To ask how you’re affording everything right now?

[Niftywigglesheep]

We’re two full time workers, 2 kids. We have a level of income per month on which we’ve based our budget on. However I’m unsure how everyone’s managing the increasing cost of life right now.

For example- our mortgage has gone up, our food shop, our petrol etc the cost of just basic living. We think we’re about £1000 less in disposable income each month which is huge due to the increased living costs .

Our salaries have not gone up in line with the increased costs so our normal budget for living like swimming lessons,
clothes etc is being really squeezed.

I find it really depressing- we both work full time, busy with being parents and we really don’t have much to show for it anymore and a bit sad that we work so hard with little to show and stress.

I feel like we absolutely should be able to buy ice creams on days out, go on holidays, not think about buying school uniform or paying for football etc but we really do and it’s horrible.

How’s everyone else dealing with it?

I keep getting promotions and pay rises. But what that actually means is I’m working my arse off, taking on more pressure and responsibilities and that means in terms of my life and what it affords me - stays quo!!!

No improvement, no more freedom or wealth. I just stay as I am. Bloody depressing.

we are ok in the sense that DH and I have good careers and can earn well but..

We are budgeting in detail. Used to be much easier just to roughly track what bank balance was and how much could move to savings. Now looking at spend in detail all the time.

Mentally debating every purchase. I’m sad that I have to think a lot about eg buying a book (we use the library a lot but sometime I’ll borrow a cookbook then decide I like it and want to buy).

just come off 5 year mortgage fix which has been painful.

the basic spend on mortgage/utilities/childcare is outrageous.

DH and I are both members of a workplace union that has fought so hard that we have had an inflation matching pay rise each year.

Same as us! We earn well bit have planned our life around this. Our mortgage is bigger as it matches our salary and we can’t just instantly downsize .

We’ve cut some easy things out like takeaways but there’s a certain standard of life I feel you’d expect with 2 full time earners on decent salaries and it’s being absolutely wiped away.

DH drives to work and his petrol has cost £400 more on this last month alone

Went vegetarian a few years ago. Now trying vegan days. This means I can buy decent food for dogs! (No kids at home.)

I have a very reliable, 10 year old, fuel efficient car, and will hopefully keep that going for another 10 years.

And the word is hated here, but I have a recently started ‘side hustle’, which, now I’m getting my head around the tik toks and insta, is starting to pay its way, and a bit more on top (it’s not onlyfans 😆).

I think most people have saved on food/going out etc as much as they possibly can and the only alternative is to take on extra work somehow.

Working more and spending less. Buying in sales eg I’ve bought next year’s winter boots now for £50 versus £180.
I try not to use the car unless I have to and then I’ll do any shopping after work so I’m not going out again.
Oil central heating is on less but we light the fire in the living room every day . This warms some downstairs radiators and heats the water too.

Yes 🙌 I hear this! Unfortunately ours hasn’t matched our increased costs so we are now poorer . Middle class squeezed as we’re not entitled to any benefits at all or help buy our costs keep going up

We used to go for days out (farm parks and the like) maybe once a month, now it’s a 2/3 times a year thing. We used to go for dinner regularly, now it’s just for birthdays and occasions, we rarely even get takeaways. Everything is so expensive, coupled with the fact that the quality of a lot of things has diminished.

We've been luckier than you, basically.

Through chance and laziness we fixed for 10 years in late 2021- I don't like the faff so took a longer fix to avoid having to do it more. It wasn't foresight in any way shape or form. And then other expenses have been taken care of because we've been able to earn more.

I can see that it's really difficult for people who've ended up with a multiple whammy of increases in housing as well as everything else.

No kids. No commute. No loans or finance agreements. No mortgage (chose a modest house in a less desirable area, took in lodgers and overpaid until it was paid off), then moved somewhere where other people choose to come on holiday. Dont drink. Don't smoke. Chose hobbies that don't cost me anything and keep me fit. Work part time and by some apparent miracle have money left at the end of each month

Not sure that any of that can be turned into useful life advice

Virtually no pension. I’m self-employed and always planned to increase my contributions as I got older. Haven’t ever been able to afford to put any more than the bare minimum in each month. I’ve basically committed myself to working til I die.

What I would normally put in savings, I’m now just using every month for the added living costs.

Agreed - we are cutting out the more expensive day trips and finding free/cheap things to do.

Plus cutting down loads on eating out plus using vouchers etc. always taking a picnic.

Took a packed lunch to a friends the other day because I wasn’t sure how long we were staying and didn’t want to get stuck having to buy an overpriced load of sandwiches on way back for DC. I think she was impressed as she’s quite frugal!

About to start a new job with less wfh. Need to batch up lunches.

Oh, and I'd say this was all pure luck rather than some incredible lifeplan I had laid out for myself. Apart from kids. They were never on the cards.

How much do you spend on things which can be cut back ? Activities for children? Clothes They really don’t need as much once they’re school age. Holidays could be very year. Expensive days out replaced with a visit to a forest park or beach.
Do you have expensive car payments? Do your children have any expensive hobbies. I have one friend who is always complaining about money but continues to spend hundreds a month on her child’s dance lessons.

I live alone apart from DS who lives with me half of the week. My mortgage is £500 per month, I own my car and I work from home. I earn £80kpa. I don’t have expensive tastes in anything really. Spending time with friends is usually at each other’s houses. Days out are dog walks and maybe coffee and lunch out. I have the time at home to cook all my meals from scratch. I’m not struggling. I appreciate I am very fortunate though. Also I only fill my tank max twice a month so only £100 on fuel.

We live in a cheap area and kids don't go to any expensive clubs, we don't just buy clothes unless actually needed we live a simple life and manage fine financially. If we want something we save for it

Your DH petrol expenses have increased by £400 a month? How far is his commute???!!!! Or did you mean increased TO £400 a month?

I am increasing income by selling loads of stuff on Vinted, and I also have a side hustle which I am building up so it’s a proper part time income when I retire in a few years.

*holiday every couple of years

Were the same... Haven't even booked a holiday yet this year, as no spare money. I find it depressing that we're 48 and 43 years old, with two children (15 yo and 13 yo), and poorer than we've ever been. We don't even have to pay out for childcare anymore, I thought we'd be coasting by now.

You need to write down what your spending

We live up north which helps a lot, we have always been sensible with money (almost too sensible). House we didn’t max out borrowing potential and don’t have cars on finance. If we go out I will look for a deal or discount. Food wise we don’t eat a lot of meat and don’t eat out super often.

I don’t feel like we deprive ourselves of anything on purpose but were brought up in more frugal households.

While I know many people can’t afford the basics do you not think it is unbelievably sad that we are on here discussing cutting back activities for children.

Yes trips to the beach/forest are free and lovely but if your friends child enjoys the dance lessons then that is also so valuable. I love going to musicals (when I can afford it) and those performers have to start somewhere.

I work in the same sector my mum did 20 years ago so I know the people that did my job at that time. They retired at 55, big houses, accumulated some wealth and were very comfortable. My flex is I shop at Tesco sometimes instead of Aldi and I can afford a house with a small extra room for an office.

No massive savings, no multiple abroad holidays. Certainly no early retirement.

I’m not going to pretend I’m on the edge, because I can definitely afford the increased costs - but I am noticing them. The bank balance on the current account is a lot lower at month end than it used to be, and the grocery bills are higher.

I'm offsetting by growing food.

We’ve already got solar panels and sell back to the grid, run an e-car so are avoiding the petrol price issue, and I already repair clothes, budget, meal plan, etc.

Things will ease off at the end of the school year as DD2 will stop some of her more expensive activities.

Im not holding back on visits/holidays though. They will only cost even more in the future, so I seem to be in a ‘just do it’ mindset.