Cost of living crisis - how are you affected? Is it just me?

[Eve223]

Name changed for this post.
How are people coping with the cost of living crisis? It is hard to believe there is one when the shops and supermarkets are packed, restaurants fully booked and people still taking expensive foreign holidays, buying new cars and houses etc. Are people just living on credit? Is it just me who has had to tighten my belt?

Genuine questions, not trying to be goady.

I think it hasn't hit a lot of people yet who are still on cheap mortgage fixes, energy fixes etc.

We are watching every penny. Still fixed cheaply till 2024. Energy went up £150 a month. With imminent tax rises including possibly VAT, feeling very nervous right now.

I fixed my mortgage ASAP which has meant our mortgage hasn't risen THAT much. I'm more careful with the heating use now, used to ve very cavalier with it but now I'm a bit more cagey.

The biggest one I've noticed is food. Food is far more expensive now than it used to be.

Have a quick look through threads on here. There have been numerous threads with people describing how they’re affected. So no, it’s not just you.

Of course, it's not just you. But some people won't be affected as much because they have more money than you (and me). That is a fact.

There are many, many who won't be affected. I don't know why that's hard to believe on MN.

Some people will always be more well off than you, and comparison truly is the thief of joy.

It's not worth expending energy on figuring out how they're trying to do it, because you won't be comparing like with like. Instead, focus on how you can best manage your own finances.

Its hit me a lot today, my fixed rate with edf has ended and my direct debit from November has more than doubled.
Getting much less for my food budget... nappies, wipes, absolutely everything has shot up in price...
I have started to say no to things based on price... email went out today re works xmas do with the cost and ive said already. Ive pretty much cut out all socialising that costs money for now.

People are burying their heads in the sand I think

I think you'll find there are some people who actually made/saved money during lockdowns as in they were still earning their normal wage but had absolutely nothing to spend their money on, ie meals, holidays, nights out etc, shopping such as clothes. So although I think COL crisis will eventually catch up with us all to some extent at some point, some people are just in a better position right now. Of course, this is just one example of why some people are still able to live as 'normal'. You're right in thinking some people might be living beyond their means and as pp said, people on fixed mortgages and rates have not yet been as badly affected as others just yet.
Sorry to hear you're struggling but don't automatically assume that others aren't or won't be. Just focus on getting through yourself without comparing yourself to others

I'm inclined to agree. No sign of any cost of living crisis where I am - completely the opposite.

My income has gone up by about 500 quid a month compared to last year. I’m not any better off though. Commuting costs have increased as job further away plus energy and food bills. Still on a cheap fix for mortgage thankfully.

Im like a bird flapping madly just to stay in the same spot. Could never afford holidays etc before price rises.

NC. We are doing loads better than for many years as I've returned to work after a long career break.

We will obviously have less money than without cost of living crisis but not feeling the pinch.

The top 10% only spend half their disposable income.

www.mumsnet.com/talk/am_i_being_unreasonable/4623809-what-cost-of-living-crisis?page=1

Some people are fine, as they have a decent amount of surplus income after bills. (We are, and have not even noticed any financial struggle,) but enough people ARE struggling for it to be a nationwide issue. Millions are. More are struggling than not.

If this were 15-16 years ago, me and DH would be one of the families struggling. We had 2 kids at school, (close in age,) and a mortgage, and I was a lower earner. (Mortgage paid off now, kids left, and a higher income for me, so we are OK now.)

I never want to go back to that 'sinking in bills, struggling to make ends meet, and struggling to pay off debts' situation we were in, where we had more outgoings than income, and I feel sorry for people who are there now. We give to food banks whenever we can, and around 7 charities, and genuinely feel for people struggling badly. We are not uber rich, but are comfortable, with a good amount of surplus income monthly. and a good pot of savings.

I walked down a street full of very fancy shops in central London yesterday and it was very clear that the people who shop there are completely unaffected by any financial pinch. As yet. It was buzzing.

I don't get how shops and supermarkets being packed is a sign of anything other than people still need to eat?

We may all be in the same storm but not all of us are in the same boat. Some people just have much studier boats and more resources so are better able to withstand the storm. It’s really not that much of a mystery.

They seem busier than in a long time. The weekend just gone was like the week before Christmas in my nearest towns. I get it was payday for a lot of people but it's hard to believe there's a problem, especially in the south/south west.

Life rule.

Answer to all and any "just me?" question is ALWAYS "no"

The point of inflation is that it makes us ALL poorer without exception. Even if you had a pay rise, as @bloodyeverlastinghell describes, it just doesn’t go as far as it would have done but for the rising costs.

Therefore, people who claim to be unaffected don’t really understand economics. What they might have done is have enough of an income rise to compensate OR be able to maintain the same lifestyle with reduced savings. But they are still affected.

Re families in supermarkets. I've seen more families shopping together. I'd think the weekly shop is now an 'activity'. Cheaper to take the kids to the supermarket and buy a couple of treats than pay for extra curricular activities. It's still a trip out, isn't it?

I think you're imagining that.

As you say, it was pay day for most people and cost of living crisis or not, people still have to buy food.

This. I live in a very affluent area, also quite close to central London. Absolutely nothing has slowed down.

Most people I know have saved money by reducing commuting costs due to hybrid working, also many still have increased savings made during lockdown, still on fixed mortgages/ energy tariffs. Some have rethought holiday plans and using state secondaries instead of private school. Therefore, lifestyles still have not been adversely effected.

Next winter, may be a different story. I think that is when the squeeze will be felt by more people.