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?

[Panicmode1]

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.

[Monkeybunkey]

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!

[nc1962]

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.

[CeeJay81]

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.

[QueenPaws]

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

[Bobbybobbins]

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.

[WearyandBleary]

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.

[StanfordPines]

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

[CraftyGin]

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

[middleager]

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

[middleager]

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.

[peachypetite]

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

[Unescorted]

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.

[Redolent]

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