- Samantha Birkin enjoyed the high life until she was hit by the increasing cost of living.
- She said that she used to spend $2,500 a month on designer outfits and top-brand sneakers.
- Birkin is happy as a new mom but said she can no longer afford to indulge herself as she did before.
A $12,500 vacation on a tropical island? Check! A $520 dinner a deux? Check! A couture handbag for $2,200 and a pair of designer sneakers for $1,250? Check and check!
Samantha Birkin and her fiancé, Liam, thought nothing of splashing out on the finer things in life. They enjoyed five-star hotels, took four overseas trips a year, and dined at fancy restaurants. At one point, Birkin said, she wouldn’t go out without hiring a professional makeup artist on the weekends.
But now, Birkin said, the couple has gotten a dose of reality after the cost of living crisis in the UK — which has recently seen inflation rise to 10%, interest rates to 4.5%, and food and non-alcoholic beverages by almost 20% — coinciding with the birth of their first child, Calie.
“Times have definitely changed,” the 30-year-old from Lancashire, England, told Insider.
A new survey showed that Birkin’s situation is not uncommon
According to Forbes, economists blame a combination of the conflict between Russia and Ukraine affecting gas prices, economic fragility in the wake of COVID, and ongoing supply chain issues. Another key factor, they say, is the struggle of the agriculture industry to recruit people. They say it’s partly down to Brexit in 2020 — when the UK officially left the European Union — which created a scarcity of workers from Europe.
As for Birkin, she said that rising bills — including a recently proposed 50% increase in their rent to almost $1,900 — have forced the couple to reduce their spending significantly. Birkin said her landlord blamed a hike in his mortgage payments for the increase in rent. Their council tax is $340 a month, with utilities such as electricity and water amounting to $325. Internet service and TV cost $100 a month.
Meanwhile, the pair needed to upgrade their car to accommodate Calie — the contract payments on their Mercedes mini SUV total $73 a month. As for the family’s food, including baby formula at $15 a bottle — plus $30-worth of diapers — they spend around $1,000 a month,
The family’s situation is typical of many young people in the UK, a new survey by Unity Mutual found. The data — gathered by research company LMRC from 2,000 British residents aged 18 to 39 over three days in mid-February 2023 — found that more than half said they make difficult choices about their spending each month. They said that they’ve ditched their “live now” mentality to make ends meet.
Samantha Birkin
A total of 57% of the millennials and Gen Zers told researchers that they’ve been forced to ditch vacation plans because of inflation and their lack of finances. Some 29% said they had less than $1,500 in savings.
Birkin told Insider that while she doesn’t regret having Calie “for one second,” a significant percentage of the couple’s income now goes to their daughter. They spent $2,500 on furniture for her room before she was born
“I used to spend hundreds of dollars on a new outfit for going out,” Birkin said in a press release issued by Unity Mutual. “I’d get my hair and nails done, and I also got into the habit of paying to have my make-up done — and that was before I even set foot in a bar.”
She added, “Now, I wouldn’t dream of doing that. All my income literally goes on what is needed for Calie and paying the bills.”
Birkin said that her fiance owns half a dozen sneakers by Louis Vuitton
“We used to go on three or four vacations a year as well, and that had to stop,” said Birkin, the owner of a hair salon. “When I think back on how much we were spending on clothes and trainers, it was about $1,500 to $2,500 a month. We’ve completely had to change our lifestyle.”
Birkin told Insider that she felt “bad” for purchasing so many luxury goods. She said that she’d forked over $2,500 on a designer handbag and $1,250 each on various brands of sneakers, including Prada, Balenciaga, and Christian Louboutin.
“Liam’s got Dior and about five to six pairs of Louis Vuitton trainers,” the mom said. She said the couple’s joint income was between $5,000 and $6,200 a month, but she reduced her work hours following the birth of Calie in order to spend more time with her.
She said that one pricey dinner — at an upscale restaurant called The Ivy in Manchester, England — cost $520. Last year, the duo forked over $12,500 for a trip to the Maldives. They canceled the vacation when they got pregnant because of fears about the Zika virus and visited Egypt instead.
Birkin said she wouldn’t swap her young family for her old carefree lifestyle
Now, despite the major adjustment to their financial situation, Birkin said they still wanted to buy their own home “within the next couple of years.” But, the mom added, “It’s an impossible task to save the deposit needed with property prices so high at the minute.”
While she and Liam, a 39-year-old personal trainer, might occasionally miss their former lifestyle, Birkin said Calie makes up for the sacrifice. “Our priorities have changed,” Birkin said. “She’s the best thing that’s ever happened to us.”
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