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View Poll Results: Has the current credit crunh/state of the economy made you plan on spending cutbacks?
I have already made spending cutbacks and will continue keep them at the same level 115 26.68%
I plan on making (more) cutbacks to my spending 162 37.59%
No, I will continue spending the same or possibly increase my spending 154 35.73%
Voters: 431. You may not vote on this poll

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Old 04-04-2008, 10:02   #1
Kryten
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Are you planning on making spending cutbacks?

Reading on the BBC news (http://news.bbc.co.uk/1/hi/business/7329796.stm) that 70% of households are planning on making spending cutbacks in the coming months. So is this you?

I know that I will have to with my current attempts to re-mortgage being hamnpered by a disctinct lack of good deals and higher rates being given out instead on those that are still available. This will definately eat into what spare money I would have otherwise spent.

Luckily at the moment for me its not to the point I cannot afford to spend if I wanted, but its so worrying with the whole situation (including possible effect on the job market too) that I need to actually start saving heavily and building up a bigger buffer on my mortgage just in case.

For me this means I will not be replacing my TV, will be spending the minimum on my house I can (just new fence panels and not a full landscaping of the back garden for example).

If everyone does this, of couse its going to be a knock on too with people stopping spending etc, but that's covered in carious other threads.

So the question is have you already or are you plannin on cutting back on spending given the current "credit crunch" and rising prices etc?
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Old 04-04-2008, 10:07   #2
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I have to re-mortgage in August.

Not sure what effect it is going to have - I'm getting married in August as well, so will have two incomes which should help with any mortgage increases. (don't currently live together)

I have however cut spending drastically in the last year, and can see this in my monthly bank balance being higher and higher every month.

I was supposed to by a new television, and have held off, also a Nintendo Wii, but I held back, and also a TV for the bedroom, but again, I have held off as I don't NEED it.

For the next few months, I need to do some small bits of work around the house, so I think any spare money will need to go on this stuff, like bricks for a new wall in place of the crappy fence (which me and my brother will build) etc...

The TV stuff can probably wait until after the wedding, when hopefully we might have a bit of spare cash through gifts - however I can see us wanting to save most of this.

Personally I believe with all this stuff in the media etc....which are constantly mentioning saving, price increases, doom & gloom - it has a self-fulfilling prohecy, as when people constantly get bombarded with it, they subconsciously spend less. I bet if the news reports were more positive saying everything is alright, and everyone is buying, then it would obviously have the opposite effect, and people would think, if everyone else is buying - I will buy too, and worry about it later.

So in answer to your question - I am spending less - but only down to the fact of all the speculation, otherwise i'd probably carry on ignorant to the fact.
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Old 04-04-2008, 10:10   #3
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I took out a 10 year fixed mortgage last year so I'll only significantly change my ways if there are huge increases in utility bills
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Old 04-04-2008, 10:10   #4
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Not really.

All my wages go into overpayments and savings - so we pretty much live on OH's. At the moment, we still have enough without going into mine, even with the increases in pretty much everything.

We're not big spenders anyway so it's not going to affect us much.
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Old 04-04-2008, 10:13   #5
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No, but I'm a careful spender anyway. I'll just be doing the usual stick-to-what-I-can-afford.

I've had to re-mortgage and I'll be paying less than I do currently. I'm coming off a variable rate (which shot up due to rate rises) on to a fixed rate.
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Old 04-04-2008, 10:15   #6
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I think that people that have a joing mortgage and a realistic level of borrowing and spending are the ones that are ok.

Myyself being single I have to pay everything from one salary so this is where its most worrying for me, should I lose my job I would be totally stuck!

My re-mortgage despite being for ~13k less the payments will be remaining the same or possibly higher it seems than my current fixed rate deal

On a similar topic then, how many weeks/months worth of essential payments (mortgage/rent, utility bills, food etc) do most people keep in savings?
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Old 04-04-2008, 10:16   #7
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No - I'm about to move house and have the money put on one side to buy soft furnishings and a few extra bits of furniture I want. Fortunately I had my mortgage all sorted before the reduction in deals we've seen in the last week or 2.
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Old 04-04-2008, 10:18   #8
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Am spending less, due to current job worries - but that means like Kryten says, deferring things like a new tv (only £500 but not exactly essential and current 28inch is fine).

we all seem to be drinking like fish at work now, so no cutting back there, and there will be a heck of a lot of leaving do's in the future!!
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Old 04-04-2008, 10:20   #9
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I have a reasonable amount stuffed away in an ISA, which could be used in an emergency. Ideally, though, it will eventually supplement my pension.

My job (I think) is safe, if not spectacularly well paid.

I don't live a life of luxury, but I seem to have enough money to do most of the things I want (even if it means getting girls to pay 50% on dates ). In fact, my problem is more lack of time than lack of money!
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Old 04-04-2008, 10:20   #10
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I'm due to remortgage in August too, so am hoping that one or two deals might appear again before then (no breath holding here though). Just about to have a baby too, so that'll put a crimp into the 'spare' money fund.

Quote:
Originally Posted by Kryten
On a similar topic then, how many weeks/months worth of essential payments (mortgage/rent, utility bills, food etc) do most people keep in savings?
I try to aim for 3 months. Not always easy though.
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Old 04-04-2008, 10:22   #11
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Quote:
Originally Posted by Kryten View Post

On a similar topic then, how many weeks/months worth of essential payments (mortgage/rent, utility bills, food etc) do most people keep in savings?
When we were overpaying (with Northern Rock) we were putting half my wages into the overpayment and half into savings. Sounds a lot but we pay for everything outright, so new car, any house stuff etc came out of savings.

Now we have a tracker offset so all goes into savings to offset the mortgage. We are currently saving for a conservatory, and nearly have enough for the price quoted. We need a bit more to be kept back in case of emergencies, so are waiting a couple of months.

OH is not convinced we are making the best of the money we put away so it going to explore other accounts (higher interest) and overpayments. We are lucky in that OH got assistance for 10 years when we moved, so we get some money towards the mortgage. When we first took it out it was 5 x his salary (NR - you can see why they went under) and without the assistance (which they didn't seem bothered about) there would have been no way we could afford it on his wage alone. Now it's about 3 x joint and we've reduced the term from 30 to 25 years with overpayments

In specific answer to your question, I would like at least 3 months put away in savings.
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Old 04-04-2008, 10:24   #12
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not because of the credit crunch but we are cutting back at the moment simply because we have other priorities now and there will be a lot of very big bills in the next few months.

over the year we'll probably end up spending what we normally do only it will be on things like prams and nappies rather than holidays and nights out.
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Old 04-04-2008, 10:26   #13
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10 year fixed mortgage (although it is massive) we are a bit skint at the moment but to be honest thats the after effects of moving, new dishwasher and a new washing machine... so we have to be "sensible" for a while...

We have an amount of shares come in every year and that pays for the niceties, holidays etc so it isnt all doom and gloom for us
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Old 04-04-2008, 10:27   #14
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Hmm, 3 months seems way too low to me in the current climate, I was thinking more 6-9 months minimum, and I know that is where I aim as an absolute minimum!
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Old 04-04-2008, 10:27   #15
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I'm always wanting to reduce my spending

If it wasn't for all the HD firesales I would have only bought one 'regular' DVD this month. Oh, and there is the HMV Enchanted with the extra disc... I would have bought two discs this month including that one, as it is I received 11 HD ones this morning!

Mind, my HD collection is almost complete now so I'll be stopping that soon.

Our childcare bills are due to drop quite a bit this year as our youngest starts school in September.

PS remortgaging in Feb 09.
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Old 04-04-2008, 10:28   #16
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think i have a few years worth - having no full time partner means no one else to fall back on.

has proved handy if i really hated a job - could resign with nothing else to go to. And handy if made redundant. Or got knocked up and had to have a year off Just gives you options.

Surely though mortgage overpayments are a form of savings? in that you could remortgage and release the money in 3 months if you really needed it.
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Old 04-04-2008, 10:30   #17
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I'm two and a bit years into a five year fix. I now earn more than I did when I took out the mortgage, and work is busier than ever - at the moment I have no reason to reduce spending. If anything things will get easier once I've done the first pass over my house and decorated all the rooms and finished the garden.

I do have friends who only took out two year fix rates that are ending soon - and its looking a little bleaker for them; however they're in the same situation as me regards their jobs.
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Old 04-04-2008, 10:30   #18
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i think we have a little over a months worth at the moment which worries me a little. we wont touch that if we can help it but we have almost no capacity to save until around october of this year. it wouldnt bother me as much if i didnt have a 5k credit card bill to pay off in august.
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Old 04-04-2008, 10:32   #19
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Quote:
Originally Posted by cjanderson View Post
Am spending less, due to current job worries - but that means like Kryten says, deferring things like a new tv (only £500 but not exactly essential and current 28inch is fine)
I guess that's my main fear, if my job was totally secure with constant salary and pay rises/bonuses then I would not be bothered, but its that uncertainty that is really making me cut back on spending and look into savings (of one form or another). My bonuses should I get any and my credit card cashback will be paying for my holiday in May and my new fence and a shower pump, but outside that I'm halting anything not essential (without turning into a hermit or destroying my way of life).

I currently have Sky Digital movies that I am tempted top drop to save another 17 quid a month, not a lot but as I have 100's of unwatched DVD's I do not see the point in keeping the movie channels for the couple a month I watch!

Car running costs are becoming stupid too, but I refuse to sell this car as the depreciation of such cars in the last 6 months has been horrific and makes it stupid to sell it.
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Old 04-04-2008, 10:34   #20
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Quote:
Originally Posted by cjanderson View Post
Surely though mortgage overpayments are a form of savings? in that you could remortgage and release the money in 3 months if you really needed it.
Only if houses do not drop and mortgage deals are still available! I never count them as guaranteed savings unless they can be taken back without remortgaging (e.g. and offset mortgage).
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