Recessionary Britain and the Average Man

I have never taken anything for granted in my life. People who know me have regarded me as being a ‘glass half empty’ type . I do and have always worried about things, I have never liked a change in routine and have tended to take things very personally to the point of becoming quite emotional.

The change in my circumstances have and continue to be the biggest challenge in my life.
I am self employed  and have been for the last eighteen plus years in a property related profession.
I co-founded the business in 1992 having been previously in secure employment but with the opportunity to set up being made possible by a loan from my family and with the blessing of my wife and, at that time, very young children.

1992 was a recessionary period but with hard work and a good base of clients the business became established. The cyclical nature of the property market, often described as ‘boom and bust’ was a major influence on the performance of my business. The early to mid 1990’s showed a slow improvement, the mid to late 1990’s were steady and not too dramatic, the early 2000’s fairly constant across peaks and troughs.

From 2005 to late 2008 the huge upsurge in the housing market represented the boom time for my business prior to the rapid decline and recession brought on amongst other influences by the credit crisis.
I have sustained a good living from my business. Profits paid the deposit on a house, supported 2 family cars , paid for a first and then subsequent overseas holidays, seasonal treats and the usual material comforts and everyday running costs of a young and active family.

However, material gain has never been a main motivating factor to me. I have concentrated on developing my business in order to facilitate the employment and support of staff and in peak times I have employed six local people. I have also been able to support and sponsor events and organisations in the community, from a cycle racing team to a local historian, to host events and participate in community initiatives. I have also been able to develop other business interests in themselves supporting and sustaining new colleagues and associates.

I was able and more than happy to pay my way and at the same time was able to make lifelong friends from those met initially as Clients. The ethics of my business were founded on treating people fairly, to give good and cost effective advice and to encourage repeat business in the future.

It is now, with a change in my circumstances that I have truly come to appreciate my network of friends and longstanding loyal clients.

The catalyst of the change in my circumstances, the credit crisis and its affect on the property sector,was not with hindsight totally unexpected, when it became known in late 2008.

However, even with the best made contingency plans and emergency reserves the credit crisis hit me very hard and changed my circumstances rapidly and significantly on both a professional level in business and on a personal level in my family life. Being self employed does inevitably mean that there is no real demarcation between the two activities.

There have been some major and high profile casualties amongst businesses in the property sector at local, regional, national and global levels. I often receive phone calls from contacts and clients whose first sentiment is ‘ how’s business?. Given the trends for failure in my sector I do not think the same callers would be unduly surprised if a subsequent call was met with a disconnected tone.

The decline in the activity of my business was literally overnight with the impact of the credit crisis.
Business activity and as a consequence income levels have fallen by 60% since late 2008 and adjustment has had to be made for basic survival.

In the first wave of enforced but prudent housekeeping and austerity measures went the luxury items including seats at the KC stadium, subscriptions to organisations and publications, health club membership, trading down on cars and related costs, negotiation of better contracts for IT support and services and the running into the ground of equipment rather than regular renewals.

Such measures were not sufficient and with the greatest regret I had to make 3 staff redundant, one a senior professional and two valued support staff. The cost of the change in my circumstances impacts most in human terms.

The ongoing viability of the business was only made possible by a very loyal remaining staff and the support from clients.

I took a large cut in salary to keep the business afloat and also the liability for costs previously met by the business including bills for phone and transport costs. This in real terms has represented a 50% reduction in income.

Cuts in the domestic budget followed with budget shopping and meals, a freeze on home improvements because if started they may not be completed and hesitancy over basic maintenance works. As a family we have not had a holiday or even a meaningful break for the last two years.

Family savings and my wife’s rainy day funds are now depleted out of necessity to meet shortfalls on income to such an extent that any small emergency call on funds cannot be met and are a real cause for concern.

I now feel acute stress and anxiety from outstanding domestic and general bills and outgoings that cannot be paid straight away. From the position of paying my way I am now requesting payment arrangements from those owed monies for gas and electric, council tax and longstanding repayments on which I have never been late in regular payments. I am finding it very difficult to meet my liabilities and obligations and have to prioritise outgoings in order of essential need from the mortgage to the weekly shop and utilities to regular payments.

My wife and myself have been resolute on maintaining our charitable giving which has always been an important channel for family income.

In my professional work I am often required to visit and report on properties under threat of repossession or immediately following the eviction of the family. Each of these cases I have found upsetting representing a family tragedy from loss of employment, overwhelming financial difficulties, lack of credit and family break up. Such properties do have common characteristics of part finished kitchens and bathrooms, neglect of maintenance and general wear and tear. There is a certain atmosphere of a struggle and demoralisation from constant stress and threat of hardship and eviction. I now sense similar in my own circumstances and home situation. When once I tidied the garden and cut the grass and hedges out of pride of home ownership I now do this mindful of making the house look presentable if I need to sell it to clear debts or it is repossessed by a creditor.

Every single day involves juggling income and resources, prioritising outgoings and really pushing the limits of scheduled payments. The mortgage is now paid on the last possible day before a default notice. The penalty of bank charges for unauthorised overdraft or a bounced  cheque is ruthless but sometimes inevitable.
I am almost past caring about myself but try to maintain my professional appearance with care for one serviceable suit and a couple of decent work shirts.

I acknowledge and am grateful that I do have options which is much more than others whose circumstances have also changed.

I have a strong support network amongst family and friends, kindness and generosity from current and past clients and these things give me hope and energy.

I do pray, many times in a day but now more in praise for small mercies and miracles than in previous months when I wallowed in depressed self pity. There have been good weeks at work with enough business to cover outgoings and perhaps with a small surplus. Forgotten clients from the early years of business recalled my assistance at that time and express happiness that I am still in business. The loyalty of my longstanding staff has brought my emotions very close to the surface on recent occasions.

Some days I have become fully resigned to my change in circumstances and can fully understand how this can lead to fatigue and loss of direction and even faith.

Relationships in the family do come under acute strain and pressure. I can appreciate the stress of money worries and am guilty of shutting out my wife where important discussions over finances are required. I see this as being a consequence of misguided male pride but above all the embarrassment of not being able to support your own family.

My wife has shown great strength and discipline in keeping the budget and finances in some working order. I cannot describe her anxiety upon being first to open a final notice letter from a creditor for the business or worst of all for an item of home expenditure. I feel sometimes that I am no longer a man capable of contributing to the household income. I have never had that sort of feeling before.I have been aware of my own upbringing being one of five children in a traditional family with stay at home mother and breadwinner father and do recall moments of parental stress over an overstretched budget and was reminded recently by my own mother that midweek meals were only funded by drawing on family allowance.

My wife was brought up in a hard working household and remembers vividly when her father was made redundant and the stress and anxiety of periods between jobs when often the only income was from her mothers part time work. This work ethic background is a very strong element in the approach to the change in circumstances.

Above all, I am hopeful and prayerful that my circumstances will change for the better. Some may call it a siege mentality but day to day existence does feel to be a battle . There are good days and bad days, currently good days are marginally ahead but there is no degree of certainty when an upturn in business and circumstances will take place.

I do not care about or place any importance on any actual or perceived loss of status. What is important and has been more than emphasised by my change in circumstances is the strength and loyalty of family and friends and the power of prayer.