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?

[WankPuffins]

My Dh works for a local authority so thankfully, job is secure, he WFH anyway.

We are very lucky that nothing has changed.

[kondomeup]

I've had a pay rise and neither of our jobs are affected by the economy or Covid.
I've been spending less on fuel etc
I realise we're lucky.

[missbunnyrabbit]

I spent loads online shopping during lockdown. What else is there to do!

[Hoctober]

Our household wasn't hit financially at all (thankfully) and like a lot of other people, we saved lots by there being fuck all to do.

We spent our holiday funds this year on house improvements

[justanotherneighinparadise]

*home

[flumposie]

Keyworker. Finances have stayed exactly the same throughout.

[Orcus]

We're still spending because, put bluntly, we can afford to. Our income is unaffected. We also want to try and do what we can to safeguard other people's jobs, which involves spending money, so that might mean saying yes to more things than we did pre covid. Because if I want businesses and amenities to survive I need to support them.

What we have changed is we've spent on different things. Made a specific effort to use local retailers not supermarkets, gone on days out to outdoor not indoor places etc. So the habits have changed but the amounts aren't that different.

There has been huge variation in the economic impact of this pandemic. I heard the phrase K shaped recovery. What this means is some people are struggling, while others are doing fine or better.

[justanotherneighinparadise]

I guess the people spending are those who are in secure jobs or at least think they are. All my neighbours are spending out on brand new top of the range cars and elaborate hole and garden improvements. I’m immune to it. We have just carried on exactly as we were. Not spending too much, being frugal, hoping for the best.

[middleager]

I'm really lucky in that my husband has always done the DIY, so he fitted two bathrooms for 1k each last year, our kitchen for under 3k with all appliances bought from clearance etc. To others it might look like we'd spent tens of thousands.

Could it be that some people are doing jobs themselves - maybe they've finally got time (I saw one man on FB had crafted a brilliant pergola himself) or are they splashing out?

[GhostsUpMePosts]

My own job hasn't changed much (was pretty much WFH before and now) but as I work with the emergency services on long term contracts (4-5 years) I am lucky in that my job remains as secure as ever.

I think yu are very sensible, though, OP to limit spending in case of the future - and wish I had a bit more of that about me.

[notacooldad]

Me Dh and 2 sons have carried in working. Both lads have had loads of overtime in their respective jobs.
From when the restrictions began until the end of July we only spent money on food and petrol. Even the petrol bill was reduced because I want doing home visits.We all work locally so that isn't a great expense.
We ended up with £100's spare each month.

[CremantCharlie]

I am financially better off. Worked throughout at home. No fares etc. Not going out for many meals etc. My spending has reduced in some quarters, I am not buying clothes, but if I need something for the house, I get it.

[GlassOfPimms]

Saving £££ on petrol and lunches and also increased my hours because we've been so busy at work (currently WFH)

We're not risking holidays (not been away at all this year) so we're saving more than ever before. However, you never know what might happen with jobs so we're being quite conservative with our spending.

[Pootle40]

We have saved as both wfh and no commute, nowhere to go and no expensive holidays. It is definitely a scenario of extremes and we are fortunate that we have saved more than normal and been able to do home decoration.

[Newnamenewopenme]

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!

[mamaduckbone]

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.

[Waxonwaxoff0]

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.

[OnceUponAThread]

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.

[HasaDigaEebowai]

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.

[CantStandMeow]

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.

[IEat]

This is their rainy day.

[Letseatgrandma]

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.

[Numberblock7]

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.

[Insertfunnyname]

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.

[Waxonwaxoff0]

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.