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've been lucky that both of us are still working and have throughout (key workers I suppose though I don't really think of us as such) so we haven't taken a hit.

We've spent less as we're not going out for meals, weekends away or going to soft play or anything like that, but we still get take away food or coffees, pay the odd entry to a garden and spend money on craft activities. Definitely no money for new cars, expensive holidays or house rennovations though!

We've not taken any hit at all. DH is a software developer working in finance. I work in charity HR.

Nothing changed for me work wise, have worked all through lockdown still travelling over an hour to work and back! Had to buy food for dinners at smaller arguably more expensive supermarkets as didn’t have time to queue at the larger ones during the hight of lockdown.

DH and I work in public sector
DM retired, her DH essential retail
Ddad retired
dB is in communications which is an industry in demand, dsil works in a school
Dsis is a freelancer ok so far, her dp is a nurse.
Other in laws retired or in tech industry, or a publishing company that has done well.
So far it hasn't affected the incomes of my wider family. We are very lucky and this is surprising. I'm sure it will affect our taxes, pensions and wage inflation in the future.
We haven't saved a lot but had lower expenses so by rights we should have done.

@Insertfunnyname

We have an online gift website. Sales are MENTAL. Through the roof. Never had such a good year it’s genuinely exploded and we’ve been in the business for 15 years.

We can’t work out why but maybe because people can’t spend money on holidays or are all on furlough so still being paid but have loads of spare time to browse the web. I don’t know but it’s the craziest year we’ve had and the only thing that has changed is the introduction of Covid.

I've definitely ramped up online gift buying! Making up for not seeing people with spending more of presents, or if friends are a bit down or having to isolate. Glad its doing well for you

Our incomes haven't changed and we've saved quite a lot of petrol money. 10 million were furloughed at the peak but there's a lot who weren't and you notice their new home projects more than you would their work lunches and nights out and weekends away

You need to ask the people you know,OP.
My hours got slashed so big income fall but no debts, and not much to spend on unless you count renting digital movies. We have generous savings because I'm anorexic about spending in general.

Friend is trying hard to spend a lot of money on house repairs before her stbXH takes it all!

Earning and spending more or less as normal (bit less on petrol, bit less on eating out but this was pretty minimal in the first place tbh).

Kids are still shooting up so new clothes and shoes (now bought on line) continue to be necessary. They're still doing their extra curricular activities, although now mostly on line.

I have not had my haircut since Feb and wont now til at least next spring. I'm losing weight so will soon have a whole new wardrobe to fit into without buying a thing.

Redecorated ds1's bedroom this summer instead of a holiday, so some expenditure on paint and a new carpet.

I guess the two big determiners are how your household income has been affected and what you'd normally spend money on. I certainly know that garden businesses round our way are booming with lots of people redirecting money to home/garden improvements.

We had fewer outgoings over lockdown. We'd normally pay for hundreds of pounds worth of extra curriculum stuff for 3 children which stopped, petrol for driving to various sports stuff with them. We also had 3 school trips cancelled which we'd paid for (1 of which was a big ski trip to the US) and had 2 family holidays cancelled. My H's income reduced but overall we were better off.

We are lookjng at extending because zmy H and I are likely to be WFH indefinitely and if we dont create some office space, we will really struggle/divorce.

Other than that we're not spending though, trying to save it as I agree, the future looks very uncertain.

We're actually a lot better off. We are not spending as much as normal, we've saved on holidays, clothes, eating out etc. I also have an online business which is hobby based and our sales have increased hugely

It depends doesn't it. A lot of my friends are teachers, nurses, work in grocery retail or cleaning- none of which have been affected in terms of jobs cuts and losses. They aren't particularly worried about being made redundant as it's unlikely, especially for those in healthcare who could easily find private work if weirdly they were let go. For some it's probably a comfort thing, pay now and worry later. Thankfully we are actually better off as a household without commuting costs and stable professions, but have been saving as much as possible just in case.

I've been spending my redundancy package and hope to find another job soon. We are lucky we can manage our bills on one income.

Dh and I are both front line police. So if anything we are slightly better off because there is a lot of overtime. I run a cake business as well and am very busy. Our income is stable and actually we recouped a lot of money from 4 big holidays so we've been able to do work on the house we wouldn't otherwise have dine

There's a very clear divide that I have seen. People in decently paid jobs who have been able to wft and have saved money in commuting and childcare costs, vs the rest of us. The former group have financially gained from the crisis and currently are cushioned from the fall out.

*wf h

Our income has barely changed (DH is down £200 per month but that's it) so I'm sure people around us would agree we're spending the same as before. We're at the pub a couple of times a week and buying takeaways but then I'm not spending £60 a month on petrol and haven't bought many clothes over the past 6 months as I'm WFH.

However we're conscious things might change again as DH is in one of the worst industries affected by Covid. In contrast I'm busier than ever at work so it really is different for everyone and every family.

We've been very lucky, both have secure jobs with no change in salary. I can't WFH so don't save on commute, DH can but his drive was so short it hasn't made a noticeable difference. We saved 3 months of nursery fees while they were closed, and haven't been on any holidays our as many days out as we usually would.

A few things have gone up, like our food bill, but I realise we're in a very privileged position that very little has got worse financially for us.

I don't currently work as I'm still studying for my second degree, but I've never been a big spender to begin with.

I've saved money originally by not using my travel card,not paying for gym monthly and I was also spending around £17- £20 a month in my local coffee shop.

I've just gone full time and back into a professional role from a part time support role. My monthly take home pay has quadrupled. I'm building up savings but also spending a little more.

I have wondered this op, and my feeling is that there are a lot of people who haven't been affected yet, or have been cushioned by furlough / bouncback loans etc, but who's longer term financial position is tricky. The precise intention of the govt support is to cushion the impact on people, and it's working to some extent, but how long that lasts is another question.

our jobs are the same, and due to WFH we're saving over £500 a month commuting! Plus no eating out, travelling, holidays, going to the pub... it adds up!
We've spent more on online shopping, takeaways (has become nearly a weekly thing), and instead of doing as much DIY on the house we've got some of it done professionally.

We’re spending less by being locked down. A little more on food perhaps, but our savings accounts are looking healthy. Dh is mainly working from home, petrol has got cheaper, no holidays away, I like to try clothes on before I buy, so I haven’t bought much this year. We’ve all been cutting our hair at home.

No change here with income as I am early retired with private pension and DH wfh, haven’t gained any because DH usually takes packed lunch and cycles to work, spending has changed a bit and spent more on house things and less on clothes and going out.

We've been very lucky so far. I was furloughed for a few months on 100% pay, then worked part time on 100% pay and am now back full time. My husband has WFH throughout, going in just once a week. We were better off during furlough as I didn't have my commuting costs but otherwise we have been the same as normal. I have to admit none of my friends have been hit either, though some had furlough. Most WFH.

I'm saving £400 a month on fuel.

No pay cuts here - my income has increased over lockdown and DH's is the same. However, we are going out less as neither of us like wearing masks, so our income can be spent on other things.