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25/01/2013 at 10:11
I dont think its the recession that has changed how we live/spend, it's more our situation has changed dramatically in the last 5 years.
We used to have 2 incomes, family tax credits, child benefit and no debt.
Now we have one income, no benefits and £45k debt!
We have started to say no to invitations out whereas before we would be out for any reason. We are cutting down on treats and takeaways and not shopping unless for essentials.
I try not to use my car too much now, and I buy second hand and sell lots.
I think nowadays people are more open to talk about finances and how they are struggling.
What about you?
25/01/2013 at 10:13
Nope. Nothing has changed for us, we are really fortunate. We did well out of it too by buying our house right at the start of the crash and now it's worth more than we paid.
25/01/2013 at 10:18
In terms of where we are in life we are probably ok....No debts other than small overdrafts & our mortgage. Both steady jobs.
Our mortgage deal is 0.5% above base so in 3 years we have paid off over 10K. If we had a mortgage 7/8 years ago on interest rates of 6% we wouldnt have paid off half of that.
Weve no savings worth talking about so low interest rates are best for us at the minute. If I was preparing for retirement I wouldnt be so happy!
Its the rising cost of living - food, petrol etc that we find the hardest,
25/01/2013 at 10:23
Not necessarily recession related but things are really tough for us right now. Like really tough. We've just had to halve our food budget for the next two weeks. Literally no money coming in and no savings left as things have been bad for a while now.
25/01/2013 at 10:30
25/01/2013 at 10:33
Not recession related, I think we have just grown up tbh. Pre children I'd think nothing of spending £80/£90 on the weekly shop then coming home and having a takeaway. H and I would be away on holiday 6 times a year, with childcare costsI just can't even think about going away 6 times a year now. My h would buy all designer clothes and shoes, he spend £75 on a plain white t shirt but it was Armani so obviously when anyone mentioned the price he'd say 'but its good quality etc' this was just to be worn under a cardi/hoody , he still buys some designer clothes but white t shirts are from primark/George now purely because we don't see the need to buy designer
25/01/2013 at 10:34
Like you, I don't think it's the recession that has hit us, it's our situation. Going part time and earning a lot less than I was has hit me as I have to justify everything I spend now. We have to budget for everything including when we're going to need to buy O new things which I find hard. We have a fair bit of debt which doesn't help either. We don't go out as much as we used to which is inevitable when having children but we do turn things down now if we think it's too expensive or only one of us would go.
By the end of the month, we're living to the penny. The other day I needed a few things in sainsburys and only had something like £7 left until payday without using a credit card. I had to count up exactly how much things were which is hard.
25/01/2013 at 10:38
I think we're really lucky in that it hasn't affected us much - I work for a company that supplies medical products that people are always going to need so business will continue on at least the scale it currently does, and they're changing the systems in all the different countries where they trade which I get involved in so I'm not only restricted to how the UK economy is anyway (off to Paris to work on a project over there for a few days next month). MrDD's shop fortunately has continued to do well and he's not really in a position to be made redundant since his parents own the shop, and they're also involved in a new website that was set up recently that has started off doing fairly well so far in just the first month.
I've always been very careful with money though, as is MrDD, and do always worry, I've saved all my life (I know we're lucky we're in a position to be able to do that in the current climate) and make sure we have a decent amount of savings in case anything bad did happen.
25/01/2013 at 10:39
yes it has. I used to get a 40% bonus every year, now I don't get a penny
25/01/2013 at 10:53
Yep definitively. DH's business went into liquidation leaving us with a huge loan to pay back to the bank every month. Luckily DH got anew job but its sales so he gets paid commission but his salary has halved.
His phone, fuel, car tax and car ins all used to go through the business but now we have to pay for it. He should be getting a company car soon though so that will halve our car ins, car tax etc as we will only have to pay my car.
I had to go full time or lose my job so I am earning a bit more but paying out more in childcare and then we lost tax credits as well as we are over the threshold by about £2k, our mortgage repayments are really high as we used to be able to afford it, but we can't remortage yet as DH has a CCJ against his name from his business going under.
We used to eat out at least once a week and have at least 2 take aways a week. now we have probably have one take away a month and don't eat out at all other than birthdays. Our lovely ILS pay for us to go on holiday with them in the UK for a week in the summer hols. Whereas we would have gone abroad before. Days out are reliant on Tesco vouchers and BOGOF's.
Hopefully in September when DS2 starts school our childcare bill should reduce dramatically and we may be able to remortgate over a longer time (we only have 11 years left on our mortgage at the moment) which will help us have more 'spends'. But then the business bank loan people will want us to pay more money to them so maybe not!
25/01/2013 at 11:02
Yes it has - i am much more risk adverse and the only debt we have is the mortgage. We bought a house last November and are very slowly renovating it as it has taken us several months to save up to pay for 5 windows, ! bay window, a set of patio doors and new front and back door which is costing a packet and the bank account will look really sad for a while especially since I will be on maternity pay come March. We budgeted based on H's salary - food shopping I find the hardest as it seems to have shot up in price!
25/01/2013 at 11:09
I don't think it had too much tbh, we're lucky that we're both still in work, and earn a reasonable amount for us to live relatively comfortably. We don't perhaps go out as much as we did, but that is partly child related rather than money related. It's harder to get a babysitter for two. I've tried to cut down on food shopping spends, but we were spending a crazy amount of money when it was just H and I. Now i try and spend the same amount, but it has to cover baby things too.
We took advantage of the low interest rate to overpay our mortgage for a little while, we're lucky in that we are on the BOE base rate + 0.5% so we're hardly paying any interest. we have had to stop this though recently due to other outgoings increasing slightly.
We're still getting to go abroad though this year, and probably looking at a couple of breaks in the UK too. On the whole, we're better off than some people, we're just being more careful.
25/01/2013 at 11:10
In a roundabout way I'd say yes. H was out of work and struggled to find a new one, in the past he would have been able to walk into anywhere. Also his wages are far less than he would have expected years ago. Our situation changed aswel though and we were in a fortunate position. So now I don't work and we just about do ok. As said though, invites are deliberated over now not just snapped up!
25/01/2013 at 11:17
In a way yes as we cant sell our flat so having to rent.
25/01/2013 at 11:39
I was going to say no, more our situation - we went from a 2 income, no debt, no children, no ties, living it up lifestyle to a 1 income 3 person family .
However, we can't get a mortgage now due to the recession, well, we can get a mortgage, but we don't have thousands to hand as a deposit.
25/01/2013 at 11:54
I don't think so, I think it's having children that has changed our lifestyle. We pay out a fortune on childcare at the moment, with two in nursery. We don't have any family locally to babysit so we never go out. We are tied to school holidays for holidays as I don't want to take them out of school, and holidays cost a fortune for five people in August - whereas we used to go for a couple of holidays a year during term time when it was just the two of us. So our lives have changed a lot in the last few years but independent of the ecomony.
25/01/2013 at 13:11
We've been lucky as we've both kept our jobs although we've both worked in offices where there has been the threat of redundancies. We're both good with money though, so we've never had any credit card debt and we both had savings. We also both owned our own properties when we met and made money on the sales of those when we bought somewhere together. When we were looking to buy together we chose a house that was within our budgets so that if we did have a baby and therefore lose the income we would still be able to afford the house.
I now work part time so there's been a drop of income thanks to that. And obviously food costs and petrol costs have gone up hugely (and my season ticket goes up every year without fail). So that does make a difference to what we have left at the end of the month. I've tried much harder to cut back on what we spend on food by making sure that we plan ahead and only buy things we need rather than random food purchases. Things are better more recently as we're no longer paying so much for child care costs.
25/01/2013 at 13:14
We use to both be on low wages, paid out for childcare, got some tax credits and had high amounts of debt.
Now we both earn better money (both working long hours:-( ), don't have to pay out for childcare, get no tax credits but have less debts (nearly cleared!)
Some of this is due to the recession but some not, were better of now than we've ever been but we could be doing a lot better, we still rent a tiny flat and have no savings and I can never see us being able to afford to buy a house, but I hope we will one day!
25/01/2013 at 18:10
In many ways yes. I fixed my mortgage just before they all dropped so my payments are huge in comparison to those on a non fixed rate. Also I can't sell it, and even if I did it would probably be worth less than what I paid, so I would struiggle to break even. I have had a pay freeze for two years and there are plans to make that continue indefinately. I'm paying more for my pension each month, will have to work for longer and will then get less when I do retire! Fuel costs a bomb, though thankfully I now work closer to home, but for three years 15% of my pay went on getting to work! I thought I would be made redundant a couple of years ago, which was terrifying, and though that threat is unlikely now, it's still a possibility in the future.
But in many ways I am very lucky. We have a home, jobs, we don't worry about buying food, paying bills etc. We can have good holidays and I would consider us well off really, or at least comfortable. We could be in a far worse position. But we don't have kids yet so that may change!
25/01/2013 at 19:04
I think we're really lucky in that we've not really noticed a difference despite me not returning to work after mat leave. Our weekly food bill seems to be ever increasing though, something which I'm trying to reduce. I'm also looking out for a suitable part time job mainly so that our eggs aren't all in one basket.
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