A Super Income

Darling has today called for pay restraint, and it is being said that companies shouldnt give an above inflation pay rise to workers, to help there ever shrinking incomes.

Funny that as in a few days MP's will be voting on if they should give themselves a ten grand increase in their own income. SO it would seem that us normal workers should be kept skint, and struggling with our incomelevels, whilst MP's are allowed to organise themselves a nice payrise of ten grand.

And to top this off, the bbc six oclock news have just announced that energy bills are expected to rise by 40% this winter, even more money worries for us normal people.

Chancellor Alistair Darling has called for restraint in pay settlements and said there is "no doubt" the UK economy is slowing.

Speaking to the BBC, he said it would be "disastrous" if we "allowed inflation to take hold".

Rising food and fuel prices would make is a "difficult year" for consumers, the chancellor said.

He was speaking a day after consumer inflation jumped to 3.3% in May, the highest level in 10 years.

"We have got to be vigilant in relation to all pay settlements, public and private," Mr Darling told Radio 4's Today programme.

"If we get back into that [inflationary] spiral, it will take years to get out of it," he said.

It could even herald a return to 1970s-style inflation, he said.

FROM THE TODAY PROGRAMME
More from Today programme

The chancellor blamed the rise in inflation on global factors pushing up the price of oil and foodstuffs.

But he said countries needed to work together to tackle the problem.

"We need to ensure that inflation doesn’t get entrenched but that we work together to deal with oil and food prices," he said.

Economy slowing

"There is no doubt our economy is slowing down," he said.

The chancellor has forecast that the economy will grow by between 2.5% and 3% next year.

However, economists are forecasting the rate of growth will be closer to 1.3%.

He said he would be looking again at his growth figures in the pre-Budget report in the autumn.

The chancellor will further examine the state of the economy when he delivers his first Mansion House speech to the City of London later.

So lets just hope that we all already earn more than enough income, as it would seem its been suggested that we shouldnt be gettiong big pay rises. More struggling ahead for poor and middle class people all over the UK. Nice.

written by admin

More income doom and gloom

A non suprisingy post on my asuperincome blog, a blog which normally promotes a happy message of people seeking additional streams of income, or a way to escape what is called the "RAT RACE" by some people. I see the benefits in both, and so I am chasing both a JOB and a RESIDUAL income stream. Trying to capture the best of both worlds, and get myself a super income.

At the moment though its a real struggle as more and more people start to feel the impact of the situation of the UK and European economy. More and more UK households have become increasingly aware of inflation over the past year (2008), and expect it to rise over the coming 12 months, new research suggests, so there seems to be no end in sight to all this.

The foreword to the Bank of England's second quarterly bulletin of 2008 says energy, petrol and food price rises have increased inflation awareness. And according to research in a bulletin article, average expectation for annual inflation in a year's time is 4.3%. This is scary, as not many people will be seein payrises that match this. And yet petrol tanker drivers are reported to have turned down a deal to increase their annual pay to £41k, yet soilders will go to war, and work in Iraq for £!6k per year, and not all of them leave the war alive. So tanker drivers strike thinking they deserve more than £41k per year, and we see a bonkers situation where one petrol station has charged £1.99 for a letre of petrol or diesel.

A scary fact is that Annual inflation stood at 3% in April, well above the government target of 2%.

At the same time, UK producer prices and costs also rose at a record pace in April.

The Office for National Statistics said that output prices for sales of manufactured products rose at a rate of 7.5% over the year. Input prices rose 23.3% over the year.

Higher food and fuel prices accounted for the rise in input and output prices, along with increases in alcohol and tobacco duties following government tax changes. Its all up up up with no end in site. How far can people's incomes last, with all this going on?? Already a large percentage of the UK has no savings, and this economy will only make this situation worse. All of a sudden the additional income streams, and the extra incomes created from a home based business, or franchise system, are becoming more and more important.

'Inflationary pressures'

The foreword to the Bank of England's quarterly bulletin, which does not necessarily reflect the views of the Bank or of Monetary Policy Committee members, points out that energy prices have "accelerated" recently. (Just in case we didn't realise!!)

Combined with current credit constraints "ultimately, both factors will act as a drag on household and corporate spending", it says.

"But in the near term, higher energy costs also add to inflationary pressures," the bulletin's foreword, written by Bank of England economist Charles Bean, observes.

It adds: "In forming its view of the prospects for inflation, the MPC must judge the degree to which businesses are likely to pass on recent sharp cost increases into consumer prices."

Many economists feel that the MPC needs to wait and see whether higher food and fuel prices lead to higher wages or lower spending in other areas before changing rates

And its not just the Uk that has been effected, throughout europe the problems are around too, read on….

Inflation in the eurozone has a climbed to a record level amid higher food and fuel costs, official figures show.

The annual rate of inflation in the 15 state zone hit 3.7% in May, according to the Eurostat statistical office.

The figure is the highest since 1996, when Eurostat started using the current methodology for calculating inflation.

There are concerns that price growth will keep accelerating, and the European Central Bank warned it will raise interest rates to slow inflation.

The rate of inflation was up from 3.3% in April, and compares with a 1.9% figure in May 2007.

Eurostat said that the main driver of inflation last month was an increase in food prices, which were up 6.4%, and transport costs, which were 5.9% higher.

Monday's figures are for the 15 nations that use the euro.

Across the European Union as a whole, the rate of inflation climbed to 3.9% in May.

So for the time being there seems to be no end in site to all this. And now more than ever before it is time for normal people, to wake up, and realise that there is more to life, than just living from pay cheque to pay cheque. Its time that people educated themselves and realised that, anyone can earn a residual income streams, and/or second income streams are possible.

Please come back and read my blog again, as I continue on my journey with my home based business.

written by admin

 A brief update

Wow, this blog is taking some effort to get going. Mainly because I have not spent much time on it, I guess. You see, whilst I battle for my dream, of time freedom. Giving me the ability to do what I like when I like, I have kind of got stuck in the rat race myself, long commuting, numerous bits of study, builfding my online business at www.asuperincome.co.uk and running my other websites anfd blogs. Living life has ground to a holt, whilst I work work work at numerous things.

I guess I always thought it wasnt going to be easy to create multiple streams of income. To build an online/offline work from home business, whilst maintain a normal job, to coillect the benefits of work, and to work out some other residual income streams. Anyway, I am now back on track, I think !!

And my asuperincome blog, form now on will be updated more often. So please come back from time to time to see what has been added. Lots of new things will be on the site, including MLM reviews, Franchise opportunity reviews, money saving tips, money making tips, general rants by me, and of course the book reviews, which I have been failing to do. (letting myself down there)

Thats it for now, I am off to update my other income making blog, and then get some tea.

written by admin

Well, I know I tend to go on and on about this, but more and more each day, I see proof that my cunning plan is correct., The plan to develop multiple income streams of income. One being from a job, to get all the benefits of paid employment (wages/pension/career prospects etc) and then one or two more from other sources, be it investments, shares, businesses or MLM, you name it, I will look at it, to be one of the income streams. The key though is that it needs to be residual income. Meaning something that comes in month in month out, with only doing the work once. This is so it has no effect on the ability of me to do my day job.

The crazy situation with the UK housing market at the moment is a scary point, that indicates further that its so important to have multiple income streams. (Unless of course you already have a super income!)

I know some professional workers (young and single) that arent able to get onto the UK housing market, until they are earning £25k a year, or are able to stump up a massive deposit. Realistaically a lot of jobs wont pay £25k for some time. And remember what I said these peopel are professional workers, with good coporate jobs.

An article I found on the bbc.co.uk website, talks about some research carried out by shelter, and mentions the struggle for first time buyers to get onto the first run of the ladder. It shows the shocking rise in house prices over the last 10 years. I have copied the graphs over from the article, to show here.

EAST MIDLANDS

	1997	2002	2007
Average first time buyer house price	£44,342	£82,326	£124,019
House price to income ratio	1.58	2.25	2.9
Average monthly repayment	£253.22	£398.29	£643.73
Average repayment as % of average income	10.8%	13%	18.1%
Source: Shelter

SOUTH EAST

	1997	2002	2007
Average first time buyer house price	£64,234	£142,749	£188,811
House price to income ratio	1.84	3.26	3.41
Average monthly repayment	£376.37	£690.62	£980.04
Average repayment as % of average income	12.9%	19%	21.2%
Source: Shelter

SOUTH EAST

	1997	2002	2007
Average first time buyer house price	£64,234	£142,749	£188,811
House price to income ratio	1.84	3.26	3.41
Average monthly repayment	£376.37	£690.62	£980.04
Average repayment as % of average income	12.9%	19%	21.2%
Source: Shelter

EAST

	1997	2002	2007
Average first time buyer house price	£57,115	£121,326	£169,285
House price to income ratio	1.84	3.03	3.55
Average monthly repayment	£332.30	£586.98	£878.69
Average repayment as % of average income	12.8%	17.6%	22.1%
Source: Shelter

YORKSHIRE AND THE HUMBER

	1997	2002	2007
Average first time buyer house price	£43,021	£69,096	£119,722
House price to income ratio	1.53	2.07	2.99
Average monthly repayment	£245.04	£334.29	£621.43
Average repayment as % of average income	10.4%	12%	18.6%
Source: Shelter

WEST MIDLANDS

	1997	2002	2007
Average first time buyer house price	£46,306	£84,862	£129,726
House price to income ratio	1.60	2.41	2.84
Average monthly repayment	£265.38	£410.56	£673.36
Average repayment as % of average income	11%	14%	17.7%
Source: Shelter

SOUTH WEST

	1997	2002	2007
Average first time buyer house price	£53,211	£115,634	£163,377
House price to income ratio	1.89	3.23	3.68
Average monthly repayment	£308.13	£559.44	£848.02
Average repayment as % of average income	13.1%	18.7%	22.9%
Source: Shelter

LONDON

	1997	2002	2007
Average first time buyer house price	£73,962	£169,975	£258,756
House price to income ratio	1.98	3.27	4.30
Average monthly repayment	£436.60	£822.34	£1,343.10
Average repayment as % of average income	14%	19%	26.8%
Source: Shelter

NORTH EAST

	1997	2002	2007
Average first time buyer house price	£36,628	£58,916	£107,448
House price to income ratio	1.31	1.71	2.79
Average monthly repayment	£205.46	£285.04	£557.72
Average repayment as % of average income	8.8%	9.9%	17.4%
Source: Shelter

NORTH WEST

	1997	2002	2007
Average first time buyer house price	£44,741	£73,363	£120,677
House price to income ratio	1.55	2.12	2.98
Average monthly repayment	£255.69	£354.93	£626.39
Average repayment as % of average income	10.6%	12.3%	18.6%
Source: Shelter

NORTHERN IRELAND

	1997	2002	2007
Average first time buyer house price	£39,956	£73,745	£164,811
House price to income ratio	1.55	2.25	4.25
Average monthly repayment	£226.07	£356.78	£855.47
Average repayment as % of average income	10.5%	13%	26.5%
Source: Shelter

SCOTLAND

	1997	2002	2007
Average first time buyer house price	£38,845	£66,426	£108,446
House price to income ratio	1.36	1.89	2.45
Average monthly repayment	£219.19	£321.37	£562.90
Average repayment as % of average income	9.2%	11%	15.2%
Source: Shelter

WALES

	1997	2002	2007
Average first time buyer house price	£42,022	£73,586	£122,313
House price to income ratio	1.52	2.26	3.08
Average monthly repayment	£238.86	£356.01	£634.88
Average repayment as % of average income	10.4%	13.1%	19.2%
Source: Shelter

ENGLAND (ALL)

	1997	2002	2007
Average first time buyer house price	£54,775	£111,028	£166,527
House price to income ratio	1.75	2.80	3.49
Average monthly repayment	£317.81	£537.15	£864.38
Average repayment as % of average income	12.2%	16.3%	21.7%
Source: Shelter

As you can see some shocking figures, about the rising cost of housing in the UK, prices which lets face it, are forcing out more and more first time buyers. Espically young single people. Ther reports says that even though the housing market is slowing down a bit, that demand is still high, well yes it is, however the demand is coming from private landlords, who are able to collect multiple houses, and then rent them out to people who cant afford to buy. All this practise will do, is continue this cycle, of the rich getting richer, and the poor getting poorer.

To then add insult to injury, good old Gordon Brown (the non elected ruler of our fine country) has decided to kick low earners even more in the nuts, by deciding and implementing the abolition of the 10p tax band. 

A strange and stupid move, that once again attacks the millions of low earners of the United Kindgom, however it's all good dont panic, because this helps everyone (espically the ones who earn more) as they reduced the 22p tax band to 20p. So whilst millions of low income earners stand to be some £300 odd worse off with this new rule, the middle and top earners will benefit.(wonder what tax band Gordon Brown is in ??? )

A move that has effected me personally, being in the young single professional category, not only can I not afford (yet) to buy my own place, now I am affected by this new rule, from the amazing "New Labour" party.

Politics never used to interest me that much, and it was never my intention to use this blog, or any other of my sites to promote a political message. However this has really got my back up, in my opinion the Labour party (or a percentage of the MPs in the party) no longer hold the workers of the UK as a priority in their minds.  This crazy rule is effecting millions of low income workers, at the rate they are going, everyone will be better off on benefits !!

However I will continue in my quest to find those multiple income streams, and hope to get a big pay rise soon, so that I can buy a house, and not be so effected by this 10p rule.  However this will take time, and in the mean time, we will all have to live with Gordon Brown's stupid rule. If only he would call a general ellection, and then we could have someone appointed by the people running the country. I tell you one thing my vote this time will not be Labour.

Once again an article found on bbc.co.uk news article, has quotes from some people effected by these new changes:

Under the new system, standard income tax has been cut from 22% to 20% and tax credits raised – but the lowest 10p band has been scrapped entirely.

The government insists many stand to benefit. But a Treasury Select Committee report has warned that households without children or anyone over the age of 65, and on incomes below £18,500 a year, would lose out by up to £232 a year.

'Very painful'

Nervously awaiting her latest payslip is Victoria Forester, 55, from Birmingham, who earns just over £11,000 as an audio typist.

She fears the reforms could be enough to break her already frugal budget.

To make up the shortfall, she says, she would have to give up the Nissan Micra she drives to work – even though her bad back makes walking any distance agonising.

"It's very painful for me to walk," she says. "But if it's as much as I fear, I might just have to do it.

"As it is I always try to buy the cheapest own-brand groceries but it's never enough. I'd love a fresh wardrobe but I can't remember the last time I bought new clothes.

"I don't think it should be people on low incomes who have to pay more. It should be those with higher incomes – like MPs."

Her sentiments are shared by receptionist Kate Mason, 22, from Newcastle, who is on an annual salary of £11,000.

She says she is penalised because she earns too little to think about supporting a family, but as a result doesn't qualify for working families tax credits.

"At the end of each month I'm scrabbling around looking for pennies"
Kevin Davia

"Money is a constant worry for me," she says. "I keep a diary of which bills are due and I'm always checking my bank balance.

"Now I'm going to be even worse off. There's no way I can think about getting a mortgage or anything like that.

"This is meant to be a government for the ordinary Joe, but it seems to be hitting the poorest hardest."

'Corporate ladder'

Kevin Davia, 34, from Hitchin in Hertfordshire, says that he also has trouble making ends meet – a situation which will be made worse by the tax changes.

He takes home £13,500 a year working in customer support and says he has already been hit by rises in the cost of petrol, gas and electricity.

"As it is I have to dip into my credit card to pay the bills," he says.

"At the end of each month I'm scrabbling around looking for pennies.

"In business I think when people get so far up the corporate ladder they forget about the people on the bottom rung, and the same obviously applies to politicians."

Ministers say the changes will benefit millions. But that may be little comfort to those working on the breadline who feel they have been forgotten.

Another person commented

"I never thought I would see a Labour government penalise people in the lower pay bracket"
Elizabeth Philips, Halifax

So there we have it a very popular ruling from Gordon Brown, thats stands to effect millions of people in the United Kindgom, and these people are the people who need it the most.

Ironically as I was researching this article for my asuperincome blog, further developments happened on the 18th of April, Many Labour MPs who were angry of the new changes, put pressure on Gordon Brown to compensate the low earners, some even threatened to quit over this shocking change.

With over 70 Labour MP signing one of three commons motions criticising the reforms. Mr Brown has already had to take time out of his tour of America to stop Parlimentary Private Secretary Angela Smith quitting over this issue.

I do hate to be negative on my asuperincome blog, however these are two issues very close to and millions of other people's heart. My quest for a better standard of living will continue, and I will strive to meet my aims, of mutliple income streams, whilst building a successful career. However I think this rule is crazy, and if it isnt revoked, I think we will see a very interesting general election, whenver Gordon Brown decides to call it.  

OKay thats it for now, if your interested in running your own online home based business, and creating yourself a residual income then check out www.asuperincome.co.uk which will show you how to earn a stonking extra income in your part time.

written by admin