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.