What do you do just in case things do go to hell in a hand basket?
Filed under: Cost of living, General Budgeting, Interest Rates, Credit Cards & Mortgages in NZ, Jobs & Work, Life in New Zealand
Irrespective of what I personally believe about what is happening in New Zealand financially or with jobs; there is no denying that people are scared. I may have a gut feeling that people do not need to be – but let’s be honest – it is hard to ignore all the headlines telling us “The Sky Is Falling”. It does sound as though you will be out of a job and on the street tomorrow.
So what can you do if you want to be prepared just in case the papers get it right – whether or not they base their assumption on something as silly as what happens in the US?
Well, in a meeting with my Bank Manager just before Christmas, I was told that the bank was figuring on another 2 years of pain before things start getting better. The length of time this “recession” will last depends entirely on who you ask – so I wouldn’t place any bets just yet. But as we talked over a few things: I figured: why not plan for the worst and hope for the best.
So – in addition to making sure I put as much money as I could into our emergency fund (IBM still haven’t sorted out Hubby’s Job Contract – despite the 15 mangers signing off on it), we are doing the following:
Paying as much as we can off our Personal Mortgage as fast as we can.
Not using credit cards if we can’t pay off the balance in full each month.
Watching our spending so that we spend significantly less than we earn.
Basically – exactly the same things that we do anyway.
If you don’t do these things already – now is the time to start. If you have credit card debt – make it a priority to pay it off as soon as possible. Throw any spare money at it you can. And cut up the card so you don’t add to the problem. Remember that credit cards in New Zealand charge a stunning 20% interest. And if you don’t already keep a close eye on your spending – then start.
Apparently the “economy” needs us to spend up large to keep it afloat. Well, the “economy” can cope without my money. It hasn’t had much of it for the past few years – so it won’t miss it now. If it wants it – it can reduce my fixed rate mortgage interest – and then i’ll think about it.
Related posts:
- Why are Credit Cards still charging such high interest rates in New Zealand?
- And New Zealand Interest rates come down yet again.
- Avalon’s Money Thread: Am I a Big Spender?
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