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 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.

[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.

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.

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.

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.

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.

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.

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.

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

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!

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

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.

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

apparently I online shop when I'm stressed

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.

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.

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.

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

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

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

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.

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.

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.

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

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.