Cost of living crisis and you.

[scotview]

Lots of informed discussion here on cost of living crisis, energy crunch.

And breath.........think we need to take stock on our individual situations and hence maybe aggregate up, to see the group's overall perspective.

[scotview]

Thanks to all who voted. The result is pretty much as I anticipated.

I know it's a small population but it looks like the majority of folkies here will weather the cost of living storm without even checking the weather forecast.

Maybe the media should run a similar UK poll to see if they should temper their news reporting.




Note to mods, I got the wording of the third item wrong "You am personally very concerned." I tried correcting it a couple of times, within the time limits but it seems that when a poll is posted, you can't correct the wording.

[NotSure]

Thanks to all who voted. The result is pretty much as I anticipated.

I know it's a small population but it looks like the majority of folkies here will weather the cost of living storm without even checking the weather forecast.

Maybe the media should run a similar UK poll to see if they should temper their news reporting.

I voted 'no concerns' but I note that 9% of the people here voted 'very concerned'. Assuming TLF members are representative (and I am very sure they are not) 9% is several million people in UK.

[SalvorHardin]

I have no concerns regarding being able to cover my living costs, but I have major concerns as to the effect that inflation will have upon my investments and with the country as a whole (which is why in the last few months I've made some major changes to my shareholdings and have moved a lot of money out of Britain).

I'm very happy that I live out in the sticks rather than in a city. You don't get riots and mobs burning down city blocks in the countryside.

[Urbandreamer]

Maybe the media should run a similar UK poll to see if they should temper their news reporting.

I'm not so sure. I would suspect that much inference could be drawn from statistics routinely gathered by government agencies and made available to the public.

Those, who voted, are a self-selected cohort on a site dedicated to financial matters.
I would suspect that few of us here survive "pay cheque to pay cheque". Indeed, I would suspect that many have been saving and investing part of their income for years. Certainly, the dealing with debt board doesn't see a huge amount of traffic.

Sure the media thrives on sensationalism, but I would expect that a significant part of the population will find that the increase in the cost of living will have immediate effects. I have some concerns for both my daughters, who have very limited incomes. But your poll was not aimed at them, but the likes of me. It was very specific about that fact.

[pje16]

This poll (whilst a good idea) is somewhat skewed as the population (TLFs) tend to be financially savvy, by virtue of the fact that have found and joined a forum primarily about finance
That is not to suggest that we all have buckets of cash to spare, but at least we have an interest in the subject

[Dod101]

I find it remarkable that 58% have no financial concerns even on a forum like this. I voted for the middle one, Some financial concerns. That seems to me to be honest because currently I have no idea how this will play out. I hope those with no concerns do not have their complacency shattered in due course. And that poll is of course anything but in the least representative of the population as a whole.

Anyway, it is meaningless at the moment at least, since only 36 or something like that of the total membership here have voted

I am confident that I will be able to pay my way but at a time like this, to have no financial concerns?

Dod

[scotview]

And breath.........think we need to take stock on our individual situations and hence maybe aggregate up, to see the group's overall perspective.

This poll (whilst a good idea) is somewhat skewed as the population (TLFs) tend to be financially savvy, by virtue of the fact that have found and joined a forum primarily about finance

Yes, I was aware that the poll was going to skewed but, as I said, it was to see the group's overall perspective to the cost of living crisis.

It also hows how very fortunate the majority of members of this group are. I am sure that most here are also fully aware of their fortunate circumstances.
Furthermore, it is interesting that a group that polls so well in their confidence to weather the storm, are also a population that will discuss financial, practical and political issues far more deeply, openly and constructively than the majority of the UK population, I would imagine.

[pje16]

it wasn't a criticism by any means
just thought it was worth pointing out
I did like the idea of this poll
yes I do count my blessings as I very much suspect I will be OK, nothing of course is guaranteed
cheers

[Dod101]

I really have no financial concerns about paying my bills because at worst I would pay them from capital without noticing the loss , since I have certainly lost more in capital through market noise this week alone than my fuel bills are ever likely to be. That is probably not what was meant in the poll.

So however a good idea the poll might seem, it is rather flawed. OTOH if the questions were more tightly drawn, such as to ask 'Given the current situation and outlook for fuel bills, how confident are you that you will be able to pay them out of current income?' that could produce an altogether different set of answers.

Dod

[Dod101]

And breath.........think we need to take stock on our individual situations and hence maybe aggregate up, to see the group's overall perspective.

This poll (whilst a good idea) is somewhat skewed as the population (TLFs) tend to be financially savvy, by virtue of the fact that have found and joined a forum primarily about finance

Yes, I was aware that the poll was going to skewed but, as I said, it was to see the group's overall perspective to the cost of living crisis.

It also hows how very fortunate the majority of members of this group are. I am sure that most here are also fully aware of their fortunate circumstances.
Furthermore, it is interesting that a group that polls so well in their confidence to weather the storm, are also a population that will discuss financial, practical and political issues far more deeply, openly and constructively than the majority of the UK population, I would imagine.

With respect, I do not think that 38 people voting out of a population of how many? 1000 or more? - I have no idea- is really telling anyone very much.

Dod

[pje16]

I really have no financial concerns about paying my bills because at worst I would pay them from capital without noticing the loss , since I have certainly lost more in capital through market noise this week alone than my fuel bills are ever likely to be. That is probably not what was meant in the poll.

So however a good idea the poll might seem, it is rather flawed. OTOH if the questions were more tightly drawn, such as to ask 'Given the current situation and outlook for fuel bills, how confident are you that you will be able to pay them out of current income?' that could produce an altogether different set of answers.

Dod

I think the issue with asking out of current income is also problematic
I still work, so have more income than if I was drawing from a pension

Also, the older you are, the more likely you are to have capital to “fall back on”

[Mike4]

I really have no financial concerns about paying my bills because at worst I would pay them from capital without noticing the loss , since I have certainly lost more in capital through market noise this week alone than my fuel bills are ever likely to be. That is probably not what was meant in the poll.

So however a good idea the poll might seem, it is rather flawed. OTOH if the questions were more tightly drawn, such as to ask 'Given the current situation and outlook for fuel bills, how confident are you that you will be able to pay them out of current income?' that could produce an altogether different set of answers.

Dod

I think the issue with asking out of current income is also problematic
I still work, so have more income than if I was drawing from a pension

Also, the older you are, the more likely you are to have capital to “fall back on”

Where does it say out of current income? I can't see that anywhere....

[pje16]

Where does it say out of current income? I can't see that anywhere....

It was a suggestion, Dod101 used the word IF

[Urbandreamer]

I am confident that I will be able to pay my way but at a time like this, to have no financial concerns?

Dod

I suspect that we may see the word "concerns" differently.

Do I think that these increased costs will impact me? Of course I do. Do I think that they will change my actions? Possibly. Am I concerned about that, no I'm not.
You are confident that you can pay your way. The fact that it may cause you to change your spending, you seem to regard as a concern.

My wife gets irate whenever she sees people on TV in T'shirts and other lightweight clothing complaining about how much they must spend to heat their home. They seem to regard turning down the heating as impossible. As she says, we used to have things called jumpers. Indeed, she grew up without central heating.

This board is, as I understand it, all about managing your expenses to be less than your income (means). I find nothing strange that most here have few concerns about their ability to cope with the situation.

[Mike4]

Where does it say out of current income? I can't see that anywhere....

It was a suggestion, Dod101 use the word IF

Ah I see. I was looking in the OP for mention of current income...

[Dod101]

I really have no financial concerns about paying my bills because at worst I would pay them from capital without noticing the loss , since I have certainly lost more in capital through market noise this week alone than my fuel bills are ever likely to be. That is probably not what was meant in the poll.

So however a good idea the poll might seem, it is rather flawed. OTOH if the questions were more tightly drawn, such as to ask 'Given the current situation and outlook for fuel bills, how confident are you that you will be able to pay them out of current income?' that could produce an altogether different set of answers.

Dod

I think the issue with asking out of current income is also problematic
I still work, so have more income than if I was drawing from a pension

Also, the older you are, the more likely you are to have capital to “fall back on”

Where does it say out of current income? I can't see that anywhere....

Only in my suggested amendment to the original question and is why I raised the point. It changes the general thrust of the poll though depending on whether we are proposing to pay bills from capital or income or a mixture of both. Few of us on this forum would surely have any difficulty paying the bills, whether from income or, at a pinch, from capital, although paying from capital would cause me concern. It probably would for everyone though.

Dod

[Dod101]

I am confident that I will be able to pay my way but at a time like this, to have no financial concerns?

Dod

I suspect that we may see the word "concerns" differently.

Do I think that these increased costs will impact me? Of course I do. Do I think that they will change my actions? Possibly. Am I concerned about that, no I'm not.
You are confident that you can pay your way. The fact that it may cause you to change your spending, you seem to regard as a concern.

My wife gets irate whenever she sees people on TV in T'shirts and other lightweight clothing complaining about how much they must spend to heat their home. They seem to regard turning down the heating as impossible. As she says, we used to have things called jumpers. Indeed, she grew up without central heating.

This board is, as I understand it, all about managing your expenses to be less than your income (means). I find nothing strange that most here have few concerns about their ability to cope with the situation.

I too grew up without central heating and now have a well heated home if I want it, but I will most likely turn down the thermostat although more likely turn off my central heating and rely on my woodburner.

As for financial concerns, of course I have them because at the moment there seems no end to the problems (at least I can see no end) and we have no idea how this will work out. As a crumb of comfort though, I read at the weekend that most big increases in costs, for whatever, are sowing the seeds of their own destruction, because it encourages otherwise marginal businesses to become viable, and people naturally will use less of the commodity if it is priced almost beyond their reach.

Dod

[AF62]

The trouble is the question - Is the cost of living crisis personally giving you concern for the next couple of years and the range of answers (You have personally no financial concerns, etc.) doesn’t fully cover the situation.

Personally I have no financial concerns - a good (uncapped) index linked pension, no mortgage, no children, and plenty of money invested and in the bank deals with that.

Winter fuel bills - irrelevant, as I will be spending October to March in a variety of sunny places.

What does concern me is the political and social response to the cost of living crisis.

I am concerned that there is a good chunk of the population like me where it’s irritating but not that significant, there is a good chunk of the population who’s income is OKish, but these increases are going to squeeze badly, and then there is a good chunk of the population that a £5k to £6k fuel bill is going to provoke a severe reaction because it is utterly unaffordable.

I am also concerned about the political response, from both the incumbent government and the potential for a different government within the next couple of years.

As for the proportion of people affected, I have been trying to organise various pieces of work to be done to my house, but without much success because all the suppliers are booked solid for weeks or months - there are plenty of people spending at the moment.

[BullDog]

I have voted some financial concerns but I won't starve.

I presently live on a combination of two DB pensions topped up a little as required from savings. I am fortunate that my state pension starts in January 2023 and that will take up the increased bills from energy price increases and hopefully a bit more besides.

The present uncertain political and economic situation has resulted in me not making any firm plans for travel in 2023 yet. I know what I want to do, but haven't booked anything yet. That's most unusual for me. Inflation in travel is far higher than any other parts of the economy that I am exposed to. The double whammy is the significant loss of FX value of GBP against many currencies. Travel budget needs to be 2 or 3x the pre pandemic if I'm not to compromise on quality or comfort.

So I am sitting tight on my money and waiting for the special offers and other deals that I expect to be likely after Christmas into the New Year. On the other hand another black Swan event could come along and in that case, I won't be going anywhere any time soon.