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?

[Bikingbear]

@Baxterbear

YANBU l, I'm wondering the very same thing! As a result of covid our family finances have taken a colossal hit which has literally brought us to our knees. We can't afford a day out let alone a bloody holiday yet, I hear from friends (some claiming benefits) how they've just paid for a holiday or bought a high ticket item or some other extravagant purchase and I feel like its my fault we're in such a mess! I'm currently going without meals do my child can eat which is great for my figure but not so great for my health and wellbeing! It's seriously no joke that I'm having to go to work hungry!

Bless you, I hope things improve soon

There is something seriously wrong with the benefits system in this country when people who are working can't afford to eat, yet others on benefits can afford holidays. It's just wrong.

I believe Covid, like all historical events, will change and improve things after the event.

[Scarlettpixie]

I am wfh so my salary is the same. I have no fuel costs and have not been out for any meals/drinks/ days out and only taken a 4 night U.K. break instead of the planned trip to the USA. I have paid for next years European holiday and have been able to buy more stuff.

[Ddot]

TabbyStar please dont think your alone unfortunately your not. I hope with all my heart things get better for you and the thousands like you. I lost my health a while back which demolished my finances so I can empathise. You find out who are your true friends and not just fair weather friends. Good luck sweetie

[Bikingbear]

@Bambooble

I'm intrigued by the childcare costs, aside from when everything was closed earlier in the year, are people still WFH with children?

Some people who are WFH will be collecting kids rather than use afterschool / childminder wrap around care. Primary age kids will be fine, watching TV, playing independently while parents work.
My DS is 9 currently he is still in afterschool but I do question if its necessary. In fact half the reason we keep him going is because we will need afterschool in the future and need it to survive. I know someone else with the same view.

[Orcus]

@TabbyStar

Baxter I find it shocking that some people are quids in whilst others can't afford to eat

It's not new, alas. Covid has exacerbated what was definitely there already.

[pleasehelpwi3]

As previous poster said, this forum is in no way representative of the demographic make up of the UK

[Baxterbear]

@TabbyStar

Baxter I find it shocking that some people are quids in whilst others can't afford to eat

Tabby Star 😃 to be honest I'm regretting being so honest on here, as it appears I'm the only one who's badly affected by pandemic! I must admit though I'm getting used to feeling humiliated and embarrassed!
I work on the frontline and just prior to the first lockdown, I was due to start a new job but was forced to shield due to a pre-existing health condition which unfortunately meant I didn't qualify for furlough payments (here was where my financial problems started to snowball!). In July I made the (terrifying) decision to return to work as we desperately needed the income but hubby's hours were then slashed from full time to a poxy 15 hours a week which turned the snowball into an avalanche!
My heart goes out to those families who are in a worse position than my own, it's truly shocking how quickly lives have been turned upside down. I really appreciated the flowers it was a lovely gesture and made me smile! If you are still reading, I sincerely apologise for moaning on and on and on....
(I found it to be extremely cathartic in a weird way!!).

[CraftyGin]

@CreakingatTheWhinges

Haven't RTFT but skimmed through a number of pages & been quite surprised reading how many people are unaffected (or better off) as every time I hear the radio, tv, online etc there is talk of a 'bloodbath, especially in the MC job market! I really hope that people's jobs are secure and there aren't mass redundancies as seemingly predicted.
I feel hugely for all those in hospitality, the arts and such like who inevitably have already been hugely impacted and will continue to be so for a long time to come.
DH is in very affected sector so we are in similar situation to you OP. He's taken a wage cut of over 30% since March and I'm a SAHM (carer) There are rumours that his company will drop to 50% pay come Jan. I'm so grateful at present that he still has a job given the specificity of his career but as we rely solely on his income, it's very stressful.

If you are in a salaried job, in an unaffected or resilient sector, there should not be too many worries about getting paid each month.

[CreakingatTheWhinges]

Haven't RTFT but skimmed through a number of pages & been quite surprised reading how many people are unaffected (or better off) as every time I hear the radio, tv, online etc there is talk of a 'bloodbath, especially in the MC job market! I really hope that people's jobs are secure and there aren't mass redundancies as seemingly predicted.
I feel hugely for all those in hospitality, the arts and such like who inevitably have already been hugely impacted and will continue to be so for a long time to come.
DH is in very affected sector so we are in similar situation to you OP. He's taken a wage cut of over 30% since March and I'm a SAHM (carer) There are rumours that his company will drop to 50% pay come Jan. I'm so grateful at present that he still has a job given the specificity of his career but as we rely solely on his income, it's very stressful.

[im5050]

I’ve spent the money I got back on my holidays and the spending money I had put aside on buying a new sofa which was 4K and new blinds and shutters for the whole house which were 2k and probably another 1k on soft furnishings
Our income hasn’t been affected at all in fact we are better off .
DH got his new car in July as soon as he was able to and that did raise a few eyebrows from friends and family
But we also have no kids at home ,no mortgage to pay for just an expensive dumb dog 😂

[LemonDrizzles]

"new cars appearing, expensive clothing purchases" sounds like there is a specific person or people you are talking about in your life? not sure what their situation is however I think if you are employed, you have go to try to support local businesses if you can. Is there a local restaurant who will be staying open for takeaway? treat yourself once a month if you can... Find ways to support local businesses. On the other side of this, we want to still have community businesses.

Not sure if I can comment on buying new cars.

[Longpinknails]

We have saved money but are spending ‘as normal’ but are in a fortunate position where we both are able to work from home and the work is still the same as it was in the office ( government) we are saving money as less spending commuting etc.

[MummyMayo1988]

My DH works in the city in an office. He packed up his desk the week before lockdown and set it up at home. He hasn't been back since.
We have pretty much carried on as normal as it hasn't affected us financially.

[WendyE]

Business as usual for me as I work in a school, so same outgoings as always.

[ElloElloEllo122]

Were spending as normal.
We're both still working. I had reduced income for 6 weeks whilst shielding, but I didn't leave the house so it didn't make much odds.

We've saved a lot over all this as husband is very sporting, but has t been able to do any of it, so all things were paused payment wise, as was our cinema cards and we haven't been out at all, where as normally we would go out for meals etc...so we've actually saved more through all of this, allowing us to purchase a few extra treats.

[riotlady]

Things have mostly balanced out here. DP has a 25 hour contract but usually works 30, so being furloughed on 80% of 25 hours was quite a big pay drop. I’m a healthcare student and got “deployed” on placement and paid (which I wouldn’t usually) so that nearly made up for his lost wages. We are quite frugal anyway and trying to save up for our wedding and a house deposit.

I’m a little bit worried about his job with the new lockdown being announced (he works in a restaurant kitchen) but he thinks it’ll be the cashiers that go as they’ll move to focussing on takeaways.

[Rollintodarkness]

Its such a tricky one. We have tried to be careful as you never know whats around the corner. I'm a key worker so working as usual every day and financially unchanged. My husband was on furlough for a while but has been back working from home for a while now too, so all earning well...but with the industry he is in, the job could be gone tomorrow if this carries on too long, so we have a nice cushion to fall back on, but yes have also seen crazy spending and wondered about it.

[TabbyStar]

Baxter I find it shocking that some people are quids in whilst others can't afford to eat

[munchkinman]

I have worked from home the whole way through so my income has not been affected.

[FascinatingCarrot]

DH is a plasterer and is the busiest he's ever been. Most customers are saying they are spending holiday funds/commuting costs etc on improvements as they noticed more issues when wfh

[ERFGLA]

DH is on furlough pay going on to new scheme ( although who knows now) so I’ve tightened our belts, stopped paying into first home ISA and putting what I can into our normal savings
Thankfully, I’m saving on commute money and furloughed at 100% wages so this has made it easier.
Still trying to save for mat pay shortages next year when baby arrives and buy baby furniture /prams , but just need to cross this bridge when we come to it.

[WellTidy]

I’ve also had the time to do big clear outs and have sold things on Facebook groups. Not making a huge difference to finances, but it is something that I’ve rarely done in the past due to being more time poor.

[WellTidy]

For us, it’s more that we now have time to make decisions to do with decorating or furnishing. For example, many rooms have needed to have flooring or furniture or furnishings replaced for a good few years. DH and I work pretty long hours between us and we commute. Between that and the Dc, we were pretty time poor. We still are, but holidays and some evenings and weekends this year have been spent either doing the decorating, or things like putting blinds up, or finally getting to the fabric shop or carpet shop to choose things. We’ve had the money for a while, just not the time to spend it on choosing these things.

We are also saving commuting costs, kids’ activities money, cost of holidays, eating out and having coffees out way less etc.