I was reading the article in the newspapers today that states one in three families is unable to pay their rent or mortgage for more than a month if they lose their job, mainly because most people do not have any savings.
This got me thinking - are we all living beyond our means and racking up debt we are going to be paying back for the rest of our lives? Is it a lifestyle choice or are we being irresponsible?
You may have seen me write before that the wife's friend gives debt advice for a charity. She often says that whilst there are lots of genuine people, there are also lots who think the world owes them a living. They will get some families coming in asking for debt counselling who have an expensive phone contract and even Sky TV but be in arrears on their council tax. When they are advised that the debt to the council is a priority they often get quite aggressive when it's suggested they get a cheaper phone contract and perhaps Freeview. On top of that they also send their kids to breakfast clubs so the schools will give them breakfast. Now to me that is just being feckless.
I know I come from an older generation but seriously my parents had less than nothing. My father regularly had work one week then nothing perhaps for another two weeks. That's how it was in 1950's Northern England. No fitted carpets etc. and an outside loo. However, they always made sure they had a six month buffer i.e. if the worst came to the worst they had enough savings to tide them over for six months. The other thing in those days was you only bought what you could afford - cash. If you didn't have the cash you couldn't afford it - simple as that. That lesson has stayed with me for the rest of my life too. Apart from the mortgage (which was only small) we have always paid cash and always had a bit put away.
People may sneer at this practice these days but I know which I'd rather have.
This got me thinking - are we all living beyond our means and racking up debt we are going to be paying back for the rest of our lives? Is it a lifestyle choice or are we being irresponsible?
You may have seen me write before that the wife's friend gives debt advice for a charity. She often says that whilst there are lots of genuine people, there are also lots who think the world owes them a living. They will get some families coming in asking for debt counselling who have an expensive phone contract and even Sky TV but be in arrears on their council tax. When they are advised that the debt to the council is a priority they often get quite aggressive when it's suggested they get a cheaper phone contract and perhaps Freeview. On top of that they also send their kids to breakfast clubs so the schools will give them breakfast. Now to me that is just being feckless.
I know I come from an older generation but seriously my parents had less than nothing. My father regularly had work one week then nothing perhaps for another two weeks. That's how it was in 1950's Northern England. No fitted carpets etc. and an outside loo. However, they always made sure they had a six month buffer i.e. if the worst came to the worst they had enough savings to tide them over for six months. The other thing in those days was you only bought what you could afford - cash. If you didn't have the cash you couldn't afford it - simple as that. That lesson has stayed with me for the rest of my life too. Apart from the mortgage (which was only small) we have always paid cash and always had a bit put away.
People may sneer at this practice these days but I know which I'd rather have.
