For the average UK family times are still tough and they best that they can hope for is that they can retain the status quo until better times come around.
Surveys are beginning to show that there is more optimism around, the worst is over and most families are digging in for the long haul.

This means that when the family sits down to discuss their budget (which we all know that they should) then the principal factors that should be taken into account are:

1) How much do we earn?
2) How much do we spend?
3) How much can we afford to spend?

Hopefully all three questions should have roughly the same answer, but if they don’t adjustments have to be made. If cuts have to be made they should be, and families that have attempted to borrow their way out of income shortfalls have learned that in the long term this is a recipe for disaster.

The next stage for many families the next decision is where do we cut? Many families make the wrong decisions at this stage, usually under peer pressure, a modern epidemic of the Western World. Why do with a model 2000 car when the next door neighbor has a 2002, and so on. Why should your little Arthur have a 17″ computer screen, when Damien his best friend has a 22″ with quadraphonic speakers? The list is endless.

And does your next door neighbor or spoiled little Damien know or even care that you are under-insured and even under-pensioned?

The sad facts are that too many families in the UK fail to take their responsibilities seriously as far as insuring their properties, their possessions and even worse, their health or their lives. The theory that “it can’t happen to me” or” let me get through the next six months, and I will see to it” is as dangerous as it is irresponsible. Too many families or individuals don’t get that six months and when calamity strikes they are left totally or at best partially exposed and the ramifications can be much more traumatic than the event itself.

So when it comes down to look at what to cut, do yourself a favour; add insurance and pensions to your list of “untouchables”

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Tags: Banking and Insurance, Budget, Economy, Financial News, Insurance, Tesco

Estimates have it that by next year, the U.K. will have the unfortunate distinction of being the holder of the largest budget deficit in the developed world, almost entirely reversing the country’s hard earned status as the role model of a successful and wealthy financial services epicenter. A status that she has held for the last decade.

With the UK’s s budget deficit soaring to a staggering twelve percent of gross domestic product, who could now take Great Britain’s role as the key player on the global financial services stage seriously, and with forecasts that it could take at least another ten years to get the country’s finances back into some form of healthy financial situation, it seems likely that the UK financial service industry will be placed on a back burner for years to come.

While no one is confirming the fact that the UK crown has slipped, it is hard to disguise the fact that our credibility has slipped, and at a very crucial time. Jobs in the financial service industry in Great Britain are under serious threat. Tens of thousands have already disappeared as cut backs continue on a widespread basis, and the estimates are that more than 70,000 will disappear till the crisis runs its course

Despite the fact that the UK Treasury has pumped billions of pounds into the Banking and Insurance sectors to prevent a meltdown in the city, there seems a scant chance of a return in confidence any time soon. In order o recover at least some of their investments; the Treasury is demanding a whole new set of standards from the financial institutions. These standards mean that, in any event, dealing with the “city” will be a lot less attractive, it is only reasonable to suspect that the World’s financial movers and shakers may well be taking their business elsewhere.

The financial input from the financial services industry will be sadly missed, contributing almost eleven percent of the UK’s gross domestic product as recently as 2007, more than double of what it was just ten years previously.

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Tags: Banking, Banking and Insurance, British Economy, Credit Crunch, Financial News, gross domestic product, UK Banks, UK financial