucky few.

m5ex9oqjawdg2i

Kipperhell wrote: »

Really doesn't sound like you were actually prepared more like you are lucky that you are being taken care of. I was think prepared as in have the ability to withstand it from what you have done yourself. Not knocking your situation but it sounds more like your parents were prepared to help you. Nothing wrong with that just doesn't sound like you personally did anything to be prepared you know like saving money.

My parents got what they have now prior to the celtic tiger, my dad's an intelligent man, forsees these things, he has been through a few recessions

Personally? My financial situation never allowed me to save more than a few thousand. Which I invested in my education. There is nothing I personally could have done to make my situation better. We are ok, living on the basics, which I have been doing for the past 6+ years. As soon as I finished secondary school I left my parents place and have been indipendant ever since. Told my parents I would like to purchase a house sometime in the near future. They have offered me a place to stay for free so I can save. This is their way of helping out. Apart from college fees, I paid for everything myself. Worked for my money and never had a need from my parents. I see some of my mates living out of their parents pockets. I cannot understand this.

If I was really stuck for cash, of course I would go to them, but it would be for food or a bill I couldn't afford to pay at the time. Anything I have I bought myself.

A recession is a natural process of any economy, it's severity could be based on the growth of that economy. You see the economies that have slow growth over the past decade or more are not as effected as the likes of us. You know? It is perdictable, but impossible to say when it will happen.

I am only slightly worse off. Being a student for 5 years does help quite a lot. You learn to appretiate what money you have.

My credit card is even in the black, the credit card company owe ME money :P

I think it is ok to have a mortgage for a standard house, having a standard car and a holiday once a year. Living comfortably is ok too. Having a 6 bedroom house, an SUV and another top of the range car is just silly. I would never buy a brand new car, would never have that large of a house (4 bedroom would be really nice for me), I would rather have a more expensive holiday or something. Greedy people destroy it for everyone. A nice Audi A4, 2 or 3 years old, with a nice 3 bedroom house somewhere in carlow would be living it up for me

Terry

Terry wrote: »

Didn't borrow money to buy needless and expensive crap,

took me about 5 times to get what you said there... thought you mispelt "needles"

Dudess

Jeez, I cleared debts and put away savings but I wouldn't be smug about it - I just feel very lucky that I was in a position to do so and that I don't have any huge commitments like dependants, a huge mortgage etc (contract up in the summer but at least I'm working for a huge organisation so they'll try to find me bits and bobs of other stuff - massive cutbacks there though).

Not everyone who's ****ed now was stupid - even if you were sensible with your property purchase during the boom, the mortgages for modest homes were still huge, so if you've children and one of said "medium-priced" homes... even if you've zero debts, meeting those costs on the dole and whatever savings you've managed to accumulate, is just not feasible over a long period of time.

And as for selling the house? Forget it. Or you might be lucky enough to sell it at a huge loss...

kelle

I was, but I never thought it would be as bad as this! The fact that we don't have our safety net in USA or Australia makes it worse than past recessions. I have savings, but if the banks collapse I'll end up with nothing anyway.

Dudess

I must move my savings to the Post Office - not that I'd have the kind of lump sum that would be affected. I've small potatoes in the greater scheme of things, but still. Not taking any risks.

Terry

Dudess wrote: »

I must move my savings to the Post Office - not that I'd have the kind of lump sum that would be affected. I've small potatoes in the greater scheme of things, but still. Not taking any risks.

Mass panic tends to lead to banks crumbling.

Rented Mule

I made sure that myself and the Mrs paid off every single bill that we had over these past many years. I work full time and she works nights (while looking after the kids during the day) but has seen her hours cut backover the past six months.

We're doing better now with the kids than we did when we were single.

Anyone who didn't see this recession coming must have voted FF in the last election.

Dudess

You're very lucky right now. What if you lose your job? Nobody apart from permanent public sector staff (and not all of them) is safe.

Rented Mule

Dudess wrote: »

You're very lucky right now. What if you lose your job? Nobody apart from permanent public sector staff (and not all of them) is safe.

We're actually in a very good place at work right now (we actually made the news about all of the jobs coming in).

We have saved our money. We made sure that weren't wasting it along the way as well. We also made sure to do our own research while the government was calling everyone who saw this coming 'doomsdays sayers'.

There was far too much information out there to not know that this was going to happen.

Dave!

Well I'm in my last few months of college, but have no debts or responsibilities to speak of, so I guess I'm in a good position relative to other people. I don't have a job either, so that's one less thing they can take off me! Unless my money in the bank is suddenly deleted, then I should be pretty well able to handle the next few months. Of course, my money will run out eventually, but hopefully I'll get a job at some point.

Dudess

@Rented Mule: Still very lucky. My point is, some people who lose their job, no matter how careful they were during the boom, are ****ed. Ok, not as ****ed as those who have huge debts from pissing away their money during the boom, but still ****ed.

I wonder how long it will take people, on average, to get a job. I think "a few months" is very optimistic...

Rented Mule

Dudess wrote: »

@Rented Mule: Still very lucky. My point is, some people who lose their job, no matter how careful they were during the boom, are ****ed. Ok, not as ****ed as those who have huge debts from pissing away their money during the boom, but still ****ed.

I wonder how long it will take people, on average, to get a job. I think "a few months" is very optimistic...

I am not going to argue with anything you are saying, and can only speak for my own experiences.

From what I have watched over the past many years in thiscountry, is that people all thought that it would last forever. Credit was there for everyone, so you might as well use it. Two cars seemed to be a must for every family. God help you if the neighbors got the upper hand at something 'newer'.

Watching the cost of housing explode in the 90s was comical at times.

The Government trying to convince everyone that the 'sky was not falling' should have brought charges against them as well as the bankers.

I have to admit though, that a big reason for me being prepared for thsi recession was because I was like many of the people that I speak of in the late 80's/early 90s. I learned my lesson, and there is no greater teacher than experience.

Dudess

Rented Mule wrote: »

From what I have watched over the past many years in thiscountry, is that people all thought that it would last forever. Credit was there for everyone, so you might as well use it. Two cars seemed to be a must for every family. God help you if the neighbors got the upper hand at something 'newer'.

Of course - no doubt about it. But the people with families and a mortgage who didn't do any of the above and are finding themselves out of work now... well it's still going to be hard for them.

Rented Mule

Dudess wrote: »

Of course - no doubt about it. But the people with families and a mortgage who didn't do any of the above and are finding themselves out of work now... well it's still going to be hard for them.

I am not arguing that point one bit.

Lilyblue

I wasn't that prepared. We have a large mortgage and two loans. Our cars are paid for, no savings as I invested in my education. We haven't really had a social life in a long time so not missing out on that! We are lucky we still have our jobs but I am sure paycuts are on the way...as they are all jumping on the paycut bandwagon! We are great workers and will work every hour god sends to ensure our boys have a roof over their heads, food in their tummys and clothes on their backs.

Wonder what ESB, Bord Gais and the rest of our creditors would say if I decide to deduct 10% from payment of our bills?

entropi

I'm a student on a grant...i couldnt be getting less cash anyway as it is:P the only thing i've noticed is that i cant get a part time job anymore...

I still havent felt the effects of this recession.

useful_contacts

Kipperhell wrote: »

I was talking to a friend who seemed totally in shocked that a recession has happened or that we are in the middle of one. He is totally unprepared was literally working pay check to pay check paying a lot of loans off etc...

To me he seemed like many other people living beyond their means for a long time. Recent pay cuts are really putting him at risk and he is in a real panic. As he is a friend I did not criticise his situation and gave him time to vent and unburden. In my own view I feel he is responsible for his own decisions but none the less feel sorry for him.

I was saving when he was spending and he earned less than me and has much more expensive things in general. In my friends there seems to be a real mixed bag of people's approaches during the good and the bad times. How are other people prepared?

I was lucky enough that we were just finished clearing our debts when the recession really kicked in. TBH we are better off now than we were before this recession

Highsider

Never spent beyond our means and saved up for a rainy day.

Terry

Dudess wrote: »

You're very lucky right now. What if you lose your job? Nobody apart from permanent public sector staff (and not all of them) is safe.

I don't know.
Tribunal solicitors are in for a good run.

Debt collection is a good number to get into right now too.

Placid_Casual

I've always made it a general rule to spend less than my income, so have a bit put away. Probably enough to last at least 6 months (bearing in mind I have a mortgage), more if I put my mind to it. And it grows a little bit every month.
Also, very fortunately, my job seems quite secure...where I work is actually gaining extra business from smaller competitors pulling out of the market. My biggest concern in the short term is being overworked. Not complaining at all, its a good place to be in. I suppose i'm actually gaining from others misfortune, indirectly.
Last year I had been thinking that I would probably try and move jobs this year. Needless to say, that plan has been put on the backburner.

Mrs_Doyle

I didn't go out of my way to prepare for the recession, but things have worked out ok.
Myself and the OH have no loans, nor mortgage, and no car (well he has a car, but its a company car, so we're not paying for it).
We're getting married in Spain in September, but have made a point of paying for everything as we go, so we're not hit with a big bill at the end of it. That's working out ok so far.
We won't be buying a house till very late this year, early next year. It will be have to wait until after we're married anyhow as I won't be made permanent until September, and I'll be getting a bit of in increase in pay along with it, so makes sense to wait.
Lucky enough we have a decent deposit put aside and we're adding to it all the time.
On a day to day, I do feel a bit of a pinch from the recession, but overall it has probably been a good thing for us. It has certainly made us more aware of our finances, and thought us to be a bit more savvy with our spending. A few years ago we might have thought nothing of taking out a loan to cover the costs of the wedding.

Red Hand

No loans, no credit card with me. I've always lived frugally...kind of regret now not doing stuff like going on a foreign holiday or something fun during the "safe years"...I've missed out. Ha!

On the other hand, I have a bit saved for the inevitable rainy day. No other half or children to support and I rarely drink, so few outgoings.

Firetrap

Yes because I learned from t'interweb and people like David McWilliams how much the country was floating along on borrowed money and depending way too much on building increasingly overpriced houses. The so-called good times had to stop sometime. I have to admit I'm taken aback by how bad things have gotten though. I work near a social welfare office and the lengths of the dole queues hammer home to me how lucky I am to be still working. Long may that continue (my working life, not those dole queues)

I'm comfortable though my pay packet has taken quite a walloping this year. I never went in for mad extravagance anyway, though I'm not a sackcloth and ashes type either. Car's paid for. Doesn't cost a lot to run anyway. I've a direct debit set up to clear my credit card's entire balance each month so no debt there either. I'm not in negative equity because I never bought a house. I have noticed my food bill decreasing a bit of late. Every cloud..

deisemum

Having been through the recession in the 80's here, then in the 90's in the UK I've always tried to take steps to be prepared for the rainy day.

I could see this recession coming a few years back but some younger people thought I was mad.

By Sept/Oct hubby and I will have our mortgage paid off, we don't have a car loan so will just have bills to pay not forgetting keeping our 13 and 11 year old eating machines in food.

I work part-time, hubby is a carpenter so our income has taken a big dive. We're being a lot more careful but our children have money if we're ever stuck.

kincsem

I applied for early retirement in 2005 and retired at the end of 2006 from a company that will probably go out of business in the next few months.

My mortgage and credit cards are paid. I saved a bit in additional pension contributions, got the cash in 2006, waited two years, and invested it in shares in November 2008 after the stockmarket tanked.

I'm amazed people did not see it coming.

pierrot

nope, turned down a full time good job in september for no good reason except for the fact that i didn't want to be tied down to it for the long term. now i'm sitting on me hole regretting that i didn't take it

hussey

Although I didn't think a world recession would happen, I knew there would be a housing price crash sometime - so I didn't buy a house as thought there were way too over priced.