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Money management

Desmond79

Having totaled both my annual income for PIP and the best potential rental income, I still wouldn't cover my expenses. I would still earn less than a Grand a month. (and that would be me making cutbacks)

Hyperinflation always decimates a currency. Our buying power is being stripped. But so many are in debt, they're golddust come election time. 

This issue can't be resolved by more earning. It's an existential issue. Getting off the Hamster Wheel is tough, but the rewards are there. 

  • It’s wild how much inflation messes with our finances, especially when it feels like no matter how much we earn, it’s never enough. Getting off that hamster wheel is hard but definitely worth it if you can find ways to cut expenses or generate passive income. It's all about finding that balance and figuring out what works for you.

  • in reply to NAS80790

    I save windfall amounts of money (I.E. I more than I need to live on) by converting it into Gold or Silver coinage.

    Yes, there are two conversion losses (usually) to be absorbed before I get the cash in my hand again, but a year or so's inflation takes care of that.

    And savings is savings, so I don't intend to be spending it any time soon. The clinking of gold coins in a bag beats looking at numbers on a bit of paper, that's for sure. 

  • When dealing with hyperinflation and struggling to cover expenses, seeking professional guidance is crucial. Remember, there might be options available to help navigate tough financial situations.

  • Consider consulting experts for personalized advice. Exiting the hamster wheel may require strategic planning.

  • in reply to MarleneVega

    Actually, I am doing better. Spending less on food is the biggie; for me.

    My big expenses are Diesel and LPs.

  • Indeed, because of hyperinflation caused by the ongoing war in Ukraine, the prices in every sphere went up so sharply that ordinary people barely bear everyday challenges. While surfing the internet, I found some interesting information about liquid net worth. Liquid net worth https://thecentsofmoney.com/why-liquid-net-worth-matters/ is an easily reachable asset in emergencies like medical conditions. However, I wonder how is it possible to put apart some savings for such purposes while you barely cope with daily spending, when your revenue is merely covering your surviving necessities. This life sucks.

  • in reply to Desmond79

    Agreed. I had a mortgage 3+ years ago for a tiny flat in Salisbury.... I ended up losing money on it. I've subsequently checked its size, and seen that in those 3 years it's gone up a  whopping £1,000!! Laughing 

    I like the German rental model, and for me, I probably wouldn't buy again, a. It's probably unlikely I'll get a mortgage again, but b. It was a massive stress buying and selling... what is it they say? One of the top 3 stresses?

    In Germany its very much renting. And where houses are owned. It tends to be divided by ground floor and first floor. The parents get upstairs, children downstairs. Until such a time when it makes more sense physically to swap. 

  • in reply to Chris

    Mortgage-based economies are always set to fall flat-about-face.

    All the houses in my local area are snapped up either by Teachers, or ones returning home from London. 

  • Hi Desmond. I don't know if you claim UC? You've not mentioned in this post. I get UC with LCWRA, but can also do 15hrs/week on top earning just over £500.

    The reason I mention UC, is you'd also get a housing allowance. It's never fun to claim, but with me:

    PIP = £240

    UC (LCWRA) = £700

    Housing Element* (in my location) = £650

    Earnings* = up to £500

    * I don't claim housing allowance at the moment as I live with parents, it's something I will claim when I move out. Earning is potential, I did some temp work before Christmas, but it amounted to £225... I struggle with work.

    Just thought I'd highlight as I'm looking at accommodation at the moment, but one of my big issues is it seems to be standard practice that you need 30x the monthly rent, as an annual income, in order to rent???

    My annual income would be £19.5k without including wages

    The cheapest private rentals in my area are £800... x30 that's £24k... its crazy!!