The personal cost of the lock down

[Pale Rider]

How are you finding the personal financial cost of being locked down?

Being on long term sick is similar to the restrictions, so I reckon I'm ahead of the curve on this one.

One of the very few positives of my situation is I'm finding it's saving me money.

Not wanting to do a lot more than mope around the house and go out only for food shopping means I spend very little.

Some household costs will have increased - I've been burning more light and heat than I would otherwise have done.

More time for internet shopping for items I don't need is a temptation, but one I've managed to largely resist.

I hardly buy a tank of juice from one month to the next, and there's been a double reduction in my food bill.

Being ill and doing very little exercise means my appetite is reduced, and buying all my food in supermarkets rather than some in cafes and takeaways is cheaper.

My going out budget was not great in recent years, but now it's next to nothing.

Overall, I'm a useful amount in credit from being ill/locked down.

This is not a political thread, but I reckon those on the 80 per cent will find they can manage easily enough from a day-to-day perspective.

I think many people who are newly retired are pleasantly surprised at the difference not spending all those small sums of money you do while working makes to their living expenses.

What is the state of your lock down finances?

 

[PaulSB]

For me there are two consequences, one of the virus itself and the other the current lockdown. I am retired for three years now. We are not wealthy but until Covid-19 arrived had no real financial concerns.

The world economic situation will have hit my pension fund significantly. My fund is invested widely, not by me, in very cautious areas. The first time the FTSE fell the fund lost all the 2020 gains - around £14k. At the second fall I decided not to look again until this is all over.

The impact is twofold. Firstly we need to top up our pensions annually. This I've done to date through drawdown. This will now stop as the number of units I have to sell will increase and further impact the funds. Secondly the forgoing means we will need to draw from our cash savings rather than reserve these for travel as planned.

I'm not concerned overall, fortunately my state pension begins in six weeks, as we have sufficient cash to last five years. If the pension fund hasn't recovered by then we're probably all stuffed anyway!!!

On a day to day basis our spending is significantly reduced. The only expense is food shopping. No cafe stops etc!! It also keeps Mrs P out of the shops.

What will happen when this is over in the long-term on a personal level is interesting. How individuals react will impact the economic recovery. For example I have a new winter bike purchase planned for August. I've now put this on hold, my LBS may lose a £2k sale. On the other hand if people are reluctant to spend retail prices may reduce.

Overall I'm not worried but won't be making any financial decisions until this is all over - globally.

The "newly retired" will definitely be learning how expensive going to work is. Before I retired I had no idea how much I'd save on day to day living expenses

 

[Globalti]

Same as you - spending nothing on beers, coffees and cakes so saving weekly cash. Heating hardly comes on as we've got a pallet of logs to burn through before we move house. Hot water ditto as the solar is hitting 35c in the sunshine so the boiler doesn't have much extra work to do. By June we'll be hitting and exceeding 60c by solar. No car fuel. No monthly couple of meals out. No shopping by Mrs Gti who mysteriously always seems to need new stuff. So like everybody we're saving lots.

Once self-isolation is lifted there's going to be a shopping frenzy by the public.

 

[Levo-Lon]

Well this house hold is still fully working ,wife been working from home and I'm in care sector.

We have both noticed the drop off in spending..no poping out for lunch, shopping ect
We're not doing anything much.

I can honestly say I'm not enjoying my freedom restrictions but it's ok.
I'm quite happy in my man cave.

I did spend £250 this week at CRC ,new wheels and discs which were RRP I've 500 but this was a treat and something I've been after since I got my ne Levo in October.

Plenty to do in the garden
Missing the kids is probably the worst part for my wife.
She's been working from home for 2 weeks so properly isolated.
She's made of stern stuff though with a half full glass and only does positive thinking..
I on the other hand can be a glass half empty, so thankfully I still have my routine.

 

[PaulSB]

One other point to add. As I said I've stopped looking at my pension fund value. I'd normally do this monthly.

I have though continued to watch the value of the small number of FTSE shares we hold. I've always done this every few days for no particular reason!

The value of these shares tanked. However having hit what appeared to be rock bottom, that is they stopped falling, in two days last week they put on 48%. I am far from a financial wizard but small observations like this give me hope the fall in the markets while significant may prove to be relatively short term.

 

[Pale Rider]

For me there are two consequences, one of the virus itself and the other the current lockdown. I am retired for three years now. We are not wealthy but until Covid-19 arrived had no real financial concerns.

The world economic situation will have hit my pension fund significantly. My fund is invested widely, not by me, in very cautious areas. The first time the FTSE fell the fund lost all the 2020 gains - around £14k. At the second fall I decided not to look again until this is all over.

The impact is twofold. Firstly we need to top up our pensions annually. This I've done to date through drawdown. This will now stop as the number of units I have to sell will increase and further impact the funds. Secondly the forgoing means we will need to draw from our cash savings rather than reserve these for travel as planned.

I'm not concerned overall, fortunately my state pension begins in six weeks, as we have sufficient cash to last five years. If the pension fund hasn't recovered by then we're probably all stuffed anyway!!!

On a day to day basis our spending is significantly reduced. The only expense is food shopping. No cafe stops etc!! It also keeps Mrs P out of the shops.

What will happen when this is over in the long-term on a personal level is interesting. How individuals react will impact the economic recovery. For example I have a new winter bike purchase planned for August. I've now put this on hold, my LBS may lose a £2k sale. On the other hand if people are reluctant to spend retail prices may reduce.

Overall I'm not worried but won't be making any financial decisions until this is all over - globally.

The "newly retired" will definitely be learning how expensive going to work is. Before I retired I had no idea how much I'd save on day to day living expenses

A considered and well thought out response.

I hadn't thought about the long term impact, although were it not for illness/lock down by now I would have bought that Brompton I've been promising myself.

These past few months have been a useful lesson in good financial husbandry for me.

I'm determined to keep some of it going after return to work/the end of lock down.

 

[screenman]

Can I let you know in June as we are both self employed.

 

[Drago]

We don't yet have a lockdown, so I can't really say. When it does come it's not going to affect the Drago household financially, for which I'm quite grateful.

 

[keithmac]

I am still working and my Wife may be called in to work this week as well.

We have measures in place at work to isolate us from customers etc so apart from not going out it's not a lot different really.

They say June will be the biggest spike so just taking it one day at a time.

 

[Heigue'r]

Can I let you know in June as we are both self employed.

Same as this so finances hit hard at the moment.

 

[Drago]

In fact, mulling this over aloud with Mrs D, she reckons were actually better off. She's not using any fuel, and we're saving cash on shopping - the tendency is that when one shops in person she see's something nice but otherwise non-essential, pops it in the trolley without thinking, and so on. With shopping restricted to the cash and carry of online shopping she reckons we're saving 50 odd quid every time.

I'm struggling to get Laphroaig so have been reduced to drinking Teachers, which saves 10 quid a bottle.

Those of you still working, take care and stay safe. The nation needs to keep ticking over no matter what it is you do, and I for one am grateful.

 

[Pale Rider]

Can I let you know in June as we are both self employed.

Same as this so finances hit hard at the moment.

Are either of you eligible for the self-employed help scheme?

If so, you will likely be able to manage well enough short term, same as the employed who get the 80 per cent.

Whether demand for your services resumes after lock down is another question.

I reckon for most businesses it will, provided they are still in existence to take advantage.

 

[screenman]

Are either of you eligible for the self-employed help scheme?

If so, you will likely be able to manage well enough short term, same as the employed who get the 80 per cent.

Whether demand for your services resumes after lock down is another question.

I reckon for most businesses it will, provided they are still in existence to take advantage.

Until we get it in the bank we are only guessing.

 

[gbb]

I hesitate to say ( because I feel for those that are deeply worried, rent, mortgage etc) we are ok, fine in fact. Car and house are paid off, we have no major outgoings. My wife is at home on full pay because she falls into a vulnerable group. It seems if you work for schools at least, they're being very good indeed, that said, its maybe not their money.
I'm in the food industry and will be rather reluctantly going back to work this week. Its a busy place, lots of people which makes me nervous if I'm honest. I m going to be antisocial at work as much as possible.
So money is no issue at all, fuel prices have plummeted so the drive to work is going to be cheaper, we aren't spending much now, we dont use the heating much anyway, I see a better than normal surplus at the end of this month.
Pensions ? It was obvious the pots were going to take a hit which is a sad fact . I have (had ?) £50k sat in a dormant pension fund which is still growing, but now decreasing substantially I should think. Plus my current work pension contributions...meh, none of it is big stuff, I was never going to be rich after retirement anyway.
Generally we will come out the other side better off..but the quality of life experiences Is going to be worse. I'm surprised I'm coping ok with the restrictions, I dont like being cooped up and measure how good a year was by what I did, what experiences I had. That can be as small as a family day at the coast (which rates high for us)... but this year is going to be big negative for that.

 

[delb0y]

Difficult to say at the moment. Like others, pension funds and investments have gone down - and one of my main holdings hasn't yet recovered at all. Credit card bill still has a holiday on there we never went on. Food shopping bills are up as I'm buying for my folks who are in their 80's and can't (shouldn't) get out. Wife's business has stopped totally and she won't get anything from government. So, yes, harder times, I guess. That said, I shall worry about it all when it's over and probably have to sell a few guitars and things on eBay to reestablish some equilibrium.