On the Breadline on £190k a Year

Generali

http://www.telegraph.co.uk/finance/personalfinance/pensions/12000288/We-earn-190k-a-year.-Do-we-need-to-sell-our-flat-to-afford-private-school-fees.html

By most measures Adam and Megan Brownson would be considered very affluent. Their respective careers - in management consultancy and personal injury law - give them a joint income of £190,000. The couple also own two properties with a combined value of more than £1m, putting them in the wealthiest 1pc of households in Britain.

But the pair are worried about becoming “financially broken” as the sheer cost of middle-class life in London means they are stretched to the brink. They spend everything they earn – and more. They are currently heavily reliant upon their salaries, meaning a redundancy or illness could leave them "financially broken". The financial pressures of raising a family has led them to rack up credit card debts totalling around £8,000 on 0pc introductory deals, but these are due to come to an end next year.

An alternative take on the same problem:

http://www.thedailymash.co.uk/news/business/we-earn-190k-a-year-should-we-sell-a-child-so-we-can-buy-another-flat-20151120104033

ging84

I liked the 2nd one

princeofpounds

I do understand why people found that article so funny. But I also know that despite their stonking great incomes they are unlikely to be living in total luxury.


Don't know where they are in 'SW London', but for sake of example I picked Balham. Nothing too special about it. For the £725k house they own, this is the sort of thing you can get:


http://www.rightmove.co.uk/property-for-sale/property-37798530.html


It's nice enough. But it's only a 3 bed with 2 adults and two kids. It's not as if they have the Miliband's second kitchen and nanny quarters, let alone a spare room. It's not even a full house.


Yes, I know, they can sell and get a bit of equity out of the BTL. I'm not saying they are poor at all.


Just that in a way it's kind of sad that despite earning so much money you aren't remotely in footballers' wives territory. If I was earning that much I'd hope that I felt a bit wealthier than that. High cost of living isn't good for any of us, rich or poor.

dinkylink

They're loving this story over on HPC...

kabayiri

At current rates one of them would only need 2 slips; a fall; and 3 trips; to pay for those school fees.

Plus...the other partner gets the juicy 30% commission on top by taking on the cases!

I think that counts as trebles (Pims) all round

chucknorris

If they can't work out how to live well enough on £190k, they must belong to the the highest paid idiots club. £190k is enough to manage your finances and have a comfortable life, they must have been spoilt brats as children, and they are carrying that attitude through into their adult lives. Obviously not many people can have literally everything that they want, they need to learn to prioritise and compromise, like everyone else does (or should).

HAMISH_MCTAVISH

I think I see the problem....

Send the sprogs to a normal primary and go private at secondary, go back to work full time, and/or be prepared to 'sacrifice' a bit of 'lifestyle'.

I mean really.... First World problems, eh?

michaels

A lawyer and management consultant in London only on 190k (combined not each) - they can't be very good at their jobs....

Graham_Devon

HAMISH_MCTAVISH wrote: »

I think I see the problem....



Send the sprogs to a normal primary and go private at secondary, go back to work full time, and/or be prepared to 'sacrifice' a bit of 'lifestyle'.

I mean really.... First World problems, eh?

While I agree with your premise, I'm not sure what you highlight documents their "problems" all that well to be honest.

On 190k per year they should be able to afford to privately educate their children. It's a luxury that should be able to be afforded at that earning level.

I would also like to think that earning 190k a year I wuldn't have to send my partner in to work another day on top of the 4 days she is already working in order to survive.

The schooling and 4 day a week on their income isn't the biggest issue here. The schooling is just 12% of their income.

Even their mortgage only comes to 16% of their pre-tax income. So the schooling and mortgage combined (28% of income) comes to less, as a percentage of their income than most average earners of their age would pay on their mortgage alone.

Theres issues there that simply aren't covered in the article.

wymondham

ah ... the London dream!

michaels

Was the 190k net or don't they pay tax?

8k on the credit card - it would appear that that is less thaqn one months net income - most would not see that as problem credit card debt, especially as it is stoozed.