We’re broke because we’ve been spending too much over Christmas, the banks don’t want to lend us money any more, the bills are going up, mortgages are going to get more expensive - and don’t even think about what’s happening to petrol prices.
Rarely has a year started with such gloom.
The post-Christmas financial hangover is nothing new, of course, and the gas bill is always huge at this time of the year, so we’re used to a bit of belt-tightening in January.
But many commentators would have us believe things are going to be distinctly tougher this year. One national newspaper even talked about a “perfect economic storm”.
What do you think of the outlook for personal finances in 2008? Will you be cutting back on spending this year or is the gloom all a bit overdone? Let us know your views.
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3 comments so far
This is very tough year for the people who are living in developed countries like US, UK and Japan. A number of small companies are going bankruptcy month by month in these countries. People are loosing their buying power in these three countries. I want to say, “Outsourcing is a new Economic Cancer for these developed nations”.
By outsourcing a company can make profit for a small period. In long term what it will do when there is no money in the pocket of its genuine customers?
- Posted by AjitI do not think this year will be any tougher - just that reality has finally dawned on so many of us Brits.
The days of wine and roses are over: it’s bill paying and saving cash that is the order of the day. And not throwing away precious food that has so often been wasted: forever an insult to those dying of hungar elsewhere on the globe.
I predict a year of rationing-type advice regarding our larders whilst sales in ready meals will be plummeting like a stone. The gov will provide a home food advisor on how best to feed your family on very little.
Free-range will overtake battery farming and chicken, for example, will become an occasional Sundat treat.
The return of the save, save, save mentality and a healthy regard for living within ones means and not borrowing for the sake of it, will prevail.
And I speak as a reformed spendthrift!
- Posted by Keith M WarwickPeoples outgoings have risen dramaticaly over the past year and many fixed rate mortgages will end this year. The Bank of England may not have the control over interest rates that we assume as the banks may not reduce their lending rates in line with any further rate cuts.
- Posted by David BournemouthIf you have higher expenditure and no further income the only option is to cut back your spending or go broke. I think we are at the start of a tough time that will last years. We will also see higher unemployment by the end of the year as employers start to cut costs.