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    • rjwr
    • By rjwr 27th Aug 17, 12:11 AM
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    rjwr
    Advice - what to do with a £10k pay rise
    • #1
    • 27th Aug 17, 12:11 AM
    Advice - what to do with a £10k pay rise 27th Aug 17 at 12:11 AM
    So my basic salary has just been increase by £10k. I am concerned i will now spend more because i feel more "wealthy".

    I've just cancelled the two credit cards i had with no balance on them,

    Has anyone got any advice of how to avoid wasting money and removing the benefit of the increase?
Page 3
    • bigadaj
    • By bigadaj 11th Sep 17, 5:56 PM
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    bigadaj
    https://www.google.co.uk/amp/s/www.bbc.co.uk/news/amp/health-34475955
    Basic salary starts at about 23 k. As they get a lot of extra hours it used to be more due to them being paid for those hours , not sure what happens now.
    Originally posted by justme111
    That not an average though.

    That's the minimum at the commencement of training, an average, whether median, mean or mode will be very high five to low six figures.
    • elephantrosie
    • By elephantrosie 11th Sep 17, 6:16 PM
    • 372 Posts
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    elephantrosie
    bigadaj- if you think doctors earn a lot, then go and be one. medical school application numbers went down since the new contract implementation. The NHS needs people to serve... maybe you want to stand in?

    did you compile your statistics from doctors near the age of retiring?
    Another night of thankfulness.
    • justme111
    • By justme111 11th Sep 17, 9:15 PM
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    justme111
    That not an average though.

    That's the minimum at the commencement of training, an average, whether median, mean or mode will be very high five to low six figures.
    Originally posted by bigadaj
    Indeed it is a minimum. About half of doctors are on it though I believe. Or even if it was a quorter or a third - still does not much popular saying "doctors earn a lot" " And no , high five figures let alone six are the very top, not average
    • kidmugsy
    • By kidmugsy 12th Sep 17, 12:21 AM
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    kidmugsy
    "Basic pay" means the pay that forms the basis of the calculation of what actual pay will be. Does "basic salary" mean much the same thing? In other words, is the expression "basic salary" basically misleading to the layman?

    Update: so it would seem. Wikipedia -

    As a doctor in training you’ll earn a basic salary plus bonus if you work more than 40 hours a week and/or work outside the hours of 7am – 7pm Monday to Friday.
    In the most junior hospital trainee post of Foundation year 1 your basic starting salary is £22,636. This increases in Foundation year 2 to £28,076.

    If you’re a doctor in specialist training your basic starting salary is £30,002. If you are asked in your contract to work more than 40 hours a week and/or to work outside 7am – 7pm Monday to Friday, you will receive an additional bonus which will normally be between 20% and 50% of the basic salary.


    These beginners are in a roughly comparable position to research students doing a PhD in the sciences - i.e. they've got a bachelors degree and are now doing postgrad training. Therefore working 'more than 40 hours a week and/or work outside the hours of 7am – 7pm Monday to Friday' should be virtually certain.

    They get paid more than the scientists though. Distinctly more.
    Last edited by kidmugsy; 12-09-2017 at 12:46 AM. Reason: update
    • kidmugsy
    • By kidmugsy 12th Sep 17, 12:45 AM
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    kidmugsy
    Indeed it is a minimum. About half of doctors are on it though I believe. Or even if it was a quorter or a third - still does not much popular saying "doctors earn a lot"
    Originally posted by justme111
    There's not a cat's chance that half of doctors are in the first year of training. Nor a third nor a quarter. Nor is there a cat's chance that most of them are not getting a bonus.
    • darkidoe
    • By darkidoe 12th Sep 17, 1:26 AM
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    darkidoe
    There's not a cat's chance that half of doctors are in the first year of training. Nor a third nor a quarter. Nor is there a cat's chance that most of them are not getting a bonus.
    Originally posted by kidmugsy
    There are no bonuses in the NHS as far as I know. Not for people on the ground anyway.

    Save 12K in 2017 # 9 £11,119.65/15 000 (74%)
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    • kidmugsy
    • By kidmugsy 12th Sep 17, 1:31 AM
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    kidmugsy
    There are no bonuses in the NHS as far as I know. Not for people on the ground anyway.
    Originally posted by darkidoe
    See post 44: the bonuses for junior doctors are mentioned there.
    • justme111
    • By justme111 12th Sep 17, 7:11 AM
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    justme111
    Kidmugsy, sometimes little knowldege can be misleading. I confess I do not know the topic in detail either but I do know that doctors can be classed as "junior " for many years (10-12) , not just one-two. Not all go to specialist training - ever. Many of them are nit beginners , there would be no further ro progress. You mentioning pay for extra hours- that was the crux of the dispute between docrors and Hunt which they lost so it is not that way any more. But even if it was so - would you say that someone working 60 hours a week earning 40 k "earns a lot"?
    I do not want to digress into comparing their pay to others and debating who deserves more. I just wanted to point that " doctors earn a lot" is a misleading statement and explain why I think so.
    Last edited by justme111; 12-09-2017 at 7:13 AM.
    • Malthusian
    • By Malthusian 12th Sep 17, 9:52 AM
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    Malthusian
    Indeed it is a minimum. About half of doctors are on it though I believe. Or even if it was a quorter or a third - still does not much popular saying "doctors earn a lot" " And no , high five figures let alone six are the very top, not average
    Originally posted by justme111
    High five figures or low six may be the top salary in the NHS but it is certainly not the top for a doctor. That's like saying the top pay for a lawyer is the £110,000pa paid to the Attorney General. The NHS is not the healthcare industry.

    There are plenty of doctors who aren't motivated to specialise and/or go into private practice, and prefer to stay in the NHS earning modest salaries. Just as there are people with law degrees who are happy to spend their careers as paralegals. But if you're going to go from that to arguing that doctors are paid the same as cleaners you're deep into the realms of philosophy.

    Anyway, this a distraction from the original question, which is whether someone on a six figure salary has a better chance of retiring early than someone on minimum wage. The answer is quite obviously yes, because they have more room to reduce current expenditure in order to increase future expenditure, whereas someone on minimum wage has very little room to do that without their standard of living dropping below what people in the UK consider to be the poverty line. Whether the six-figure person chooses to do that is a different issue.
    • justme111
    • By justme111 12th Sep 17, 10:41 AM
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    justme111
    Of course I am not saying doctors are paid the same as cleaners.
    Of course sky is the limit. By "top" I meant top range , not the absolute maximum one can possibly get being a doctor. The absolute maximum is irrrelevant anyway.
    Bigadage written that an AVERAGE income was high 5 low six numbers which I objected to. I agree it is off topic , I could not let the repetition of a popular tale being unchallenged.
    • cashbackproblems
    • By cashbackproblems 12th Sep 17, 12:02 PM
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    cashbackproblems
    Every year I get a 3k bonus (after tax).


    £500 into pension
    £500 S+S ISA
    £500 mortgage


    the rest is for fun/short term savings.
    • elephantrosie
    • By elephantrosie 12th Sep 17, 4:47 PM
    • 372 Posts
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    elephantrosie
    you mean you only saved 3k a year? or a month?
    Another night of thankfulness.
    • Fatbritabroad
    • By Fatbritabroad 12th Sep 17, 5:06 PM
    • 184 Posts
    • 79 Thanks
    Fatbritabroad
    I think unless you're going for early retirement extreme a happy balance is best. I've always split it 1/3 1/3 1/3. Save an extra third in your pension 1/3 in savings and 1/3 to increase you're lifestyle so you can 'reward' yourself without feeling too guilty. You're a long time dead. Also peoples perceptions of what 'wasting money' means will vary. I'm not really I to buying clothes and possessions but I love holidays and eating in nice restaurants. Some people will say it's a waste but I like spending on experiences.
    • bigadaj
    • By bigadaj 12th Sep 17, 7:23 PM
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    bigadaj
    Of course I am not saying doctors are paid the same as cleaners.
    Of course sky is the limit. By "top" I meant top range , not the absolute maximum one can possibly get being a doctor. The absolute maximum is irrrelevant anyway.
    Bigadage written that an AVERAGE income was high 5 low six numbers which I objected to. I agree it is off topic , I could not let the repetition of a popular tale being unchallenged.
    Originally posted by justme111
    I maintain my figures are correct.

    You appear to be saying that an average salary just applies to someone in their twenties, doctors careers are a little longer than that.

    Salaried GPs will typically be on high five figures, partners typically into six figures.

    Consultants, so those typically from mid thirties up, are in a similar range.

    I'm not expressing an opinion whether those salaries are high or appropriate, it's just in any profession it takes years to qualify, and average or typical salaries generally aren't quoted for those still being trained.
    • elephantrosie
    • By elephantrosie 12th Sep 17, 8:13 PM
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    elephantrosie
    Fatbritabroad- agreed! Do what you like however you define lifestyle upgrading. I on the other hand am into buying possessions lol. I do not want to do things I do not like to please others!
    Another night of thankfulness.
    • justme111
    • By justme111 13th Sep 17, 12:24 AM
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    justme111
    I maintain my figures are correct.

    You appear to be saying that an average salary just applies to someone in their twenties, doctors careers are a little longer than that.

    Salaried GPs will typically be on high five figures, partners typically into six figures.

    Consultants, so those typically from mid thirties up, are in a similar range.

    I'm not expressing an opinion whether those salaries are high or appropriate, it's just in any profession it takes years to qualify, and average or typical salaries generally aren't quoted for those still being trained.
    Originally posted by bigadaj
    I think the misunderstending arises from you thinking that all doctors become either consultants or GPs. There are not enough consultant posts for all "junior" doctors to become one and not enough GP training posts and many specialities are not designed to progress to GPs. So registrar becomes a final destination. It is as if you said that average wage of a factory worker is the one paid to a manager because thay are supposed to progress to one.
    • Malthusian
    • By Malthusian 13th Sep 17, 10:00 AM
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    Malthusian
    It is as if you said that average wage of a factory worker is the one paid to a manager because thay are supposed to progress to one.
    Originally posted by justme111
    It's an equivalent error to conflate the "average wage of a registrar" (or junior doctor) with the "average wage of a doctor".

    If we have a small hospital with three registrars / junior doctors on 30k, two consultants on 60k and one clinical director on 120k, the average wage of a doctor at that hospital is £55k. "But only one of them can be the clinical director" you say. Yes, that's why his wage counts only 1/6th to the average while the salary for a registrar counts 3/6ths. But it still counts.

    The average wage at that factory would include the managing director. The average wage of a "factory worker" (which would be commonly understood to mean the production line staff) would not.

    There are a small number of doctors who earn millions in private practice from very rich clients; they may be a very small minority which is why they only contribute (a few hundred ų 200,000) to the average pay for a doctor but it still counts.
    • elephantrosie
    • By elephantrosie 13th Sep 17, 11:49 AM
    • 372 Posts
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    elephantrosie
    guys, lets stop this debate.
    Last edited by elephantrosie; 13-09-2017 at 4:35 PM.
    Another night of thankfulness.
    • bigadaj
    • By bigadaj 13th Sep 17, 5:51 PM
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    bigadaj
    guys, lets stop this debate.
    Originally posted by elephantrosie
    Why, do you have a specific point?

    I'd be interested to see a reference for the relative numbers of doctors at different levels, the U.K. Has totally failed to invest in training of doctors and we seem to import huge numbers.

    I've come across a number of salaried GPs, whose salary seems to be in the £60-70k range, typically late thirties up to early fifties.
    • rjwr
    • By rjwr 16th Sep 17, 6:34 PM
    • 307 Posts
    • 200 Thanks
    rjwr
    Why, do you have a specific point?

    I'd be interested to see a reference for the relative numbers of doctors at different levels, the U.K. Has totally failed to invest in training of doctors and we seem to import huge numbers.

    I've come across a number of salaried GPs, whose salary seems to be in the £60-70k range, typically late thirties up to early fifties.
    Originally posted by bigadaj
    perhaps its worthy of its own thread.



    Thanks to all who have contributed. I have decided to increase my contributions to the S&S isa i have to £900/month. For now this will buy me time (no pun meant) to think carefully about my choices.


    To respond to the post regarding self control and the purpose of the post, I probably get carried away too easily. I am easily sold to and the consequence of this means i can get sucked into buying things that i believe i want for those few minutes.

    The fact i started this topic has helped, ive received my first increased wage packet. I've bought a few things and have wiped the months worth of increase out in a weekend on things i needed in the house.

    So ive contacted my IFA and the increase to my S&S isa goes in on pay day next month.

    Thanks all
    But never spend money you don't have to buy things you don't want to impress people you don't like.
    .
    Originally posted by kidmugsy
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