Like swimming the English Channel – can you make it to the other side of the recession?

April 15th, 2009 by admin | Filed under Daily News, Global Credit Crisis, Recession, UK Bank Accounts, UK Banks.

The current recession has been with us now more than a year and a half, and some say that it has reached its peak and is now in decline. Forecasts are that by spring of 2010, some levels of stability will have been reached, and the UK should be over its worst, if there are no other surprises in the offing. Many have compared this major financial downturn to that which put the World on standstill for almost a decade. There is a major difference, and that is that the global powers that be are not prepared to let it drag on for too long, and are prepared to invest a lot of their taxpayer’s money to kick start the economy as soon as it feasibly possible.

You can compare surviving this three year recession to something like swimming the English Channel, a relatively short distance, with some stormy currents on the way, and it is possible to say that we are now in the deepest and most treacherous waters. However a friendly coast line is not too far away. So how can the UK public survive in these stormy waters and push themselves to safety?

There is no doubt that the treasury have been throwing in some fairly substantial life rafts to help keep the UK public afloat, but when it comes down to it, it is down to each family of individual to take whatever steps necessary to make it to the shore of financial security.

The first steps that need to be taken is to decrease spending to a minimum and try and set aside a regular percentage of weekly income aside in the case of the unexpected. It is no coincidence that high street retailing and new and used car sales are at a record low, with the clear message that comes with it is, if you don’t need it or can’t afford it, then don’t buy it. The secret now is to have money behind you and not to borrow money to finance purchases.

The irony is that now interest rates are so low and prices haves never been more competitive, but the UK public needs to come to terms with the fact that consumerism for its sake is over, and for a very long period of time to come. Money will be hard earned for a long time to come, and even when we reach the shallower waters it will still be tough, with 3 million people expected to be unemployed by the spring of 2010.

No one can be guaranteed a higher standard of living than they earn for themselves from their labours, and hopefully when we step out of the water we will be both leaner and wiser. See you there!