Damn, why were we so sensible?!

P

Phibbleberry

Registered User
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166
In the last year or two, we didn't go mad- we had holidays/bought what we wanted aswell as needed; but we did it with money we had, not money we borrowed from the bank.

We were also offered a gift from my parents towards the house. As we could manage the deposit and mortgage, I decided I'd rather have it in reserve, as an emergency fund, or to facilitate taking some unpaid leave when we have kids etc.. (its always been specified that this is to go into the bricks and mortar - not for a wedding/to buy a car etc.., its for mortgage only, and I planned to honour that.)

We have also saved a small bit, to cover us for a couple of months unemployment or in case the boiler blew up. Its not substantial, but given that we've very little borrowed (bar mortgage and c. 5k outstanding on very low-interest loans) we're probably far better off than an awful lot of people in our situation. But its taken a life adjustment to save it, all the same.

So, we've done well 'til now and have everything we need for the moment, but theres a very real possibility that I will be out of work in the next few months. And I'm starting to feel a bit aggrieved. I'd be interested to know if people think I'm justified.

I would work anywhere, I'd go mad at home doing nothing (like the majority of newly unemployed), so if (or more likely, when) I get made (statutory payout only) redundant, I will most certainly be very, very actively looking for a job.
However, should I fail to secure work, which is not beyond the bounds of possibility next year, and it goes on until the point that I run into a period where I am means tested for welfare payments, the precise fact that I did NOT go mad when many of my peers did, is going to bite me in my @ss! I don't believe this is fair.

It means that when we do get back on our feet, we will have no more nest egg, it'll be gone, and could affect all future decisions -marriage/babies etc..

I feel like going out and spending it all before this happens (but on positive things - paying off outstanding loan, household goods, heII even prams/cots for future use etc...) so that at least I have something to show for it, and will get use out of.
I don't feel thats fair on the genuinely needy - but I do feel its fair on all the people who have nicer cars, bigger TV's and better tans than I do. Well, the credit-paid-for ones, anyway.

Am I being unreasonable?
 
Well you've got a couple of months yet. Go and get a loan for about 20k, buy a huge LED TV, PS3 etc. Go on holidays and blow the whole lot on having a good time.

Then when you do get laid off, you'll be like everyone else and life will be so fair!

Seriously, I can't make out if your post is serious or not!! Withdraw your money from the bank and stick it under the mattress. It'll be at least as safe as where it is.
 
You should look at the social welfare threads..some very good advice there.

If you have paid enough stamps you will get job seekers benefit..and you wont be means tested. If you didnt earn enough stamps you will be means tested.
 
You are aggrieved that if you are being means tested for JA your savings will reduce the amount that you will get. In these circumstances, it does make financial sense to use your savings to pay off loans and mortgages anyway to reduce your weekly outgoings. It makes no sense to have loans and savings, especially when your income is low.

that is what savings are for - a rainy day.
The JA is very low, you may end up eroding your savings anyway just to get by. You will still be better off that people with larger loans to pay off. Its not like they will be getting thousands more in benefits than you are. You have done the right thing so far, be thankful for that, and proud of yourself, so you should work on getting over the bitterness that comes through your post, and be positive about the future.

Bitterness will erode your mental health, which is much more important that your savings.
 
I can sort of see where the OP is coming from in some respects.

But those that are in debt to their eyeballs may have to declare themselves bankrupt, which is a very serious thing for an individual to do. Will really mess up your credit history !!
 
I dont wish to be too harsh. I am trying to point out that the OP is doing everything they can for their own financial situation, which is great and getting stressesd about others will not make life better, but instead will make your overall life worse.
 
From what I recall your house doesnt come into the social welfare means test, whereas investments do.

So to take it to a ridiculous example, you are unemployed but have €1M in the bank, you fail the means test. You buy a house for €1M cash, have no savings, so you get welfare.

Applying that to OP, you could consider using the "excess" savings (if any) to pay down the debt. It should help on your means test calc.

BUT I'd check it out & be 100% sure on it before taking that action because while its easy pay more into mortgage (especially if variable), I'd say its far harder get "equity release" and take you money back out if you're stuck.

First Actives current account mortgage used to be handy for that, before they changed/(abolished?) it. Basically your savings pay down your mortgage until such time as you withdraw them (and in full control of the withdrawal).
 
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