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?

I am spending a lot less as I am anticipating a bleak economic future, and I was frugal before anyway. If people can afford to spend comfortably now, I imagine they are working in a role with great job security.

I'm amazed that in my little town, retailers seem to be doing OK. Quite a few new shops opening up in premises that have been long empty, expanding services and the like. All small independents who have been able to adapt very quickly to meet changing requirements in the pandemic and plug holes that the national chains left.

Yeah, we have had a new 'high end' (read expensive) food place open that's been fully booked for weeks, a cake shop, a new clothes shop, a pub that's been empty for years has reopened- really weird really. It's been great to see town busy though, although feel for all of the staff in the chains outside of town that will likely be feeling the effects of people shopping more locally.

We've been very fortunate in that DH's earnings haven't been impacted by covid due to him wfh. Mine are less than normal, but due to mat leave rather than covid. DH has saved 8k by not having to pay for the train into London every day, so we've managed to save enough to redo the bathroom, and if this carries on as long as we anticipate, possibly the kitchen as well.

The only person I know who has had their income affected is a tradesman. He wasn't eligible for the gov help scheme, which was sad, but largely because he had been tax dodging for years, so can't say I feel too sorry for him tbh. Otherwise my family and friends are all earning as before and either doing their jobs exactly as they were or wfh.

DH and I are both key workers and have worked throughout, DS has a part time supermarket job and got loads of overtime in lockdown so as a family we are earning as usual. I am wfh so am saving the cost of my commute, which is quite a good pay rise. So we are still spending as usual and went on holiday in the summer. Work has been really busy and stressful so a break was really needed.

We have spent a small fortune on home repairs/decorating etc. since lockdown because a) we've saved money on cleaners, tube trips, commuting, petrol, eating out, random coffees, workwear, gym, tutors, summer holiday; b) we've been home to be able to supervise builders/decorators. So I think even if your income is safe, the pattern of spend has been different.

Its swings and roundabouts for me. My public sector job is safe and I've been able to start a small business but DH was on secondment and is unsure if can face going back to his old team if forced to. Relationship with PIL broke down whilst I was shielding plus other concerns mean we now pay for 2 days pw nursery for DD. I refuse to go in big supermarkets now having seen zero social distancing, hand sanitising and poor mask wearing so am buying online (I'm sure I'll get flamed for that but it feels like otherwise 3 months of sheilding and wfh in a front line management role with a toddler was for nothing) so am spending more as I can't shop around as much. We're coping though and the added income from my new business is helping

I am buying less clothes but only because a) I dont need any b) I dont go out much at the moment c) I cant try clothes on in shops and d) bit wary to be in non essential shops because of covid. I think I could spend more if I wanted but being self-employed being more careful as I keep thinking my income may dry up.

to everyone struggling in the travel industry in particular. I think a lot of people have no idea how desperate it is for many small businesses or freelancers.

I’m working lots of overtime.
DH work was delayed during lockdown so he got a temp job and worked 12 hour shifts 13 days on, one off.
We’ve been too busy to spend so saving lots.

We're retired so no difference to our income, although I did decide to give up a voluntary job for which I was paid token expenses.

We have had no holidays, haven't eaten out since March, bought no clothes. We've saved a fortune over the last months.

We decided to make a decent donation to the local foodbank and another local charity working with families.

We've also made donations to the National Trust. We are members but they have lost millions over the summer and we have used them a lot for a change of scene. It has helped save our sanity.

I cannot imagine how hard it must be for some people to feel so insecure, to have lost so much income and to worry about food or being homeless.

I hope others in a better position are supporting local families and charities. The government sure as hell aren't.

I work for the NHS, so my work and wages have been unaffected. Kids went to school throughout lockdown, from the very start, as they had to (I'm a single parent). They went to their childminder as normal, so my Universal Credit for childcare fees stayed the same. Kids activities stopped: swimming, dancing, football, and fees were frozen, so saved on that. Also, as PPs have said, I saved money I'd normally spend on us going out, meals, cinema etc.
I know I am very lucky not to have had my finances affected by this. I've got friends who have been furloughed or made redundant, and I'm so sorry for them, and everyone else who has struggled.

I work in a residential children’s home so am unaffected by this all! If anything my wage has vastly increased with all the over time! Also saved a lot from not socialising or eating out like I used to!

Depends on your job, I think.
Doctors, nurses etc will obviously still be working same hours (and probably have more chances for OT, to be honest!). Lots of people WFH would have the same income.
Someone self employed/whose workplace closed down completely for lockdown and who was on a reduced income for months will struggle much more.

We aren’t rich at all but I have made more money this year than the last couple of years, there has been a lot of demand for what I do in recent months (online training) and we saved a lot during lockdown due to not paying childcare, no fuel and not going on days out and holidays. So we are better off but I m not sure if we are in the minority. DH works in construction, specifically social housing so his job is safe for now.

Yes I found that the food bill was way more. Combination of factors we weren't buying lunch out, eating out or having take-aways, we'd normally have at least a takeaway at the weekend.
Were buying everything in one shop, no special offers, I also think prices increased on a supply / demand issue.

I hope others in a better position are supporting local families and charities. The government sure as hell aren't.

It was estimated that charities would lose £4bn over the first 12 weeks of lockdown. There have been lots of redundancies, there is currently emergency funding that some have been able to access, but the crisis will hit many over the next 2 to 3 years as existing grants run out.

My income hasn’t changed, my outgoings have reduced and althoigh we went away in the summer our travelling is massively curtailed

Our incomes aren’t affected and we both have secure jobs with long tenure.

Day to day spending has probably remained roughly the same. Never had commuting costs but definitely saving on incidentals like coffees, lunches out, random stuff grabbed from M&S on lunchtime walks etc.

Spending more on local restaurants for take-always, heat at home etc as we want to support them. Also making an effort to buy more stuff locally- trying to ditch Amazon etc.

That said, I’m not making any unplanned or unnecessary large purchases like furniture or cars. I can’t see how there’ll be anything but economic decline over the coming months, so would prefer to optimise savings.

@HotDiggidy2017

I notice loads of people saying they saved money in lockdown which we did too but our food bill basically doubled- did anyone else find this? We ended up shopping at a Tesco express round the corner instead of the megastore one and it really took its toll - If there’s a next time I will brave the queues instead as the additional costs, insane!!

Honestly, not really.

We only spend more on supermarket food because we spent a lot less on eating out: buying lunch and diner for the entire family, instead of us having sandwiches or eating out, kids at school.

I had supermarket deliveries throughout the lockdown, so even if things went up a bit, it wasn't that much different.

I usually do not shop in Aldi or Liddl anyway, only because they do not deliver, so I stuck with my usual supermarkets.

@Qwertywerty3

Almost everyone I know has been unaffected financially. We live in a wealthy part of the country and everyone has professional jobs. If anything, people have more money because they are saving commuting costs.

I live in a wealthy area too and know LOADS negatively affected. Office Managers, those who work in theatre and entertainment, an advertising agency manager, cafe owners - lots and lots are affected!

I am part time self employed with very lityle history so lost out massively at the start but niw working as normal. Dh wfh on same money but will take a cut next month. We are doing ok as not spending so much on commuting but food bill rose massively in March.

DH had a temp drop in income for 3 months but now back to normal. I work for social services so nothing changed for me.

We are going out much less to eat etc so have more money left over.

We are lucky I know. We are boosting savings with the money rather than spending though

Like many others posting we’ve so far been better off as our working and our salaries remain the same but we have saved massively by wfh and because of things we are not able to do.

I am scared for the future and it’s tempting to squirrel every penny away but if everyone does that the economy will collapse even further.

I’ve carried on with things like hair, beauty, sending ironing out etc even though no one sees me so it really doesn’t matter so much, because if people who still can don’t do this more businesses will fold.

I have worked FT throughout the whole thing. I have started making my own lunches for work. I have made a saving on commuting as I now drive myself and pay for parking, as opposed to DH driving me on some shifts and paying for twice the mileage and other costs. Our house is owned outright so no worries there.

I’ve been WFH since March. Saving over £1k per month (£400 commuting and £650 childcare). No pay cut. DH is self employed solicitor and business has increased for him since March.