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.

Even with that, you need to acknowledge that the 50k or 100k goes a lot further in a place like Leeds compared to London.

We deliberately chose to live in Yorkshire because DHs wage isn't affected by location so it made more sense than the other option of the M4 corridor.

I agree with this - in my observation, everywhere isn’t just as busy but busier than when there wasn’t a cost of living crisis going on. It makes no sense. People seem to be doing more than ever. When I compare it to times of economic difficulty in the past, it just doesn’t compare.

There are lots of variable costs that affect disposable income.

1. mortgage levels are very dependent on when people first bought. There will be people on the same street in similar houses with very different costs. And there are still plenty of people on very low fixes.

2. childcare. If you’re paying full whack nursery for 2 kids you’re going to have to budget hard even as an high earner. Even a day of grandparent childcare for one child could be saving £3k a year and that is a variable that isn’t talked about much.

3)student loans. The plans seem to vary a lot now but someone on £75k could be paying nearly £400 a month in loans.

If you’re on the right side of those 3 variables you could have loads more money than friends or colleagues who earn similar wages, live in similar places.

There are a lot of people crammed onto this island, a packed cafe would only hold a small number of them. Your perception does not reflect the situation in the whole country.

Yes! You can just buy one coffee and sit with your mates and chat. And if it's a local place you can walk there.

When I was having my heating fixed and had a cold home I would spend my evenings in a coffee shop. It was like a little community because there was a family there who obviously had the same idea. The kids seemed to really enjoy being out (everything is an adventure for a kid). They were there every evening - and a few other regulars were too. That was pre-pandemic when the coffee shops opened till late, which they don't now - perhaps to save costs?

COL crisis = prices of some things gone up. It does not = everyone is now living on the breadline.

The remaining coffee shops are probably 'packed' as so many have had to close down .

If you are a high earner then presumably you can afford to do all of those things.

Some people will be higher earners and high spenders. Some of the people will be spending on some of those things but not all.
We go skiing most years. I only buy a coffee out if I am using my mobile app and paying £1. No botox here and I buy my clothes in charity shops or vinted. I've had comments from friends who earn more than us seemingly confused that we can afford three holidays a year. They spend hundreds every week socialising whereas we tend to socialise cheaply, inviting friends over for dinner or lunch and only occasionally eating out.

Agreed! Many people make such a fuss about pensions, or waiting to do things once they retire but so many people (morbid as it sounds) don’t make to retirement age, my parent included.
Life is way too short for a lot of people!

I think what the op means is how come there are so many people out because of the COL crisis that you hear about so much, as there are so many out in coffee shops etc, not that they themselves can’t afford some things.

The answer is that the wealth divide is getting wider because of many reasons previously mentioned. There are the haves and have nots and the have nots are increasing as now they can’t even cover basic living costs. Definitely no luxuries. This increase in have nots is the problem we have in society now.

I think the COL is affecting many more people in the middle and they can’t afford as much as they used to, but they can still cover the basics. It’s just they have to be more careful as to what they choose to spend their surplus on.

Then there are the haves who the COL doesn’t affect at all.

Some people who spend lots of money n coffee shops will say they are broke but haven't stopped to think how much they are spending on coffee (this has featured in numerous tv programmes about people struggling with money); some people can genuinely afford it; others have cut back from eg going out for meals and enjoy the cheaper coffee option instead.
i know that coffee was only one of your examples but I suspect you can use the same model to explain other luxury spends.

Not sure what you earn (I've seen people consider themselves high earners on MN over £50k; others on over £100k) but if a truly high earner can't afford a few luxuries, they need to examine their spending & priorities.

I dislike these kind of threads as they seem to have an "Im all right Jack" sort of theme .That unless you are a high earner you should probably be at home in the dark eating gruel! People have different priorities thats all .Maybe their Saturday morning coffee is their one treat? They may have help from family ,second jobs/overtime and so on. Obviously there is a problem with standard of living ATM, however I think the media tend to report on some of the worst cases.For many they may have to cut back on different things ,but hopefully most of us can afford a coffee and cake!

I'm not a high earner but have modest outgoings and enough to save a bit and have some treats each month. I don't know what else to tell you.

The point about snapshots is a good one. You just can't assume based on that.

Also, some of the spending people mention could actually be evidence of reduced income rather than of having plenty. Maybe some of the people in the coffee shop used to go for a meal together when they wanted a catch up, but now they go to Costa because it's cheaper. Some people who used to go on two week ski trips might only be going on one. The pub visit might be once a fortnight now instead of once a week. The family who used to have a week away at Easter cut that out and had a couple of day trips instead, but all you noticed was the outings not the missing holiday. That type of thing. Not all reduction in spending looks like no spending.

@JL642 I agree with you, I'm sure they all have their reasons but it does seem to go against what we are being told on the news and feeling in our own pockets. I can only conclude that for some there is no CofL crisis or that it all goes on the plastic!

They probably earn more than you do or have more disposable income.

Different housing costs, varying wages and different priorities.

people have varying definitions of the term skint. For some people skint really means having nothing spare whereas some people think their skint when they do have some money just not enough to cover what they want! I grew up in a household where skint would literally mean £0, dp thinks differently as they never struggled as much.

we are currently able to pay our bills on time and eat well. We don’t have a lot of days out, good out, holidays etc but I’m happy, we have a home, bills paid and can eat well and our kids have everything they need and clothes, some people don’t have enough for basics so I am grateful but dp considers skint as there’s not a huge amount left at the end of the month!

It’s London wages while living in Yorkshire

Sensible. Why haemorrhage money living in London when you can earn the same salary elsewhere and have huge amounts of disposable income to enjoy a luxury lifestyle.

I'm an electrician, when the COL crisis started I predicted that new installations (ie: big house modifications like extensions) would drop off the cliff and repairs/emergencies would make up most of the work going forward.

However in reality work has exploded, new kitchens and bathrooms, house extensions, loft conversions etc. people are shelling out all over the show. Never been so busy with work on the books now into 2024 - question is where are these customers getting all the free cash to spend - no idea, thats one I can't answer.

We have been in a coffee shop or cafe every day this last week as we are away in our caravan, doesn't mean that we do this every day at home though.

@tonyele Not the case in the North West. Trades people appear to be desperate for work and daily rates have plummeted.

As many have said it’s down to choice isn’t it. I have a nice house, decent income but don’t go to coffee shops, doesn’t interest me but I do have a couple of expensive club memberships.

I haven’t been on holiday since before covid because of my health so my memberships allow me to do nice things all year round.

I’m hoping for the all clear health wise this summer and if I get it I’m going on a cruise.

Well of course there's no cost of living crisis for some people. That's a given.

That's interesting, I'm very much in the south, any further south and I'd need a boat! Hope it picks up for norther colleagues soon.