Save or spend?

The budget is looming,not just this year but for many more to come.
Based on what you hear is coming down the road,are you inclined to spend or save?

For me,its about getting rid of as much debt as possible,keeping anything extra just in case,well not just in case in fact,as we know we are going to be hit hard for the foreseeable future,so its not just in case,,its a fact.

In other words where I may have in the past ,when I had spare money actually spent it on restaurants/stuff for the house/clothes/hair etc, I would be too nervous to do that now..

There is a case for spending to keep the economy going,but the government have made sure this wont happen!
There is also the case that the less we spend the more jobs will go and its a viscous circle.
So do you protect what you have and have a buffer or do you spend what you have to keep people in jobs.
If you spend what you have and you lose your job ,your in trouble..

I'm probably doing all the wrong things according to the Government

My savings are with Rabobank.

I buy books, DVDs and most anything over the internet. Comes from Jersey, it's quite rare that customs would stop it for VAT, happens now and again. So I'm not paying much VAT on my purchases or supporting Irish stores. Do you pay VAT on food?
These are legit online stores

I buy sports jerseys and gear off ebay, no way would I pay the prices in Irish stores

Never had a holiday in Ireland, go abroad every time

And I gave up my Dublin Bus and Luas annual pass which cost several hundred, cycle these days.
That bike was bought in Belfast, got a great deal

Computer bought in Newry and software/games can be bought online instead of a store in town or wherever

I'm no patriot I guess, I buy cheapest where I can find it, Irish or not

I'm going on as normal. May be crazy but hey, what the hell.

I've recently bought a new house, trying to get rid of my 1st, and will hopefully be moving in the next month or so.

I am in private sector, wife a public sector employee. Know for a fact that her wages are going to get hit hard over the next 4 yrs, but we should survive. Hopefully.

No point getting yourself all down about the impending doom. You can't change it.

@micmclo... Who could blame anyone for doing any of that..

Spending.
This is because I can see no safe place for my money. I'll spend while it has value. Buying long term stuff mainly.

(We're all in trouble anyway.)

True.

If I had a few hundred thousand saved in the bank in Ireland I wouldn't feel too confident in its long term future.

I am saving, saving, saying. Thankfully I am debt free and have no mortgage on my house but I am not wasting a cent these days.
I lived well during the Celtic Tiger days but where I work I am very busy but only because staff has been cut to the bone and the extra load falls on my desk.
All contractors have been let go, bonuses gone, no pay rise in 3 years and over time expected to be done without pay.
However, I know how lucky I am to have a job as a lot of my friends have lost theirs.

So, I am saving a lot of my salary in the event of the axe falling. It may not happen but I want to be prepared in case it does.

Micmclo admits that patriotism is not one of his/her best attributes. And to be honest, I would be at odds to debate what was said and in a debating circle my arguments would be on to a sure loser.

Look closely at what was posted. It sets a scene for a doomed future for Ireland Ltd. Sooner or later everybody will cotton on to buying online and abroad (even those of my age group). The tragedy is that there is no end in sight and it appears that it is only a matter of a short time before Europe takes us over (probably would have happened more recently but Greece beat us to the draw).

The reality of course is monetary self strangulation and consequently the likes of Micmclo will be out of a job and wondering what happened and with no future prospects.

thedaras said:

There is a case for spending to keep the economy going,but the government have made sure this wont happen!
There is also the case that the less we spend the more jobs will go and its a viscous circle.
So do you protect what you have and have a buffer or do you spend what you have to keep people in jobs.
If you spend what you have and you lose your job ,your in trouble..

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This is a very common misconception and fallacy of political economics. Saving does not mean that the money is sitting idle and not going to work in the economy. When people save, the money is used by banks to make loans, this means that savers merely let other people do the spending for them.
While Irish banks have severely cut back on lending this is a good thing. Ireland is too far over its head in debt and needs to move away from a credit addicted consumption economy. The only stable base for an economy is real savings, and Ireland has a lot of catching up to do.

As for my own situation, it is very much unchanged. I still save a very large portion of my income, just as I did during the boom. I'm actually able to save a lot more, despite having a new baby, because we sold our house about 3 years ago and have been renting since. I always shop around before I buy something, and that includes foreign online shops, where the biggest savings can be made.

micmclo said:

I'm no patriot I guess, I buy cheapest where I can find it, Irish or not

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I would say that your actions are very patriotic. You are voting with your money that you do not agree with the prices charged here in Ireland. Your actions are highlighting the fact that Ireland is totally uncompetitive in so many areas. The government and public can bury their heads as much as they want, the fact is that prices for labour and goods have to come down. I, for one, have been voting the same way you have, and will continue to do so, even if I am made a scape goat for "damaging the economy".

Spend or save, a mixture of both for me. Firstly I'm making sure I have no personal debt, if I can't afford it, it means I don't need it or buy it. It doesn't mean I don't use my credit card, just that I've got a lot more diligent at clearing it off at month end.

Secondly, I am saving for a rainy day. Everyone should save and have a sum set aside for if they loose their job or end up on long term illness etc. We can't depend on the state supporting us in the future and have to take responsibility for ourselves and our families.

I am spending, but being more prudent and careful. If I am getting a job done, the first thing that is certain is whatever quote I get, will not be what I pay, I push back and get a better price or go elsewhere. I also expect value for money and am far less forgiving of poor service. I used to shop in the North a lot more, but since retailers have reduced their prices down south(as a result of people voting with their feet once they realised they were getting ripped off) I've not been up there in a few months.

micmclo said:

Computer bought in Newry and software/games can be bought online instead of a store in town or wherever

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amazon.co.uk pay any VAT collected from Irish based customers, to the Irish exchequer.