How are so many people still spending as normal?

[nc1962]

I'm so confused by what I'm hearing compared to how people seem to be living their lives.

On the one hand, it's everywhere about job losses, redundancies, people not being able to pay mortgages. But on the other - a lot of people I know/vague acquaintances are going on holiday at every opportunity, buying a lot of stuff and spending a lot of money on house renovations.

Our household has been hit badly by all of this, with a massive drop in income.

Of course it's different for everyone and up to people how they spend, but I'm so uncertain what to think. Are there really so many households (normal as opposed to very rich) who have been able to carry on as normal? I thought we were very typical in terms of having taken a big hit, but now I don't know what to think and whether this is a short term or long term thing.

I wanted to ask what others are finding to be the case - are a lot of people you know carrying on as normal, or has there been a big financial impact?

My DH has taken a 10% pay cut at work (as has everyone else in the company) but we have saved more than that over the last 8 months - travel fares, spending on outdoor activities, meals out, coffees etc

There are 2 camps - those who are still working (from home or in a COVID secure office) and those who have been put on furlough/ reduced hours or lost their jobs.

For the first there is no reason why they couldn't spend as normal.

People who are still working are saving a fortune in commuting, buying lunch, coffees etc!

It depends what you class as normal. What you're used to.

Our income remains unchanged, but we both earn the average UK salary, rarely holiday abroad, go on one uk holiday a year, old cars, no Sky TV or fancy phone contracts.

Oh and we never bought lunch or coffees in the 1st place. Too bloody expensive!

We have saved a lot of money by not commuting for many months and not going on holiday.

I saved loads during lockdown. No meals out, coffee etc.
Lots of people I know are saving on the cost of commuting.

Saved loads due to not eating out, no weekends away, no theatres, no petrol (for commute). We are finding we have about 1k a month more. It’s shocking really if you multiply that up by the whole economy, you can see why it’s ground to a halt.

We haven't lost any income but haven't saved any either - both keyworkers so still going out to work pretty much as normal. I'm counting is very lucky financially.

Normal for me. Work is busy and I am WFH FT

Our income hasn't changed as I'm working as normal going into to work. We are low income but manage fine cause we have low expenses and due to not going anywhere have been able to save a bit of money. We were only going to Haven this year but that and various day trips still add up.
I feel for people who have lost a big chunk of their income and feel fortunate there.

I think for us, maybe it's a bit different as we were mainly WFH anyway, so the saving on travel to work or food when out isn't applicable.

We're very worried so trying to keep spending as low as possible, but I felt a bit thrown by so many people going on holiday, new cars appearing, expensive clothing purchases and wondered why people don't seem as worried as us! Obviously, security totally depends on what your job is, but I'm afraid to spend in case tougher time are ahead.

I've been lucky in that my job can be done remotely so I've worked from home and earned as normal this year. I saved a lot of money during lockdown when pubs and restaurants were shut and I reckon I've saved at least £100 per month in fuel costs. I haven't been on holiday though, I've had a couple of weeks off and spent them doing DIY to spruce up the house and garden, given I'm spending so much time here!

DH has taken a 10% pay cut, but isn't commuting (+500 a month), very few of our four children's activities are running, so we aren't shelling out for activities x 4, we aren't eating out or socialising as much, so we are better off, despite the pay cut. But we are trying to save because not sure what is coming (Brexit and redundancies on the horizon) whilst still supporting our local food banks and those in need locally.

I'm spending as normal, I was on furlough for a while but work is now busier than ever. Pretty much every single member of my family is a key worker so they have fairly safe jobs and were working throughout. My job was the only one at risk really and it's turned out OK.

We have an online gift website. Sales are MENTAL. Through the roof. Never had such a good year it’s genuinely exploded and we’ve been in the business for 15 years.

We can’t work out why but maybe because people can’t spend money on holidays or are all on furlough so still being paid but have loads of spare time to browse the web. I don’t know but it’s the craziest year we’ve had and the only thing that has changed is the introduction of Covid.

Unchanged income (working from home as normal) but making savings on work lunches, no big holidays, fewer activities, no meals out, buying fewer clothes, no nursery fees last spring/summer as they were closed, much smaller Christmas than usual.... We’re spending more on craft stuff and takeaways and the utility bills are probably a bit more than usual but we are better off. We are trying to find ways to use the “surplus” we’ve made to eg support the local foodbank.

DH is now WFH and has been since March so is saving £400 a month on commuting and £5/10 a day on lunch/coffee. We don’t eat out any more and don’t go to the cinema/theatre/pub. None of the kids’ clubs have resumed and DH can take them to school so that saves loads on bus fares.

This is their rainy day.

I was furloughed then made redundant in July and DH took a wage cut of 80% so our income certainly dropped.

Despite this we had a new bathroom fitted in August and are getting new windows and doors fitted next month. Both things were desperately needed (eg one door doesn't open when it rains and the other doesn't stay closed, really useful in the UK!) So we'd saved up and booked them in way before covid pushed things back with lockdown etc. Plus we'd already paid for most of it in terms of deposits/materials etc so it made sense for us to go ahead with them. Once those are complete we won't be doing anything else for ages.

We haven't been on holiday and are not spending on commuting, lunches etc or leisure activities. As such I'm hoping to get new windows.

I work in furniture manufacturing and it's the busiest it's ever been, we're seeing record sales. I do think it's down to people not spending money on holidays and going out.

So far - touch wood - we're in a better position. I've got more work than ever (self-employed) and we've take far fewer holidays than normal.

As well as saving the money we'd normally spend on the trips themselves it also means I'm working 50 weeks a year instead of 42-ish which is more money coming in.

We're being cautious just in case, but that means savings are going up and we have a good cushion built up.

I'm a teacher so my job has been secure throughout. During lockdown I was saving a lot of money on petrol and day to day expenses so I managed to save quite a bit. I do realise how lucky I am that financially our household hasn't really suffered at all.

I’m earning the same amount but because I wasn’t having to commute/make packed lunches for work which meant I saved cash, I used it to pay off some debts so I’m better off because I’ve reduced my outgoings!