My biggest financial concern is if the car dies just enough that we have to do major repair on it. This would wipe out our emergency fund before we have a car fund saved up to buy another one. The one car our entire family can fit into is in shaky shape and… it worries me. If we wiped out our emergency fund fixing it than we wouldn’t be prepared for any other emergencies that came along. We would then have to resort to credit to fix those emergencies and then? We would be right back where we started: no emergency fund, credit card debt and monthly payments.

Nothing else could have this catastrophic of an impact. If the other car died, we could do without. If a major appliance died, we could fix it out of the emergency fund and still have a generous lump in the account. If we had a major medical issue, well we live in France. If one of us lost our jobs- again, we live in France. (When my husband was unemployed he had the right to 760 days of unemployment at about 80% of his salary or €960 per month.) We rent our house, so any major repairs are our landlord’s responsibility.

But if this car dies, or needs major repairs, than we are paddle less for sure. The only answer is to keep plugging away at building our emergency fund.

There are no guarantees as to when or if an emergency will happen. If there’s one emergency, there aren’t any guarantees that another one won’t follow hard upon its heels. It’s the incertitude that gets me; as a planner and a plotter I like to know what’s going to happen in advance. Of course, with life, you can’t.

What’s your biggest financial fear? How are you preparing for it, if you are preparing at all?

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You may be surprised to know that there are other ways to donate money and get something back. In fact you may not even know that you have donated to a good cause.

Many shops on the internet have teamed up with charities to help them out. Speciality products are being sold and the profits or a portion of the profits go to the charity. You may have already bought some of these items without even knowing.

Damart is selling a limited edition pink thermal vest top from which proceeds go to the Breast Cancer campaign. Having raised over £82,000 so far, Damart is showing a great example and shows that people are interested in giving money if they get something in return which isn’t the way it ought to be but it’s it is nice to feel great about a good purchase.

There are plenty of other ways to make charitable contributions and get something out of it as well, all you have to do is Google it. You could go to a foreign country and help out with a building project or help out with disadvantaged people all of which will always look great on your CV.

So why not do something great to help out a charity and reap the benefits that it can bring, even helping out at a soup kitchen every month can give you massive benefits, why not let your boss know what you’re doing as it requires great people skills, personality and shows that you are active out of work, he may just give you that raise

So get helping out today, feel great and get something back.

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To make money go further in a recession, check out your wardrobe. Any clothes which haven’t been worn in the past year are just taking up unnecessary space. Dump them on the bed and carefully list on eBay and while you’re there, see if there’s anything you fancy. It’s amazing the bargains to be found not just on eBay but on the internet in general. There is also a lot of designer wear to be had at unbeatable prices. A word of warning though, you should always make sure that the site you’re using has a very good security system for credit card transactions.

Many people these days are opting to buy fashion on the internet primarily because of tight budgets but it’s clear why! You can find amazing designer bargains including designer tags at half price or less than the high street stores. You can find savings on almost anything; including daywear, lingerie, nightwear and even sportswear! You can even get extra savings when shopping on the internet by visiting cash back and voucher code websites. These are little gems for anyone who buys things online (and some people don’t even know about them.

If you prefer the convenience of trying on and feeling the quality of material but still want the designer look, try buying fashion on the High Street. There are many stores on the high street who sell designer wear at discount prices; you just have to look around a bit and compare prices and its well worth it if you still want to remain stylish but spend less.
With careful planning and spending, in a year it’s possible to save as much as £400 - £500 for each person on clothing alone. An amazing saving when we’re all feeling the ‘pinch’!

To conclude, these are 5 suggestions for beating the credit crunch with cheaper clothes but remain stylish:

1. Sell clothes you don’t want, and buy designer outfits you really want but at a discounted price.

2. Use the internet to shop because it makes it easier to shop around for the cheapest prices!

3. Use cash-back and voucher code sites to get extra savings on your favourite retailers!

4. Use the high street if you want the convenience of trying on your outfits but still remember to hunt around for the best price on discount designer wear.

5. If you are like me, you like designer wear but you don’t want to pay the high price, I would suggest buying clothes at cheaper discount designer stores! You can still get what you want but the price is cut down; sometimes up to half the price!

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I have needed a new fleece to brave this icy winter weather with so I decided to check out Damart as I knew they did quite cheap quality clothes, on entering the site I saw there is a 60% sale on, I was shocked to find clothes selling for less than half their marked price. I also thought about getting some thermal underwear which is something I wouldn’t normally even dream of but I have been getting a lot colder this year (maybe it’s because I’m getting older) so I thought I’d check it out. The thermal range they have is huge and there are some great trendy tops and trousers that don’t conform to that stereotype image of thermal underwear. It’s also very cheap, I thought it’d be very expensive due to all the science mumbo jumbo type fabric they use but a vest top can be as little as £8.

As mentioned earlier most other shops are doing online clearance sales and have huge discounts on offer and you really can grab a stress free bargain on the web instead of having to fight to the death in the shops.

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There are reasons for and against borrowing money from family. From the debtor’s point of view, it is an easy, interest free loan, usually with no specific payment date. It’s also a very flexible loan. However, it can be easy for advantage to be taken of the family member who has, in good faith, lent the money. He/she can be left wondering when payment will be received and becoming aggrieved when the money isn’t returned in a reasonable time frame. Grievances which last many years can happen in families when debts haven’t be re-paid as originally promised.

If you find yourself in debt, the best option is to deal with the problem yourself. If you can cut back on monthly expenditure, reducing your mobile phone costs, utilities, Sky TV subscriptions, do so wherever possible. Advise your creditor, or creditors, that you are experiencing problems at the earliest possible time and they will be able help as much possible. Some banks will allow you to take ‘mortgage payment holidays’ to help over a difficult period, until back on your feet.

If you take action as soon as you find yourself in debt and proceed to act responsibly, there are steps available to help you over this period. While lending money from family can help at this time, it’s important to re-pay to debt as soon as humanly possible.

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So what can money bring you? Well, for a start, a sense of security. Many people are currently worried about their jobs, whether they can afford their mortgage if it goes up, and if their house is going to be worth less than they paid for it. Unfortunately, most people don’t have secure jobs or a guaranteed income, and so cannot achieve that sense of security. Those people who have a good pension and have paid for their house are in a fortunate position, as they need not worry about paying the rent or mortgage, and can relax in the knowledge that their house is theirs completely.

Money also gives you freedom to make choices. If you hate your job, find it stressful, and have enough money in the bank, you can leave and look for another in the knowledge that you can pay your bills while searching for something more suitable. If you want to take time away from working and travel for several months, or do voluntary work in an African orphanage, you can pack your bags and head for the airport. Want to change your lifestyle completely? You can move from the city to the country (or vice versa), emigrate to another country, or retrain for the job that you’ve always wanted to do.

However, money in itself cannot make you happy. It can make you relaxed, and offer you the opportunity to achieve ambitions, but you need to be secure and happy in yourself, and have goals that you are willing to work at. Lounging around on a beach might be fun for two weeks, because it represents a break from your normal routine. After a month or two, though, you would probably be as bored as if you were in your office doing paperwork. Start a beach bar, however, and keep busy running it, and the beach life will be much more enjoyable, because you are not looking for something to fill the empty time.

Living a more simple life has much to recommend it. It is very easy if you have a large income to become trapped in living up to the image of a well-off person, having to buy the ‘right’ car, furnish an expensive home, and wear the right clothes. When money is not the focus of your life, you can concentrate on more important things. The fact is, however, that we all need money in order to live. My conclusion would be that, while money does not bring automatic happiness, it does offer a degree of freedom, and allow you more options.

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When shopping, keep a look out for special offers, sometimes you can even pick up top branded products cheaply if they are on offer. Otherwise, try to buy supermarkets own brand products and stay away from brand names. Often, the quality of the product is the same for a cheaper price. Buying things in multipacks can also help to save money in the long run.

Shop around. Try shopping at a different supermarket and see if you’re shopping works out cheaper. This could be especially helpful if this supermarket is closer to home. Look out for petrol vouchers with your shopping and find out which supermarket offers the best loyalty card system.

Create a budget for the week, month or even a year. Sit down and work out all your incomes and expenditures, this way you know how much you have to spend on yourself over a given period. If you have cash left over try and save it. This could be by having one less drink on a night out or not having a weekly takeaway, over the year this will add up to a big saving. Some financial advisers will help you budget free of charge so it’s worth arranging a meeting with one to see what advice they can offer you on saving money.

Around the house this winter, layer up rather than turning the heating up! Heating bills are ever increasing due to rising gas and oil prices so by wearing extra clothing you can save money on your heating bill. The same can be said for your water bill, take showers rather than baths and avoid using the dishwasher where possible. As for electricity, turn off lights when they are not being used and try to avoid leaving electrical appliances on standby.

The cost of petrol has risen massively and even a short journey now costs a substantial amount in petrol costs. Avoid driving when you can, walk or take a bike. Not only will this save you money but it’s great for your fitness! You may also want to find out how to drive more efficiently, i.e how to use less petrol. Guides as to how to do this can be found online.

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If you recognise yourself in this, be warned. It can break families and relationships into pieces that may never get picked up again. Face up to the fact that although you may be trying to protect your partner/relationship/family by keeping the severity of the situation away from them, your deception will cause a stress of its own.

The short term relief of denial can very quickly bite you in the behind. This will happen when your situation compounds to the point when there’s no escaping it, because you’re maxed out on credit everywhere you turn and you face homelessness. This level of debt can’t be conveniently swept under the carpet; as the adage goes: “If you continually sweep things under the carpet, eventually you’ll get a crick in your neck from stooping to avoid the ceiling.” There’s also the possibility that your partner will blame you for not informing them of how bad the situation had become, or of not managing the money better.

But this is supposed to be a partnership and it the debt needs to be faced with your eyes wide open. Communication is the key, whether that’s with your partner or the bank, so stop covering it up and look it in the face. It’s the only way to resolve it. There are loads of solutons out there to help. Debt Management, Consolidation Loans, IVA, and hopefully not, but you never know, Bankrupty. The early you deal with it the less drastic the solution.

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My partner knew I had some debt, but assumed it was in the £100s, rather than the £1000s. At the time we were talking about moving in together, and he was adamant that he wouldn’t move anyone who had more than a few hundred pounds of debt, excluding a mortgage. Finding out exactly how much I owed was a huge shock for him – and it did stop us moving in because he was worried about being expected to help pay it off, or me not having enough money to pay the bills.

Fortunately the problem has been sorted now – albeit at a cost. I remortgaged to a better deal last summer, and included a little extra to pay off the credit cards for good. Now, I’m paying the same amount each month for my mortgage, and have all my credit cards clear. They are just used and paid off every month. Now that I have a clean slate, we’re looking at moving in together again.

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