When it comes to income, everyone should be a “prepper”

Over the weekend I listened to the James Delingpole podcast featuring Irish journalist Kevin Myers as his “very special guest”.  I’d not heard of Myers before, but the first twenty minutes or so was dedicated to his spectacular fall from grace in the eyes of his employers.

To cut a long story short, Myers is a journalist of considerable experience having written for the Daily Telegraph, the Irish version of the Sunday Times, and the Irish Times. In July 2017 he wrote an article for the Sunday Times regarding the gender pay gap at the BBC in which he included the following line in relation to Claudia Winkleman and Vanessa Feltz who were paid more than their counterparts:

Jews are not generally noted for their insistence on selling their talent for the lowest possible price, which is the most useful measure there is of inveterate, lost-with-all-hands stupidity.

Myers is a right-wing journalist who expresses views which upset progressives, but he has been solid enough on the subject of Jews and Israel that painting him as a rabid anti-semite is ludicrous. Nevertheless, in the early hours of the morning the piece went online and before it was even printed, a coordinated and determined effort had been made by peoples unknown to do just that, and when Myers woke up the next day he found social media littered with excerpts from articles and memoirs he’d written up to a decade earlier all carefully selected to portray him as an anti-semite. He says he has no idea who was behind it or how they managed to mobilise themselves so quickly, but he dismisses the suggestion that it was offended Jews and presumes it was SJWs who don’t like his right-wing views.

Anyway, his employers took serious issue with the piece, even though it had passed through an editorial process consisting of no less than seven people (all of whom kept their jobs), and fired him. He is now blacklisted from every major publication he used to write for. What distressed him the most is the people who fired him seemed to take an almost perverse delight in doing so, gleefully seizing on the opportunity to virtue-signal. Up until that point he had considered some of these people to be his friends. The Irish Taoiseach Leo Varadkar – the one who Theresa May seemingly reports to – also got in on the act, denouncing Myers in public as being misogynistic and anti-semitic. In other words, Myers is pretty much fucked.

Shifting the subject a little, I am aware of the existence of a bunch of people that Americans call “preppers“. These are people who are convinced that a complete breakdown of society is highly likely if not inevitable, and they want to be prepared when the day comes. This involves copious volumes of online discussion on what food and equipment to store and in what quantities, and the decision of when and how to “bug out” and where you’d go and what you’d take with you. I’ve seen TV shows of fat bearded men who’ve built underground bunkers in their back yards filled with ration packs and ammunition saying things like “These tinned peaches will be currency when the world breaks down, man!” I suspect in most cases these guys would be overrun by a mob as soon as word got around they had food, but the discussions are useful and there are enough anecdotes from people who fled hurricane Katrina or survived the siege of Sarajevo to provide some handy advice. (Anyone who is interested in reading about this should visit Bayou Renaissance Man and scroll down his sidebar to the links under “Articles on Emergency Preparation”)

I thought of these prepper guys when I listened to the situation Kevin Myers now finds himself in. Much of the prepper talk is about self-sufficiency, how you must learn to be absolutely self-reliant and not count on assistance from absolutely anybody except for family and perhaps a few like-minded close friends. When a situation goes south, relationships turn sour instantly and the people you thought were your friends are now threatening your whole existence. For all their paranoia, the preppers have at least got that bit right.

The more I read about the behaviour of managers in large organisations, the more I think employees should start adopting the mindset of a prepper and plan accordingly. I can well imagine there are millions of people whose entire livelihoods, and those of their families, are entirely dependent on the whims of one or two people who have a solid track record of looking after their own interests, principles and ethics be damned. This is not a good situation for anyone to be in.

There are a few ways one can prepare. The first is to learn a trade or skill that is in short supply, enabling you to pick up work across as many companies, industries, and locations as possible. Another is to work primarily for yourself as much as possible, or with one or two trusted individuals. If Myers ran a blog and charged people a subscription, it wouldn’t matter what his boss thought because he wouldn’t have one. This might not be possible or bring in enough money to support a person let alone a family, but combined with something else it might be. One could work part-time as a tradesman, part-time as a blogger, and collect rent from a property or two. That way, if one income source falls over you have another one or two which you can use to pay the bills. Sure, you might need to work as a corporate drone for a decade or two before you can diversify like this, but I’ve noticed the preppers in America aren’t exactly youngsters either.

Another option is to form a union, which is why they exist of course. I’m no fan of unions in their modern form but I can understand why people feel the need to join one, even if they often seem more interested in extorting the taxpayer and playing politics than shielding their employees from bad managers. The UK’s experience with unions is appallingly bad, but I suspect this is simply a reflection of equally appalling management. By contrast, German unions don’t appear to be as militant and self-destructive which is probably because German managers are more willing to have a productive discussion with the employees in the first place. Should I mention France? Perhaps not, eh?

With large organisations and employers fast heading down the route of political correctness and social justice pandering, people are going to have to start realising that loyalty doesn’t exist, nobody can be trusted, and they must become self-reliant as soon as they can. If possible, they should also look to diversify their income sources at the earliest opportunity, even if overall it means they earn much less. At this point in my life I think I’d rather earn £60k per year from two or three independent sources than £80k per year from one which can be pulled from under me at any moment.

All of this is leading to what I have written about before on here: smart young men are going to start forming their own small businesses either alone or with one or two trusted individuals, and avoiding corporate management and large organisations altogether.

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33 thoughts on “When it comes to income, everyone should be a “prepper”

  1. @”Another option is to form a union, which is why they exist of course.”
    I doubt a union would help someone who got fired in this case.
    I have a moral objections to joining unions, they give money to support the Venezuelan Government despite it starving its own people – can one morally join an organization like that?

  2. As I said on another thread this anti-Semitic charge is way out of control and as you said how the fuck could a couple of % of a population organise so quickly about absolutely sweet fuck all, after all we already know they are tight arses. Ireland is getting pretty fucked up now and their leader has a lot to do with it. Unlike the Irish my lot fought in the war and defeated the Nazis, so the way I see is that Jewish folk should be grateful that we saved them from the Nazis, charity begins at home you honor your own ward dead and you shouldn’t have to be overly worrying about those that your enemy killed nor should you be setting up monument after monument about the Holocaust outside of Israel.

    Yes there are some very good accounts of what you need to plan for from those that survived the bloody split up of Yugoslavia. I like that kind of stuff.

    I was in Jakarta when Suharto fell and it was on like donkey kong, and when it flared up none of us were prepared. We only had the money, the food, water and fuel that we had on us at the time. Going out was not on, there were army and polcie choppers watching it go down but no one was been assisted. The ethnic Chinese copped it really bad, murdered, robbed, raped, looted and there was nothing they could do about it.

    The one thing I learned is not to make enemies, when the mob rule they walk up and down the street singling out houses whose occupants are to be torched. Also dont show any religious or political affiliation of any kind, on you, in your car, at work, in your home, so that when the shit hits the fan you can immediately shape change to suit the victors viewpoint.

  3. “The UK’s experience with unions is appallingly bad, but I suspect this is simply a reflection of equally appalling management. ”

    This made me chuckle. I think most management I witnessed in the UK was simply god-awful, If I had been on the receiving end of it for any significant time, I’d have been a militant unionist too!

    One example in a large company I was contracting too, was them cancelling the Christmas bonus and giving gift hampers instead, justified by the poor financials for the year. The day before they issued a note to the market that everything was wonderful in the company and they were making loads of money. Gift hampers got thrown out of upper story windows, almost closely followed by some of the management…..

  4. In my early days I was lucky enough to work with a wise old hand who was Head of Personnel – that was when it was a real job, mainly negotiating with the unions, not ‘Human Resources’ and its feminised agenda – and he proffered me two bits of advice which he said would steer me right in my future career……..

    “There are two agendas: yours and the companies. And they don’t necessarily coincide”.

    “Some people have careers, others have jobs. Don’t confuse the two.”

  5. I always refused to follow my peers and mortgage up to the hilt to buy the biggest house I could(n’t) afford. Result – at 43 I had paid of my mortgage and had enough cash to last a year or so if the shit hit the fan. That made going free lance consulting and then starting a small consultancy so much easier.

  6. I do remember reading Kevin Myers in the Sunday Telegraph in the past, and he always seemed very sensible and reasonable. The ST itself, like the Sunday Times, seems to have gone down hill. But this is shocking, isn’t it? Pure character assassination. Amazingly, Kevin said he recently had lunch with the Israeli Ambassador. As for the reaction of his employers, I had a job as a teenager with a shipping company, and I remember a chap telling us about his manager who invited his staff in for a drink and said to them: You’ve heard the rumours that the axe is going to swing. Well, it’s true and I’m the first. Cheers! And that was the last they saw of him.

  7. I’d love to set up my own business but the only person I’d trust as a business partner (going into business with someone is like getting married only much more serious) has been fully assimilated into the corp-borg, and it doesn’t look like she’s getting out any time soon.

  8. “But this is shocking, isn’t it? Pure character assassination”

    Sadly its not for the Irish. Never forget that Ireland was and part of it still is the first colony. The fighting Irish is a myth, their history is one of surrender and backstabbing to the highest bidder, why should it be any different now, its not as we can see. St Columbas was an exception.

    Does anyone else find it ironic when a gay man accuses a straight man of being a misogynist?

    On wise men advice. My dad was a successful radar engineer with Decca in the later stages of his career, they were purchased by Racal who organised a very big twenty five year service doo for him in the UK. Previous colleagues and associates were flown in from around Europe, big family gathering and a great night it was, watches and gifts given. I couldn’t make it as I was in Australia. Next Monday he got a Dear John Letter, this broke his heart he didn’t live much longer than that. He later said to me to get my affairs in order and don’t ever think that you will see it coming.

    I am pretty well set up these days, I have many investments in most classes, am on a very good wicket, massive shares in my company and all that. If they were to give me the arse they would have to cough up the equivalent of the Latvian GDP to do so.

  9. Next Monday he got a Dear John Letter, this broke his heart he didn’t live much longer than that. He later said to me to get my affairs in order and don’t ever think that you will see it coming.

    I think it’s indisputable that kicking somebody out of their job without warning after 20+ years enacts an awful toll on the person concerned.

  10. Up until that point he had considered some of these people to be his friends.

    There are no friends in business or politics.

    As I said on another thread this anti-Semitic charge is way out of control

    The irony is that the most rabid attackers of Myers on social media are very likely to also be rabid anti-semites. It just happened to be a convenient weapon to use against someone they considered an enemy.

  11. “Some people have careers, others have jobs. Don’t confuse the two.”

    Excellent advice. I have a job. I couldn’t give a rat’s arse about a ‘career’.

  12. People stop having careers and start having jobs once it is apparent to them that they have reached a plateau. I could think of worse descriptions of my current situation.

    Finding another skill (e.g. plumbing) is the kind of thing you either do when young, or after you have lost your primary job. Most people simply don’t have time in-between, especially if they have children.

    Marriage also helps. Whilst I earn 3* more than my wife, she is much less likely in my view to lose her job than I am, in the next 10 years say.

    The focus for most people should be on becoming as close to financially independent as soon as possible. For most people this means paying off their mortgage.

  13. Some interesting background on Kevin Myers. Living as I do in N. Ireland, having lived through several years of the Troubles before emigrating, Kevin is very much a “Marmite” character here, partly as a result of a book he wrote in 2006 (Watching the Door) describing his time in Belfast as a journalist during the worst of the Troubles. If you need to understand him, this book is a good starting point. He does not mince words, as he has subsequently proved with many controversial statements, concerning the Holocaust, Irish politics, women’s lib. stupidities, etc. In fact, a man after my own heart who I would gladly share a foxhole with. I have no doubt his personality has bred many enemies, and it sounds like finally they got a chance to assassinate his character. Sometimes the good guys get dismounted, but I suspect this is only a temporary set-back. Good on ye’ boy!

  14. I wasn’t familiar with Myers’s output, but my word, what a classic left wing hatchet job.

    There could be no higher praise really of his quality as a journalist.

    There are precious few decent columnists left in the dead tree press and even fewer in the Beeb; it seems to me this attempted career assassination marks another way-point down the slippery slope to utter irrelevance.

    As for Myers I have little doubt he will manage to reinvent himself with the kind of portfoglio job you describe.

    I certainly wish him well (but it was a clumsily constructed sentence…!)

  15. “By contrast, German unions …” are governed by laws that were written for postwar Germany by British lawyers familiar with our own cesspit unions.

  16. Good piece, Tim. I’m a lot older than you. I was made redundant in the early 90s in my mid 50s. Back then, and probably now too, mid 50s was ‘old’ and no employer wanted you. I started my own business. How? Because I had paid off my mortgage and I had some savings. Risky, because we had four children, the youngest nine years old. And, no, I didn’t inherit, I’ve never inherited a penny. I started with nothing. But my advantage was, and is that I’m an engineer. STEM subjects make starting a business easy, with almost no capital. My other advantage was/is a wife who hates owing money and pushed us all hard to pay off the mortgage in 15 years. We have never borrowed money for anything except the house. Not that we have done without; it just means camping in France for holidays and such. I guess it would be a lot harder without STEM but I recommend your own business – not easy but satisfying.

  17. Not unlike a reply I just wrote:

    “Somewhere along the way they decided I’d ideologically disappointed and the marginalization began.”

  18. An interesting, and related question I’ve been thinking about is the question of cash on hand vs a paid down mortgage.

    I’m the “proud” owner of a cheap house, about 5 years into a 25 year mortgage. Outstanding value of said mortgage is about 2.5x my annual wage (all these numbers are fairly modest, as I don’t live in the cesspool which is London and the SE!).
    18 months ago, my grandfather died, and he’d arranged his affairs such that all his grandchildren, as well as his children, got some of his estate. My share worked out about 90% of what was left on my mortgage.

    Now, I work for a fairly small and unstable business, where I suspect (and I’ve a fairly good idea, as I’ve access to the books) I represent around 40% of the current value add, out of about 6 staff total. We barely make a profit, primarily because of poor decisions made by my predecessor and the business owners (who between them have basically managed to lock in excessive overheads for the size of the business forever, without having the ability to make it grow).

    Now what I’m pondering is this – I’ve not yet paid my mortgage off, despite having enough to do so sat in the bank. Not having done this costs me the (fairly small) value of interest charged on said mortgage every year (to all intents and purposes I’m not getting interest off the banked cash). However, it’s quite possible that at some point either the firm I work for will go bump (frankly this would suit me nicely, I could then probably start up a business with the staff I want, the best of the gear from the old outfit, and all the overhead drag lost), or that my patience with some of the stupidly will run out, and I’ll decide to go it alone in the same industry. Obviously being sat on a big pile of cash in either of these situations is easier than having little cash and ones house paid off.

    What would other posters do in this happy situation? Is that interest payment I’m making every year worth it for the power of having ready cash at hand? (I’m well aware I’m exceptionally lucky to be in this sort of position – very few folks I know could just walk out of their jobs, and live the same lifestyle without earning for 3 years before running out of cash)
    If I pay my mortgage off, and then need money to start a business, how fast could a bank be got to remortgage my house (If I’m trying a Phoenix style reboot of the existing firm, I’m need my cheque book out the day the administrators arrive, if only to retain the staff I want) – if I even could get a mortgage while unemployed?
    Any other sage suggestions?

  19. “The irony is that the most rabid attackers of Myers on social media are very likely to also be rabid anti-semites. It just happened to be a convenient weapon to use against someone they considered an enemy.”

    @Rob

    I struggled with what you said above for a moment although Kevin himself believes this is what happened to him as well.

    “I do not think about other people’s sensitivities, and since I truly believe that I am not anti-Semitic, I am not aware of these sensitivities, but they exist … I have such great appreciation for the Jewish people and for what it achieved, I am not aware of Jewish sensitivities, but the response is disproportionate, especially on the part of non-Jews, and there are several explanations for this, one of which is that I am known as the supporter of Israel and the strong anti-Israel lobby in Ireland has received an excuse to undermine my credibility. They found an opportunity to clear themselves of the guilt of their anti-Semitism by accusing the pro-Israel columnist of anti-Semitism.”

    Although others said this about him.

    “Myers’s squalid example of blatant antisemitic language was swiftly dealt with but the premise of Jews and money and cunning remains rampant.”

    Its fucking crazy if you ask me and I don’t think he was an anti-Semite either and its high time that we created a new type of Godwin’s Law around the use of this term.

    I meant to say on my earlier post regarding our quest to become financially independent from work that I got a lot of bang for my bucks reading “The Richest Man in Babylon” and would recommend it to others looking for some simple easily grasped concepts that make it all entirely possible starting with what you have now.

  20. @the Prole

    A financial purist that understand the value of money over time, inflation and assets could quite easily demonstrate that aggressively paying down a mortgage is a poverty strategy. It’s a bit deep for around here but it is true and I have seen it demonstrated and that is how I now operate.

    Do not pay your mortgage off, cash in hand is worth an awful lot more to you than equity at this stage of your life. I could have had my house paid off years ago but have never paid down the mortgage, the bank can look after my title deeds for free, I also done a massive renovation a few years ago to a Palazzo Bardonci standard and used a construction loan to finance this, rather than my cash.

    Can you get a thing called an offset account, this is an account whereby the interest on the cash amount offsets against the interest on your mortgage, which lets say the value was equal to your mortgage amount negates any interest payments? That is what I do. There are many other benefits to this kind of set up that compound over time.

    I also leverage very aggressively into investment debt (your place of residence isn’t technically an investment) which has the added benefit of tax deductability. I don’t plan to pay down any of my debt ever.

    So no do not pay your mortgage down, you know this anyway.

    There is a saying that it is best to borrow your money when you don’t need it, this is the strong situation that you find yourself in, why change it around at this stage of your life?

    Oh an read The Richest Man in Babylon.

  21. Getting back to the survival/prepper thing. There are two blogs I recommend. The first is this one:

    http://shtfschool.com/blog/

    The guy was in Yugoslavia when the brown stuff hit the whirly things and it makes for harrowing reading. It is a good primer for when ethnic violence finally breaks out into open warfare in the UK.

    The second is this one:

    http://ferfal.blogspot.co.nz

    He is Argentinian and this one documents a Venezuela economic collapse. He emigrated to Ireland and for the past few years has been keeping the blog going by pontificating on the various bits of kit that might be useful. Skip to the earliest stuff and what to expect in an economic collapse, a scarcity of the basics of life and the measures that people will resort to.

    I’d say that civil war and ethnic cleansing is the most likely scenatrio in the UK but I sincerely hope I am wrong.

  22. @theProle

    Mortgages are cheap right now. It’s extremely cheap money to have, and it’s there. If you go it alone, no, the bank won’t lend to you at that point.

    Sit on a pile of cash and pay the mortgage monthly – you can always change your mind later if your circumstances change for the better.

    In fact, your calculus is extremely similar to mine 🙂 Except that I don’t have to pay mine off cos I’m in Switzerland and it works differently here.

    As an example, to expand our livable area we’re buying a small studio apartment downstairs in the same building for next to nothing. I could pay cash if I stretched it, but I can mortgage 80% of it for CHF 51.- a month in interest. That’s nothing to pay for keeping that amount of cash on hand. Plus, I can tax deduct that 51.-, saving me about 18.- at my highest marginal rate, so it only net costs me 33, which is equivalent to a massive Cordon Bleu mit Pommes in the restaurant nearby.

  23. @Tim Newman et al

    OT H/T

    How serious is the crack, is “weeks” accurate?

    Is Commentor correct?

    WTI-Brent Crude Spread Snaps After Forties Pipeline Closure For “Weeks, Not Days”

    A comment:

    HarryKallahan Dec 11, 2017 12:48 PM

    cracks have a unique importance for pressure pipeline integrity

    tiny cracks can look like barn walls to shear wave UT

    a hairline morphology suggests a stress corrosion cracking mechanism; never just one roach there

    time to fix may depend on location; e.g.: under a river crossing may be problematic for short schedules

    before you “weld the crack” you find out why you have the crack

    “weld” repair for even a small flaw/defect may be a cylindrical section of pipe.

  24. @theProle on December 11, 2017 at 9:24 pm

    Further to @Bardon good info on offset, leverage etc

    A KISS is

    Higher interest, safer than banks:

    NS&I new 1 and 3 year bonds

    Keep sufficient cash to cover costs until bond maturity.

  25. Now what I’m pondering is this – I’ve not yet paid my mortgage off, despite having enough to do so sat in the bank.

    You’re in much the same position as me, and it’s an interesting question. One thing paying the mortgage off, or part of it, does is shield you from a currency crisis. If something awful happened to the Euro or GBP and you were sat with a huge pile of them, you might find yourself wishing you’d paid off your mortgage. This is particularly the case if your mortgage is in another currency from your pile of cash. Keeping hold of cash or using it for something else is a good idea in most cases, but I once met a woman who had saved enough rubles to buy an apartment in Moscow in 1998. Before she could do so the currency collapsed and her savings were worth a tenth of what they were, and not enough to buy an outhouse. Had she bought a property a few months earlier she’d have been protected from such a currency collapse.

    In summary, it’s good to be liquid and to hold cash, but not too much.

  26. I paid my mortgage off. Not having to pay a mortgage makes an enormous difference to the amount of money you need to spend each month to keep yourself fed and housed in reasonable comfort.

    Obviously this depends on the cost of living/property taxes etc. But seeing the monthly burn rate drop by somewhere between 50%-66% made a huge difference to the amount of post tax income I needed in order to live comfortably.

    The flexibility that resulted meant I didn’t in fact need to work full time in crappy conditions. And hence the power balance between me and potential employers changed considerably. There’s nothing like knowing you can tell the cunts to fuck off (even if you don’t do so) to reduce stress.

  27. [QUOTE] There’s nothing like knowing you can tell the cunts to fuck off (even if you don’t do so) to reduce stress.[/QUOTE]

    There is much truth in this statement. I’m also discovering that if you are aware that you are something of a golden goose in the establishment, and you also have happened let drop that you’ve enough money in the bank to sit at home and put your feet up for the next few years doesn’t it doesn’t half put one in control during any local difficulties with one’s employers (especially if one is canny enough to let them back down on issues in ways which don’t make them lose face).

    Thanks for the various comments – given the present favourable mortgage market, and the fact that I didn’t exactly leverage myself to the sky when I bought my house in the first place, I don’t really feel the mortgage payments much – they represent about 22% of my wages, rather than north of 50%. I can’t really throttle back at work at least for the moment, and I’m not really sure what on earth I’d actually do with the extra cash (stack it up in my garage and skate down it Scrooge McDuck style?).

    I was aware of offset mortgages, but hadn’t really explored them (I inherited the cash about 2 years into a fairly decent 5 year mortgage deal – I will almost certainly look at my offset options when I’m next due to remortgage).
    Am I correct in thinking that if I have an offset mortgage, and offset to the point that I’ve covered the outstanding mortgage balance, I’ll effectively not be charged any interest, but my monthly repayments will continue chipping away at the principal? If so, does this mean that the nominal interest rate charged is fairly irrelevant (unless I spend my savings)?

  28. @theProle

    Its also quite reassuring when you know that your pay out figure is huge if they want to punt you as well. We always encourage our young budding employees to get themselves hocked up to the eyeballs in their personal affairs, we know that it makes them a more reliable and aligned staff member.

    On mortgages, one of the other benefits of a mortgage is that it is a forced saving plan. Say for a young couple starting off, they will stay at home eating pot noddles, drinking cask wine and watching Rocky 1 videos because they have to pay the mortgage. Whereas if they rented (which is cheaper for the first few years) then they dont save or invest the difference between their rental and mortgage payment, buy shiny things, go to Majorca, get boob jobs and have nothing else to show for it later on in life.

    On offset accounts, yes is the answer to your question, I am in Australia they are very common here and this is how it works. Say you had $100k outstanding on your mortgage and you set up and offset account which would typically be your normal savings and banking transaction account and you had $5k +/- in it. The interest earned daily on the $5k would offset into/against the mortgage and hence reduce the interest on the mortgage. This also has the advantage of you not paying any tax on your interest earned on your saving account. If it was $100K in your savings then you will not have any mortgage interest and you will not have any tax on your saving interest. If it was $120k then there would be no mortgage interest but you would be liable for tax on the interest earned on $20k that is above the mortgage amount..

    It is a very powerful tool over time. I run everything through my offset account, salary, including other income from other entities, other investments, windfalls, credit cards, you name it, over the years I reckon I would have to be up about $250k at least due to the lower tax, compounding and the fact that you are offsetting against a far higher rate (borrowing) than you would get saving (lending) to the bank. Plus if you do things like run your credit cards through them and always pay them off on time you are in effect getting thirty days free finance plus the benefits of that cash that you have got for nothing. I moved our savings accounts for our kids over to my offset as it worked out better to run everything through an offset account, it took a bit of explaining to the missus but that is how powerful it is.

  29. The one things that you do need to be aware of is that it mean that you have a big available cash number in your bank account that you can withdraw there and then, so dont go on a bender and blow the lot. I like this availability, it works for me, if your mortgage is another currency then you have forex exposure and depending on what country you live in you may also have sovereign risk. So say if you are in a politically unstable country like the UK just keep your eye out for the British Peso being devalued overnight.

    Last one from me on this, is the cock size factor, if you are with your mates down the pub and you are pulling some cash out of the ATM they may happen to oversee the available balance on the screen, if you wanted them to. So that means that it could be something like $670,245 and they don’t need to know that there is a $700,000 renovation loan sitting on the other side of it hidden from their view. Or you could just accidentally drop the transaction record slip on the drinking table when you go up to buy a round.

  30. theProle,

    There is much truth in this statement. I’m also discovering that if you are aware that you are something of a golden goose in the establishment, and you also have happened let drop that you’ve enough money in the bank to sit at home and put your feet up for the next few years doesn’t it doesn’t half put one in control during any local difficulties with one’s employers (especially if one is canny enough to let them back down on issues in ways which don’t make them lose face).

    I don’t know how long you’ve been a reader here, but did you see this post?

  31. Part of my current business plan, as it were, was based around the idea that I and the family could eat pot noodles etc. and survive on an income of about a third of what I actually am earning. Without dipping into savings aside from in emergencies.

    Or we could live for 5+ years just on savings with zero income.

    This gave me the confidence to go into a higher-risk project, which – touch wood – seems to have paid off.

    Sorry to brag a little on the stats, but I’m really really rather proud of this:
    Mortgage interest = 1.3% of gross basic earnings. Tax deductible 🙂
    Total housing cost = 5.4%. Which will drop (unless the interest rate spikes) when the mortgage comes up for renewal and I’ll be able to take it amortisation free.

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