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?

YANBU OP. We manage it by DH being a very high earner (I’m averagely paid) and we’re still economising and cutting everything back - having not led a lavish lifestyle to begin with.

We live in a 3 bed terrace with no garden, but the mortgage is big because we live in an expensive place. Two DC and won’t get the free nursery hours for the baby. We couldn’t survive on my salary alone.

Your parents situation was a short lived blip. Not likely to be repeated in the foreseeable so it’s best you don’t judge your expectations by what your parents could provide. At least you. If you’re only in your 30’s and you went to uni you probably haven’t actually been working that long. There’s still time. My advice - start saving for uni now.

But did those people spend the way many on this thread are and clearly think they deserve to?
Lifestyle creep is a big problem these days. On this thread alone we have people talking about cutting back on expensive days out, eating out and children's activities as if they are the ultimate sacrifices. One poster 'hasn't even booked a holiday'!
Yes basics are more expensive today but there is so, so much unneccesary spending that has become regarded as normal in the past few decade which go a long way to explaining why people feel worse off than older generations

Not the op. She said they bought a house to match their income. Which implies they could have bought a cheaper property.

Do you live in London?

I work for the NHS so do receive yearly increases but this is swallowed up with student loan and pension (I know I am lucky to have such a good pension) and tax. I also have 2 other jobs just to cover the bills as my husband has lost his job and is frantically trying to find another one. If he doesnt manage this in the next week or so we are in deep, deep shit.

This here is a really good point. These days very few people are part of workplace unions and actually in times like these they are more important than ever. Stuff like strike action, pay bargaining etc, it's all SO much more impactful if like 80% of a company or organisations workforce is in the union.
And yes I get it, the union isn't free, there's a cost. But long run it works out - look at the professions that have had decent payrises these most recent years? It's been the ones where everyone is in the union and the union are fighting for it.

The only thing we have, as workers in a capitalist world, is our labour and the power to withdraw it when we are not compensated fairly - and it's much more effective when we collectively withdraw our labour, because it's the one thing we CAN do that gives us power over the highly paid few at the top who are wealth hoarding.

Please everyone. Join your union.

Two jobs, no pension and credit card plus occasional help from elderly parent...at the age of 50 ffs.

Was supposed to be relocating this year to reduce outgoings but thanks to logistics and the global situation have had to put it on hold so need to try and plod on for now.

It's utterly shit.

I downsized into the smallest place where my two could have their own room. Admittedly the third bedroom is tiny and needs a fold down bed. I’ve got uni to pay for too.
small houses have smaller bills. Never go on holiday always buy second hand if possible. Walk or cycle if possible.
We all face unique sets of challenges so have to do what’s in our power to change things. These were what I could do. Not everyone can do the same.many can’t cut anything else.

But why ! What went wrong ?

DH was promoted last year. I already earn well but had a substantial pay rise recently, this covered our mortgage jumping last year. Haven’t really dealt with pay stagnation as we’ve had some kind of noticeable pay rise through promotion or similar every year for a while. Though I’m sure we would have felt much better off and be holidaying more if everything wasn’t jumping up in price so much!

It's miserable and the worrying is exhausting. Don't eat any meat, don't buy any alcohol, never get takeaways, rarely buy food or drinks out and about. Everything cooked from scratch. No expensive hobbies. Crap wardrobe.. v few new clothes. Second hand everything. House needs loads doing to it, furniture needs replacing but I can't see it ever happening. Just make sure the absolute essentials are prioritised e.g. MOT, boiler service etc. Two years ago we were ok (although still frugal) on the same income. Now we are definitely not.

Live up north, our 4 bed detached house was 145k 13 years ago. We pay £650 a month mortgage.
No childcare costs, I work part time.
We do meat free 4 days a week (adults not kids)
Buy clothes off vinted
Rarely eat out or takeaways

We jointly earn about 80k and usually have around £500 -£700 left after all bills and extras have gone out. We over pay on the mortgage and put rest in savings. We do small cheapish trips out a few times a month, more in the holidays. And one abroad holiday a year, we run two cars and have one child and a dog

Then where is your money going

@Niftywigglesheep MNs is the wrong forum for your OP as the average user will be older so in a different life stage & landscape.

Things have got harder larger because housing takes up such a higher proportion of peoples income. Plus frozen tax bands & wage stagnation means less in your pocket in the first place.

But it doesn’t imply they overstretched themselves either?

Think all of us working are running faster to stand still, so to speak
Now go out for meals for special occasions only, wouldn't even consider buying something if I hadn't checked Vinted first
One of children is SEN and objects to going anywhere/ doing anything so at least someone in the house is happy!!!

Yes basics are more expensive today but there is so, so much unneccesary spending that has become regarded as normal in the past few decade which go a long way to explaining why people feel worse off than older generations

But this isn’t true, younger generations have less disposable income due to housing. Previous generations spent on takeaways, pubs, holidays etc. Habits have changed though as you would expect eg coffee shops replacing pubs.

We are older but still supporting two kids through Uni. I am losing my job in two weeks and moving to a part time job earning slightly less than half of current earnings so are going to need to make some changes.

Other things that probably save us money so we don’t feel like we are struggling /so we can spend elsewhere or save:

no cleaner/gardener
Use vinted/don’t buy clothes every wage
Coffee out is a treat not daily
Tv subscriptions are rotated. Now tv offer deals often. No sky tv
I don’t do beauticians: eyebrows,nails,waxing. botox etc
Do have haircut 3x a year and fringe as needed but my hairdresser is cheap.
Cheaper skincare: inkey list, cheaper korean brands and sometimes lidl basic moisturiser.

Dependants are no longer dependants so makes a huge difference and we have paid off our mortgage, we are eating out a bit less these days. Not a huge thing compared to many but it is the knock on effect for restaurants, there are people that are struggling and then ones like us that have made some minor cutbacks it’s still less money swishing round the economy.

I'm on an ill health pension with disability top up. My income is £25000 and have 2 dc left at home and a mortgage thats 5 year fixed comes to an end this year.
I'm managing just but I've had 11 years of having to be frugal, meal planning, essentials only, checking cheapest prices its become normal practice to me.
I cant drive anymore so thats one less expense. I just use a taxi when needed to get to the hospital.
I budget everything.
In the next couple of years my dc will have all finished school. So I can sell and move areas then to reduce my outgoings/be nearer health care. But the housing market situation does worry me.
I think some people need to understand the difference between essentials and extras. We also need to set these expectations for our dc to so they dont think its bad if they cant have 2 holidays a year or a meal out every week (as my dc friend said last week she felt sorry for her as we only go for a meal for special occasions and holiday if we can afford it).

Having grown up in a poor household, I have fairly low expectations from life. Our house is smaller than friends but I like it very much. Our car is over 10 years old but it gets me around so have no reason to change it. Being on trend doesn’t bother me, most clothes are years old but are of good quality so they last. I buy clothes from charity shops. I don’t buy many cosmetics and don’t have nails or eyebrows done. A perfect day out for me is a walk in the countryside with a picnic. I have a very happy and content life but other people might not see the appeal.

I've never had enough money. I've worked hard but not a career person.
Second jobs and zero percent credit cards as I have done for the last 30 years.

There's still loads of posts on Style and Beauty with people spending £200 on wedding guest dresses and £100 trainers so I don't think it's hit everyone.

I think some people need to understand the difference between essentials and extras. We also need to set these expectations for our dc

are you saying people who work & pay tax should only be able to afford essentials? Younger people have already stopped having dc, more will emigrate in the future.