After the Credit Crunch: Where will you be in ten years?

In ten years time where will you be? Still living in the house you’ve sold your soul to the bank for or renting property, treading water in your job until you can retire on your state pension. These are the days that will make or break the rest of our lives and those of our children.

The most scary thought is that we are on our own, because the banks and government will make the tough decisions and we, the little people, will be expected to take responsibility for their actions. Whilst all around are losing their jobs and homes where will you be in ten years time? Because only the lucky or the rich will come out of the credit crunch with their lifestyles intact.

So what can we do? Firstly sit down and do a budget. The credit crunch is hard to face but better than letting everything get away from you. Think about consolidating any credit cards or loans you might have and then cut up the credit card so you can’t start any new debts. Talk to an independent financial advisor. Face the problem head on and take charge after all your house is your home not just an investment property for someone else.

Secondly look for any (legal) way to earn some extra cash. Anything from taking on a second job to selling all those old CDs, DVDs and games that you no long use on Ebay or Amazon. Have a de-clutter and do a car boot sale. Use old toys and clutter to help pay for Christmas.

Finally cut back on spending. Stop buying branded goods, change your shopping habits by going to shops like Lidl, Netto or Aldi. Use BOGOF offers on goods to stock the freezer. Once a month, do a freezer shop for meat and frozen veg. Stop wasting food; it’s just the same as throwing money in your bin. Go green, but don’t go out and buy every energy saving gadget on the market. Turn off lights, switch off appliances, don’t use standby. Turn down the central heating thermostat and close curtains to keep in the heat. Invest in wheat bags or hot water bottles and stop heating bedrooms that aren’t being used. Start composting and growing you own vegetables, even in a small plot it’s a fun, cheap way to amuse the kids. Quality time with your children doesn’t have to cost money.

These are early days, but if we hide our heads in the sand worse will happen. Taking charge of our finances means some hard times ahead. The housing slump only affects those people who need to sell their houses and those who have mortgages higher than their income will support, but all of us need to think about the last ten years spending spree and ask, was it worth it?