Household expenses

Just a quick note to say something about household expenses.

Expenditure = Income

(… unless you max out your credit card… but you can only do this once)

So if any houshold item increases in cost, for example gas/electricity, then something else has to either be abandoned, or its cost has to go down.

The question is what will go down, under financial pressures?

It seems that little is susceptible to these pressures… Mortgage? No the banks have got you by the short and curlies here, even if the housing market goes down, they still want the full value of their loan to be paid back… Food? Yes you could starve yourself, but only so far! …Energy? Yes you can cut this down by 18C freezing instead of 21C warm, by sitting in the dark, by not watching TV or using the internet, by eating cold meals, by insulating your house. But none of these choices are pleasant, and insulation is expensive in capital terms (why spend capital to save expenses… Taxes? Very unlikely as these taxes pay for local services, but there is some room to demand they are cut… what else??? Oh yes, insurance! Have you ever seen this come down, yet again financial services have you by the short and curlies.

The problem then is that very little is susceptible to market pressures, and that is a major problem which is causing people to scream and shout about any price increases.

We need to look at things very differently and keep in mind the best split in expenditures for your family.

Of course the other solution is higher wages and pensions. But both of these are highly dependant on market conditions. You can change your job, if you have guts and qualifications. But you are unlikely to be able - no really it is impossible - to increase your pension.