What do you consider a 'decent' salary (non-London)

ERICS_MUM

jojo90 wrote: »

What does the expenditure of someone spending say £10,000 per year look like? My mortgage is pretty much equal to that for starters hence wanting to move home. If I look to rent a room somewhere that's like £350 just to start with or £4,000 p.c.m. I think this country is just too expensive .

I want to retire by 40 and figure I need £750,000 - £1,000,000 in assets to generate £28,000 pre-tax accounting for inflation. Right now with current income that's just pie in the sky. Just seems to me like things work against those wanting to escape early.

This is completely unrealistic, pie-in-the-sky. You need to get a job with at least £150,00 p.a to meet your target - are you up to it or does your current job and salary match your skills, training, qualifications, experience and capabilities ?

Is your mortgage too high, could you down-size to trim your mortgage and bills ? Have you looked at your life style, kept a record of your spending etc to see where you are leaking money ?

As another poster says, do a statement of affairs and we can offer views on where you could slim down your costs.


Linda

terra_ferma

I've come to the conclusion that no matter how much one earns is never enough....
Through personally experience and seeing people I know, I can see that more income equally more expenditure, but also more 'needs'.

You have an old banger, then you buy a new small car, but soon you think you need a bigger and more comfortable one.

You shop at Lidl and local market, then you like waitrose, but wouldn't be nice to buy from shops selling reallyyyyyyyyy nice stuff (knightsbridge anyone?)

an so on and on and on
also pressure to keep up with your peers at work, your neighbours if you move to a posh area.
Money is too much work!

Personally I've gone back to basics, what was good 10 years ago can still do nicely today, all additional income can be saved/invested and useful for rainy day (which by the way may be coming soon in my direction...)

jojo90_2

What do I do? Well, the journey is important to understand. I took 2 years out to save up for university as parents aren't that well off plus have 4 kids. Came out with 1st class degree, top of my year, and dissertation won the university science prize. This meant. £15,000 scholarship to study for an MSc. Came out of that with a distinction and again top of year. Company who sponsored scholarship then asked me to interview for their grad scheme. Being a lazy !!!!!! I thought why not - saves filling out an application! Starting salary was 28k with very good payrises for 3 years. After switching round roles in the business I've just started running testing for a reasonably new product worth a small fortune that is wholesaled out to mobile carriers.

I've done my sums and it is possible to generate 750k in assets over 10 years and grow them to sustain a 28k income. It's all about getting that first income stream nice and early.

Person_one

jojo90 wrote: »

What do I do? Well, the journey is important to understand. I took 2 years out to save up for university as parents aren't that well off plus have 4 kids. Came out with 1st class degree, top of my year, and dissertation won the university science prize. This meant. £15,000 scholarship to study for an MSc. Came out of that with a distinction and again top of year. Company who sponsored scholarship then asked me to interview for their grad scheme. Being a lazy !!!!!! I thought why not - saves filling out an application! Starting salary was 28k with very good payrises for 3 years. After switching round roles in the business I've just started running testing for a reasonably new product worth a small fortune that is wholesaled out to mobile carriers.

I've done my sums and it is possible to generate 750k in assets over 10 years and grow them to sustain a 28k income. It's all about getting that first income stream nice and early.

Can I ask why you want to retire at 40? What will you do after? Do you not enjoy your job? If you don't do you not want to find one that you do?

Working can be very positive and satisfying if you have the right job, it gives you structure and purpose. I can't begin to imagine stopping at 40 and not doing another days work potentially 40 or 50 more years!

Unless you were retiring at 40 to realise your dream of opening a school for scientifically gifted children in the favelas of Rio, or something like that wouldn't you be bored and unfulfilled pretty quickly?

PasturesNew

If you have 4 kids, how come no maintenance in your budget? Or did I just miss it?

getmore4less

jojo90 wrote: »

I've done my sums and it is possible to generate 750k in assets over 10 years and grow them to sustain a 28k income. It's all about getting that first income stream nice and early.

And where is that income stream coming from?

If you currently live on £50k how are you going to live on £28k?

kingfisherblue

PasturesNew wrote: »

If you have 4 kids, how come no maintenance in your budget? Or did I just miss it?

I think it is his parents that have the four kids

drewkent

I thought this website were for people on reasonable but mostly lowish incomes, looking to cannily save money. But more and more I'm seeing people askign for help when they are on £50k a year - get a life! I'm 26, live in an expensive city and earn less than half that but still manage perfectly with a mortgage!!!

What's the other one I always hear.....oh 'I have inherited £100,000, what should I do with it?', you poor thing you. No doubt your house value has tripled over the last 15 years too, again you poor thing? Some of us have had to pay 'modern' house prices!

[Deleted User]

drewkent wrote: »

I thought this website were for people on reasonable but mostly lowish incomes, looking to cannily save money. But more and more I'm seeing people askign for help when they are on £50k a year - get a life! I'm 26, live in an expensive city and earn less than half that but still manage perfectly with a mortgage!!!

Meh, quit whining. This site isn't specifically for anyone. It's for anyone trying to get advice on their financial situation and who wants to make the most from their income. I know some very rich people who still use the vouchers from this site.

FakeIrish

£500 per month for holidays is a tad excessive! But in my experience, people mostly spend beyond their means. You can earn more but this prompts most people to think they can spend more. Believe me I know. Our household income is extremely good - but we still feel poor but that's our fault for having a huge mortgage so no point grumbling.