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 personally know a couple of restaurant owners, they haven't done too badly with take-aways and various birthday/breakfast/afternoon tea hampers - hard work but enough to keep the business running and have an income.

Their staff on the other obviously were out of work for months.

@peachypetite

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

This. I am saving around £350 by not commuting (train fare, parking and petrol). Not to mention no coffees, no lunches, no going out, no city trips, no childcare during lockdown, no make-up, no new work clothes, etc.

We're in a better position. DH and DS work in retail so their income has been the same (plenty extra hours available when they want them though). I'm self employed and online sales have increased a lot due to the pandemic so I'm doing better this year than ever. I've actually saved a lot this year due to family weddings, engagement parties etc. being cancelled. We had a few this year and because we live quite far away from family it always entails flights, hotels etc. That plus no holidays abroad it's been pretty good for us financially.

I've worked FT throughout and COVID has made me and my team substantially busier so I've had hours of overtime on top of the usual.

I'm in a much better position. I now WFH so not really going anywhere to spend any money. I'm saving loads each month, more than I've ever saved.

Our income hasn't changed as I've been working throughout, at the office, not from home. It's been very hard at times dealing with abusive customers but I'm glad I'm in a secure job and can keep my family going.

Anyone working in nhs and most of pub Sec are fine many other sectors are fine and some are booming

@Gwenhwyfar

"Yes & we also got through a lot more food but that's because we were all at home & eating all 3 meals at home. "

Well, yes, but home or not, you'd all be eating three meals a day somewhere so the money is being spent all the time.

For us, while we ate the same amount of meals as previously, I had two on age related FSM when lockdown started. We aren't low income so didn't qualify for any help, and nor should we have done, but that was 10 more meals a week we were buying that we had been getting for free previously. So there was definitely an increased cost. Luckily it wasn't a problem.

I'm struggling financially but am continuing to spend pretty much as normal. I'm not going to give up the few luxuries I do enjoy (the occasional meal out, very occasional treats such as a new winter coat or bag) yet, just because the future is uncertain. Yes I could turn the heating off, eat beans on toast every night and live a life of misery, but life is barely worth living as it is, without making things even more depressing.

I have been thinking of the people who have been badly affected throughout the pandemic. It is part of the reason I have continued to spend with independent businesses where possible rather than just squirreling everything into savings.

We are better off than before Covid

• extra work meant I was paid lots of overtime
• no commuting costs (£100/pm each)
• no lunches out/sad supermarket sandwiches (£50/m)
• no swim lessons for many months (£50/MTH)
• no theatre trips/ weekends away/manicures etc for ages
• no long journeys to see family

I don't delight in those savings (except the petrol!) Because I know they are at the expense of other people's livelihoods.

I also take it that your wealthy area has no theatres or concert venues, @Qwertywerty3 ? No musicians? No orchestras? No singers? No actors? No set designers? Script-writers? And so on?

Or is having been to the RCM and spent a very long time training to become a professional singer not a "professional job"?

Another one in a much better position -

Started new job
Less frivolous supermarket spending now that we shop online
DH had promotion
DH WFH and not commuting
Less coffees/random meals out here and there
Four cancelled holidays

@Scrouge Thank you - that is very kind.

Mixed bag here, I was furloughed, with redundancy threatened (not happened yet)
OH has been working throughout

We’ve saved the difference between my furlough and usual pay through no commuting/other working expenses and wrap around childcare
We’ve also saved by not going on holidays/days out
Food bills have increased, but we were both spending more than necessary on lunches and coffees
We’re anticipating a cheaper lead up to Christmas, last year we did a Santa event, which cost over £100 for the day, once lunch was included. Ice skating, Christmas markets and school fairs and it all added up

My dh has a public sector job and is wfm he has reduced his hours slightly by choice as we are home schooling the children. We are shielding so not going anywhere. Saving money on commute , childcare , random Starbucks , random days out with the kids , day to day fuel etc. So we aren’t not any worse of that pre Covid probably slightly better off.

Meant to add I still shopping as normal just online.

My husband is now WFH and so we’re saving his £250 per month travel costs.

I’m NHS and have been putting in at least ten hours a week overtime since the beginning of the pandemic. I’m exhausted and more than ready for some time off... but overtime is paid and so I’ve saved a healthy little nest egg to treat my daughter when this is all over.

I think it’s a bit of a situation of two halves. Some have come out of this financially better off. Other people have really suffered

We haven't taken a hit at all. Both have jobs that are business as normal, just working from home. Very few of my friends have been affected.

Our income didn’t change at all but travel and childcare costs reduced from April-August.

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

SOME people @peachypetite...some

I am still commuting, still buying lunch and coffees...literally nothing about my day has changed apart from the fact we have to sit 2 metres apart in the canteen.

I know some people who have benefited from the situation financially (more work, Better paid work, work from home so less commuting costs, etc.) and people who have been negatively effected (furlough, redundancies, using benefits, housing issues, etc.) its never that straightforward, and Amazon and Deliveroo are doing fucking well out of all of us!

Income is the same. Didn't buy coffees, lunches etc but saving a bit on commuting. However we have lots more money as we can't go anywhere or do anything.

We’re screwed.

Both in our 60s. I’m on a work pension but not state pension yet. DH works in Event Security so now effectively unemployed and furlough ended for him in September....not much chance of him working again tbh.

My work pension covers the bills but we relied on his income for everything else. Every month we’re taking money out of our retirement savings and we’ll never be able to put that back. I’ll get my State Pension in January which will help a bit but he has 3 years to go yet.

Our carefully planned retirement is now looking quite bleak.

Not everyone is adversely affected, dp's company is already 10% up on 2019 with 2 months to go (ppe) so yes we are ok despite me currently "resting" as actors would say! I know we are fortunate

My husband and I are both public sector and earned a lot of overtime over lockdown (my team were working weekends which isn't usual for us). We saved on gym memberships, children's activities and holiday was cancelled and we aren't going away until next summer at the earliest.

We're extremely lucky financially but we are utterly exhausted, work for both of us has been extremely full on.