To wonder how people are coping?

[CobbleWobble]

We are very lucky, I know this.

We are "Mumsnet rich" both have professional jobs with good salaries (£170k household income) and yet this last 12 months:

• removed children from private school
• changed how we do the weekly shop to reduce costs
• cut subscriptions (like Disney+ etc)
• reduced what I bought in the back to school shop
• decided against a holiday in October half term
• concerned about our usual Christmas food order

What is going on? I just don't understand why or how prices are rising as they are or how people on less than us are coping!

I'm extremely grateful we have the things to cut that we have but we've also had to remortgage this year which has doubled our mortgage payments and then our utilities have increased and the food shop has just got insane.

We have other things we can cut - a holiday in the UK, Netflix, the monthly takeaway but its just miserable to think we may need to do that just not to be living.

Happy to post spending particulars if people are finding it hard to see where I'm coming from.

So AIBU to think that as a country we cannot go on with prices rising like this? How are others coping?

However, im now wondering if the boomer generation is an anomaly.

it absolutely is

"Hang in there. You're not alone."
I agree the OP isn't moaning but you do realise that more people than ever are relying on food banks? Don't have enough money for an unexpected bill? Live pay check to pay check. "Hang in there" with £900 spare a month 😂

I’d suggest visiting a financial adviser as you’re doing something wrong! I earn £85k, mortgage on my own of £1500, and I can afford bloody Disney+

Private school? No. To me that’s the level of about £200k min, so that doesn’t surprise me

@Statsquestion1

"TOTAL MONTHLY SPENDING: 7,480"

The £2,500 that you tuck away, is not spending.

It is what you had left over, after your spending.

I've not RTFT so apologies if these things have already come up.

I asked ChatGPT for advice. Here's the summary:

Summary of Potential Savings:

1. Mortgage: Refinance (potentially £100-200+ savings).
2. Council Tax: Explore discounts (potentially £10-30 savings).
3. Utilities: Switch providers (up to £50-100 savings).
4. Broadband: Shop around for a better deal (potentially £10-20 savings).
5. Childcare: Use Tax-Free Childcare or reduce hours (potentially £200-400 savings).
6. Children's Activities: Find cheaper or free options (potentially £50-100 savings).
7. Car Expenses: Carpool, public transport, or reduce driving (potentially £50-100 savings).
8. Phone: Switch to a cheaper plan or SIM-only (potentially £10-15 savings).
9. Subscriptions: Evaluate necessity (potentially £20-30 savings).
10. Home & Contents Insurance: Shop around (potentially £10-20 savings).
11. Pets: Review insurance and food options (potentially £20-30 savings).
12. Cleaner: Completely cut or reduce frequency (potentially £140 savings).
13. Food & Toiletries: Meal planning and shopping smarter (potentially £100-150 savings).
14. Professional Memberships: Evaluate necessity (potentially £50-100 savings).
15. Commuting: Use discounts or walk/cycle (potentially £20-30 savings).

@CobbleWobble I think you do need some perspective if your response to an economic crisis is to post on mumsnet saying you’re concerned about your usual Christmas food shop or cutting back on the cleaner.

Yes you’re saying you’re lucky, but your post comes across as ‘how are all these poor people on less than me coping if I can’t afford Disney on £160k’. The truth is that a lot of families aren’t coping, children are going to school hungry, parents are skipping meals, and people are relying on food banks. There are also people on less than you who are coping just fine, because they have perspective and understand that having a house, being able to afford bills, childcare etc. means they are doing very well in life.

That’s why posters, including me, are talking about perspective. It’s not that your post was all “woe is me,” but when the examples you give are cutting back on things like private school, holidays, or Disney+, it feels out of touch.

Maybe donate to a food bank or something.

we have a slightly higher income than you but also feeling the strain - for us it’s our mortgage going up which made a big difference. We also seem to have had a spell on needing to buy new white goods, having to do building work etc - none of which was optional but has eaten through our savings. We had a very low rate before and our mortgage went up by over £1k per month. Prices in the shops are spiralling, I seem to regularly be spending £160+ a week. We are lucky to have things like a cleaner but I’m considering stopping that as I’m not sure we can afford £50 a week, and like you, we couldn’t afford a September holiday - we used to go away 3/4 times a year and now it’s once, maybe twice. I know we are still very lucky but things have got much more difficult.

Really, there's no great mystery here. All of your other numbers are dwarfed by the mortgage. But that's for a large (or at least, valuable) house that you own, so you have an appreciating asset, unlike the poor sods who are paying rent. It seems like you maxed yourself out when interest rates were 1.8% or whatever other historically low figure, and then you added a big further chunk for the repairs, and then the interest rates went in the only direction that they realistically could. You made some choices knowing (I assume) the risks and now here you are. And you still have £900 a month for discretionary spending, which is enough for a pretty decent lifestyle.

Also: VAT on school fees is 20%, not 25%. Plus, schools can now claim all of the VAT back that they spend, like any other business. Their biggest expenditure item is presumably staff salaries, but almost everything else can be offset. In practice their increased costs will probably be about 14%. If your school put its fees went up by 25% then that was an 11%(-ish) non-VAT-related increase as well. School fees have been rising faster than inflation for a long time.

We are on the same income and exactly the same mortgage . Like you, I totally understand feeling surprised at why we need to be watching everything despite earning so well! We couldn’t even think of private schools for kids. And as I wfh, I take a break from work at 3 pm and pick all 3 kids from school and leave them downstairs with snacks and their homework. During quieter times in the morning, I do laundry and some cleaning (sometimes nothing depending on workload) as I don’t feel we can afford a cleaner ( got quoted £20 an hour for a cleaner!!! ) . So yeah I totally feel you! Everything has gone up. Over the weekend, I was in the mood for eating out and did a quick calculation, it would have costed £70, so just left it! Sometimes I’d rather we earned lower but went back to 2012-2016 prices of things.

I don't understand this either. Our household income is around 40k less than theirs yet the same net take home between us. I never realised going over £125k, which I assume must be the case for her DH, would really make such a difference to take home pay.

Anyway, OP, I agree the price of everything is ridiculous at the moment, but would moving genuinely not be an option? Your £430 for utilities seems quite steep - is that the best deal you have, or is it because your house EPC rating is low? Also, is porting your mortgage not an option in thinking about moving?

We manage fine on combined take home pay of around 3300
Mortgage is 980 and we overpay on top.
No young children or pets any more though, and we have short UK holidays in term time, so cheaper.
We eat well, run 2 cars and save a little too.

Initially I thought you were on the wind-up, but your later posts make me think you’re insulated and don’t know many people because there are plenty of people earning the same or more or less than you and your husband who are coping just fine. Because we made, and continue to make, shrewd choices with our outgoings and the money that comes in. When you live above your means, you’re screwed, regardless of how big your income is.

If you're having to cut back with £170k a year then the average person is pretty much fucked hey.

OP isn’t living off 170K. She has a household salary of 170K. Big difference. House prices and wage stagnation are the biggest factors. Many people on far less a salary will be having a much easier time (and paying less tax and NI) if they bought their house at right time and don’t have a mortgage etc.

@stateofloveandtrust they are putting a lot into pensions.

£900 to spend on 'adult hobbies and savings' but you can't afford Disney Plus? Pull the other one!

But there isn't one qualifying threshold. You not having qualified for UC on your particular household income doesn't mean a household with more income but different circumstances wouldn't.

I agree that the LHA often doesn't cover full rental costs, and this can be the case even when an award is very high.

Yes I was going to say this. And cut down their expense almost by half. Not fair

Your wraparound and I assume holiday club is really expensive and I’m guessing you don’t qualify for tax free childcare if dh is an additional rate tax payer. You could maybe see if a childminder does pick up from your school or change your hours to do it all yourself - if you’re not a big earner it probably makes sense to work school hours.

I agree life is very expensive at the moment. On £160k household income you should have a nice house, car, savings, holidays and private schooling. It’s all gone a bit wonky and for those who are low earners it must be nearly impossible when the washing machine breaks or your teenager grows again and needs 4 pairs of shoes and a whole wardrobe. Salaries just don’t go up enough to keep up with the basic cost of living.

Even after your mortgage you have 4.5k a month.

That's literally double what I earn a month - full stop!!! Before paying my mortgage.

And you only have to go into work twice a month which saves a fortune. I don't see how you are struggling at all. I really really don't.

I live abroad and same thing is happening here so you aren’t alone. It’s an absolute piss take. I don’t find the comments that you earn a lot helpful because why the hell does that excuse prices going up and up for everyone? My mother used to be ok and is now really badly struggling and on the poverty line in the Uk and WHY?! The big companies just get richer and richer. We should be questioning this. Incomes don’t go far at all now compared to when we were younger and it’s got really stupid and out of control.

We have a similar income, but thankfully our mortgage is only £700 a month and no child care.

But i do appreciate your honesty and transparency x

I could only dream of your salary. We are a 80k household. We don't struggle but we can't splash out. We don't go without though. We have what we need. And yes that includes apple TV, Netflix and Disney plus. We shop at tesco and sainsburys. We don't buy convenience foods at all apart from a bag of frozen chips, baked beans and some pasta sauce jars. It amazes me how people can spend their money on ready meals. It's as cheap to buy take out.

Hmmmm... It's a curious budget, very different from mine... I am assuming you're in London/ SE, or if not, you live in a very big house, 5 beds or more?

I live in a beautiful 4-bed not in London alone and my housing costs inc utilities are about 60% less. Used to live in a huge detached 3-storey 5-bed and only then was my housing cost comparable to yours.

I'd say your cutbacks are a bit extreme considering you still have 900 to spend after savings etc. You probably can't afford private school at the moment but otherwise you still seem fine and perhaps overthinking it.

Your main challenge is the mortgage. Can you get a different mortgage deal soon? Any credit issues that would result on you having higher rates? Rates are dropping so getting a better deal next 12 months is very feasible. Can you either overpay or go for a longer terms for a little while to ease pressure on your budget while kids are growing?

Considering you WFH, would you be open to living in a different area, e.g. remote pretty villages, or a smaller house in your area? You could half your housing cost.

You somehow need to knock off 1K or so from your mortgage + utilities and I imagine you'd be comfortable again.

I know many people are struggling unfortunately, but personally I'm feeling very well off compared to the past. But perhaps it's just because I'm mid 30s and in a position where I'm able to get good payrises with job moves.

Talking of which, would you be open to moving employers and potentially earning 20-30% more? You can increase pension contributions if you don't want to hit 100K.

you also don't need to pay for Disney +, Netflix, Apple etc every month, I swap one for another every few months.