To be worried about prices going up and up and up

[AMAZINWOMAN]

I am getting scared of the way bills are just rising and rising all the time. Fuel is predicted to rise another 40% this year.

Even though I really am good at budgeting, I can't see a way of compromising any more than what we do now. Our only luxury is the internet, (or essential according to kids and their MSN needs!) which I would be reluctant to give up.

I have looked at loads of money saving tips websites, which is what I already do. I am just worried about the way the economy is going

Oh I agree totally, we still have lots of fun, but it is a shame that friendships fall by the wayside. I grew up in Wales in the 80s and it was hard. There was never any spare money, and it amazes me what people consider to be essentials nowadays. We didn't have a car, TV, new clothes, holidays etc. and were still happy. We can all do without as lot of what we have I think. But I still think it is hard now for a lot of people, and will get harder.

Agree Mulberrry - I admire your honesty actually. It really pisses me off when people criticise buy to lets when they themselves don't work in the public sector and probably have a job that is ripping someone else off in some form. It's a broad generalisation, but I would have more respect for a hard working nurse or teacher who has a buy to let property than I would for, eg a solicitor who doesnt own a buy to let but who is charging completely outrageous sums of money through divorce cases.

Mulberry the thing is everybody else who makes money privately, say a Solicitors or even a GP that owns the practise pays business rates on the property and business rates of tax and lets face it you don't.
You are running a small business and yet not playing fair and that's what gets up my nose apart from the fact that you are stopping first time buyers get on the ladder and allowing people to feel secure enough to start their own families.

I don't think property will ever be as profitable as the last 10yrs as it was all built on cheap debt and look what has happened.The govt are sure to legislate now to make some money too.I think the rise in the market increases are over so unless you are a skillful designer/developer you won't make much.I have been viewing houses recently and mateur developers have no taste and would actually put me off a house

I think buy to let was made too easy for people.

Yes but Mulberry wasn't talking about buying 1 property and living in another, she was talking about properties and that it will be a career. It just seemed tasteless on a thread where people are worried about paying for heating their homes this winter someone is looking forward to prices crashing down and homes being reposessed so that she can start a new career!
And the problem with renting is the cost of the rent and the insecurity of living in rented accomodation. Around here people pay the same price per month for one room in a house as I pay for a one bedroomed LA flat. If dh and I private rented a local terrace, 2 beds, then it would cost 80% of my wage and then of course there are nursery fees on top and the bills. You do wonder why you go to work don't you. At least in LA housing the rent is cheaper and the tenancy is secure so I actually think we are lucky. Even though really want to move to a 2 bed house/flat.
And,,,, you pay an electrician, solicitor, dentist etc for their time and expertise in a profession that they trained in for many years. Buy-to-letters just accumulate some money to buy the place and then accumulate a lot more, no expertise involved, just money,

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me too.x

Me too, but there's not a chance.

I don't know selling up would benefit anyone.

We've been offered a good price for our house thought we'd go into rented or buy something bigger. Slight problem no rental at all round here,warned it's becoming a problem elsewhere too.

Other problem no houses at all in our bracket to buy either. We've been watching for months(check Rightmove etc every day). I'm suspecting people are just sitting and waiting as simply can't afford to move. If there was anything the chances of a chain actually getting to completion must be very slim at the moment anyway. No properties, fewer and more expensive mortgages.

As we don't want to be homeless going to have to turn down the offer. We really need a bigger house!!!!! Researching bunkbeds instead Anybody else experiencing this where they are????

I do think there is a difference between 'profiteering' from houses versus anything else.
When I worked in Marketing, I worked in the haircare industry. We were of course happy when people bought a hairdryer and helped us be profitable, but this was a non-essential purchase. Most of us could live quite happily without a hairdryer. None of us can live without a roof over our heads.
I have never agreed with the whole buy to let industry. It was wrong on so many levels. All it has done is fuel people's greed, the rich (those with property portfolios) got richer, the poorer could not even afford a small starter home.
In most industries there are alternatives - can't afford a bmw get a fiesta, can't afford organic farmyard vintage rye bread then buy a basic white loaf.
But with houses, when all the flats and starter homes have been snapped up by buy to letters, there are many people left who need a home but cannot afford the extortionate prices for those few propterties left on the market. So many people find themselves without.
And that to me is wrong.

MM - dh is convinced we should sell up & rent. However, I am not convinced as I think rents will rise and I like my house!

timewaster - I do agree that there is a big difference when we're talking about someone owning multiple properties and raking the money in with no real effort - and yes, it's a thoughtless thing to talk about on a thread where many people are genuinely worried about keeping a roof over their head.
I know of a couple of people though, who work in the public sector who have invested in a buy to let simply to provide long term security. And let's face it, such people are never going to be rich. eg the nurse I know earns about 23K, she has a small buy to let house which she bought when she inherited from her parents. She is providing a home for someone who needs it, and is securing the future for herself, as I doubt her pension will be a huge amount. I have more respect for her than for someone who earns,say, 100K in private industry, lives in a huge great house themself but doesnt have a buy to let. It's just too easy to generalise. But I do agree that people just accumulating multiple properties on the back of others' misfortune stinks.

timewaster - I do agree that there is a big difference when we're talking about someone owning multiple properties and raking the money in with no real effort - and yes, it's a thoughtless thing to talk about on a thread where many people are genuinely worried about keeping a roof over their head.
I know of a couple of people though, who work in the public sector who have invested in a buy to let simply to provide long term security. And let's face it, such people are never going to be rich. eg the nurse I know earns about 23K, she has a small buy to let house which she bought when she inherited from her parents. She is providing a home for someone who needs it, and is securing the future for herself, as I doubt her pension will be a huge amount. I have more respect for her than for someone who earns,say, 100K in private industry, lives in a huge great house themself but doesnt have a buy to let. It's just too easy to generalise. But I do agree that people just accumulating multiple properties on the back of others' misfortune stinks.

Personally, if you don't have to move, then I would stay put. Stay put and ride it out.

Well, that is what we are planning to do. Because if we rent, then we are subject to landlords wanting their property back / increasing the rent etc. It is too 'insecure' for me.
We are tied into our fixed rate for another two years. Then we will have to re-negotiate another deal. That will be tough. But we have only a 40% mortgage, so even if prices drop dramatically, we should not find ourselves in negative equity.
We had hoped to sell up and buy a bigger house. But we won't do that now.
Right now I just count myself lucky that we actually have a house.

As for prices of other things going up - it does worry me. My part time job comes to an end next week. Dh's overtime has been cut dramatically, and we needed the overtime to help pay the bills.
Our car is old and expensive to run. But we don't have the money to trade it in for a more economical newer one. Bit of a catch 22 situation that one. So we are now no longer using it during the week, the car is strictly weekends only. (and then mainly for necessary trips) I have however saved up and am about to buy myself a decent bicycle, to compensate for not using the car in the week. Am hoping to get one with a luggage rack thing on the back so I can still do the grocery shop etc.
It will be great to reduce our fuel consumption and be a bit 'greener' at the same time.
Food is a worry. We already ate economical meals, only drink occasionally at the weekend and did not really indulge in expensive snacks/treats etc. (gawd we sound boring ) So I really don't know how I am going to economise on groceries. I don't think we can cut back any more.

Again with all due respect an NHS pension is not to be sniffed at compared to many private pensions, sorry but the Nurse is as bad as everyone else, if she'd bought shares in Boots she have made just as much money, had her tax free capital gains allowance and not helped to fuel the fire which has left so many people at the mercy of landlords.
Most of the buy to letters are going to be hit my interest rate increases which if they think they can pass on to tenants they are in for a shock, there are laws to protect the tenants. Then as things start to go wrong with the property, boilers go, electrics need replacing etc etc it will actually be costing them money to maintain the property as the profit margins are squeezed. Maybe then people will realise that houses are for living in and pensions are for pensioners income.

About the tax credits thing, I feel so many people on benefits really do well for themselves and don't they know it! (no offence).
we have relatives (a couple with 2 ds) who own their own home and can afford a car all off benefits alone. how is it done I wonder? I would love to know! too cheeky to ask....
and the thing is they are trying for another baby.one of them is self employed but earned shy of £2k last year from that alone. not exactly enough to pay a mortgage?
in gneral terms, i think we all will be badly hit esp those that actually go out to work (like my DH) and take over time just to keepour heads afloat...

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Interesting point KatieDD but I still can't help feeling that with the gloomy predictions on pensions, you can't blame people for trying to secure their long term interests. Once again, I am NOT talking about people who buy numerous properties just to rake in the cash. But I think a lot of people have invested in buy to lets simply because the govt has made such a balls up with pensions, and the message we are given all the time is 'prepare for your retirement, sort yourselves out, don't expect the state to support you' etc. These people are not necessarily making huge sums - they have mortgages to cover, and as you point out, maintenance of the property. And there are advantages to the tenant of being able to rent rather than buy - eg none of the huge legal bills, stamp duty etc plus none of the maintenance costs for the house. I know there can be a downside too - lack of long term security, but I'm just pointing out that there is an upside too. Especially if you want mobility for your job - renting can be a big advantage. Just look at the numbers of people currently who want/need to move and can't.
I think the problem goes back to the fact that your average hard working families in this country have been thoroughly screwed over by successive governments. We are encouraged to buy our own homes, and then screwed by interest rates and rising council taxes. We are encouraged to better ourselves through education and training, and then screwed over by earning not much more than you'd get on benefits, with any tax credits you might be entitled to disappearing once you start to earn more. We are encouraged to pay a huge chunk of our earnings each month into pension plans - and guess what? - that's been screwed up too, so forget any chance of being able to take life easy after slogging your guts out all your life.
TBH if I were 18 now, in 2008, I would seriously consider emigrating. I think a lot of honest hardworking people whose aim in life has simply been to live independently and support themselves have been well and truly shafted.

Beans on toast at least twice a week for me! I was doing the food shopping and decided I could save a bit that way. If we spend at least £5 on a family meal, 2 baked beans meals would save us about £8 per week. I know it is only a small saving, but it's a start. I am finding it very hard to compromise on good quality food though, and could save more money if I bought more value stuff. I have taken to walking the dog to the local supermarket just before they shut (kids and DH in bed) and stocking up on reduced stuff for the freezer! They must think I'm mad, coming in late at night just to buy 6 packs of mince.

I dont blame you Tachel, its a good idea. I went to tesco yesterday and was really careful with what i put in my trolley. Not many luxuries anymore. Tesco value yogurts, caramel wafers and trifle are our treats theses days. Trifle was lovely!

We've just moved our tumble drier out into a shed in the garden so it is there if we absolutely have to use it but I don't plan to. It is simply too expensive to run. I bought two clothes expanders instead and hang all our washing up in the bathroom if I can't hang it outside. In the TDs place we put a freezer so I'm able to stock up with food when the offers are on.

We pay for our Electricity and Gas by Direct Debit. We had our bills a few weeks ago. The Electricity was put up to £79 a month from £35. We weren't in debt with them at the time. I questioned why they'd put it up and they told me it was to cover us for this coming year? I told them to keep it as it was and we would cut back, which we've done.

What gets me is we struggle month to month. We have nothing left at the end of each month. Our incomings virtually match our outgoings. I don't begrudge the elderly people of this country getting a fuel allowance but why doesn't everyone else? We all have to live, we all have to keep warm. Some elderly people have far more cash than the rest of us put together! My Mum, for one, has plenty tucked away and gets her usual £200 or whatever it is in October for her fuel allowance for the Winter. Us? We just use our overdraft or a credit card.

herewego - I said this about 8 years ago it was coming and at the time everyone laughed at me and basically said go away you don't know what you're on about. We were foolish to a point for riding the good waves and never thinking that it would go down again.

We were talkin about this yesterday over lunch (fantastic topics in our families at the mo! lol) dad who's more up to speed etc than most of us! seems to think it's going to last for a good few years, but it won't get as bad as it was ie rates of 15% and inflation of 10% as our lord n master (gorden) can't afford for it to as the country would come to a stand still - would it really I don't know, but I still feel the government could have done more, no people didn't have to take the 'cheap' credit but def more could have been done.

my monthly money is £600 p/m to feed clothe n run my house. it's tight but at the mo am doing a ,lot of ebaying. I don't go out - maybe once a month if that and spend a grand total of about £20. Things will get worse, and i'm prepared for that, I think while we're all very worried about things there's a lot worse off than most of us - If I had to i'd cut down further (not sure where but would have to)

what's bothering me is sat I went to morrisions (I know wanted to try a new store out) I had 4 bags of shopping (fair enough the bigger re usable ones) but 4 bags and a packet of nappies. and it came to £53 - did have some vouchers thou but even still it was £46 from my pocket. buying fresh fruit/veg, esp local/british the same amount this tmie last year or 18 months ago would have only been about £35 ish. only thing i've not noticed changing in the last 2 years are nappies/wipes.

There was an article in the Telegraph recently that it is cheaper to buy veg at a greengrocer or market stall than at a supermarket. The journo spent £25 on a list of veg at her local greengrocers; the exact same veg cost £34 at Asda. It is a myth that supermarkets are cheap.

Also buying bigger packs is not necessarily cheaper - always check out the price per 100g on things. Dog and cat food is more expensive in 12 packs than 6 packs for example.