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?

[Bubblemonkey]

apparently I online shop when I'm stressed

[Ddot]

Some people have put the blinkers on, it won't happen to them. We really are unsure of the future. Covid could go on for a very long time. Squirrel your nuts

[Musmerian]

I think it very much depends on individual circumstances. My DH and I are both teachers. We saved a lot of money during lockdown as I have steep commuting costs and we weren’t shelling out for those or petrol or going out etc. We got a refund for our son’s Uni accommodation as well. Jobs are reasonably secure so it’s not had much impact at this stage.

[JanewaysBun]

Covid doesn't really impact DH and my industry.
Brexit massively does and we are still waiting to hear if DH is being relocated (which is massively shit as we need to move asap and will need to do the whole letting out place 1 / renting place 2 for a while)
I've tried to keep my spending normal as if people don't buy clothes/toys/etc then it will have knock ons for the economy/the people these companies employ. At least that's the way I justify it

[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!

[pleasehelpwi3]

Both of us have secure jobs and have made some savings on commuting, childcare and wfh allowances etc

[Lurchermom]

Thinking about this in more detail when I said we hadn't been affected I wasn't entirely truthful. We have both had pay rises cancelled. I think we are unlikely to be the only ones given we work in very different areas. So although we have not been affected directly and have even saved some money on commuting costs, I do think this will have long term affect on our earning versus inflation etc since we should have both been in line for a 2%+ rise this year.

[BeakyWinder]

I agree with a pp that it is sectors that have been hit more than rich/poor. I live in a poor area, none of my friends have been out of work except those furloughed but they all kept their jobs so far. I have been back in the office for months, dp has been back all over the country working as soon as customers would allow. There is a misconception that everyone but key workers are working at home in their PJ's which just isn't the case.

The job losses and redundancies are awful. I hope everyone affected can find work quickly and the worst hit sectors recover once this is over.

[Ardnassa]

Lucky enough to still be a 2 people, 3 salary household and WAH. Saving much more but also giving more to charity and spending in our local shops. While we are still employed FT, will continue to try to support the economy. But also massively upping savings in case either of us loses our main jobs.

[kittymamma]

I am one of 3 siblings...

My household has been mostly unaffected. I'm a teacher and my husband's office job has transferred to WFH. I am also an examiner though, so I have lost that money this year. With the gains to not spending on petrol and not taking the children on days out over the summer, that balanced out to being at the same place financially. So our spending has mostly been unchanged (a slight lie as I have been overspending last month and now am struggling with a minor cash flow issue - whoops!)

My sister's family is doing well as a result. Both her, and her husband had expensive commuting costs that they don't have to pay out now and their workplaces switched to WFH quickly. With the extra savings around impulse spending, while working in a city centre, they are up plenty.

My brother's family are a little less secure. He has an office job that will not allow him to WFH and also will only pay him the bare minimum in the event of sickness or isolation. So he has to be a little bit more careful than others.

None of us have suffered job losses as many have but it is affecting us all very differently.

[sansou]

Lots of SE friends and family are worried about business over the next year if we are subject to more lockdowns. My cousin designs/manufactures high end furniture and had a full/busy order book to fulfill this year. Next year is another matter......

Local builders are saying the same - busy so far despite supply issues but the order book for next year is far from rosy.

[sansou]

Household income down 15% due to paycuts across the board to mitigate initial redundancies. I know quite a few people who have had to accept paycuts - they don’t tend to speak about it! Private sector - global telecoms and It companies which are still profitable (thankfully) but sales down and dwindling cash reserves means cost savings and anticipated further redundancies to come. Our decrease in household income has been offset by no commuting cost, no foreign holidays, no eating out, etc.

I have consciously NOT spent as much due to possibility of redundancy. The economic outlook for the next 6 mths, let alone beyond that look grim to be honest.

[Orcus]

[quote helloblossom]@orcus but who owns those hospitality, catering, travel businesses? 'Middle class' 'educated' MNs like me. There are more SMEs than large corporations out here. We just don't make headline news. It really isn't that cut and dried.[/quote]
I didn't mention class, as I don't actually think that's the best way to look at the issue. My family and friends who are care workers and supermarket cashiers, for example, have seen no loss in hours or income and their jobs appear very secure. These are not middle class jobs. Same with eg delivery drivers, that sector has grown massively too. However, I don't think we see a representative number of posters in these jobs on MN. And that's really the point: MN is not reflective of the entire working population. There are many more of some groups than others.

[MrPickles73]

I was spending 1000 per month commuting and I've had about 5 days off all summer (self employed) and we've had no holidays since last Xmas. So we've probably save 15,000. The recession hasn't started yet we're just at the beginning which is why I don't think we should do any national lockdown. Otherwise our children will be paying for this all their working lives.

[Harrykanesrightsock]

I work in social care and my hours have gone up. DH is management in a national food distribution company and he is busier than he has ever been. No holidays or any more eating out than usual due to being knackered and just pleased to get home most days.

[helloblossom]

@orcus but who owns those hospitality, catering, travel businesses? 'Middle class' 'educated' MNs like me. There are more SMEs than large corporations out here. We just don't make headline news. It really isn't that cut and dried.

[Youandmeareluckytobeus]

Most people I know are able to go heir job fully from home so are being paid as usual. They aren't rich but aren't on low-incomes either. There are huge savings from the lack of commute and cheaper lunches at home. They are spending to try and help our economy. Others are retired so have minimal financial impact.

[Marchitectmummy]

I think we are possibly about the same as pre C19, perhaps a little down. Our income has dipped, however our expenditure has dropped. Our 5 girls school fees for last accademic year were reduced, we have hosted zero parties for any of us, wrap around care and nannies are cancelled, although we have our nanny 4 months pay and paid for her flight home so not all savings! The latest is probably entertainment no trips to theatres and concerts, no hotels or holidays beyond Airbnb, less general being out, less spending on clothes possibly. But more purchasing entertainment for inside tbe home, one car has hardly been used in 6 months so we see considering selling that at present.

[FinallyFluid]

DH working from home since March, no savings to be made as he was on a gig in London that paid expenses, so train fare up to London paid for, lunch paid for, the only scrawny saving would be the mileage to the train station.

I was furloughed on 80% until August, now back on 100% for now, it is only a part time job and it has never been part of our calculations.

DH retires in about 20 months, hope to God this is over by then.

Because we have always been risk averse, retirement is looking more than OK.

We realise we are very lucky.

[Anchoredowninanchorage]

Both on new job retention scheme , 6 months until possible redundancy, chef & designer so both industry affected by lockdowns and Store group instability . Would love to be able to work from home 😭Hoped for information on government retraining schemes but 20 years too old. Feeling hopeless and lost most of my friends are teachers / nhs/ keyworkers so super busy & financially stable.

[Longdistance]

No massive change here. Dh was furloughed for three weeks, back straight away. He’s been given a bonus (construction industry).
I was furloughed for about four months, I have just received 1% pay rise (private education). We are very fortunate and count our lucky stars 🙏🏼
In this time we’ve sorted lots on our house and it’s up for sale. We spent time decorating and sorting the house out. Saved money on myself not commuting and learnt to cook more from scratch.

[MoirasRoses]

We’ve not taken a financial hit, both able to WFH & work is really busy. Which I am extremely grateful for. I do not take it for granted & remain a little on edge. Saved a lot in lockdown on commuting & nursery fees but equally spent quite a bit on stuff to try keep a 3 year old entertained as she was climbing the walls. Bought her a trampoline, garden toys, indoor toys, games, books, a bike.. 🙈

And since lockdown eased, I’ve tried to give my girls the best summer I could. I’ve spent a fair bit on day trips to zoos, parks, seaside, country parks, theme parks etc .. and they have had a ball. Which I’m very grateful for. I’ve also booked loadsa outdoor Christmas activities to try make it magical while we can’t see family. I’ve no idea if they’ll go ahead but I hope so..

[coronafiona]

I've saved money on diesel and childcare so have been buying Xmas presents early. Some of kids activities have stopped. But I've spent some on clothes and on a new gym member ship which is keeping me sane.

[EstuaryBird]

[quote Lovesabadboy]@TabbyStar

Thank you for your lovely comment.
Thank you for caring.[/quote]
Yes, @tabbystar, thank you for noticing, it means a lot.

[ItWasTheBestOfTimes]

Our income hasn’t been affected, DP’s business is in sewerage and they are busier than ever, they’ve needed to take staff on over lockdown. We’ve spent a lot more than we would do usually as we completely re decorated the house. All the traders we’ve had in have said they’ve been much busier than usual. Ive also spent quite a bit online buying things for the DC to occupy them now we can’t go out as much, a climbing frame and then little bits like craft subscription boxes. We’ve also been getting a take out at least once a week and we went on holiday in the U.K. last week. I’ve always worked from home (IT) so our outgoings haven’t changed.