Were/are you prepared for a recession?

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.