How is this all going to end?

[Ghostsapply]

We are a relatively high income family but we are really feeling the pinch. Our fuel bill has increased massively (more than tripled) as has our food bill. We are both professionals but DH has just lost his contract (I'm hoping another one won't be too far away) and my job has a ceiling in terms of pay. We work really hard and yet we have less disposable income now than when I was a SAHP (kids have become more expensive as they've got older). Our house feels like it is falling apart but we can't afford to do the work. Holidays abroad are not feasible anymore and we are cutting back on the extras that we have previously enjoyed (tutors for kids, extra clubs etc) which will have a knock on effect for local businesses. We pay so much money in tax and yet our public services are not fit for purpose.

I just don't see how this is going to end? How will it get better? With Hunt announcing further cuts to public spending and more tax how are we going to grow the economy. I feel like we are totally beholden to financial markets who don't have the interests of the general public at heart. Even if we held a GE and voted the Tories out then a new Government would have to deal with the shit they have been left.

Please help me understand how it is going to get better. For the first time ever I am actually scared that we will lose everything. FWIW I have had really hard times before but now it seems there is so much more to lose.

You just need to amend your budget to match your income. If you are down to one wage then this is exactly the sort of thing that your rainy-day fund is for, so be prepared to dip into it while you work out if you need to downsize your home, or if you can make cuts elsewhere and get by.

If, as you imply, you are additional rate tax payers then you should be able to step back to a more average sort of lifestyle and get by.

Inflation will fall to 2% or below in the next couple of years, wage rises will start outstripping inflation, we will all feel richer and so the cycle will begin again.

I really hope so. This is all making me so anxious. We should be thriving and things should feel easier but instead it just gets harder.

We can't afford to live off one income. We have high outgoings but nothing we can really pare back on (mortgage, fuel, council tax etc). We can't afford to move house. We have enough in savings for three months but that's it.

What's a relatively high income? 20k, 60k, 200k ?

You need to cut your cloth accordingly. Hone your food bills, give exact readings to your energy suppliers.

How can you not afford to live house? You sell your house and then rent it buy something much cheaper.

It’s coming up to Christmas, there are loads of shops, bar or delivery jobs available for the next couple of months; is your husband getting applications in for those?

You can also get work yourself in the evenings or at weekends.

Our mortgage makes up the majority of my salary. We have 4 DC and we could not afford a house the size we need to accommodate us all as house prices have risen so much.

My DH is concentrating on contracts related to his current skill set but if it comes to it he will obviously do any job.

We’ll have a tough couple of years where poor people will really struggle but you’ll just have to adjust to no holidays abroad and no work on the house, temporarily, and then it’ll upturn again. Count your blessings and try and find a bit to give to your local food bank.

Other people being financially worse off does not lessen or invalidate OP's worries. In their current situation they can't afford basic bills, that is a reason to be concerned isn't it.

OP I hope your DH finds a new contract soon. If not, I've known contract colleagues to deliver for supermarkets over Christmas time and absolutely bloody love it. Might be a nice change for him, but i appreciate looking for new contracts can basically be a job in itself.

Wf45dk Thank you. I forgot that it is often a race to the bottom on here. When we've lost our house and I'm struggling to buy food then I'll be allowed to "properly" anxious.

With four kids, have you checked whether you would be eligible for any Universal credit whilst down to one wage?

I would approach it systematically

Go somewhere like money saving expert and go through everything you spend and figure out how to make cuts. It sounds like cuts can be made. Also yes do check any top ups.

Suggest your DP gives himself a deadline for a new job, and applies on a double track - the jobs he wants, and the b stream, so once time is up if he didn't get what he wants yet he has b stream choices rather than scrambling for another 3 months - then he just keeps applying for the right thing.

Try to focus on practicalities rather than worry too much - these are tough times but you should hopefully be OK.

Babyroobs I'm pretty sure we wouldn't but thank you. I was being melodramatic and I really hope it doesn't come to that. We have options and will figure it out I'm sure but I do wonder where all this will end. Having been a victim of recession as a child ( parents business went bankrupt, lost our home) I just really don't want my DC to go through that.

We couldn't afford the work required to have it rentable. There is also nothing to rent around here and anything big enough would be as much as our mortgage.

@Ghostsapply

This financial state of our country keeps me awake at night.

We are two fairly good earners and although we have managed to absorb the up cost in fuels and food like you we don't have a lot to cut back on if need be to an extent.

I'm sorry your dh has lost his contract and really hope he picks up another one soon.

And you are totally validated to be worried even though your not living in benefits and not earning regardless of what some posters think.

Unfortunately you can't win if your in a slightly higher pay scale.

You pay more tax,more national insurance and have more disposable income to spend but you tend to get trodden on if you dare to be worried

I was forced to take a massive leap of faith this year and although so far it's going very well it's also cost me a redundancy pay off plus any profit I've made to get it up and running so my reserves are very low and it makes me edgy.

Also just going to put it here for people saying there's loads of Xmas jobs about if you actually look on commercial properties for sale or closing down in your area it's unbelievable to see how many businesses are hitting the dust right now

I also live in an area where there is a lot of winter trade but most of the hotels and camps are closing this winter because the cost to keep open due to wages and bills going up so much will outweigh any sort of profit at all so the queue for seasonal jobs is going to be massive.

It's scary times

I'm a single mum of one, with a mortgage, a medium income and no backup. You'll do what we all do when needs must.....

You'll work a second job
You'll cut out things like alcohol and holidays.
You'll change the car at 12 years old instead of 10.
You'll buy less expensive food.
You'll make clothes last an extra season or two.

You'll turn the heating down and wear sweaters.
You'll cancel the gym and do parkrun.

Since the start of covid I've been furloughed, made redundant, fought to find another job, been diagnosed with breast cancer, and had surgery, chemo and radiotherapy. I've lost all my hair and grown it again.

If I stop and think about it, I want to giggle hysterically so I don't. You just have to keep going, and have faith in your ability to battle on through. You will be amazed what you can achieve when you try.

But I understand how worries creep up on you. It's only natural. Get plenty of exercise and sleep. You will cope xxx

You are supporting four children, it's going to be expensive.

You're just going to have to do what everyone else does. Budget supermarkets, charity shop clothes, ruthless budgeting, side hustles etc. If you really stretched yourself for your mortgage then maybe last look at moving to interest only for a while.

Some mortgage companies offer "payment holidays" it's not a long term solution but would maybe allow you to claw something back for a month or 2?

I know how you feel op, it's really worrying. We're finally earning well but a big mortgage hike, huge utility bill and food bill have wiped out any gains. There isn't much to cut back on and we're travelling to the office more as well so increased costs there. My sons are just past GCSE age and one has just managed to get a Xmas job which means he can have money in his pocket, which helps. But I know where you're coming from

What sector is your Dh in? Some are affected worse than others.

Try being poor 60 years ago. To be honest I think that was most people.
My nan had 3 jobs, one of which (cleaning) she took her kids to in the evening.
My mum had 2nd hand school uniform. They ate sugar sandwiches as they couldn’t afford food and my nan would go for a few days without eating properly.

You can just buy food essentials, turn your heating off, wear more clothes when it’s cold indoors! Last night DH sat with his coat on wrapped in a blanket!
I have to have a mobile phone for work but I pay £9/ month for the contract and the phone was second hand. Get freeview on the TV or don’t turn on the TV.
Don’t buy sweets, crisps, chocolate etc. drink water - it’s free!
Get another job! My FIL was a bricklayer but in the winter swept snow off drives. There is loads you can do.
Sit and think of what you need to survive (and it’s not having the heating on). You’ll be surprised at what you don’t need.

Op the war will eventually end and energy and oil prices, the cost of food will settle down and stabilise. A lot of the issues stem from the war in Ukraine and are affecting everyone globally. We are in a stronger position than most.

In terms of the national debt, we will have a tricky year or two but eventually things will improve. China has been locking down cities all over the place, putting more pressure on supply chains etc, again that is now coming to an end. China are preparing to abandon their zero tolerance approach.

We have been through many cycles like this, it is natural and normal and will pass. You are not forever going to struggle, and if you are, then an extra job or switch your job for one that pays more money is possible. You can retrain.

But I have to say if you have four kids, you surely must have expected to financially always feel stretched. Kids are hugely hugely expensive, and most people would not consider having so many children to support because it is so onerous. So a lot of this is your own decision making around how many children you could realistically support into adulthood and beyond.

I would say you need to change your job, or find a second income stream and if your dc are teens to encourage them to work and support themselves a little.

Surely your DH can concentrate on finding 'the right' contract whilst also working at least part time in a different field? Most people job search for new roles whilst working FT for their current employer. Even 3hrs/evening, 5 days/wk at minimum wage would cover your food bill and might mean you could eke what is currently 3 months' outgoings in savings to 4 months.

It's not that easy to get a job. I know a few people applying for jobs and they don't even get a response, let alone an interview.
We're all confused by all this talk of people desperate for workers. No they're not.

I'm sorry you're struggling op. Lots of people are, even those in good salaries. Expenses have gone up for everyone.
Hope your dh finds a contract soon.