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?

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.

"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.

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 😂

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.

@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.

@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!!).

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

@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.

@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.

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

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.

@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.

It's going to hit the coastal places and little towns, I live in the north and people are so nonchalant about keeping safe, I've asked politely not to get too close and been sworn at quite a few times. We have a problem with feral kids and nothing seems to sink in. (Government will look after us)

If the country goes bankrupt, then what

I’m sorry for everyone who’s been negatively financially impacted.

Like a lot of others who have commented on here, we are saving significant money as DH is no longer spending £400+ a month on commuting and all the associated costs - lunches etc.

I’ve WFH for about 8 years. Neither of our jobs have been affected yet - and although obviously nobody is immune to redundancy, it’s not a prospect at the moment.

That being the case, we’re deliberately trying to spend to support local businesses and the sectors that have suffered (sadly the eating out element of that is going to be curtailed from Weds).

I know lots of people doing the same. Plus lots of people who’ve saved £££ by not having holidays this year who are spending that money on home improvements etc. So there probably is quite a lot of spending, but mostly money that would have been spent on other things anyway.

I think unless you are in the public sector, the mc bloodbath is already happening or will come. Certainly, the sector I’m in, projects are cancelled and redundancies are looming.

Although both DH and I have been lucky so far with no change in income, redundancies are looming in my sector and it is highly likely I'll be out of a job within 6 months. I earn more than double DH so this will be catastrophic for our lives. As a consequence, we've already cut back loads and are putting every spare penny into savings in order to provide ourselves with as much of a cushion as possible.

DSis on the other hand is spending like there's no tomorrow and I had a bit of an argument with her and BiL last week- they think I am crazy to be scrimping and saving and are taking the view that so many people are going to lose jobs next year that it's not worth worrying about - apparently the government will have to help us out so we may as well live for the moment now.

Our spending is probably more conspicuous as we have got builders in re-plumbing a dodgy bathroom and sorting the kids' rooms - but then we didn't buy clothes and casual stuff we don't really need during lockdown, we didn't have a summer holiday. We are both in jobs that have continued as usual throughout lockdown, so maybe someone looking from the outside would see us splashing the cash but it's just what we have saved this year plus some of our existing savings. We know that we are very lucky.

Saved about 3k in commuting costs, 10k from not going on holidays, weekends away etc. expect a much lower bonus than normal maybe -20k gross.
So probably about even. Our sectors are both less vulnerable to job losses than many so we’ve been able to spend as normal (probably more as buying more presents/treats to cheer us/family up)

[quote Qwertywerty3]@celan of course those places exist where I live. But I don’t know people who work in them. I said the people I “know” are unaffected and still able to spend. Why is that so hard to believe?[/quote]
Fine, if you don't know any musicians, actors, scriptwriters, restaurant owners, pub owners, hotel owners, etc, etc, etc.

I might have thought I wouldn't encounter such terrible people when I was at doing my DPhil.

My objection to your post was that you seemed to think there was a correlation between people with academic qualifications living in a "naice" area and the poor, illiterate folk who have menial jobs.

I have a DPhil and live in a lovely leafy place, where the average house price is well over £500k. However, I'm still up shit creek due to working, very successfully (until March) in a relatively niche field which the government seems not to be aware of.

I was just saying your equation between "professional qualifications and nice area" and " lockdown is ok" is wrong.

Yes, I’m conspicuously spending on landscaping the back garden with skip and diggers, but that has been a long time in the planning, was supposed to have started last year, then this April, then cancelled, under now. It needed doing for a long time. I was hesitant to sink more money in finishing it off with planting and new potting shed, but I just went ahead anyway because we will be spending so much time at home 🏡, and I wanted something to look forward to in the spring, even If I might be unemployed.

My sister just keeps saying you can't put your life on hold and I could be dead tomorrow. My sister never takes advice, then regrets it, but ways comes out good. Dont know how but she does. Me on the other hand! Ive wanted to tart up my kitchen for almost a decade and build a shoe cupboard (don't ask) oh and the bathroom is a mess. Too scared to go ahead, always something. Had to splash out for new kettle today mine died and going to need new oven soon so keeping money for necessities.

@peachypetite

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

that's not necessarily the case. I never bought lunch or coffee at work - always took my own lunch and coffee from home. My commuting costs have obviously gone down but we are now having to heat the house through the day which we didnt do before.

We are very lucky to be able to wfh though.

DH is in danger of losing his job so we are trying to save as much money as we can.