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

edmund_blackadder

So what is this expensive hobby then?

metalmosher

Firstly, I need to say I've just joined this forum and I'm finding it very interesting and helpful. This thread particularly describes my situation and despite a lot of negative feelings out there, I kind of see Jojo's point.

I'm a contractor and I earn a 'decent' wage, however I have run up huge debts, mainly from university courses (similar to jojo, put myself through and boy it was expensive!) and I am on this forum to look for ways to pay off my debt cause right now it is crippling me. I also live in London and although I am lucky enough to own my house, the mortgage is an absolute killer and looking back now I realise I can't afford it, but given that we are now stuck with negative equity on our house, we are completely STUCK! I can't get rid of the mortgage I can't afford and this increases my debt problems because I can't afford to pay extra off my debts.

Anyway, my point is, just because your salary is higher, doesn't necessarily mean you're better off financially. Obviously my situation is different cause I totally got myself into this mess....but it can happen, you think you're earning good money and you can afford stuff, then one day you realise you've stretched yourself and your stuck.

Jojo I know in your case it does look like you have quite a bit left over, but again I know that feeling, on paper I should have around 500-800 a month left over, but somehow it just never is, there's alway something...like car repairs, or vet bills, or presents for someone's birthday which involves drinks etc etc etc. BUT, I am on this forum like you to try and do something about this, and budget better and just generally try and be more responsible with my money, and control my constant overspending.

So keep doing what you're doing, manage the budget and whatever you do, DO NOT move back home! That is not going to help you learn to budget, you'll just end up spending the money you have left and get used to that lifestyle!

JAYk_2

jojo90 wrote: »

Just wondering what you guys would class as a 'decent' salary? At the moment I'm 29, home-owner, single, and on £50,478 (plus £4,500 from lodger tax free) and to be honest I don't feel that well off at all. Seems all my money just disappears each month and don't have a lot to show for it.

So what do you lot think is a good amount to earn each year to feel well off because I always thought £50,000+ would be the sweet point ? I'm thinking maybe £75,000+ nowadays. I'm seriously considering moving back home for 2-3 years and renting my place so I can actually start saving some money...

One that allows a person, family to live well rather than just survive/get by. 'Decent' could be £1 M for me and £70K + for you.:cool:

jezebel

I'm 29, home-owner, single, and on a little over half your salary and I do feel well off, but I think it is about attitude to money. There is nothing wrong with your current spending if you are not getting in debt but obviously from what you are saying its not making you happy so something has to change. It should be possible to make changes in the areas that aren't making you happy, or adding to your contentment to pay for the things that you do (eg your holidays). To give you an example similarly to you I spend around £150-200 a month on hobbies, such as my internet and sky tv and around £20-£30 a month on books (which for some would be ridiculously high!) but I save money on food (value ranges), clothes (sales) and make up (don't wear any!) because these are things that matter less to me.

With regard to food shopping - you should read up on Martin's downsize challenge for shopping, it's a real eye opener! I can't say it works for me as I already go for value on all but the things that matter to me (coffee, cheese, alcohol etc) so was already doing it but it is amazing what you can save. Other wisdom I've picked up from across the site is planning meals by writing a menu (factor in nights out if you know you are going to have things where you won't be home).

Also, have you considered making overpayments on your mortgage? I have around £150-£250 a month spare in disposable income that I try to put into overpayments - I always like to think of it as for each two or three months that I over pay it adds up to a month I'll get back when I need it (either so I can retire early, current plan is 50) or so that I have a cushion should i ever be made redundant or lose my job.

There was one story that always stuck out for me at school which was the seven fat cows and seven thin cows from Joseph and the amazing coloured dream coat (or the bible in my school ) - they saved in the good years and this paid for the bad. Maybe you will be lucky and not have bad years, but a bit of saving now will lead to a brighter future - just think, if you only spend £4k a year on holidays you could pay off £2k extra from your mortage each year and get a step closer to your retirement goal of 40

jezebel

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!!!

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!

Really? I thought it was a website for anyone that wanted to save money or spending what they do have wisely. I'm sure Martin earns quite a bit a year, does that mean he's any less of a moneysaver? For some people, no matter what they earn, its about a penny saved. I've worked hard for what I've got and I'm not going to apologise for asking how to best save it - I wouldn't have been able to afford my house without the people on these boards and the advise about investment and saving and would have been too scared to take on the debt without reading the success stories of those that have managed to pay off mortgages by hard work and thrifty living!

NellieNewbie

I think the problem is the way the OP phrased his opening post.

Having only a fraction of his income, I nearly cried when started reading the posts on the first page or so (been a bad day), but then I realised that at least the OP was trying to sort things out before he got into debt - unlike me. The OP is pretty brave too, sticking around after some of the responses he got imho. When you do earn a good living, it is easy to think you can afford to do just about anything and unless you are used to budgeting, money can just run through your fingers. The more money you've got, the easier it is to live beyond your means.

Hats off to you OP for trying to tackle the problem now - you are certainly in the right place - but you may have to change more than your approach to money. You may have to make other changes in your life to help you get your finances under control and if that means moving back home to get you out of a particular environment, then maybe it is not such a bad thing, especially if your parents would genuinely like that to happen.

Good luck to you.

jojoe90

:eek::eek::eek: Please, I hope that no one has mistaken me for you, jojo90. Be thankful for what you have - it's far more than most.

SilverTrumpet

Interesting thread. I'm in a very similar position. I'm a couple of years older than you, 31, and earn a bit more although I don;t have lodger income so it's not too far apart.

My take home after pension and taxes is roughly 3500.

I've been earning at that level for a few years. I think my best year was when I was 26 actually due to a one off bonus. I've always saved an ok amount. I've maxed out the old 7k ISA limit every year but it's only recently that I've really started to get a grip on my finances.

Like you I have a passion for travel and relaxing in remote corners of the world and that has made me think long and hard about what I want to do with my life here. I've realised that I want to be financially free as soon as possible in order to fully enjoy the world.

That doesn't mean living like a miser or hermit here though. My guideline is that I have to live an awesome life which I love NOW but also be making the savings I need to live an awesome life later as well.

My breakdown is something like this:

Housings, council tax, gym, sky, etc - 1100
Food, entertainment and misc - 400
Holiday fund - 500
Savings - 1500

So that means I save considerable amounts every year - 18k. yet I still spend pretty wildly on the things that I love. So I spend a lot of holidays and a lot on housing. I could save a lot more by getting a lodger but that is something I wouldn't enjoy so I don't do it.

Four hundred sometimes isn't enough to cover everything but that's my budget and I NEVER go over it. If I need extra funds, like next month I have three pretty big weekend aways planned and I plan to buy some clothes and treat some friends, then I have to get creative and find a way to get extra funds. I have to HUSTLE.

I think that's the big difference. In the past I'd just think "Oh I earn lots I can afford it". Now that I pay myself first in to my savings and give myself a low amount to live on I have to budget and I then work out ways of getting extra things I want.

Some things I have done recently to hustle up extra money :

- started matched betting ( and I can see from your other threads you know all about how to hustle this)
- changed my bank account to get 5 quid every month from halifax (I used to think 5 quid is hardly anything - now I realise that's a free bottle of wine every month to share with a friend)
- tried boosting my adsense income from websites (this is hard so far but slowly and surely)
- made the mosty of things like quidco
- sold some things I never use any more

So I've actually managed to hustle up an extra couple of hundred quid (maybe more) for next month. So I can live life to the full now having great weekends with mates and still save lots for early retirement.

heretolearn_2

Silver Trumpet, you sound like you've got your head screwed on straight, nice one, plenty of fun now but also looking to the future.

ninky_2

jojo90 wrote: »

I'm the first one to admit I'm completely useless when it comes to money or understanding the value. Maybe I'm just unhappy and buying things makes me happy hence the problem.

but the things obviously don't make you happy (for very long) or you wouldn't have to keep doing it. why not clear out your wardrobe, assess what is in there and maybe get rid of any excess to the charity shop. you might find there is stuff you have forgotten about (you must have quite a few clothes for the amount you spend!)

even if you just halved your holiday budget you could still have great holidays. think of all the extra years you will have to work to pay for a few days of excess. if you are more prudent now your whole life could become a holiday with early retirement.

i earn slightly more than you but choose to overpay the mortgage. i still find i have plenty to enjoy a holiday here and there as well as treat friends and family sometimes.

honestly, you are just throwing your hard earned cash away the way you are spending. surely your life and time is worth more than that?