Although things are tight around the household at the moment we are lucky that we have some flexibility when it comes to spending. We are mortgaged to the hilt, our newly renovated house pretty much all belongs to the bank and we have lost one salary due to the recession but because we presently have a mortgage in that respect we are doing better than before the recession because of lower interest rates. Because we have a mortgage we also are able to try and ride the recession as we have access to borrowing money. We can buy in bulk if we see things on special – toilet paper, meat, toothpaste, coffee etc. As a result of being able to buy in bulk cooking at home is a cheaper option than takeaways and we can therefore save money. As an earner I received tax cuts last year. We insulated our house while renovating it and were able to put in heat pumps so we can heat our house more efficiently. While renovating we chose not to go with gas sticking with electricity figuring that in the long run having one daily charge is better than two regardless of the unit charge.
Those on or below the poverty line don’t have all this flexibility, as prices rise they have few options to pay full price as their weekly spending can’t take benefit of bulk spending. Those without jobs don’t get tax cuts to assist them to survive the price hikes and those who rent make no savings from lower mortgage rates. Often those who rent live in houses with poor insulation so heat is a necessity for their health not a luxury. My mum, living on superannuation, lives in a house that has both gas and electricity. Even if she never puts any appliance on she still has to pay two daily charges.
At times like this it’s easy to stop payments to charities and donations to food banks but now is the time that those who are struggling most need the support of those of us who are in situations where we can at least try and buffer ourselves against the recession.