Money money money

It's not very funny right now

I last wrote about money in May 2020. I was self-employed, and Craig had yet to join me to form our Limited Company. We were slap-bang in the middle of the pandemic and didn’t yet have a child, so there wasn't much to spend on.

Let's talk about money

Since then, we've come out of a pandemic and headfirst into a ✨ Cost Of Living Crisis ✨ (I'll let you decide whether you think those two things could possibly be connected).

Basically, everything is a lot more expensive, and wages are relatively the same. Obviously, it's a lot more nuanced than that. But I'm not an economist (if you're interested in learning about that sort of thing from somebody who actually knows what they're talking about. I highly recommend

Wor Room - the North East policy newsletter

by

Arlen Pettitt

.)

Hate to say I told you so

As Arlen explains so concisely in his piece above, the delayed impact of covid restrictions and falling government spending has only hit us now due to the fact that we, as consumers, have finally ‘run out of road’ and are now unable to keep up with our spending habits.

I’ve seen this myself as I carefully consider my weekly shop or choose not to book a holiday abroad for the first time in years. I recognise even these predicaments are ones of privilege, but I only have my own lifestyle as a frame of reference here.

There is a lot of talk online about how salaries that are seen as relatively high are no longer going very far. Certain newspapers have started to roll out profile pieces about those earning more than 60 grand and how they can't afford holidays or childcare even though they are earning well above the average salary.

The Times 3.4.2024. Source.

The Telegraph 11.1.2024. Source.

The Times 29.3.24. Source.

It's worth noting here that these articles are probably rage bait more than informative pieces discussing the lack of affordability in today's society. I always try to take a step back when I see articles like this and ask myself, “Why are they publishing this?” The answer is almost always: They know people will click, which will increase their ad revenue. It’s always about money, and rage is a lucrative business.

What about me?

In difficult times like these, we are often pitted against each other in order to distract from the real and more complex sources of our problems. In her latest book, Doppelganger, journalist and author Naomi Klein talks about how easy it is for people to be drawn towards right-wing conspiracy theories, as often the solutions they offer are a lot simpler than the real root of the problem. Having someone, or a group of people, to blame is far easier to digest than the intricate reality.

“In the Mirror World, conspiracy theories detract attention from the billionaires who fund the networks of misinformation and away from the economic policies—deregulation, privatization, austerity—that have stratified wealth so cataclysmically in the neoliberal era. They rile up anger about the Davos elites, at Big Tech and Big Pharma—but the rage never seems to reach those targets. Instead it gets diverted into culture wars about anti-racist education, all-gender bathrooms, and Great Replacement panic directed at Black people, nonwhite immigrants, and Jews. Meanwhile, the billionaires who bankroll the whole charade are safe in the knowledge that the fury coursing through our culture isn’t coming for them.”
― Naomi Klein, Doppelganger: A Trip into the Mirror World

Whataboutisms are at the core of this belief system, whereby we as individuals are encouraged to position ourselves as the “main character”, which detracts from our ability to empathise and bring perspective to what’s actually going on around (and above!) us.

Pair this with the very real fact that newspapers make money from clicks, and there you have Jeremy Hunt proclaiming he’s skint. Rage ensues. No one really looks any deeper. We all lose (except the billionaires because we clicked on their ads).

It’s tough out there

As a small business owner, not a day goes by that I don’t see a fellow freelancer posting on LinkedIn with something along the lines of: “It’s a difficult time to be self-employed.” I’m not denying that the landscape has changed. We have certainly noticed work is harder to come by, with many businesses cutting back on their marketing budgets.

However, in the same breath, plenty of creators are reassuring us that there is, in fact, work out there… and you, too, can be earning six figures like them. You just need to pay them to tell you how. Watch out for this lot; it pays to question why they are selling you this promise rather than simply letting their work speak for itself.

As a business, we are sitting somewhere in the middle.

Craig and I work three and four days a week, respectively, which is 70% of what we used to work before becoming parents (five days each). We pay for two days of childcare a week (more expensive than our mortgage), and we have no other regular childcare.

March 2022 vs March 2024

Our business turnover decreased by 25%, which is good considering we work 30% less. However, with inflation sitting at around 3.4% (significant about the Bank of England’s 2% target), we’re swimming upstream with no sign of a paddle.

I suspect we’re not alone in the fact that our outgoings are higher, and our income is lower. Among freelancers, the discussion of whether to “get a job” comes up every so often, and I recognise this often comes following a period of soul-searching. The pull of consistent income, paid holiday, maternity leave and other benefits is certainly strong, especially when you are battling against late payers, ghosting clients and high industry competition.

Whether it’s time to leave freelancing and get a job is a decision only you can make. I don’t judge anyone for taking this step, especially in the current climate. I don’t see myself doing it in the near or even distant future, but I also believe that I don’t really know what’s around the corner.

I consider myself pretty unemployable nowadays, anyway. I don’t like being told what to do or where to be. I struggle in' ‘work-social’ situations, and I’d rather set my own hours and expectations.

However, that’s not to say I am impervious to the unpredictability of freelance life. I do worry if a client decides to cut their spending or if we don’t win a pitch we had thought to be a ‘sure thing’. We talk about diversifying our income all of the time, but we spend every moment we can delivering client work so we can pay the mortgage and nursery bills, so it’s very difficult to take a step back and strategise.

In a rich man’s world

There’s not a lot we can do while we wait for the recession to ease. Of course, you can ensure you are registered to vote in the next general election (voting is still very important, even though our choices are limited).

I urge you to take a step back before sharing or commenting on a news article meant to incite rage. Who will benefit from your interaction? We all know the answer to this question.

If you do have money to spend, think carefully about what you do with it. Buy your little treats from small businesses. Support organisations that share your values. Cancel those pesky subscriptions.

Let me know in the comments how this financial shitshow is affecting you; I am particularly interested in hearing from fellow freelancers who are navigating this storm together.

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Over Easter weekend, we made the most of the very brief sunshine to visit St Mary’s Island and its wild inhabitants. Our daughter’s first time rock pooling was a success (made much better by her Vinted waders), and we even spied some seals sunbathing on the rear side of the island.

Other things I’ve enjoyed this week include:

📚 Tress And The Emerald Sea by Brandon Sanderson

🎥American Fiction (Prime)

Oh, and Russ Cook is just one week shy of completing this mission to become the first man to run the length of Africa. I wrote about him in a past issue you can read here.

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