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?

@unmarkedbythat that's not the divide I've seen at all. From what I can see the divide is between those whose jobs and sectors are unaffected by the pandemic and those whose are. My neighbour on one side is a midwife - no working from home, income unaffected. On the other side neighbour worked for the national trust - furloughed and now made redundant. Across the road TA - worked straight through.

DH and I are both teachers, so we have a "normal" income but our income is secure. Still paying childcare, petrol for work, etc.

We're no longer browsing in the town centre, so no more impulse Primark buys! Other than that, our spending hasn't been affected.

@Porcupineinwaiting but those people haven't financially gained from covid. I've worked as normal throughout so haven't saved commuting costs like people who have been able to wfh. If DH hadn't been furloughed and then made redundant I'd have had to fund childcare also. I'm talking about people who have gained- not just stayed the same, but actually financially gained from the pandemic.

No pay cuts here - DH's company had their best year ever, then got bought by another company, so lots of bonuses, retention bonuses. However, they also had a round of layoffs, which was pretty grim. I'm working about 10 times as hard for the same money, but at least I still have a job...

I'm an expat and our daycare shut down so we had 6 months of no childcare expenses as we were trying to WFH and also look after the feral toddler. It was horrendously stressful but we saved $16k!

Also, since the economy is in the toilet, absolutely everything is on sale - I've been able to buys stuff that would normally be a huge treat, for fairly normal prices.

I was already working from home, DP was able to wfh, and is now wfh full time permanent. We're both with software companies which is a relatively safe sector at the moment as far as I can see.

Nothing has changed for us.

Overall we seem to be neither saving nor spending more really. DP and I are lucky in that both our jobs are secure and it’s fairly straightforward to WFH. We’ve saved on transport costs and leisure (eating out less; no concerts/cinema/theatre trips) and by not having our usual fairly pricey summer holiday abroad. But during the original lockdown we ended up spending a huge amount on craft activities, toys, books and outdoor activities for DD, as our lifestyle until then had been very much based around experiences rather than ‘stuff’ and we urgently needed things to do with her at home while nursery and all other facilities were closed (lots of panicked Baker Ross and Amazon purchases!). Haven’t totted it all up but must run into the thousands.

DP’s job is linked to retail, and the large High St company he works for is doing surprisingly well, despite being very much in an optional/luxury area of the market. They are also expecting a better than average Christmas, as people can’t spend money on all the festive things they usually do and focus their spending on gifts instead.

Materially we recognise we are very fortunate, but time/work-life balance wise it’s a very different matter - certainly no home improvements going on here!

We're spending more than normal as we've saved a lot of money since covid hit. Jobs are secure and we're not paying commuting costs so we're redecorating the house and replacing furniture room by room.
At least for the next year we won't feel any financial hit although I do feel for those that have/will

I'm better off simply because I'm not spending on travel, socialising, eating out etc. I've also not bothered to buy any new clothes or makeup in months as there's no point!
I was on furlough but at 100% pay for a few months and managed to save a fair bit then. I also feared redundancy for awhile, so massively cut back on spending and saved some more.
I now know my job is safe and I won't be forced to take a paycut (at least not this year) so I'm spending some money on the house and i'm going to make sure I treat myself and my family this Christmas! I figure I need to put some money into the economy...

We are in an ok position, i.e relatively safe jobs & no changes to income. We have saved a good amount, childcare used to be 1k a month pre Covid. Used the savings to pay off any debt & increase our savings as I'm worried for the future, eg wage stagnation, less hours, increased taxes, etc.

I personally wouldn't have thought to spend what I was saving because the true impact hasn't hit the economy yet.

We both work in the public sector in statutory roles, so as secure as anything public sector (which we are expecting to get squeezed again in the next CSR).

I WFH anyway, but DH is doing the same now so he’s saving on commuting costs, coffees and lunches. We haven’t been on holiday this year - usually we’d have been twice by now. I’m clinically vulnerable so we’re not eating out or doing anything else outside which involves contact with other people. So we’ve saved significantly. My car died at the beginning of lockdown so I’ve had to arrange a new one, and I’m okay with that. We’ve bought more online than we normally would, for entertainment, but also saved because we still have our one food delivery a week and don’t pop into the local supermarket in between like we usually would.

Dh has had a 20% paycut which will likely carry on for months.... that’s assuming his industry (cinema) survives which it may not. So we are being careful and are spending a lot less. I work part time in a school so fairly safe but I earn less than 10% of dh salary so it’s pretty irrelevant in the grand scheme of things. Things feel pretty crap at the moment to be honest.

I also hadn’t realised how many of my friends are essential workers! They all seem to be teachers, pharmacists, electricians, builders, a midwife etc etc. I don’t actually know anyone else who is living in fear of losing their job which makes it much harder as no one really understands or is in the same boat.

DH and I both WFH at our normal pay. Work is busier than ever so I was doing full time hours and paid overtime at the height of lockdown ie earning more than usual (I'm part-time normally) for a couple of months.

Meanwhile our living costs decreased. Usual paid childcare was closed [sob...] so no childcare fees. No commuting costs (my season ticket alone is £6k pa). No lunches out or impulse buys in the shops. No holiday.

On the less rosy side, we have not paused for breath all year and there were no fun or improving lockdown projects in this house, as there was no lockdown down-time, just an endless juggle of work and childcare. But we know we are very lucky to both have jobs and salaries that are still being paid.

Interestingly I have had my two best ever sales on ebay this month by some margin. Obviously, some people still have money and are prepared to spend. Maybe, its about treating yourself whilst you still can.

I don't actually personally know of anyone who has lost their job or taken a paycut. Most people I know are saving on commuting. We're not saving or gaining as we're both out at work, not wfh.

Our income has not reduced, in fact as my Freelance work dried up I looked for paid work, which I now have so have a more regular and higher income
DH has no commuting costs and is no longer paying for lunch/coffees every day. We are going out as a family very rarely now and have only had 1 overseas holiday and 1 UK weekend break this year, I appreciate we are lucky to have had that but it’s less than normal
So luckily for us our income had gone up and outgoings gone down

No pay it's here. DH is wfh and saving a fortune on commuting costs. We also have several holidays a year so big big savings there too. Just keep throwing it into Premium Bonds.
DS works in clothing retail and said current sales are double what they were this time last year.

We've also been saving hard as DH was under threat of redundancy but thankfully he no longer is.

We have saved money - we missed three holidays, have hardly been out anywhere, have been eating at home most of the time and have no commuting costs.

We are spending money to feel more comfortable this winter, we have lots of lovely things planned to cheer up christmas and quite frankly given we are in the middle of a pandemic we all need cheering up!

I intend to spend more not less basically.

Some people have secure jobs so aren’t worried about redundancy.
My friend is a key worker married to a key worker. Both worked overtime, had 2 overseas holidays cancelled, kids in school so no childcare costs.
My friend says she feels a bit guilty that they’re eating out, having nice days out, treating themselves and the DCs when other people are struggling to put food on the table.

I’m better off now, as I was very careful with money when furloughed because of redundancy fears. And although I’m working again, I haven’t really tightened my grip on the purse strings yet.

Same income, no time off whatsoever during lockdown

Not spending AT ALL on:

commute
car park
sandwich, ready meals etc...
work clothes
hair dressers
HOLIDAYS
days out, restaurants, cinema etc.
child care
kids clubs
hobbies
kids parties
(even as guest, think about all the £15-£20 gifts you didn't buy for birthday children)
petrol
kids clothes: the summer was gorgeous, mine lived in shorts and sandals, had nowhere to go and no need to buy an entire summer wardrobe - they grow, none of their clothes fit from one year to the next

Since the lockdown, we have had a bit more freedom and spent a little bit on some of the above, but not many
Kids clubs still cancelled today, holidays cancelled today, no childcare needed.

We have the same income and must have saved more than £10k with the lockdown (probably a lot more...) as we basically didn't spend money on anything.
Everybody around here is in the same boat, so no reason not to spend as normal.

It's a good thing, it helps other sectors who would be struggling a lot if we all stopped spending anything. Things are bad enough as it stands.

We’re a normal household (I guess?!) - other than we now have a daughter to but for for Christmas then her birthday a few days later.

My OH was off work for 4 months during lockdown- we always budget anyway but he’s back at work now.

I’ve just got a job and will be working full time and put DD into nursery. But with that I’ll still have a chunk of disposable income.. and with the run up to Christmas and birthday I’ll definitely be spending more on the next few months. We might even go on holiday the end of November to view our wedding venue.

I guess if I hadn’t got a job it would be different, and I’m lucky to have got a job during covid while some might have lost jobs and taken cuts.

Everyone is different.

Both key workers and working either from home or office. We’ve saved loads by rarely eating out, getting takeaways, our holiday was cancelled, local lockdowns have meant nowhere to go to spend money. Have spent money on the house and garden instead.

For me it's not just Covid but the impact of a big long term shift to wfh. I only know one person who was made redundant, everyone else I know works in the public sector or in private finance, law & tech. The only people back in the "office" I know are school staff. DHs big firm in the city have said wfh will continue for another 6 months minimum. It will have a huge impact, look at TFL. I also have 3 neighbours who have moved out of London because they now have no need to be here.