Recession

Ladywytch replied:

Quick answer YES.

My aunt works for one of the major banks in a fairly high up position and has spent the last year warning me off buying a house etc because of the recession that is inevitable.  The extent of it won't be known until it hits kind of like preparing for a cyclone you know it's coming and can only prepare so much and can't assess the damage until afterward.  She can't even predict when but has told me to hold off with property for at least 2 years. 

So far so good with us (knock on wood) we are holding our own - although the major part of our company is pretty recession proof.

I do feel terribly sorry for those that are having problems though.

M

Janine replied:

I think everyone is feeling the pinch at the moment. Cost rises with just about everything you need just to live basically - food, fule, phone, rates , electricity and thel ist goes on.

We are in the process of selling our house due to one income not covering the costs of the house and living. My hubby is self employed and relies on fine wheather as he is a roofer. We are sick of not making ends meet and hince the decission to go a bit backwards by selling up. But we look at it as a new start with a nice debt free lifestyle and a decint savings collecting interest. We are looking forward to actually having a holiday for the first time in nearly 4 years - a trip to Sydney to see my sister and her family!! Very exciting. Who knows were we will end up living but to actually be able to go out for dinner once in a while, to have Kayla back to daycare one day a week, not having to put off buying clothes for the girls (and myself) Having regular hair cuts instead of a mop (ha ha ha) is what we are looking forward. Not flash things at all but all get put off just to "pay another bill".

We have changed alot so we did not have to sell the house to live a better lifestyle but with the amount of price risers in everything we buy you can only give up so much - you have to power, food, phone/mobile, insurances for your car/house/contents, fuel and the list goes on.......

The girls - Kayla 4 and Lydia 7 went to the movies for the first time. Yes the first time hard to beleive in this day and age. It cost me $5.00 for fuel, $7.00 for coke and popcorn which was not much to say the least for 3 of us, $30 for 3 tickets, $10.00 for lunch afterwards = nearly $60. That was the only holiday activity we did but even so it is not a cheap few hours out. They did have a great morning out and they did

appriciate it especially Lydia who is getting to know the real value of money.

We are lucky we have found a lovely small community church down the road from us where we can go and get a wonderful lot of grociers for only $20 each Friday. I was a little assamed at first but the first week I went as we were lift with only $50.00 for grocies and fuel a for my car but the couple who run it is just the most wonderful and understanding people and know what locals are going through. People often think it is the unemployed that find it hard but when at least 70% of wage goes into your house each and every week it those too who need a little hand from time to time. They also have a free community dinner and entertainment on a Friday night too and we have meet other local families and the girls are not getting some friends to play with while you have dinner. Nothing flash by any means - it might be a sausage sizzle or steak sandwich but it the commumity showing support amongest the community that is the true support when everyone is struggling to keep a simple lifestyle going. 

The thing is life goes on and things will get better but at what cost? We want a life not being at the mercy of the money hungry big companies. At the end of the day a we have decided a house is just a house whether you own it or someone else. 

Janine

marina replied:

I am reading an awful lot about families who are homeless.

I have heard of stories, but do not know anyone directly. 

Sales  have been as strong as ever in PP and has not affected my business at all or that of my team.

I believe the worst is over as far as interest rate rises go..they say we are are peak and interest rates should go down, but then it is a catch 22, when interest rates go down, house prices go up..,, it is all cylical..

Are you feeling the pinch of the increasing cost of living?

we are fine.. increase in income from PP has saved the day....

jazzyjools replied:

Where I live in SA it is the drought on top of Mortgage Rates and Fuel prices making life tough for families.  This in effect is passed on through price rises on staples such as bread milk etc.  No rain effects a lot of people not just farmers.  At a recent party a lady was saying her partner had to apply for drought relief his occupation is as a weed sprayer.  No rain means no weeds and the same thing for gardners.  I could go on it is really tough for many hard working Aussies at the moment.  I hope it gets better sooner rather than later.

MJ78 replied:

Life is definitely harder these days.

I went from a full time teaching position with my dh working in yardman duties in a scaff yard. to having children to me not working - i think thats how it goes with everyone though.

initially it was easy. the one child and mortgage repayments at a low interest were all good. then i did a few odd jobs. then child two came along and it has got a lot worse - with the rising costs of everyday living.

i have had to go back to work on the weekends, as i can't afford to work through the week because my daughter would have to go to daycare and it would cost us just as much as me staying at home with her. although soon i will have to just do it i suppose.

with my son at prep this year, kindy fees are non existent from last year, so i thought it would be easier to get by, but no - we spend more money on groceries and fuel.

we have not done much as a family in ways of going out together where we are paying for things to do, we basically go bike riding at the park etc, or to the beach.

thankfully we locked in our interest rates at a low 7.9% for three years, so that is the only thing that is keeping me from full time work at the moment. because our mortgage repayments are $800 more expensive per month now than they were when we first built our home 5 years ago. we have had to borrow more money to consolidate loans and credit cards etc.

our cc is still up at the $9000, i try not to use it, but when a bill comes in like my rates this week $600 for a quarter and $400 electricity bill - (even they have gone up in the last three years nearly doubled), we just can't afford not to use our cc to pay them, because all our other money goes on mortgage and living expenses for the month.

we are a bit better off than last year, but a lot off when i first left work 5 years ago.

kayak replied:

With all this recent talk of a recession will it be that people will not have money to spend so would not book parties or because people need some extra cash it will be good for recruiting?



I am interested in hearing about experiences people have had with their direct selling business during tougher times.