Now I know that I am in a good position now I am retired, I don’t have to worry what I spend on the hobby (thanks to acting myself on the professional advice I gave to others) and don’t even have a resentful spouse any more telling me I cannot take the hobby into the home…
The current price rises do not really impact on me personally as I can easily afford it, but, of course I know it affects others and I certainly sympathise with their position. Once it would have affected me in the same way, so I do understand. But one thing I have learned is that opportunities always arise in challenging times and markets do change around. I am sure that deals will be had in due course on these more expensive kits and there are always other cheaper kits available. There is a lot of choice in this hobby, thankfully, so it need not be too expensive for most. Is it better to build a high volume of cheaper kits or to save and build fewer of more expensive kits? That is a choice we can all make and there is no right or wrong in that, small comfort as it is.
As someone who built a business and a reputation based on my understanding of economics and the impact on my clients, I am afraid to say though that things can only get worse for a while yet.
Sadly I cannot see a sustained reduction in inflation any time soon and that will be a particular problem to those on a fixed income and, to some extent, that now includes me…
There is simply too much money chasing too few goods, market conditions are driving up prices and wages (in some sectors, which if not offset by productivity, will drive further inflation) and we can expect to see interest rates return gradually to ‘normal’ levels and that means higher with the consequent higher borrowing costs. Taxes too are on the rise from April driven by the need to cover COVID costs (I would have a different approach but that would be too political for here). So I am sorry to say that things will get worse before they get better. I don’t think things will get to be as bad as the 70’s though the alarmist media may well try to draw comparisons.
We will get through this after a very difficult and painful period of adjustment and I am convinced that the U.K. (and world) economy is set for a significant period of sustainable growth over the (slightly) longer term.
in the meantime can I suggest that the following might be helpful to many in getting through this. I speak for professional experience in this. For some this might be telling you the obvious and I apologise for that but it might help others.
1/ Prioritise spending on what is most important and there are others on the web who might better provide advice on this if needed.
2/ Cut out unnecessary spending wherever you can, check your DDMs and Standing Orders, it is easy to forget things going out automatically.
3/ If you do have some spare cash, save into an easy access savings account until you get at least an emergency fund the equivalent of 3 months income.
4/ if you have some spare cash after that and want to seek opportunities to benefit from an eventual economic recovery, then consider monthly investing into stock market tracker funds, being aware that they go down as well as up but, as long as you let it run for at least 5 years you should be onto a winner. Whatever you do returns are not guaranteed and do get professional advice, it is worth it.
I hope that all on here get through this difficult period and prosper when we do. We will get there but the adjustments will be difficult. Happy modelling.
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), When looking at some current prices!!
