8. First save, then spend
‘Money is human happiness in the abstract.’
ARTHUR SCHOPENHAUER, pessimist and philosopher
In January 2008 the Deloitte Economic Review suggested that during this recession the City would cut between 10,000 and 20,000 jobs. That’s 2.5–5% of the City workforce. If this were to be repeated across the economy it gives a frightening number. There are about 30 million people working in the UK; so 5% losing their jobs would amount to 1.5 million people. So you need to start to think about 2 areas – making sure you’re not one of the statistics and saving a buffer of money so that if the worst does happen you’ve got a bit of money to tide you over while you find another job.
KEY MESSAGE – An unfortunate truth about losing ...