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?

[IrisAnon]

Well said CreakingatTheWhinges
We’re in that comfortable bubble, but guess what.... no expected bonuses next year. That’s what paid the school fees. We have no financial help from family. One of the companies we work for will be shedding over 5000 jobs before 2021. Good, comfortable, professional jobs.
Yes, we’re saving money through not commuting, eating out etc.... but that’s going to be a splash in the ocean in 2021.

[bluechameleon]

Our income is unchanged as one works in head office for a supermarket and one is a teacher. Our outgoings are reduced because no commute or lunches in the canteen for the office worker, and fewer family meals out, expensive day trips etc. I know we are very lucky and I know others who lost one or both incomes. But I don't think we are that unusual either - lots of people work in public sector roles, social care, retail, or in sectors that could easily move to online working.

[Orcus]

I'd imagine private insurance at the moment would primarily be useful for stuff like GP appointments and MH treatment.

[MRex]

@Figmentofmyimagination - the private hospitals were doing NHS work and were given covid patients to care for in wave 1, with everything else cancelled (except maternity). You won't be getting preferential treatment in a pandemic (and nor should you).

[Orcus]

@Figmentofmyimagination

Even those whose incomes are currently secure are a bit crazy to be splashing the cash.

If I had spare money, I would be squirrelling it away to pay for private healthcare in case someone in my family falls ill or needs an operation.

I'd be surprised if some of the people on this thread don't have it already. MN is that demographic.

[entrytohr]

My partner's still working, but now from home. Not commuting has saved us £200 a month. So we're actually better off now than we were. I'm a SAHP, though I'm in the early stages of starting a business, so we've seen no drop in income thankfully!

[Figmentofmyimagination]

Even those whose incomes are currently secure are a bit crazy to be splashing the cash.

If I had spare money, I would be squirrelling it away to pay for private healthcare in case someone in my family falls ill or needs an operation.

[MRex]

There's a risk of sounding eager for others to have job losses to stage the suffering. Not every company used the furlough scheme, some just continued working and paying taxes, but from home. That's useful actually, the country needs some tax revenues. Some companies were planning reductions already and covid was a convenient excuse. There are risks with these constant shocks to the economy, but it's really in nobody's interest for more people to be made redundant than have been already and those who can keep up their spending should do so, because that keeps more people in work until this passes.

[CreakingatTheWhinges]

@peasoup8

I am still confused though- there are a lot of responses here and hardly anyone has talked about a big income drop or job loss.

MN is a middle class bubble and it’s not the middle classes or the rich who will be affected by this - it’s the lower middle and working classes who are suffering.

@peasoup8 my DH is very senior in MC employment sector but it’s niche (without being outing, think along travel industry) & we are already affected.
Many in his same profession who would also be considered MC, & in a field that caters from WC to UC across the board have been made redundant already, household name companies.
The most recent reports I read suggested swathes employed as lawyers, accountants & such like will also be made redundant in coming months.
I think many people WFH whose companies have been helped by the furlough scheme could be in for an unpleasant shock in coming months. 🤷🏻‍♀️

[teenagetantrums]

I'm completely unaffected financially so spending as normal. Was never one to go out much anyway so lockdown doesn't really make much difference.
I am however trying to help out my kids in their 20s as they have both lost jobs due to virus so I'm probably spending more than normal in that respect.

[justanotherneighinparadise]

I was going to say the same. A combination of Brexit plus a double if not triple dip recession is going to plunge all but the very wealthy into a lower standard of living.

[TabbyStar]

Thanks Ddot

Don't feel bad Baxter, it's important to hear people's experiences.

I think unless you are in the public sector, the mc bloodbath is already happening or will come. Certainly, the sector I’m in, projects are cancelled and redundancies are looming.

There was a Tweet last week (by the Resolution Foundation or NEF perhaps?) saying that there were a lot of middle class middle age jobs that would go, e.g. layers of management, though so far it's disproportionately younger, lower income, and / or BAME workers who've been affected, and of course the self-employed.

[peasoup8]

I am still confused though- there are a lot of responses here and hardly anyone has talked about a big income drop or job loss.

MN is a middle class bubble and it’s not the middle classes or the rich who will be affected by this - it’s the lower middle and working classes who are suffering.

[readingismycardio]

We saved quite a bit in fuel costs, I didn't really buy any new clothes, because, well, where would I wear them, no lunches at work/uni (I do both online now). However, that didn't help, they all went into home redecorating/renovating

[EmmaGrundyForPM]

@peachypetite

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

that's not necessarily the case. I never bought lunch or coffee at work - always took my own lunch and coffee from home. My commuting costs have obviously gone down but we are now having to heat the house through the day which we didnt do before.

We are very lucky to be able to wfh though.

DH is in danger of losing his job so we are trying to save as much money as we can.

[Ddot]

My sister just keeps saying you can't put your life on hold and I could be dead tomorrow. My sister never takes advice, then regrets it, but ways comes out good. Dont know how but she does. Me on the other hand! Ive wanted to tart up my kitchen for almost a decade and build a shoe cupboard (don't ask) oh and the bathroom is a mess. Too scared to go ahead, always something. Had to splash out for new kettle today mine died and going to need new oven soon so keeping money for necessities.

[BolloxtoGender]

Yes, I’m conspicuously spending on landscaping the back garden with skip and diggers, but that has been a long time in the planning, was supposed to have started last year, then this April, then cancelled, under now. It needed doing for a long time. I was hesitant to sink more money in finishing it off with planting and new potting shed, but I just went ahead anyway because we will be spending so much time at home 🏡, and I wanted something to look forward to in the spring, even If I might be unemployed.

[celan]

[quote Qwertywerty3]@celan of course those places exist where I live. But I don’t know people who work in them. I said the people I “know” are unaffected and still able to spend. Why is that so hard to believe?[/quote]
Fine, if you don't know any musicians, actors, scriptwriters, restaurant owners, pub owners, hotel owners, etc, etc, etc.

I might have thought I wouldn't encounter such terrible people when I was at doing my DPhil.

My objection to your post was that you seemed to think there was a correlation between people with academic qualifications living in a "naice" area and the poor, illiterate folk who have menial jobs.

I have a DPhil and live in a lovely leafy place, where the average house price is well over £500k. However, I'm still up shit creek due to working, very successfully (until March) in a relatively niche field which the government seems not to be aware of.

I was just saying your equation between "professional qualifications and nice area" and " lockdown is ok" is wrong.

[Yourcatisnotsorry]

Saved about 3k in commuting costs, 10k from not going on holidays, weekends away etc. expect a much lower bonus than normal maybe -20k gross.
So probably about even. Our sectors are both less vulnerable to job losses than many so we’ve been able to spend as normal (probably more as buying more presents/treats to cheer us/family up)

[Housemum]

Our spending is probably more conspicuous as we have got builders in re-plumbing a dodgy bathroom and sorting the kids' rooms - but then we didn't buy clothes and casual stuff we don't really need during lockdown, we didn't have a summer holiday. We are both in jobs that have continued as usual throughout lockdown, so maybe someone looking from the outside would see us splashing the cash but it's just what we have saved this year plus some of our existing savings. We know that we are very lucky.

[HalloumiFries]

Although both DH and I have been lucky so far with no change in income, redundancies are looming in my sector and it is highly likely I'll be out of a job within 6 months. I earn more than double DH so this will be catastrophic for our lives. As a consequence, we've already cut back loads and are putting every spare penny into savings in order to provide ourselves with as much of a cushion as possible.

DSis on the other hand is spending like there's no tomorrow and I had a bit of an argument with her and BiL last week- they think I am crazy to be scrimping and saving and are taking the view that so many people are going to lose jobs next year that it's not worth worrying about - apparently the government will have to help us out so we may as well live for the moment now.

[BolloxtoGender]

I think unless you are in the public sector, the mc bloodbath is already happening or will come. Certainly, the sector I’m in, projects are cancelled and redundancies are looming.

[Hairydilemma]

I’m sorry for everyone who’s been negatively financially impacted.

Like a lot of others who have commented on here, we are saving significant money as DH is no longer spending £400+ a month on commuting and all the associated costs - lunches etc.

I’ve WFH for about 8 years. Neither of our jobs have been affected yet - and although obviously nobody is immune to redundancy, it’s not a prospect at the moment.

That being the case, we’re deliberately trying to spend to support local businesses and the sectors that have suffered (sadly the eating out element of that is going to be curtailed from Weds).

I know lots of people doing the same. Plus lots of people who’ve saved £££ by not having holidays this year who are spending that money on home improvements etc. So there probably is quite a lot of spending, but mostly money that would have been spent on other things anyway.

[Ddot]

If the country goes bankrupt, then what

[Ddot]

It's going to hit the coastal places and little towns, I live in the north and people are so nonchalant about keeping safe, I've asked politely not to get too close and been sworn at quite a few times. We have a problem with feral kids and nothing seems to sink in. (Government will look after us)