Bank of England cuts rates to 0.25%

[NoName]

just dont live above your means and all will be well...…

As my Dad used to instruct me as a lad (long before the phone tariff) 'Pay as you go and if you can't pay, don't go' - words I've lived my life by - can vouch for the sound sleeps you have knowing you owe nothing to no one (except mortgage - which I saw (and was) as an investment) Zzzzz  

 

[scottish cleaning service]

Some of my customers have nice new £20k cars on the driveway but are always moaning about money. Then I realised the cars were all leased or bought on tick. Its not my scene but the young ones love it because they can drive a luxury car.

 

[NoName]

Some of my customers have nice new £20k cars on the driveway but are always moaning about money. Then I realised the cars were all leased or bought on tick. Its not my scene but the young ones love it because they can drive a luxury car.

Proverbs 21v20 - Precious treasure and oil are found in the house of the wise,But the stupid man will squander what he has. ?

 

[dazmond]

Some of my customers have nice new £20k cars on the driveway but are always moaning about money. Then I realised the cars were all leased or bought on tick. Its not my scene but the young ones love it because they can drive a luxury car.

I lease my golf GTD but I can easily afford the payments...I love it......i trade it in and get a new one every 3 years.....

 

[Iron Giant]

 I didnt. 

If you run your business like I said as the 3rd rule; you wont need to borrow money,

I didn't either, amazed because of wfp how many people are willing to get into debt or blow a redundancy package on a hope, some think it will be an easy run before they have even managed to get out of their chair never mind take a walk into the world of window cleaning. 

 

[cleaniac]

Can't go wrong with a bit of gold. I bought 3 gold sovereigns in 1989 for £500 must be worth a grand now. Physical gold is good to hang onto in case the price spikes up but can't see it staying high for long. 

The Gold you bought hasn't gone up in value, it's still 3 gold sovereigns, unless a 4th soverign has sprouted from the other three. 

What has actually happened is money has lost its value over the years, and the gold sovereigns you have require a higher monetary value to represent them now, compared to when you bought them back in the 1980's as money itself is worth less. 

This is why it makes me laugh when people say my house has increased in value by x amount over the years...no money has lost value over the years..your house hasn't suddenly grown in size on its own..but it is a decent hedge against currency devaluation...until it can no longer sustain it.

It's hilarious how many people just don't understand this..

Gold and silver is also the most basic form of hedging against devaluation of currency which is why I say save up gold and silver, not cash backed up by a promise of debt. 

 

[BigFoot]

The Gold you bought hasn't gone up in value, it's still 3 gold sovereigns, unless a 4th soverign has sprouted from the other three. 

What has actually happened is money has lost its value over the years, and the gold sovereigns you have require a higher monetary value to represent them now, compared to when you bought them back in the 1980's as money itself is worth less. 

This is why it makes me laugh when people say my house has increased in value by x amount over the years...no money has lost value over the years..your house hasn't suddenly grown in size on its own..but it is a decent hedge against currency devaluation...until it can no longer sustain it.

It's hilarious how many people just don't understand this..

Gold and silver is also the most basic form of hedging against devaluation of currency which is why I say save up gold and silver, not cash backed up by a promise of debt. 

Do you follow mike Malloney on youtube by any chance?

ive been following him for some time I think you’d like his take on gold and silver.

the gold silver ratio almost 100 points great time to invest in both, I feel silver is being suppressed so more potential % to be made there but gold will lead the way and silver follow soon after if history is anything to go by.

wish I had more to invest!

 

[cleaniac]

Do you follow mike Malloney on youtube by any chance?

ive been following him for some time I think you’d like his take on gold and silver.

the gold silver ratio almost 100 points great time to invest in both, I feel silver is being suppressed so more potential % to be made there but gold will lead the way and silver follow soon after if history is anything to go by.

wish I had more to invest!

No I don't follow him, I will have a check.

What you have to understand is monetary systems are flawed, in that there is no real intrinsic value in currency itself.

Its just the belief that a governing body will recognise your labour/sale of goods etc by issuing notes from the authority that represents the value in what is done at a given point in time. So basicly a 10 pound note is an IOU for the value of goods and services exchanged, that is it. 

The only way money works is that the subjects to the authority trust the authority's decision to validate the transaction by representation of currency issued by the authority. 

This is why money devalues over time, and things like houses appear to go up in value. Every time a mortgage/loan is agreed, the bank isn't lending you money to buy the house/car. No one person goes down to the big tub of cash and hands it to you, YOU create the money yourself by agreeing the loan with the bank over time. The money comes from you, on loan to the bank, and the bank charges you interest on the money you created by signing the loan.

Once you start to understand how money really works, you can turn it on its head and be ahead of the game. 

 

[DeLaCruz]

Good opportunity to invest rather than save - shares have taken a battering...

Especially today after Trumps "most expensive speech in history" yesterday wiped out the stock market yesterday?‍

 

[NoName]

Cleaniac - not sure I follow...cash (notes/coins) are just 'tokens' agreed (since we abandoned the 'gold standard' when you used to be able to go and get your £20 pounds worth of gold please Bank of England)  which have no/little intrinsic value (being metal/paper/plastic) but they DO have a transactional (Key) value - i.e we do physical work for people because they give us 'tokens' in full confidence that we can give them to others/shops and get something of actual 'intrinsic' value - food/services etc. Now based on the underlying trust in the Gov's short/long term's ability to nominally 'honour' these tokens - other nations value £ against their own or others currency based on each's 'short/long term prospects' - (reason exchange rates fluctuate) As a result £ can and does become worth more or less (compared to other currencies) hence it's not true it losses 'value' over time per se as it's all relative to other nations as well crucially to the rise in demand of products/services which inflates the cost of these (think facemasks now) which means more physical cash (tokens) being exchanged which means one £5 becomes 'less' valuable since we've ALL got more 'tokens' which erodes it ability to buy stuff - or 'makes it worth less' - so increased demand is the causal factor. If in your area 100 new windies started up you would need to lower your prices for new work, hence less money in your pocket and the local pub would need to lower it's prices to get you to part with your cash..QED it's the supply more or less that makes cash (tokens) worth more or less. No?

Houses however do have an intrinsic value - warm dry place to live/sleep - if you reduce the supply of said 'products' (by say not allowing/building enough to keep up with birth/divorce rates) the supply is limited and hence it increases in 'value' - hence tangible assets such as houses do/or have really appreciated in value. If the coronavirus wipes out half the population I suspect houses prices would suddenly becomes a lot cheaper because there would be a surplus - see it's actually all about supply and demand ? that drives a rise and fall..

I'll leave how banks get t'heir' cash BUT it's not just 'created' it is based on some kinda logic...

 

[scottish cleaning service]

Gold and silver is also the most basic form of hedging against devaluation of currency which is why I say save up gold and silver, not cash backed up by a promise of debt. 

Aye, but you canny take gold to a shop and buy a loaf of bread that's why cash will always be king. On every note it says I promise to pay bearer on demand, which meant it could be exchanged for gold I think, but in reality not enough gold to pay it all out.

 

[BigFoot]

Aye, but you canny take gold to a shop and buy a loaf of bread that's why cash will always be king. On every note it says I promise to pay bearer on demand, which meant it could be exchanged for gold I think, but in reality not enough gold to pay it all out.

Not Gold standard anymore in uk we are a fiat currency Many have existed historically and every single one has failed without exception to name a few chilli, Zimbabwe, Argentina,  Germany all through hyper inflation in fact I have a trillion dollar Zimbabwe note in my sun visor on my van to remind me everyday I’m loaded ??

 

[Dave B]

As my Dad used to instruct me as a lad (long before the phone tariff) 'Pay as you go and if you can't pay, don't go' - words I've lived my life by - can vouch for the sound sleeps you have knowing you owe nothing to no one (except mortgage - which I saw (and was) as an investment) Zzzzz  

Mortgage paid in 3 years time and no debt whatsoever. 

I run a complete exterior cleaning company but have only ever bought stuff when I've had the jobs lined up to pay for it so never in debt.

Eg. I had 5 pressure washing jobs lined up before I bought one lol.

Definitely easy to sleep at night. 

I have a credit card purely to pay for holidays etc and never owe anything on it.

I don't believe in buying on the never never.

I'd rather wait until I could afford something. 

My van was paid 3k cash on the spot.

 

[Iron Giant]

but you canny take gold to a shop and buy a loaf of bread that's why cash will always be king.

I take my phone these days or a card which  many do these days, no point carrying cash.