Is £40,000 really a liveable income for families in the UK?

Peelerfart

Isn't £40K pa the average size of a public sector pension or did I get my threads mixed up ?

Aberdeenangarse

michaels wrote: »

see my post #22 above

They're many families I know able to live on around £20,000. It may be a struggle for some, but they make ends meet without maxing out on their Credit cards.

quantic

michaels wrote: »

see my post #22 above

My bad, I was working off the assumption that you wouldn't be mad enough to think interest only was a viable/sensible option.

michaels

Well unless there is a house price disaster we have 450k of equity so we will probably be ok...but thanks for your concern

quantic wrote: »

My bad, I was working off the assumption that you wouldn't be mad enough to think interest only was a viable/sensible option.

auroan

michaels wrote: »

Net pay is just under 1600, as anticipated I get 300 wftc and 200 child benefit. Expenditure: 2.5%, interest only (=£525), £100 petrol, £400 food, £150 gas and electric, £150 council tax, SAHW so no child care...and I exaggerated as I boost my income by a few hundred tax free via stoozing, matched betting, cashback etc.

So what your saying is... if you actually tried to pay the mortgage off and stopped taking hand outs from the state... you'd be knacked

Engeroosi

so ur house is worth 700k and you only earn 25k, how you manage that? I am guessing inheritance. Or you bought your first house many moons ago!

thescouselander

Aberdeenangarse wrote: »

They're many families I know able to live on around £20,000. It may be a struggle for some, but they make ends meet without maxing out on their Credit cards.

That really isn't much at all - that wouldn't even cover housing costs (rent/mortgage, council tax and energy bills) round here. Do tell - how is it done?

michaels

If I didn't have any pesky assets I would get a lot more handouts like council tax benefits etc However even without this my effective marginal tax rate is 72% making em very careful not to earn any more this year to the extent of utilising my pension.

When all the DKs reach school age then DW can go back to work and start to put a dent in the mortgage, I could also start working more than 2 days a week again if the worst came to the worst.

auroan wrote: »

So what your saying is... if you actually tried to pay the mortgage off and stopped taking hand outs from the state... you'd be knacked

michaels

2001, no inheritance

Engeroosi wrote: »

so ur house is worth 700k and you only earn 25k, how you manage that? I am guessing inheritance. Or you bought your first house many moons ago!

michaels

I think we may have strayed off the point however.

My point is if housing costs are not too bad (and IO is only the same as renting from the bank) and you are willing to accept (or even welcome) state schools and cars that only cost a few hundred pounds in depreciation, do without sky and be sensible at the supermarket then with the current benefits it is possible to live on what would appear to be a fairly low to median income even in the SE.