How have you benefited from low interest rates?

DervProf

Graham_Devon wrote: »

You, are not average, you are on record stating your income is approx 100k several times.

It never ceases to amaze me how "dumb" some people on relatively large salaries seem to be. They are either dumb, or don't understand how the average person lives from day to day.

LydiaJ

ellies_angel wrote: »

DervProf wrote: »

Don't expect my sympathy round here.

You might get some advice though, such as.......

Get a better paid job. I love my job, I love seeing the difference I make to the people I assess, their working practice, which in turn gives a better quality of care and education of the children they work with. :A I am paid well, I was pointing out that not everyone gets a wage rise of 2% per year. :mad:

Invest in property. I have, a lovely 2 bedroom house.

Should have moved to Aberdeen. too expensive and my travel costs would have been much higher traveling from the city to the shire :eek:

It's great out here in Thailand, why not join me ? let me think about it.............errrrrrrrr NO:p

Still on a more positive note my fixed rate ends in June :T

In fairness to DervProf, I think it should be pointed out that s/he was not personally advising you to do any of those things. These are merely samples of things that some of the more vocal "bulls" on here typically say to people like you, and DervProf doesn't actually agree with them.

mbga9pgf

Overpaid 10K off the mortgage in 7 months, have 6k banked at the end of this month thanks to a shedload of expenses and bonus pay over the past 3 months. Will have overpaid 27K by next jan, assuming 1% average rates over the period.

Graham_Devon

DervProf wrote: »

It never ceases to amaze me how "dumb" some people on relatively large salaries seem to be. They are either dumb, or don't understand how the average person lives from day to day.

Hamish is clue'd up on a variety of stuff.

But real life, real world stuff? Fails him every time.

HAMISH_MCTAVISH

Graham_Devon wrote: »

You, are not average, you are on record stating your income is approx 100k several times. Therefore you spend approx 20k on stuff that has inflation (by your description) attached to it. Average household income in the UK is 28k.

I also spend far more on these things than most "average" people.

I said average.

Yep.

But "average" people don't spend what I do. I have expensive tastes.

"Average" people don't drink £200 a bottle single malts, or £100 wines.

"Average" people don't spend the money on food that I do, or on clothes, or most things.

When I earned less, I spent less. When I earned a lot less, I spent a lot less. I'd never dream of buying the things I do now if I earned an "average" income. I'd buy "average" items. Drink "average" drinks, eat "average" food. Wear "average" clothes.

I assume most people have the same restraint.

In the real world, however, outside of McTavish heights, people would fall over themselves to see their food bills, electricity bills, petrol bills, insurance etc, only come to 20% of their entire income.

Which is why I said 35% in my OP. It could be up to 49% and they'd still be quids in with average pay rises.

As it is, inflationary council tax often eats up 5-10% of a households entire budget.

In some areas.

We've had a council tax freeze for 3 years, and again next year.

And you still haven't answered the questions.....:cool:

DervProf

LydiaJ wrote: »

ellies_angel wrote: »

DervProf doesn't actually agree with them.

It's not so much that I don't agree with them (I actually do agree on a fair few things), it's just their attitude. There are some of them who seem more than happy to boast about their personal financial position. It's probably just "bigging it up on the 'net", and they may be quite nice people when they walk away from their keyboards, but the picture some of them paint of themselves online isn't pretty.

System

I cleared 10k off the mortgage, and am probably around £300 a month better off at the moment.

AD9898_2

Let's face it, this thread is likely to attract the people with no debt or ones who've benefited significantly from low rates, it's in no way representative of the general population.

Graham_Devon

HAMISH_MCTAVISH wrote: »

I also spend far more on these things than most "average" people.

Huh?! Come on now!! When people talk about how petrol prices are affecting them, who's the first to come on and say "nope, dont affect me, got a company fuel card....my life is great".

NOW....in this argument, you spend more than others. I can't keep up.

Yep.

But "average" people don't spend what I do. I have expensive tastes.

"Average" people don't drink £200 a bottle single malts, or £100 wines.

"Average" people don't spend the money on food that I do, or on clothes, or most things.

I'm not sure what the above is all about, apart from willy waving? To me though, and maybe others, it doesn't look canny drinking £200 bottles of single malts...it looks stupid.

However, I am struggling to figure out how you therefore only spend 20k a year on inflationary (again, by your description) goods, when your sloshing that cash down your throat.

I suppose you are going to tell me that the company pays for your car, your fuel, your food etc....but then you can't really be claiming you spend more than the average person.

Well, this is all a bit of a puzzle, isnt it.

When I earned less, I spent less. When I earned a lot less, I spent a lot less. I'd never dream of buying the things I do now if I earned an "average" income. I'd buy "average" items. Drink "average" drinks, eat "average" food. Wear "average" clothes.

I assume most people have the same restraint.

Yes, of course people have the same restraint. Still doesn't detract from the issue that most people spend WAY more than 20% on inflationary goods and services. So it's a none point really.

Which is why I said 35% in my OP. It could be up to 49% and they'd still be quids in with average pay rises.

I doubt it Hamish. I really do doubt it, because I bet theres so much stuff that attracts inflation that you haven't even considered people spend money on.

Plus the fact that on the average household income of 28k, a 2% average payrise would only equate to an extra £560 a year before tax.

£560 a year. Thats £440 after tax.

The average family spends £1200 a year on gas / electric, and £900 on petrol / diesel.

I have news for you. In a year, petrol / diesel has gone up 18% in a year. Gas / Electricity has gone up approx 10% in a year.

So they gain £440. They've lost £168 in petrol and £120 in gas / electricity alone.

They are left with a £152 gain.

Trouble is, food, which the average family spend I believe approx £3000 on, has gone up 6.2%. Thats £182.

They are now running a loss of -£30.

We haven't even got to council tax yet....

Quids in? I'd love to know how....and we can continue calculating your version of quids in if you like, I'm up for it....though I doubt it's looking so pretty from McTavish heights now!!

And you still haven't answered the questions.....:cool:

I don't need to.

Cleaver

Graham_Devon wrote: »

Plus the fact that on the average household income of 28k, a 2% average payrise would only equate to an extra £560 a year before tax.

£560 a year. Thats £440 after tax.

The average family spends £1200 a year on gas / electric, and £900 on petrol / diesel.

I have news for you. In a year, petrol / diesel has gone up 18% in a year. Gas / Electricity has gone up approx 10% in a year.

So they gain £440. They've lost £168 in petrol and £120 in gas / electricity alone.

They are left with a £152 gain.

Trouble is, food, which the average family spend I believe approx £3000 on, has gone up 6.2%. Thats £182.

They are now running a loss of -£30.

We haven't even got to council tax yet....

I don't agree with Hamish's version of events either. But...

...one of his points is that a lot of people won't notice the inflationary rises in things. And if you're only losing £30 a year, you won't notice much, will you?