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 as both wfh and no commute, nowhere to go and no expensive holidays. It is definitely a scenario of extremes and we are fortunate that we have saved more than normal and been able to do home decoration.

Saving £££ on petrol and lunches and also increased my hours because we've been so busy at work (currently WFH)

We're not risking holidays (not been away at all this year) so we're saving more than ever before. However, you never know what might happen with jobs so we're being quite conservative with our spending.

I am financially better off. Worked throughout at home. No fares etc. Not going out for many meals etc. My spending has reduced in some quarters, I am not buying clothes, but if I need something for the house, I get it.

Me Dh and 2 sons have carried in working. Both lads have had loads of overtime in their respective jobs.
From when the restrictions began until the end of July we only spent money on food and petrol. Even the petrol bill was reduced because I want doing home visits.We all work locally so that isn't a great expense.
We ended up with £100's spare each month.

My own job hasn't changed much (was pretty much WFH before and now) but as I work with the emergency services on long term contracts (4-5 years) I am lucky in that my job remains as secure as ever.

I think yu are very sensible, though, OP to limit spending in case of the future - and wish I had a bit more of that about me.

I'm really lucky in that my husband has always done the DIY, so he fitted two bathrooms for 1k each last year, our kitchen for under 3k with all appliances bought from clearance etc. To others it might look like we'd spent tens of thousands.

Could it be that some people are doing jobs themselves - maybe they've finally got time (I saw one man on FB had crafted a brilliant pergola himself) or are they splashing out?

I guess the people spending are those who are in secure jobs or at least think they are. All my neighbours are spending out on brand new top of the range cars and elaborate hole and garden improvements. I’m immune to it. We have just carried on exactly as we were. Not spending too much, being frugal, hoping for the best.

We're still spending because, put bluntly, we can afford to. Our income is unaffected. We also want to try and do what we can to safeguard other people's jobs, which involves spending money, so that might mean saying yes to more things than we did pre covid. Because if I want businesses and amenities to survive I need to support them.

What we have changed is we've spent on different things. Made a specific effort to use local retailers not supermarkets, gone on days out to outdoor not indoor places etc. So the habits have changed but the amounts aren't that different.

There has been huge variation in the economic impact of this pandemic. I heard the phrase K shaped recovery. What this means is some people are struggling, while others are doing fine or better.

Keyworker. Finances have stayed exactly the same throughout.

*home

Our household wasn't hit financially at all (thankfully) and like a lot of other people, we saved lots by there being fuck all to do.

We spent our holiday funds this year on house improvements

I spent loads online shopping during lockdown. What else is there to do!

I've had a pay rise and neither of our jobs are affected by the economy or Covid.
I've been spending less on fuel etc
I realise we're lucky.

My Dh works for a local authority so thankfully, job is secure, he WFH anyway.

We are very lucky that nothing has changed.

@peachypetite

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

This. I am on the same money but I am saving about £100 a month by not using the train for commuting, and I'm not buying stuff at lunchtime etc.

Very grateful that my income is the same, costs also about the same (commute is less but bills are more) but no holiday for me this year and none planned for next year. I’m trying to spend money locally to support businesses.

Am a key worker so earning and spending unchanged - still commuting etc .

Both me and DH were on 80% furlough from March - August so a substantial drop in income. Our food shopping shot up (no free staff meals whilst at work) and utilities went up a bit. Saved on petrol (not loads though, work is only 7 mins drive) and obviously not spending on meals out, days out etc. Overall we were worse off but it was just about manageable. Since we've been back at work our finances have pretty much gone back to normal but we are obviously getting worried for the near future so now being careful.

We both work for nhs so no change in pay or hours ( other than hours gone up!!) and saved up during lock down

DH's job remained secure but he had a 13% cut in wages as they dropped a half day from their working week during the shutdown, but could otherwise carry on working (fulfilling military orders).

I'm a teacher, so my job switched to hub rota and online learning. I don't spend much on commuting but barely used any petrol for 3 months.

My usual hobbies were all cancelled (gym/theatre/cinema/meals out with a friend) and DH has home based hobbies. So I was saving money there.

I usually holiday in the uk once with the family, one week abroad with the DC and a weekend away with work friends. All cancelled and rolled over to next year, so things I've not had to pay out for new deposits, or costs associated with going on holiday breaks this year.

We're even stuck in our county now due to local lockdown, so have had to cancel the usual couple of nights away that we would spend visiting DD in her uni town. More money saved.

Massive drop in income here too OP, to about 25% of what I had before, self-employed and no Govt support and a lone parent. I've been living off reserves and savings and my DM has given me some money. Things have picked up a bit but I'm getting pretty fed up of having to repeatedly tell friends I can't see them unless they travel to me and I can't afford meals out, but I have very little disposable income. People who aren't in this position seem to be embarrassed about talking to me about it, which seems to be a common experience people in the Excluded UK Facebook group. During the first phase of the lockdown around 60% of people were the same or better off, but I guess that will shift again with the end of furlough tomorrow.

I'm ok because I'm NHS so reasonably safe but I'm spending nothing. I'm busy spending every penny paying off credit card which isn't a huge amount and paying extra off the mortgage because you just do not know what the future and Brexit is bringing. I'm taking no chances at all. Luxuries can wait.

Yeah changes to the furlough scheme liable to make a huge difference.

I saved as all the kids activities were cancelled. Keyworker so still working as normal.

Weirdly DP (self employed tradesman) has never had so much work. He is fully booked up until after christmas which rarely happens. He thinks it's a mixture of people not going on their usual holidays and businesses wanting to get things fixed whilst they can.

We arent spending crazy though, no holidays or even meals out but I assumed we would be much worse off due to people not wanting to spend 3 grand on doing their house up.