How are so many sailing through sky rocketing prices?

[Pennypark44]

DH and I on just above average salaries, very grateful for what we have, kids, own home which we can afford to keep warm, enough food etc, swimming lessons for kids, toys etc and I know we are extremely fortunate … however when it comes to house maintenance, furniture, cars, and even just the extras like occasional trips to the cinema/pantomine, meals out, local events, birthday parties etc, the prices are getting more and more extortionate despite using every voucher scheme going etc. Most people we know seem to be still affording all this despite being on the same salaries or less and with less debt. Just wondering how, I know of people who seem to get regular large cash gifts off wealthier relatives or had inheritances in the past which meant they have a lower mortgage, is this how people seems to be affording it or are we just missing something?

May I borrow your time machine please 😂

I'm in one of said expensive areas and understand what the cost of a house is (my neighbours 3 bed semi is up for £450k) the point I'm making is that is affordable to a couple on £50k each with a good deposit and compromising on how many holidays you go on a year. Friends of mine have been moaning about being stuck in rentals and the rising cost of living while waiting to board a plane to another sunny location with the kids. Their priorities are fun, and I won't begrudge them that, but you can't have both without compromise.

Yes I suppose if quite lucrative it makes a difference, I wonder how many people doing it tax free though, I was talking to someone about their side hustle the other day and mentioned how frustrating it is though when over half of anything earns goes in deductions etc and they just said, oh no they can basically claim everything they earn through it as an expense 🤷🏻‍♀️

£800 isn't an unusual amount of interest to be paying for anyone who bought fairly recently. We pay far more than that.

😂 if I find one I'm using it myself

Your mortgage is large for "up north".

We used to be able to save a lot each month and used it to overpay our mortgage. We no longer seem to be able to save much each month despite having fewer DC at home and no longer paying for their activities etc! We did increase the number of pets though and the cost is ££££

I have sibling that’s are always doing stuff and posting it on instagram, but they are always broke waiting for the next pay check and I have to bite my tongue and ask them why? Why don’t you have £20, when you are going out every weekend?

Maybe the people you see are like that, spunking it all and them being broke the rest of the month.

We are doing ok because we saved a lot and lived below our means (not in a Scrooge like way, just cautious) during the good financial years up till now. So we have savings and are able to live a nice quality of life, similar to before, and just save less than we were. A couple of times, one of us have got a pay rise and we have just put the extra money into savings, then you don't notice it but you can afford an occasional treat like a fancier holiday or theatre tickets.

This is very true, not that I’d wish for those on minimum wages to not be able to afford the basics we do so I’m glad the system is there having had the benefit of it in the past but yes is very true that the gap between those with children entitled to UC (particularly if they rent or own a house with a low mortgage) and middle earners is very small/virtually non existent, particularly those reviving UC and child support.

There’s a whole lot of variables to really give a definitive answer. I know myself that I rarely eat out, don’t drink, smoke, vape or do drugs, I don’t have transport to pay for, no credit card debt so I’m ok- but someone who does those things or just some on a similar salary would have less left over at the end of the month.

No inheritance whatsoever.
No money from parents at all
Savings from years of frugality.
Dont buy expensive stuff. Prefer experiences.
Dont drink, smoke or eat meat.

You sound very much like us (but without the inheritance, although possibly your house cost more to start with) We do have a nice life, like you lots of NT days out etc plus warm house and decent food even if our furnishings threadbare etc, so I am incredibly grateful for that. Also work part time which gives us a nice family balance, however worked out would hardly be better off working more hours after deductions and childcare anyway. Both our salaries have risen significantly but like with you, it’s virtually all been absorbed by the rising cost of living, I wonder if what we’re needing to spend our money on isn’t reflected in the general rate of inflation perhaps?

We live in an area where everyone else seems to have afforded decent furniture, decor, fancy daysout, holidays, the expensive school trips etc despite earning similar or less than us. I think reading through these posts though, the wealth and resources (e.g. being DINKY for several years and so building up savings and local family who can help out etc, in addition to sometimes also gifted money) also make a massive difference to what people find they are affording now. There’s always such a focus on salaries but for most of us middle earners they are only part of the picture

We bought on a 5% deposit but prices have risen by 25% since we bought

It's about choice. I have noticed those who seem to be struggling most have mortgages of £1200pcm or more and have overstretched but won't compromise on lifestyle.

🙄 how can people help when they were born?

We pay £800 in mortgage interest alone

Others won’t have this hence more disposable income.

Housing costs vary wildly
Transport costs also vary wildly. I couldn’t believe how much petrol I saved when Covid closed all my dcs activities. If you commute on the train for work you may be £100s a month worse off than someone who walks or cycles or works from home.
People who don’t need paid childcare are potentially £1000s a month up on those who do.
Basically if you are a homeowner who bought a while ago, overpaid, or has a good fixed rate, doesn’t have childcare costs and has low commuting costs and wasn’t already overextended then the CoL crisis will have affected you, but not so much that you can’t go out or buy a new jumper. If you rent or have a big variable rate mortgage, are tied in to expensive HP deals for phones or cars etc or use the train and have kids in nursery then going to the cinema seems like an unachievable goal.
You can’t say to someone who has a £600 repayment mortgage “idk how you can afford a £13 cinema ticket” when you are paying £800 in interest.
I put my earnings over £50k (I have a main job plus 2 side hustles) into my private pension. Tbh I don’t know many people with kids where one partner is only working part time who is not feeling the squeeze. DH works 2 jobs and I work 3 - no “childcare” but we have kids at uni who only get min loans. If your dh is a 40% tax payer because of overtime would it not be better for him to reduce hours and you increase yours?

No they do seem quite sensible with their money, just seem to afford a lot more than us, must just be lower essential outgoings and some savings perhaps in addition to receiving gifts, family paying for holidays, free childcare, diy etc

So he earns over £60k then?

so not just an above average salary ?

sounds like you have plenty of money but significant outgoings and young children are expensive

I noticed my neighbour always assumes we have the same income because we live in similar houses, have holidays etc. I notice they go for a lot of days out, meals out etc that we don't. So it could be you're assuming people you know have more than they do.
I put our money into birthdays and holidays. I do cheap days out but on social media it isn't obvious we've had a picnic, no gift shop etc.

Grandparents funding.
Low mortgage from buying early.
Debt.

I wouldn't call that an expensive area. Round here, a 3 bed semi would cost at least £800k. And that's not London.

It's very likely the difference in housing costs. We've nearly paid off our mortgage as we bought our first place when I was 19. Plus we overpaid the mortgage every time we got a pay rise.

But other people similar to my age still have 20 years on their mortgage and paid considerably more for the property. My neighbours paid £800k for their house - 12 years ago we paid £400k.

….and the differences in housing costs are massive.

£450000 gets a good quality family house in a nice town (eg Skipton) in the north. You would be lucky to get a one bed Victorian conversion in Zone 3 for the same money.

This is us.
So depressing

Paid mortgage off
Don't run a car
No childcare costs
Shop on high street for clothes, no designer stuff
Dont really drink

I prioritise good quality food, the cat (getting on a bit) cheap UK holidays, days out, cinema, theatre etc.
Used to eat out a lot but now usually a £10 breakfast than a £30 ish evening meal.
My adult son chips in buy no help from grandparents ( they don't have it to give) no inheritances