If you are financially comfortable, have you started cutting back on non-essentials?

[LabraDabraDoo]

I realise that we are very fortunate to have the financial headroom to choose to cut back and at the moment we spend quite a bit on non-essentials. We did a budget last night to look at likely price increases (especially fuel) and it looks like, while our jobs are secure ( although our investments are in the doldrums) we will be cutting back on quite a few non-essentials. Anyone else also making this choice yet?

Our list includes:
Back to buying decent quality supermarket meat and reining in trips to the farm shop.
I’m not buying clothes this Spring, I have enough to clothe a hundred middle aged women. We aren’t heating unused rooms in the house. Horse riding lessons are being suspended ( kids didn’t seem too bothered so that’s an easy £200 saved). We’ve cancelled our plan to refloor downstairs (wooden floors, so that’s a big saving). I planned to raise the children to a cottage in Norfolk for a couple of weeks in summer and we’ve arranged a house swap with a friend instead. We are not going out to eat for the foreseeable, and outings will be free swimming at the gym, dog walks etc. All other home improvement plans and big spends ( I considered renewing my car) are on hold. There are some things I hope we don’t have to cut, like cancelling holidays, music lessons and our lovely cleaner. We are still saving money into pensions and investments.

Anyone else making cutbacks? Do you think it’s going to start having an impact on people who provide non-essential services or are they still enjoying a post-Covid boom?

I would think right now we are comfortable, as in able to pay bill without much thought. We don't live a very extravagant life as it is it is more so things I wanted to do that will not happen now. I have been saving for my maternity to have more disposable income but I'd say that might get swallowed up in day to day.

I had wanted a 'mini moon' somewhere fairly luxurious that €1,500 we will be keeping.

We had already started doing the bathrooms so finishing those, but we were going to re-floor a few other rooms and buy new doors. We have the money but I am hesitant to spend it now and won't. I want to change them they are here since 1980 but they are fine.

We don't get a lot of takeaways anyway, we both gave up alcohol last year and don't plan on taking that back up. For both financial, health and life reasons.

We like Sunday outings, within about 50 miles. With the cost of diesel that will have to stop.

As farmers though, I am terrified/ horrified at the cost of agri-diesel right now. It was approx €.70c per litre last year, yesterday it was €1.60 (I know a lot cheaper than personal diesel) but a cost farmers simply cannot absorb and it is usually out of our control to put up prices. It will have to go up though, as if we don't cover our costs and make huge losses we simply will not be able to continue.

This thread is quite interesting to me as although we’re comfortably off, I have been saving quite a lot for early retirement (I have been suffering a lot of ill health) and want to continue to do so. Unfortunately, it's made me realise we don't spend a lot anyway on non essentials though. The most extravagant thing are music lessons for DD but that's not something I would be happy to cut back on.

For us, we were finally in a position to save a little and now we are not. Bought a house last year which demolished our safety net so now having to build it again but it's just not happening now with energy,fuel and public transport rises.

I’m trying to be more savvy with my shopping also, but dh and ds doesn’t seem to have got the memo. Eg. Chose hot cross buns over Eccles cakes in supermarket last week, because they were a pound cheaper (I know that’s a frivolous example), even though I really fancied some Eccles cakes.

I feel sorry for clothes retailers if we’re all cutting back on new clothes. Good for places like eBay and Vinted though.

Was planning to replace my old second hand car this year (and have budgeted for this). However, second hand car prices have rocketed so waiting awhile, even though it’s not that economical to run.

We have turned the heating off/down and I’ve started meal planning to reduce food waste. We’re also trying to walk more.

FFS why does everyone start jumping on the OP accusing her of being 'tone deaf'. Do we have to pretend that people with money don't exist now, in case we upset someone? People on the poverty line are well aware that there are people with more money than them. OP not mentioning cancelling riding lessons does nothing at all to help them.

Yes OP we are in a similar situation although I don't think we're as high earning as you (or at least don't have 'investments'). We bring in very good wages - our combined earnings are over £100k before tax - but after pensions, a hefty mortgage, two sets of childcare fees, insane energy bills, petrol, car costs, increased food costs and insurances we don't actually have a huge amount to spare. Yes, it more than some people have - and we are very lucky - but considering our take home pay is over £5k a month, it really feels like we should be able to afford to live very comfortably and we can't anymore really.

@ExConstance

We are comfortably off, not well off. This is mainly because we have paid off our mortgage and our children have flown the nest. We tried to turn the heating down, and hated it. It felt that our house was uncomfortable and unwelcoming, so now it is back up. I've followed good driving tips to improve fuel economy, and these really work. I spent over £20 at the special farmshop motorway services last week on Mayo, special yoghurt and special chocolate and felafel, none of it was very nice so that is an easy economy. I've stopped the Ocado delivery and shop in person at Tesco from a menu planned list. ( saving about £30 a week on that and zero food waste) I want to enjoy life so we will not cut down on holidays, meals out etc. I don't need any more clothes for the time being so I'm cutting down on them but saving the some special things later on. All in all just budgeting better on the essentials to avoid missing out on fun.

What good driving tips can you advise?

Probably going to get torn into shreds for the most middle class sentence ever but; we made the decision to turn the aga off I don’t know if it’ll be back on before Christmas now or if it’ll actually ever go back on permanently. It was already a crazy expense. We’ll also be cutting back on meals out, holidays and days out.

We have turned the thermostat down and have scaled down a building project too.
We have a few holidays booked but I have turned down another group one, or more accurately said we can do 1 night rather than a big weekend away with lots of activities etc.
I am not replacing my car even though it’s pretty old (and according to the kids smells funny), when it dies we will probably stick to 1 car as we both WFH and have no school run etc to do

To answer ops actual questions yes. We are fortunate enough to be comfortable in retirement but increased fuel prices will hit us hard and will absolutely take home projects and luxuries off the table. We have already deferred any holidays for another year and my 15 year old car wont be replaced. If we are typical of the people who can afford to spend money on services, then cleaners, gardeners, painters and other local tradesmen will definitely see work dropping off after some enjoyed a boom during the pandemic.

Even if on paper people are still solvent and can afford certain things, most will think twice about expenses when there is so much uncertainty. Some of this is psychological and in response to the barrage of negative news but realistically everyone is going to have less money, and there is a climate of austerity which in turn will affect businesses and services dependent on discretionary spend.

To people criticising that the question was even asked, everyone is in different situations and it surely doesnt make them insensitive just to discuss, nor does that invalidate their own concerns.

Yes some people are really struggling and are running out of money. For us we are simply running out of time and life. The pandemic, world unrest and uncertainty have already put on hold our hopes and dreams of a fun active retirement which we reasonably felt we had earned and could expect. We absolutely remain grateful that we have survived covid, that we are not in Ukraine and are not in poverty but surely its ok to discuss our own situations and sense check how others are responding to change?

@SweetNcrunchy

So according to lots of you, you are only allowed to start a thread on what you're going to cut back on if you are on the breadline in the first place?! Can you not see that people who have money are cutting back too and if that means Pony Lessons then so what? It still matters to that person and is still cutting back, for them.

We are what some people would term wealthy and we are having to cut back on things as well. Cutting back is cutting back on things you normally have, even if they seem like massive luxuries to others.

I think this is an interesting thread and hope it doesn't get derailed by the few.

Well, I think you’d find it was derailed by the majority, rather than the few, given that very few people are actually wealthy!

However, it doesn’t bother me. Your problems are your problems. Whether that’s where to invest millions or which pasta is cheapest by weight. Somewhere, there is one poor unfortunate soul who is worse off than anyone else, and they are not the only person entitled to feel sad or complain. You might want to be very aware of finding your people though, and it could be said to be tactless to do it in public.

Everyone deserves support, but cutting back when you the choice is horse riding or a swanky gym membership is pretty easy to do. You possibly don’t really need a public thread about it? Perhaps this is not something for public forum - the peasants do occasionally revolt, you know! No judgement, no shaming, just gentle encouragement to perhaps be even more aware of your privilege in the times to come.

I think you should keep spending. I really think if you are privileged to have spare money, and you genuinely believe that benefits should be as inadequate as they are in order to encourage people into work, you are morally obligated to create that work with your excess money. Don’t cancel the swimming lessons and the horse riding and save the money. The swimming teacher and the stable hands probably can’t cut back. Obviously don’t go into debt, but don’t hoard money now either. You took the good times, now stand by people with less in the bad.

I’m comfortably off, I think, and we have a combined salaries of 55k in London. I think that’s fine to live well - or it was. I can’t really think of what to cut back on, though. I think we’re frugal anyway. We just don’t do gym, tv, clothes, restaurants, takeaways, have a cleaner or a car etc. I now wfh and that’s a big saving on commute costs but that happened because of covid. It’s probably offset by the fact that I now use more fuel at home. I’m more likely to get a lodger.

We are comfortable but not particularly well off. I have already cancelled our cinema membership card, and will be considering dropping paid baby classes in favour of free council run playgroups (I am on maternity leave) I may also consider bringing my return date to work forward by a month or so as I am the main earner of the household, I’ll have still had more than a year off so I wouldn’t feel too bad about that. Next stage would be to stop getting my nails done, and reviewing our sky subscription. I really hope I can continue with my toddlers 2 paid for activities as I feel they lost so much in the lockdowns, but if needs be I would cancel one of those. The big thing I am wondering about is our big holiday planned for next year, we are saving up for it but I am now considering if I should spend so much on a holiday when we could potentially enter a recession.

Luckily I don't need to do anything. If this happened five years years ago I would be stuck as I was living alone and money was so tight dd had to pay tor her own food when she was home from uni

I'm not sure where we can make any cuts. Everything everyone else is doing we already don't do.

I would say though, posts like this make me nervous. I'm self employed and it's people like me you're going to directly affect. What's 'just' £120 a month to you is my entire wages collectively.

And i already don't have anywhere to cut from...

Please think twice before cutting out self employed - I'm thinking tennis lessons, tutors, horse riding etc. All very well chopping out the bigger companies but chopping a small business could literally lead to hungry children.

DH retires at the end of the year, we will be ok but our income will halve.
We dont live extravagantly but were planning on buying a motorhome, with the price of diesel that doesn't seem such a great idea now.

Arthritis wont like camping in a tent!

We're pretty comfortable. We'll need to make a choice to either rein in some spending or cut down what we're putting away in savings.

I would consider us comfortably off, not mega rich but we have no debt and enough disposable income to enjoy life.

We decided to try and cut back on things we won't feel much first. We've set a monthly budget for food which we won't exceed. If it goes over one week then we pull it back another.. I'm basing meals on what's on offer rather than what we may fancy. We're turning the heating down during the day but making sure the house is warm when the kids come in from school.
I refuse to pay the prices they're asking for holidays abroad next year so will holiday in the UK unless we get bargain flights. The kids don't actually care about this as they both prefer UK holidays.

We'll be making the most of our national trust and English heritage memberships and taking nice picnics instead of always eating out. I don't want to cancel these memberships as we enjoy them and I like supporting them.

I think those of us who will still have disposable income have to try to aim our money at smaller businesses now. Try to choose a small cafe rather than Costa etc. I'll still be having my beauty appointments at my friend's salon but I know she's already experiencing a downturn. My exercise classes and kids activities are non negotiable as we all enjoy them.

I'm definitely not stopping DS's horse riding lessons. It's the only hobby he is passionate about. I'd cut back on things for myself first. I could do with eating less as I'm overweight!

"Please think twice before cutting out self employed"

And selling items instead of giving to charity. It's sad to see it on the list next to going to the cinema and eating out less.

I agree with @Hellorhighwater I will keep spending where I can. Fortunately exh is in a stable well paid job and is getting a pay rise next month so my child maintenance is going up by £100pm, that should cover any additional energy bill increases.

I think you should keep spending. I really think if you are privileged to have spare money, and you genuinely believe that benefits should be as inadequate as they are in order to encourage people into work, you are morally obligated to create that work with your excess money. Don’t cancel the swimming lessons and the horse riding and save the money. The swimming teacher and the stable hands probably can’t cut back. Obviously don’t go into debt, but don’t hoard money now either. You took the good times, now stand by people with less in the bad.

It's a bit of a leap to assume that everyone with a bit of spare money is a benefits basher @Hellorhighwater

This post is so bloody tin-eared. People are frightened about not being able to feed their kids and heat their homes and the OP is talking about cutting back on riding lessons and making use of ‘free’ swimming at the gym?! Give your head a wobble ffs.

@tentative3

I think you should keep spending. I really think if you are privileged to have spare money, and you genuinely believe that benefits should be as inadequate as they are in order to encourage people into work, you are morally obligated to create that work with your excess money. Don’t cancel the swimming lessons and the horse riding and save the money. The swimming teacher and the stable hands probably can’t cut back. Obviously don’t go into debt, but don’t hoard money now either. You took the good times, now stand by people with less in the bad.

It's a bit of a leap to assume that everyone with a bit of spare money is a benefits basher @Hellorhighwater

Oh yeah, missed that bit. I get working tax credits and I still have a large amount of spare income due to my very small mortgage and very high child maintenance payments. So I'm on "benefits" but also not struggling financially!

No, I haven't cut back or have any immediate plans to but it's different for me than many on here : I am on my own, retired and can't say I do anything much that costs a lot anyway. However I wouldn't go without and am happy to help others (discreetly), when I can.