Tightning the belt

J

JacquesZA

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We all knew the low interest party wont last...

So what if anything are you doing to absorb the current and coming rate hikes?

Im re evaluating my disposable spend ( groceries, etc)

Also relooking my current insurance portfolio to see where there is unnecessary fat.
 
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Nothing. Have a big buffer in my income specifically so that I don't have to cut down when times get tougher. Granted, the only debt I have is a bond which is the wife's responsibility to pay anyway.
 
I am lucky when I entered into my Car and 1st home bond I never dropped my payments as the interest rate decreased. Now I have around 1 % buffer before it actually impacts the cost per month.

How ever this is not the case for my 2nd bond.....:( have not even paid 1 installment yet and we back in an upward cycle. I may just have to start hawking my stuff this year.....
 
Shame, it's so rough now, you can even afford a proper belt anymore and have to use a beld.

Anyway, I can cancel discretionary investment debit orders. Not much else I can cut, I'm properly budgeted and don't spend much on luxuries.
 
Ja ja... Didn't have time to fix the spelling..

Back to topic, those of us who have / had buffers are lucky. I know of a few people who just scraped by.
 
Didn't have time to fix the spelling but you have time to write that?
Go edit the thread title you lazy tnuc.
 
JacquesZA said:
We all knew the low interest party wont last...

So what if anything are you doing to absorb the current and coming rate hikes?

Im re evaluating my disposable spend ( groceries, etc)

Also relooking my current insurance portfolio to see where there is unnecessary fat.
Click to expand...

Entertainment will be managed by less expensive things. Also looking at my insurance as well as buying a bit more in bulk (groceries).
 
Buying in bulk (Makro) does help. Also watching out for specials at the local Supermarkets. ;)
 
We where already putting almost double payments into the bond so the interest rate hike and all the inflation just means we pay more interest each month and now I may have to lower that debit order a bit and pay the bond off a few months later. Actually I'm really glad I built that cushion in as not only have I paid a lot extra into the bond while rates where low (meaning I save even more now that rates are climbing) but also I have a no brainer budget category to cut a little at times like this.

My advice to people is that if you are feeling tight now and are in debt in 2 years time it will probably be worse. Rates are still at record lows and if they go up another 5% where will you be? Its best to cut back lifestyle a bit and move to a cheaper area/school/car/whatever now on your own terms than be forced to later when you are even more indebted.
 
This is why you get a fixed rate loan, even if it's 0.5% or whatever higher than the linked rate that you would have gotten :p
 
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