Self-Sufficiency in Style
Self-Sufficiency
& the Credit Crunch
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Self-Sufficiency in Style Self-Sufficiency & the Credit Crunch
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What's the impact of the credit crunch on Self-Sufficiency? |
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Hard times make self-sufficiency a necessity rather than a hobby for the rich, that is for sure. Indeed, genuine self-sufficiency always was more than a mere dream, for some it was a necessity. There always were odd corners of every society where self-sufficiency survived as a way of life. |
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There isn't a conflict. The beleaguered ranks of the original self-sufficient will, despite the general unpleasantness of a shortage of money in the system, welcome the newcomers out of self interest. Genuine self-sufficiency is not a business, there is no competition and no desire to dominate or "educate" the newcomer. More than that, there is the prospect of new allies to help turn back the ever encroaching threat of state control. The newly self-sufficient will quickly be horrified to find what they could do for themselves, but which they are not allowed to do, by diktat and arbitrary rule. You can find something of what you face in Outlaws! |
A crowd is gathering - good! |
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We have convinced ourselves that houses are an investment rather than a depreciating asset. |
The subject of national
self-sufficiency always comes to the fore in times of credit and financial
crises. This particular recession or depression, much more than those of the past, is genuinely international in scope. If there is blame to be shared, it will be among the English speaking peoples with their obsession with home ownership and property values - and the greed of their bankers. National Self-sufficiency has nothing to do with the narrow protectionism that will often be touted as a solution to all ills. You can read of the brighter more intelligent side on National self-sufficiency |
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The credit crunch is, in essence, very simple: too many people borrowed
too much money using the security of assets that suddenly became worth
less than the borrowings. Nobody, and that includes the banks and banker, trusts one another any more. It is going to take time to nurse international, national and personal economies back into good health. It is going to need a gentleness that we do not associate with high finance. If you face repossession, do remember that nobody wants the house any more, certainly not your lender. Any half reasonable approach from you is likely to be reciprocated once you get past the canned music and those dreadful people who read nonsense from a script. Stay calm, stay cool, stay constructive and stick to the point. |
There are no buyers at the moment |
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This came home to the writer last night. The death of a very elderly relative means cousins have inherited a large rambling and now decrepit old house, miles from where they live. They have not a clue what to do with it, and neither would the writer, in such circumstances. The market for houses has collapsed. The weather is getting cold and the pipes will freeze and the roof leaks. The taxes must still be paid. Think about it. Think about if from the bank's perspective if they have loaned against such a house. They wouldn't want it back in a hurry. |
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A million is just too small a problem! |
A friend, one of the world's outstanding businessmen, used to chide the
writer for his cautious approach to borrowing. "Look at it this way Pat. If you borrow a million and can't pay the interest that's your problem. If you borrow a billion, it's the bank's problem." If you owe more money than the house is worth, your lender has a problem too. You just have to cut the spending and pay as much as you can, and that is what self-sufficiency is all about: living on less. Self-Sufficiency in Style is about living on less in considerable comfort in a real world. |
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everything. You take less of the world's resources and those you do take,
you harvest gently. Things that seemed important fade into the background. The world goes on around you. You are aware of the pleasures and pain of others, but the urgency and sharpness vanishes into the routine of the seasons. You don't need the latest TV or the most modern car. The lure of the exotic holiday fades along with ambition and envy. |
The load becomes lighter. |
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Get a grip of the situation by knowing the scale of the problem. Peace of mind is one of the rewards of being truly self-sufficient |
Part of being self-sufficient is being self-sufficient financially. The writer used to use a battery of accountants, retired he used one only once when tax became complicated and then spent most of the time correcting their mistakes. You know more about your financial affairs than anyone. You must take charge of recording your expenditure and receipts, of anticipating problems and taking appropriate action. The truly self-sufficient know their financial position and the need to get it into a controllable situation. It seems to be a universal truth that those who get into financial trouble never actually keep proper accounts. They kid themselves. Immediately, they get the full picture, although that is often far worse than they thought, they begin the process towards finding solutions and true peace of mind. Acquiring that peace of mind is a question of many small steps, each tiny and seemingly unimportant. They add up. December 2008 |
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...fighting the credit crunch with peace of mind - from Hangman's Cottage, just to the south of Misery Corner. |
