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Should you still be spending?

Is spending liberally in the current climate tantamount to burying your head in the sand?

Higher mortgage payments, lower bonuses and the threat of joblessness all mean now may not be the time to book a sojourn on Necker Island.

Some people appear to have arrived at this conclusion already.

The Telegraph has managed to unearth an RBS banker who lost his job last week, but who’d at least curtailed the urge to extravagance before the axe fell.

‘Jonathan’ told the paper he’d had a presentiment he might be made redundant. “We were due to move to Kensington before Christmas but we’re staying in Fulham instead and delayed sending our four year-old to private pre-prep school for a year. We’ve also kept the car rather than upgrading, cancelled skiing and didn’t book the house in the South of France for the summer.”

The Wall Street Journal, meanwhile, has unearthed ‘Derek’, a former Bank of America equity salesman who has taken to cooking his own meals.

Jonathan and Derek may, however, be in the frugal minority. Armani, Tiffany’s and Theo Fennell have all reported robust results recently, suggesting some big spenders are still spending big.

This may be a bad idea. “Others I was working with carried on, assuming things would pick up – they’ve got to make all the cuts now,” Jonathan points out.

Cut now, or keep dancing? Air your opinions below.

Comments (4)

  1. everyone i know in my street is cutting back. i know of 2 cancelled holidays, a recently purchased car that has has to be re-sold and 2 accountants who are growing their own food to avoid the supermarket prices. a significant minority of economists i know have started talking about bread queues before long and, last but not least, a social policy maker in government has told me that police have been put on extra riot training as the upcoming economic slowdown is predicted to cause social unrest.. dark days indeed.

  2. I know I’m saving more and so are my friends. I’m now using public transportation to go to work because of the rise in gas prices. I think there are still some people who still don’t realize how bad the economy is getting and will get so they are still spending like crazy and charging everything on their credit cards (bad idea)and not saving or even putting anything into retirement.

    Stacy in Houston, TX Reply
  3. Ouch!

    Martial Artist Reply
  4. I am currently eating sand and taking my holiday in a small public convenience in Scarborough.

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