To wonder how do people afford everything?

[JL642]

Just that. How does everyone afford everything?

Coffee shops etc packed here. Social media full of people doing expensive things.

DH and I ate high earners so I don’t get it.

Mcdonalds do decent coffee for half that.

Budgeting for their own priorities?

We have a gym membership (though we have recently cancelled it, mostly because we just don't use it enough), we pay our bills. Then we budget for 'fun' which might include takeaways, coffee, cinema tickets etc.

We're doing a week abroad all inclusive this year, and I'm sure people wonder how, but we've never done it before. It will be my 11 and 9 year olds' first time on a plane. It's only because it's a big anniversary for us.

You will simply never know what goes on in people's private lives and finances.

Some also offer discounts for people on UC which is good.

some people are also on an energy fix. My energy is fixed, no mortgage and due to higher interest rates have more disposable income, not less. This won’t change until the end of this year when my fixed rate ends.

Plus housing, Private schooling etc is all cheaper up here.
We have access to great cities too and if we do want to go to London it’s only a few hours by train.
Unless your job HAS to be in London I see no need to be there frankly

You can’t tell by looking at most people. To look at us you’d think we earn little. Old cars, UK holidays, cheap clothes etc. Certainly no overspending on coffee! Yet our kids have been educated all through at private schools, our pensions are looking good and we have a fair amount in savings. Our family income is 250k+ per year.
I would hate to be one of those flash types with nothing in the bank but debt.

Lots of people run up debts I guess cars on credit, electronics on monthly payments, house improvements on credit too, they'd rather pay 3 times over than save up and get it cheaper. I think it's the whole trying desperately to impress feeling they need the haircuts yhe shoes the makeup the so they "fit" so they can then get noticed for a tiny pay increase and afford more debt. Its all a con really isn't it.

@JellyBubble

It's unfair but the higher up someone is in the social ladder, the easier it is to get things cheaper or for free.

Whilst true, same also applies with social media for those with high numbers of followers. I have a friend from work many years ago who is a minor "influencer" on social media and she's had all kinds of freebies, including a very expensive suite on a cruise, but of course didn't say it was a freebie on literally dozens of social media posts during the cruise!

Same with the 20+ kids Radford family - freebies and discounts coming out of their ears as long as they donor gets a picture on their social media, or even better, a shot on their TV series!

So it's not just "social ladder" anymore like it used to be. There was a good TV programme about the raving 1920s which said the top hotels, such as the Ritz, Dorchester, etc gave the partying socialites of the time, free parties, just to get "the right kind of people" into their hotels in the hope of the guests spending money at a subsequent occasion. It seems things havn't really changed in a century!

At the end of the day, it's "networking" pure and simple, regardless of your "social ladder" status. The more people you know (in real life or via social media), the more influential you are, so businesses are going to "incentivise" you to advertise and market their products and services.

They spend their money on different things.

But what are you doing with all your money if you are high earners and can't "afford" coffee?

I'm struggling to comprehend how the OP can start such a facile thread when she claims to earn very good money, so presumably has some intelligence. 🙄

Thread after Thread week in, week out.
"How can people be able to afford a holiday/mortgage/takeaway etc etc etc"

Why not have a little think before you post.

Could other people have more income than I?
Could other people be making smarter budgeting choices?

On around £1500 a month, fortunately rent/mortgage free but to the wire every payday. No holidays, haircuts, meals out or takeaways. Wear a uniform so rarely buy clothes. Used to be able to save £250 a month for things like car servicing and emergency spends, this has totally gone by the wall with inflation this year.
Always thinking about money, what can I sell, how am I going to cover things the kids need without making them worry etc.

@Conkersinautumn

Lots of people run up debts I guess cars on credit, electronics on monthly payments, house improvements on credit too, they'd rather pay 3 times over than save up and get it cheaper.

I honestly don't think the majority of people with debt actually realise and understand how they pay so much more by buying on debt rather than saving and buying outright.

Over the decades, I've had loads of clients who've "churned" car HP, bank loans, etc., i.e. part exchange after 2 years of a 3 year car hire purchase agreement, "because it was cheaper", i.e. the new monthly repayment is a few quid less than the old, and they genuinely think they've somehow "scammed" the system and got a newer car for less money. They are blind to the fact that the new HP agreement is for 4 years rather than the old one that was for 3, and they're going to end up paying a lot more overall, especially as the old HP agreement had an early settlement penalty that was rolled into the new loan!

Same with loans and mortgages - typical "trick" of the bank/broker to extend the term for another 25 years, add in a shed load of fees to be paid by the loan, add in the early settlement figures for the old loan, and hey-presto, a lower monthly fee, but for several years longer. Nat West used to be terrible for doing that with their business development loans - the bank manager would actively encourage businesses to borrow more for a lower monthly fee, and skate over the term extension - even worse were the early settlement penalties on their business development loans which could be thousands on even a small loan, all rolled into the new loan, so the bank ended up earning interest on their penalties! I think the worst excesses of that are outlawed now, but it still happens on a smaller scale as there are limits etc.

My brother was terrible with credit cards and store cards. He'd regard a credit limit as a target, and would, say, buy a suit with a new store card, then once he got his monthly statement and saw what credit limit they gave him, he'd go back and spend right up to it, but it was "OK" because it only cost him a tenner a month or whatever - he was incapable of understanding how much he'd end up paying over the ten years or so of paying it back at the monthly minimum.

I spend minimal on clothes and beauty but like to buy garden plants and have a lovely garden.

It is priorities. I will not buy coffees or eat out out that often but will use my tumble dryer, as I prefer not to have airers of washing filling the house. As opposed to my in laws who say dryer is too expensive but have coffee/lunch out and eat out regularly.

Also agree that the Uk is not struggling as much at all levels, a lot of it is perpetuated by the media.

Priorities.

I basically spend no money on clothes, beauty treatments etc, but we do eat out a lot and priortise experiences and holidays.

I was reading some financial analysis and it said that the interest increases and energy costs haven't necessarily hit many people yet. People still have fixed low mortgages (we do, fixed for 5 years right before the rises) and some even still under fixed energy tarrifs. But that will come. Hopefully inflation will fall a little by then, and the economy picked up 😬

I assume what the OP meant was that they can afford these things, but given the incessant media coverage of the COL crisis, it makes it seem as if everyone is at a food bank, so there's some cognitive dissonance when it seems like plenty of people are buying stuff. Good thing too really!

Lots of house renovations going on around here. Plenty of people with their house on the market too. I was wondering the other day, what proportion were downsizing due to money issues, or upsizing or just moving out for more space.
Im in the public sector - and I’m hearing a lot of private sector friends getting good pay rises. And bonus’.
Seeing lots of shops closing down though, sadly. Feels like there are two or three every time we venture into town. So although it looks busy, I do wonder how much is being spent. Or perhaps it’s more to do with humongous bills.

We do alright between us and can afford a reasonable quality of life. We don't have mad outgoings so if we want to go for the odd dinner or coffee out it's affordable. A luxury package holiday overseas not so much but to be fair we prioritise other things like having 2 cars, my highlights, lots of nice food, wine and just other stuff too.

The majority of people will be like us, have to budget, can't afford to go wild but can afford a few luxuries.

Some people have more money so can have more luxuries, some people have an endless pot of money so never have to budget. Others can barely afford to eat but perhaps from time to time they have a coffee out because constantly depriving yourself of anything nice is a miserable way to live.

Then some people will be in debt up to their eyeballs. There is no way of knowing just by seeing a stranger on one single day.

Debt, credit cards, car leasing, loans etc. It's all about keeping up with the Joneses and posting it on SM. A financial race to the bottom if you will.

Some people earn a lot of money.
Some people have married money/inherited money.
Some people prioritise certain things and cut back elsewhere.
Some people live beyond their means on credit.

Yes I agree. I was looking for activities holidays for Easter and everything was at least £30 per person. And you still have to buy food😭 .

We both worked throughout the covid restrictions & saved lots

Mortgage free
Drive old cars bought out right
Buy yellow sticker food or Too Good To Go
Buy from charity shops
Fixed electricity to a low tariff before prices went up & free wood for wood burner
We have a source of second income (yes we pay tax on this)
No beauty treatments
No debts

However, we do spend on days out & holidays & hobbies. Some of the hotel rooms were less than £20 per night, per room abroad, with ensuite, pool etc

We still save some too

This compares to people that we know who have mortgages, car loans, child maintenance

It would be very silly to think everyone is at a foodbank. It's perfectly obvious to anyone who thinks for a moment that there is plenty of money sloshing around. No dissonance necessary.

I know what you mean OP. I do live in a wealthy area of London and it's obvious. Restaurants and bars are full most evenings. I haven't noticed coffee shops 'cos I don't usually stop for one (always thought they were over-priced and not very good).

We eat out a fair bit and I see that has gone up in price. What used to be a cheap Thai restaurant is now £70+ for dinner for 2. Pizza places the same. Seems to be the new norm.

Where are you getting hotels rooms like that for £20?