How do people afford it?

mrcow

3KIDSNOMONEY wrote: »

Don't really think that this thread has been taken the right way. i'm not jealous of other people and what they have, i would just love to know how other people afford it.

This is how it's done:

You need to open up an excel spreadsheet and do your SOA (with all your credit card debts on as well).

Take each item on it in turn and start by asking, is this crucial? If not, get rid of it, if so, then then how can I get this cheaper (including switching service providers/morgages/credit cards/cars etc).

If you can't see a way of reducing a particular bill, make a post on here and ask for advice. This place is full of money nerds!

Then go to the Debt Free Wannabe boards and post your revised SOA up and get some advice on chopping back further.

Repeat this process every six months.

Budget for stuff and be clever with your money. Plan for Christmas and birthdays like someone possessed. Go "old style" with your cooking and shopping.

It's all common sense, but to do it could save you thousands, and if you think that you are already doing it, then I can promise you, there's always more to save.

Start a savings plan so that you always have buffer money for whatever you feel is important to you (be it two holidays per year, going out, horseriding for the kids.....whatever).

And most important of all......don't borrow any more money. Cut up your cards and cancel the accounts when you've cleared them off. You're never going to be richin your own right if you're borrowing off someone else.

KittyKate

calleyw wrote: »

Want to take a deep breathe.

Would you like to go back and read what I said "As has been said some of it is illusion."

Meaning that for a lot of people they are in debt to get nice things don't think that I said everyone who has nice things are in debt . Not sure where you are getting that from.

But a lot (not all)of people are in debt for nice things that is why the country as a whole is in debt to the tune of about £1 trillion.

Also I said "But if it is a illusion based on a house of cards then it is them that will suffer and not you when it falls."

Notice the words "IF" it is based on spending more than you have you will be in the brown sticky stuff.

"that people with less income/debts take out their jealousy on people who have more than them":rotfl:Oh please why would I be jealous of someone having a £900 handbag. I would be scared of being mugged for it.

I too work hard for my money and want to get the best for value for money.

I prefer a much simpler life with out lots of bits and pieces clogging it up. And funny that we poor people (you have no idea what my income is or what my savings are)are suppose to be jealous of people having fancy cars and designer clothes etc. But they look down on you for not having a fancy cars and designer clothes.

As said before I don't really care what people do if they want to spend money they don't have that is up to them. I know my limits and my budgets and stick to them.

So don't assume that everyone who has replied is low income and low savings.


Yours


Calley

It's 'breath' and no, I am perfectly calm. I don't for a second think that everyone who replies to this thread is low income - how on Earth could I tell?! That's my point. And I never said you as an individual are jealous of anything and I certainly didn't mention a £900 handbag!

I don't think you should have taken what I said so personally, you seem to have a bit of a chip on your shoulder. I don't know what your income is, nor do I care, I'm not that nosy! I'm glad you have a happy life where you live within your means. I have no idea who this 'they' is but I have never ever looked down on someone for being on a lower income. How shallow would that be? I personally feel that if people on a lower income feel that people on a higher income look down on them, it's down to their own paranoia (not always, there are some rotten snobs about).

Anyway, don't take what I said to heart, I certainly didn't mean to offend, and if you didn't take it personally you wouldn't feel the need to defend youself. Each to their own, though. Have a nice day.

missprice

I too sometimes get fed up when i see the people in my (very low income)area with all the cars and large houses. and i have a tiny house and no car etc.

but i think its not just how much money you have coming in, its what you spend it on.

i have a tiny mortgage, which enables me to go on 2 or 3 good hols a year and replace stuff as needed (washer/fridge etc)

but my nearly mother has no mortgage and is always skint! why you ask with no mortgage is someone ever skint? because she spends all her money in the pub. it is her choice, she has the power to not be constantly broke. she is however well over the age of consent and can do what she likes with the money she earns. she is happy in her own way.

i prefer to spend my spare cash on decent holidays (although i always try to get the best price anyway)
i am happy in my job too and although like everyone i would like more money for what i do, i have realised that it is soooo much better to be happy at work than have loads more dosh.

just my 2 pennorth

sxx

Running_Horse

OddjobKIA wrote: »

we have 4 kids and live on a wage of £16,000 its simple how we affrord to live like this.

Dont spend what you havent got

Spot on. All borrowing has to be repaid sooner or later.

We have a biggish mortgage because we wanted a nice home for our baby, but don't have Sky, don't smoke. don't drink (much), rarely go out, dress cheaply, have had just one holiday (our honeymoon in a cheap rented cottage), and I drive a motorbike to save petrol. If we can't afford it, we don't buy it.

Despite a lack of material things, I have never been so happy in life. Some choose to spend their money on other things, as is their right.

poppycracker

My OH is obsessed with what he used to have when he was younger and single and worked three jobs at the same time. I keep telling him he's older now, he's not in the best of health and I would rather be poor and happy and have him in reasonable health than for him to be complaining about what he used to have or working himself into hospital again to have it all again.

January20

I know somebody who earns more than twice what I earn, and they live on their own. I live with my DD.
This person can buy everything they want: clothes, cds, etc., never has to worry about not having enough to pay the electricity bill, doesn't need a credit card, can afford holidays if they wish to, can go out every weekend, buy the best foods and drinks but you know what - and I know that for a fact - they are not half as happy as I am.

(I suspect this is because what they really want/ need cannot be bought!)

leftieM

Having things is nice but the thrill of the new soon fades. We are in a capitalist country and we are encouraged to buy things to keep the economy going. For me the challenge is to move beyond the material - to be myself, independent of what I wear, drive, where I live or any of the other things that I am encouraged to judge people on (and I do believe we are brought up to judge ourselves and others based on material possessions.)
As for making ends meet - it's hard to say whether I could manage on your income without knowing your circumstances. I can say that it can all be relative. I stopped work 2 years ago and we went to an income of 21k a year, half what we had before. It was tough but we managed and still saved £250 a month for a long time. My sil and her husband earn 70k a year, have a smaller mortgage yet have no savings and often mention how they haven't the money for x, y, or z. They don't have big debts either. I don't know where their cash goes.

alyth

Part of the problem in this country is that people judge themselves by what others have - who gives a stuff what anyone else has - whether they have a flashy car, a big house, 4 kids all at private school. Are you happy and comfortable with what you have - that's the question you have to ask yourself. I've had the £900 handbag, in fact I queued up outside the shop to buy it, I've also had horrendous debt, but I managed to get out of the debt, and out of the mindset that I have to have the best make-up, most fashionable clothes. Our joint income is over £100K, but I still shop in charity shops. I have no kids but a T-reg car. We're in our late 30s and have gone from the having nothing to having loads to having massive debts to paying it off to being extremely comfortable now, with a small mortgage, but I in particular don't spend money on things I don't need - we don't have a wide-screen TV as our neighbours do, our TV is about 10 years old but hey it works okay, we don't have a huge amount of savings, but if one of us lost our jobs tomorrow we would be absolutely fine.

What I'm trying to say is you have to be happy with your own life - if you have kids then of course you're going to want to give them things to keep up with their peers, but (and I can say this despite being venomously child-free) you sit at home at night with your kids tucked up in bed feeling envious of others' lifestyles - working in the type of job I do, most of the people I work with have inherited income, and I couldn't care less about what them- I am happy with the way my life has turned out and you have to turn your mindset around and count your blessings. Very few people I know live on credit, most people I know have worked damn hard for what they have, but your own personal happiness is the most important thing!

djdido2

All valid points that people have replied with, but I can see where the OP is coming from. Its so easy to look around and see people buying this and that when you are so skint.

I am a single mum running a business and am just getting by. Most of the people around me including singles and couples are claiming benefits. Their kids seem to have the more expensive clothing etc and I have often (when I am over worked and a bit down) wondered where I am going wrong. In reality of course I realise that it all bogs down to debt and more debt and I am really proud that as I have been focusing on MSE I have very little debt.

I have a nice house, a car and two brilliant kids, we are healthy and happy and not bothered about material things.

SmileBeHappy

I'm young myself, so am in the consumer lifestyle. I personally dnt understand how people can live on £16k a year especially with kids.

I moan at the weekly amount im living on at uni, but i realise people here support a family on it

I have great respect for those who dnt go into debt but live a happy life with little money, but i quite honestly couldn't manage without my creature comforts