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.

maybe they live in a less desirable road/area so they’re housing costs are cheaper and they can spend more on holidays and stuff.

Maybe the same people aren’t saving anything much at all for retirement. Or for their children’s uni costs.

Maybe they make a lot more money than you think. Eg have a successful business which you assumed makes much less than it actually does.

Maybe they’re a bit dodgy.

maybe the younger ones you see out, in their 20s, are still living with mum and dad and have plenty of disposable income because no matter how hard they save it will never be enough for a deposit.

Is it drugs?

What a strange question.

Well they are expensive. She's clearly spending loads of money on something if she's a high earner who can't buy/do nice things and drugs cost loads.

Depends on people's priorities, there's some who will get their kids millions of tips or the latest clothes but then as soon as they turn 18 they want money for board. Others might not get them all the latest toys, but then will pay for their children's uni, not charge them for living at home, and maybe even be able to help out with a house deposit because they didn't waste their money on unnecessary crap 🤷🏼‍♀️
Also alot people who appear 'rich', have huge mortgages, cars on finance and massive credit card debt.

I go out for a coffee to meet friends but I dont go and do more expensive things like go the pub or cinema or or out for a dinner or a concert or sporting event etc.

I dont go for a coffee everyday either

@llangennith just wanted to say I grew up in llangennith, such a beautiful place!

As another poster said not everyone is doing the same thing and when you see people in a cafe or restaurant it may be the first time they have been out in a while.

Priorities - unless people are really well off they need to prioritise. Extension v holiday v Botox v private school - very few can get it all

also lifestyle creep - people often spend as much as they earn meaning they often don’t save on the side etc

What can't you afford that you think you should given you're high earners?

Are you for real? £100k has a monthly take home pay of £5.5k. What the fuck are you and Dh staying spending £11k monthly on?

Dh and I aren't even high earners but we are doing ok, mortgage, whatever supermarket food I want, 2 cars bought outright, paying living costs for ds1 at Uni monthly, holidays. If we can manage it surely you can?

These questions are always baffling as it’s so obvious.

They earn more than you

They have different outgoings to you

They’re using a credit card

And so on.

100 x this ^^

Can you really not figure it out?!

They either earn more than you, and/or they have fewer outgoings than you.

It’s really not anything more mysterious than that.

DH and I are both high earners, but we have virtually no disposable income at the moment, because it all goes on mortgage, food, household bills, savings, and school fees.

This. Who do you think is keeping all these expensive stores, restaurants and attractions open?? Obviously wealthy people. Really can't believe some people can't grasp this.

Credit cards? Earn a lot? Lower outgoings?

We drive an old used Vauxhall, I never get my hair cut. We mostly get clothes from supermarkets. I don’t buy coffees out. We’re high earners- our money goes on mortgage and childcare.

And another thing, 100k is a high earner on MN but in some areas that's really not a high amount. There are many areas in London where that amount won't stretch very far. Don't know why some people can't understand that too.

It's horses for courses.

Going for a coffee is for most people the cheapest and most widely available and not weather dependent way to get out of the home on the weekend

People are more likely to post things on SM the less often they do them

Different people have different expenses.

I am a single mum, I bring home £1600 a month and get £680 in UC and child benefit plus £300 child maintenance. I have no childcare costs and my rent is only £500 a month so I have spare money.

Surely priorities.

On a household income of £135k - split roughly equally between me and spouse both working FT

We prioritise -

1. Mahoosive mortgage overpayments
2. Children’s clubs and activities
3. A certain number of takeaways/eating out /small holidays budget

We do not -

1. Use hairdressers
2. Use beauty products or make up
3. Ever buy new clothes for anyone
4. Ever buy new household goods or furniture
5. Drive old cars till they cannot be driven
6. Have a cleaner
7. Have any memberships (gyms etc)
8. Have any hobbies which cost money (DC hobbies and activities prioritised as above).

Horses for courses, if you’ve got some money to play with in the first place of course.

Some ppl might be downgrading.

so whereas before they would have gone pizza express for lunch, now they are in costa making it look busier than normal.

It’s just different priorities.

I find my DH rather profligate for coffee and cake habits and the DC have followed. Any even very short outing seems to involve it, or an ice cream.

otoh I get my nails done and like the occasional bottle of quality red wine.

NES flash! Not everyone is struggling.

I was thinking this too.

People have different amounts of money and they spend it on different things.

Some people get loans and buy things they can't afford, some people can afford it.

What do you want to hear that you don't already know, OP?

I often wonder this OP. My DH and myself have a combined income that is on paper very well off but we live very conservative lives in a small house and simple car. I don’t understand that if we can’t afford a standard 3 bed semi and great car then who is? Who can buy all the houses and drive expensive cars I see everywhere? We don’t struggle to pay our bills or put food on the table but there really isn’t much left at the end of each month to be able to up our mortgage and buy luxary items. I shop for clothes at supermarkets and primark etc only have my hair done 2-3 times a year. How can people afford things?

Don't know if this is a common thing but I feel like I was more responsible with money when I had more of it. About 7 years ago I lived in a cheap flat and sometimes worked over 60 hours a week. Managed to save a fair bit. It's easier to go without coffee and cake when you know every penny is going towards a deposit or even a holiday because it's actually within reach.

Things have changed a lot for us since then. LL has given us notice and we currently have nowhere to go. Can't afford a bond and additional upfront costs for another private rental. Can't get a mortgage. Saving a few quid on coffee won't really make a difference.

Cost of living has gone up so much I think a lot of people have given up and are happy to whack those small luxuries on their credit card, etc. That's how I feel.