Savings & On-Hand Cash

[sheep&cows&stuff]

Not looking for any extremely personal details, rather trying to get a feel for other peoples situations compared to my own.

I am guilty of pumping nearly all of my personal monies into farming - therefore leaving me with very little on-hand cash or savings at hand.

Granted I am only 25, but if I had an emergency and needed £10,000 for instance I would have to sell some stock.

I have a fair few assets etc., but I can honestly say that I have <£1000 on hand cash at the present time for to have fun with. Most of my full time wage goes to mortgages / loans / insurance etc.

I talk to people who think I am mad not having a large cash reserve to fall back on, and I talk to people who reckon that by pushing on I am doing the right thing...I am satisfied in knowing that if I needed some money all I need to do is sell something - but of course I never like selling stuff.

Feel free to comment, or it the above offends you - don't comment!

 

[Comptonfarmer]

Same boat!!

 

[Exfarmer]

Never had a penny spare all my farming life. Relied on overdraft for all emergencies. Different now

 

[uztrac]

You are not alone !!!

 

[fgc325j]

Not looking for any extremely personal details, rather trying to get a feel for other peoples situations compared to my own.

I am guilty of pumping nearly all of my personal monies into farming - therefore leaving me with very little on-hand cash or savings at hand.

Granted I am only 25, but if I had an emergency and needed £10,000 for instance I would have to sell some stock.

I have a fair few assets etc., but I can honestly say that I have <£1000 on hand cash at the present time for to have fun with. Most of my full time wage goes to mortgages / loans / insurance etc.

I talk to people who think I am mad not having a large cash reserve to fall back on, and I talk to people who reckon that by pushing on I am doing the right thing...I am satisfied in knowing that if I needed some money all I need to do is sell something - but of course I never like selling stuff.

Feel free to comment, or it the above offends you - don't comment!

Well, if you've got money invested in youngstock, which should increase in value,
and not in machinery, which is guaranteed to fall in value, then you are doing the
right thing. BUT, the truth is, that in order to make money producing goods, you
need to be in charge of setting the price, and as has been said by many people
posting on here - Farmer's are price takers and not price makers.

 

[Yale]

Not looking for any extremely personal details, rather trying to get a feel for other peoples situations compared to my own.

I am guilty of pumping nearly all of my personal monies into farming - therefore leaving me with very little on-hand cash or savings at hand.

Granted I am only 25, but if I had an emergency and needed £10,000 for instance I would have to sell some stock.

I have a fair few assets etc., but I can honestly say that I have <£1000 on hand cash at the present time for to have fun with. Most of my full time wage goes to mortgages / loans / insurance etc.

I talk to people who think I am mad not having a large cash reserve to fall back on, and I talk to people who reckon that by pushing on I am doing the right thing...I am satisfied in knowing that if I needed some money all I need to do is sell something - but of course I never like selling stuff.

Feel free to comment, or it the above offends you - don't comment!

If you have assets and a business would the bank not lend you money?

Even on that amount personal loans are not expensive and provide flexibility.

 

[Suffolk Serf]

I was in the same boat as you at your age. My first ten years as a pig farmer were pretty good and I spent everything I made on expansion. The next ten years were absolutely awful, if it wasn't low prices, it was disease or both, it was a true battle for survival, I was often over my overdraft limit. The last ten years have been excellent and now rarely use my overdraft facility.

 

[Campani]

Not looking for any extremely personal details, rather trying to get a feel for other peoples situations compared to my own.



Granted I am only 25, but if I had an emergency and needed £10,000 for instance I would have to sell some stock.

Well done. I'm four years older and to get my hands on £10,000 I would have to sell my house. And there is many more who don't have anything they could sell to get their hands on £10,000.

 

[Lincsman]

Not looking for any extremely personal details, rather trying to get a feel for other peoples situations compared to my own.

I am guilty of pumping nearly all of my personal monies into farming - therefore leaving me with very little on-hand cash or savings at hand.

Granted I am only 25, but if I had an emergency and needed £10,000 for instance I would have to sell some stock.

I have a fair few assets etc., but I can honestly say that I have <£1000 on hand cash at the present time for to have fun with. Most of my full time wage goes to mortgages / loans / insurance etc.

I talk to people who think I am mad not having a large cash reserve to fall back on, and I talk to people who reckon that by pushing on I am doing the right thing...I am satisfied in knowing that if I needed some money all I need to do is sell something - but of course I never like selling stuff.

Feel free to comment, or it the above offends you - don't comment!

In short all you money is working for you, as long as you have something to sell if need be you are OK. If you go down the borrowing route take care the lender isnt making more than you out of it.

 

[tinsheet]

Cash what's that?.

 

[MF 168]

Similar here. Most of what I make every year I pump back into the farm. Friends of mine go on expensive holidays and drive shiny cars. I prefer making things better on the farm when I can.

 

[Cowcorn]

The reality of farming im afraid!!
Worth millions while unable to lay your hand on a spare fifty.

 

[wanderer]

Not looking for any extremely personal details, rather trying to get a feel for other peoples situations compared to my own.

I am guilty of pumping nearly all of my personal monies into farming - therefore leaving me with very little on-hand cash or savings at hand.

Granted I am only 25, but if I had an emergency and needed £10,000 for instance I would have to sell some stock.

I have a fair few assets etc., but I can honestly say that I have <£1000 on hand cash at the present time for to have fun with. Most of my full time wage goes to mortgages / loans / insurance etc.

I talk to people who think I am mad not having a large cash reserve to fall back on, and I talk to people who reckon that by pushing on I am doing the right thing...I am satisfied in knowing that if I needed some money all I need to do is sell something - but of course I never like selling stuff.

Feel free to comment, or it the above offends you - don't comment!

You need some metal detectorists to come along and find you a hoard.

I bet there is one in there somewhere.

 

[stewart]

Not looking for any extremely personal details, rather trying to get a feel for other peoples situations compared to my own.

I am guilty of pumping nearly all of my personal monies into farming - therefore leaving me with very little on-hand cash or savings at hand.

Granted I am only 25, but if I had an emergency and needed £10,000 for instance I would have to sell some stock.

I have a fair few assets etc., but I can honestly say that I have <£1000 on hand cash at the present time for to have fun with. Most of my full time wage goes to mortgages / loans / insurance etc.

I talk to people who think I am mad not having a large cash reserve to fall back on, and I talk to people who reckon that by pushing on I am doing the right thing...I am satisfied in knowing that if I needed some money all I need to do is sell something - but of course I never like selling stuff.

Feel free to comment, or it the above offends you - don't comment!

Define hands on cash?

If you mean actual cash or a positive bank balance then I would imagine very few farmers would have access to very much, if on the other hand you mean the ability to get hold of some funds by either delving into the overdraft or increasing loans than most farmers should be able to get a sizeable sum.

At 25 I had high borrowings, I still do but have a higher asset base so gearing is a lot less.

 

[Hilly]

Money in the bank is nice ut its no good, you get no interest and its devalued by inflation every year, pile it into appreciating assets, if you have stock their are live markets 6 days a week to sell in an emergency.

 

[Y Fan Wen]

Define hands on cash?

If you mean actual cash or a positive bank balance then I would imagine very few farmers would have access to very much, if on the other hand you mean the ability to get hold of some funds by either delving into the overdraft or increasing loans than most farmers should be able to get a sizeable sum.

At 25 I had high borrowings, I still do but have a higher asset base so gearing is a lot less.

Are there any national statistics on numbers of farmers using borrowed money and those not?

 

[Frank-the-Wool]

Just look at it this way, you won't be paying any tax for a long time.

A piece of advice though, I will guess you are not married or tied up as if you were your partner may not be quite so happy with your arrangement! Just make sure you have a day or two off occasionally.

 

[brigadoon]

Not looking for any extremely personal details, rather trying to get a feel for other peoples situations compared to my own.

I am guilty of pumping nearly all of my personal monies into farming - therefore leaving me with very little on-hand cash or savings at hand.

Granted I am only 25, but if I had an emergency and needed £10,000 for instance I would have to sell some stock.

I have a fair few assets etc., but I can honestly say that I have <£1000 on hand cash at the present time for to have fun with. Most of my full time wage goes to mortgages / loans / insurance etc.

I talk to people who think I am mad not having a large cash reserve to fall back on, and I talk to people who reckon that by pushing on I am doing the right thing...I am satisfied in knowing that if I needed some money all I need to do is sell something - but of course I never like selling stuff.

Feel free to comment, or it the above offends you - don't comment!

I would agree with the folk you are talking to - you really want 3 months outgoings to be available in cash.

 

[DRC]

Money in the bank is nice ut its no good, you get no interest and its devalued by inflation every year, pile it into appreciating assets, if you have stock their are live markets 6 days a week to sell in an emergency.

Not quite as easy as it used to be, with the constant need to pass a TB test. Around here you're often stuck with them until you go clear for a while.

 

[Hilly]

Not quite as easy as it used to be, with the constant need to pass a TB test. Around here you're often stuck with them until you go clear for a while.

Oh i forgot about that, what a nightmare, i dont think id cope with tb i think if scotland gets tb i will retire from cattle.