What makes you privileged - financially

[IknoIkno]

Name changed.
I know we are in the worst pandemic since World War 2 and all.

I talked to a childhood friend earlier and she said(in a huff) I am financially privileged because I do not have a set budget for day-to-day expenses.

Is there such a thing as financial privilege?
To think it is the go-to defence for those with poor personal finances plans

I’d say that’s fairly privileged. If I didn’t have to budget or worry about money I’d feel I was in a privileged position compared to many.

I define it as not having to worry- an unexpected bill, a car breakdown, even a job loss being a setback but not a disaster. Having your own safety net. Being able to spend (within reason) without thinking too much.

I think it definitely exists. I think you appreciate it more if you have lived without it. Some have it through luck, some have created it. It isn't a measure of worth to have or not have it but not worrying about money is a privileged position in this time when a lot of people have found their position more precarious.

Of course nit having to spend to a budget is privileged and people have budgets not down to just bad planning but down to fact bills have to paid and incomes vary

I definitely think there is huge financial privilege - have you ever heard the argument that it costs more to be poor?

I feel that our family is hugely privalged, for me it means that I don't worry about money so it doesn't take up brain space or emotional space for me. I try to be savvy so I still spend time trying to get good deals etc, but if I didn't have the time it wouldn't be the end of the world for those purchases.

I agree with your friend.
We are in a financial position where there is always money in the bank to cover bills, we don't have to worry about when the bills are going out and can easily cover unexpected expenses, we are far from rich but we are definitely in a comfortable and privileged position and are thankful for it every day

I would define it as not having to think about cost for everyday items and not thinking about bills.

When we go food shopping there is no budget and we just get what we fancy. We eat out (pre COVID) regularly without thinking about cost and travel is never booked based on cost of the trip, it’s based on where we want to go.

I guess you could say that we have been lucky not to lose our jobs.

It seems a sneaky way of complaining that someone earns more money and it's not fair.

Most people work very hard at their jobs now. But the distribution of salaries between industries and levels is horribly unfair. That isn't the fault of the individual worker though. More a systemic issue that should be dealt with by the government.

Housing and house prices are a lottery though. Did you inherit a million pound house? Buy a property that needed doing up 20 years ago, sold it and made hundreds of thousands of profit? Then maybe "financially privileged" may fit

I think most people can achieve some sort of "financial privilege" with some form of financial planning and living within personal means.

Wow, aren’t you lovely, OP

Yes, I’m financially comfortable and I realise it’s a privilege. If you spend any time at all on MN you’ll know that many people are left with just a few quid before their next pay day and so do have to budget.

I’ve a ton of other problems but money isn’t one of them for now.

@IknoIkno

I think most people can achieve some sort of "financial privilege" with some form of financial planning and living within personal means.

Absolutely and that is mostly how we have done it with a little bit of luck too. However, once you find yourself in the position to have to budget every penny for whatever reason, it can be incredibly hard to change that as it is actually more expensive to be poor and any unexpected expense can be a disaster. It isn't as simple as living within your means if the income doesn't cover the bare basics to begin with.

I would say I am financially privileged. For the following reasons (probably more but this is what I can think of:

• I own my own home and bought 10 years ago so we have over 50% equity now just through house price increases and our monthly payment is low, relative to what others tell me they pay.
• either me or DH could lose our job (not both though) and we would be fine
• we can afford private healthcare
• can shop for food without a budget
• unexpected expenses such as washing machine replacement, car repairs not an issue
• we have (some) savings
• we can provide for DS’s wants and needs without having to sacrifice personal wants and needs

In fact writing all of that down makes me realise just how bloody lucky I am. Not intended to be a boast but I can see how someone might look into my situation and say I am privileged. And I am.

Another one in agreement with your friend.

When I was single and childless, After a couple of years work and building some savings, l used to feel quite guilty when people talked about waiting for payday. I realised I didn’t even notice or care. Everything was automated - money dropped in my account, my fixed expenses dropped out and I always knew that whatever I needed or wanted - whether emergency or luxury (within normal terms) would be catered for. And every month that ‘resilience’ was growing. It was a privileged place to be.

The caveat was I was hardly earning serious money, it’s just my expenses were much less than what came in. I’ve continued to live like this - there’s a common trope that your expenses rise relative to your income. My income is 7x what I started on all those years ago (and I started on a decent amount), but I never really let my lifestyle creep (kids excepted). I still feel very lucky.

@IknoIkno

I think most people can achieve some sort of "financial privilege" with some form of financial planning and living within personal means.

No they can't and I say that as someone who is privileged financially.

You have no idea really do you?

@IknoIkno

I think most people can achieve some sort of "financial privilege" with some form of financial planning and living within personal means.

Then you are sheltered with no understanding of poverty and living on the bread line.

If you haven’t got enough money to cover essentials then you won’t have enough to merrily whack whatever you want into your supermarket trolley regardless of how clever you are with your financial planning.

I would say I have financial privilege. We both earn decent money and can cover the bills without any panic. We have savings. We don’t go wild with our spending but equally don’t have to mentally tot up every penny in the supermarket. We can buy little treats for ourselves and save up for bigger purchases. And I’m well aware that there’s a large chunk of the U.K. who can’t do those things.

These type of threads always end in disaster OP. Good luck.

Those of us who either have slightly better paid jobs or are old enough to have bought/paid a deposit before prices shot through the roof are quite definitely privileged. Dh was in a poorly paid job and I was hardly earning at all when we bought the Edwardian semi in which I am currently sitting. Of course we're privileged compared to today's youngsters who wouldn't even be considered for a mortgage if they worked in similar jobs and had a similar level of wealth today.

That privilege means we have never had to worry about being homeless, don't have to worry about affording rent in retirement (our eminently reasonably mortgage has been paid off). And dh is on a steady contract which allows him to know exactly what his income is going to be next month. Of course we are incredibly privileged compared to young people setting out today and on zero contracts.

I feel financially privileged every time I buy myself something new, like clothes or something without having to save for ages beforehand.

About 15 years ago I was in debt, had very little disposable income, and what I had mostly went on dd. So new clothes didn't come my way unless they were a Christmas/birthday present from my parents. If the car broke down it put me into more debt, etc.

Now I don't have to worry about that stuff. I'm out of debt, repaid it by doing extra jobs. Moving in with dh helped, as living costs are now shared expenses rather than my sole responsibility. And now dd2 is out of childcare (even wrap around care is expensive!) I feel positively wealthy

Just not having to worry about everyday expenses is really such a luxury, and so many people take it for granted.

@IknoIkno

I think most people can achieve some sort of "financial privilege" with some form of financial planning and living within personal means.

Rolf Yes if you don’t get ill and have to stop work. Don’t end up a single parent with a badly paid job Don’t have a child with serious SN The list is long.....

My mum always said if you don’t know how much is in your purse, you have no financial worries.

If you have worked hard and made sacrifices to earn a large salary, it's not a privilege.
Unearned income is a privilege as you've not expended any energy, or missed out on things to get it.

No, not everyone can afford to achieve “privilege”, whatever that word is implying. Some people will live hand to mouth because they can earn very little money.

We are financially privileged.

I still set a budget and stick to it.
Pre covid I cooked three times a year for a homeless shelter - and served. Think a hundred dinners.

Some people are beyond budgeting in the context of incomings; others in the context of nothing.
I think it's complex.
Would I spend £70 on Toms plimsolls - no. Do I know people who are struggling who do - yes.
Humans are complex and unfathomable but that doesn't mean they may be judged.

@Isthatitnow

My mum always said if you don’t know how much is in your purse, you have no financial worries.

This is a really good way of looking at it! I first realised that we were finally financially stable once we no longer knew when payday was, as long as the money hits the account each month it doesn't matter what date.