To think that people don't budget carefully enough these days?

[daffodilrosedaisy]

I've come across several people recently who are living hand to mouth, and struggling to afford things... BUT spend out on what I would consider unnecessary luxuries. Examples:

• Struggling to pay rent for a large family each month, ended up in huge debt to their landowners and got kicked out... but have newest iPhones, iPads for all the kids, big TV etc.

• Unable to pay for boiler and car to be fixed at the same time in winter, so had to take out a big loan to buy new ones of both, but go on two week holidays abroad, and again own high-end electronics.

I'm not referring to people that are never able to save, because their living costs equate to what they earn. I mean people who seem to get their priorities wrong and spend lots on 'luxuries' but don't budget for the basics like rent, and having a contingency fund for when things go wrong (broken boiler/car etc.).

AIBU in thinking this is ridiculous? Especially when people have families to care for?

Not your business

I would take cover if I were you.
But I agree. There is loads of people who just never budget properly. I've known someone who was basically all the time short of rent and in arrears, but had enough money to go party every week and talked a lot about their £40 a month contract phone when they got it 🤷 That's just 1 example. I refused to loan them money to cover rent once. I would never see it again

It is when it directly affects me! Which in both of these cases it has. They are both friends.

@IAmALazyArse I completely agree! This is why I get so frustrated. It's always the people who fritter money on unnecessary things who then ask to borrow or end up cancelling a holiday that you have a non-refundable deposit for (which they shouldn't have agreed to anyway - at the time I didn't know their financial situation).

I agree to some extent but it’s always easier to judge when you don’t know what goes on in people’s lives isn’t it....

How do you know people’s finances ?

Even if your ‘friends’ were to tell you bits and pieces of what they may spend money on how do you know thier expenses ?

I agree OP, however you have inadvertently started a who’s poorest competition thread, during which you will get you backside handed to you.

@daffodilrosedaisy And the kill it with "You are so lucky you can afford x".
Nah mate. I just don't drink away 50 quid a week in gin and cocktails.

I think I need to do much better in budgeting, but I feel I'm always so short on time and energy that I struggle to stop myself from doing things like getting a coffee out even though I know these expenses add up. And we do eat out when we've not had time to get food in etc and we're exhausted. I just blame the fact that we are all so relentlessly busy, for some reason.I blame capitalism.

I completely agree.
One woman I know goes on holiday every year costing her around 1.5k for her and her DH.
She always says ‘I can’t afford it really’ but she still goes despite the fact she gets frequent ‘final warnings’ and court orders on unpaid bills!
I despair

@xtinak highly recommend online shopping. It saved me when I had barely any time and energy.

I definitely didn't intend to start a "who's poorest" thread, which is why I said explicitly in my original post that it was not referring to people who struggle to afford their living costs. I'm talking about people on reasonable wages who fritter their money and don't budget correctly. The whole point is they earn a similar amount to me - I know because they have both told me how much they earn! So please don't try to twist my words, I am well-aware there are many people who really struggle. My frustrations lie with people who could easily live comfortably but do not budget at all, and spend money on luxuries saving little or none for necessities!

I agree with you, but I think you're going to get your arse handed to you on here unfortunately!

Lots of people do just have poor budgeting skills. I've lived with people in flat shares who spend all their money on cigarettes/takeaways/new technology but then don't have enough for the rent. They certainly weren't poor or struggling or not earning enough - they just didn't budget or plan ahead.

I can’t afford a holiday this year...

I work self employed as many hours as I can, have a crap phone, don’t have friends so I don’t use money for drinks or smoke, don’t buy new clothes as I don’t have anywhere to go but the school run and shopping and buy my food in aldi and Lidl to make ends meet.

Would that count as “flittering away money” because I’m not in the same situation as others ?

There’s always someone who feels the need to comment and judge others life choices when they don’t even know the struggle the other person may have to survive.

Has it ever dawned on you that life is getting harder?
Things are becoming more expensive and more and more people are struggling to survive.

Nothing to do with “flittering away money” - not everyone is in the same position as you and it’s always nice to put yourself in other people’s shoes before you judge.

Pathetic

I know somebody who got a boob job and was then moaning because she was in arrears with her council tax.

I get what you are saying.

I think the problem is you have adults who don’t know how to budget, who don’t (can’t) teach their children to budget, and it just continues in a vicious cycle. Also when you’re short on money, it’s easy to spend what little you have on instant gratification (eg alcohol, cigarettes, and to an extent iPhones and the like) rather than prioritising that which is essential but boring.
But what’s the answer? If it isn’t being taught at home, perhaps teaching it in schools? There’s an argument for making maths less abstract, and teaching budgeting, how loans and mortgages work, interest rates, etc. Or maybe pshe (or whatever it’s called now).

@xtinak If you can manage it, getting up 5 minutes earlier and buying a takeout mug can help to solve that one! But I know what you mean, when I was at uni I used to fritter money on things like food and drink and it's scary how much it mounts up! Batch cooking if you can manage it also helps, just doing a couple of meals (a chilli is always my go to, and a curry maybe) and then freezing loads of portions so you can just defrost them and have a cheap meal 😊 But I completely appreciate that life gets in the way sometimes!

I think it's partly that many people feel that saving will do them no good, because, while they are not starving, they are on fairly poor wages with no chance of an increase, and working long hours (probably with a fair bit of unpaid overtime) so why shouldn't they have nice things now and again?

I would never think that it has to be taught to pay your rent and bills first and then have fun with a rest. No one ever taught me to budget. It's common sense

Saying that I get why people do it. It's horrible not being able to afford nice things and it's a short term fix for happiness.

@ColdTattyWaitingForSummer I completely agree, we were never taught how to budget in school or university which I think is terrible! I suppose it's no wonder some people struggle.

@CTRL If you read my PP you'll see my post does not relate to people who struggle to make ends meet! I'm sorry you do, but please don't attack me. This does not relate to you.

I think the problem is you have adults who don’t know how to budget, who don’t (can’t) teach their children to budget, and it just continues in a vicious cycle.

Is budgeting really something that needs to be taught, though? I was never taught how to budget (by school or by my parents) - surely it's common sense that bills and rent come first?

Big tv you only buy once and lasts for years. If you’re getting a new phone on a 2 year contract, could well be because you NEED a new phone (eg battery life is terrible on older phones) and it may only be a few pounds a month difference between the latest iPhone and an older model which won’t stand the test of time with iOS updates etc.

I’m not saying you’re wrong, your friends may not be making the best choices but it’s not as simple as you make out. I also think it’s really easy for people to run up cumulative spending amounts on relatively small items if they’re not used to hard budgeting.

@adaline But common sense is so rare nowadays!

Whilst I do agree that many are hopeless at budgeting, most new TVs are big and can be bought for under £300.

They could be in contract for their gadgets and if they're anything like me, can get a really good deal by asking threatening to leave and find a better deal elsewhere.

That said a lot of people place their worth in life by trying to keep up with the Joneses. They seem to think they will be valued more socially by having stuff and big holidays. These are the people that need budgeting lessons and to realise stuff doesn't make you a better person.

I'm sat here today in a tea stained T-shirt because I'm not leaving the house so it's fine for indoors. The people you're referring to would probably have chucked my top out and replaced it. I'm too much of a tight arse