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On the Breadline on £190k a Year
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self awareness is a wonderful thing although 15 minute of fame has its attraction too0
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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.
I've just edited my post as I forgot about tax! Doh!
However, even with tax, they would have more disposable income at the end of the month, even with private education and a 750k mortgage than any average household in their age bracket.
One of the commentators on that article makes the same point and offers the calculation.
After tax, their residential mortgage and private schooling they have £66k of disposable income left over per year.
£66k provides huge opportunities when it comes to lifestyles. Difficult to point the finger at the private schooling when they have this much cash left over every year.
The elephant in this room appears to be the BTL stuff.0 -
I read The Money Makeover column every week - I call it The Smug idiots column, or the look at me, haven't I done well column
Adam Brownson has an uncanny resemblance to Harry Enfields Tim nice but dim.
There's loads of other examples....
http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11371820/Will-income-from-a-750k-buy-to-let-empire-pay-for-our-three-babies.html
http://www.telegraph.co.uk/finance/personalfinance/investing/11461703/Ive-saved-700000-by-42.-Can-I-afford-to-semi-retire.html
Most of them haven't got a bloody clue.0 -
It must be heart breaking when you do these interviews, knowing that you can't offer the journalist a genuine vintage champagne to drink on the patio while they're scribbling down your woes.
Oh the shame
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A lawyer and management consultant in London only on 190k (combined not each) - they can't be very good at their jobs....
It doesn't say she is a lawyer. We should make that clear, so as not to offend all those lawyers who earn a living from not handling whiplash claims. (There are some, I believe...)0 -
PasturesNew wrote: »It must be heart breaking when you do these interviews, knowing that you can't offer the journalist a genuine vintage champagne to drink on the patio while they're scribbling down your woes.
Oh the shame
The most embarrassing thing for them was that they had just sold all their peacocks the day before the journalist arranged to visit them. But luckily he seemed not to notice the lack of peacocks in their garden, unless he was just being polite by not bringing it up of course.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
Graham_Devon wrote: »The elephant in this room appears to be the BTL stuff.
Eh?
The BTL mortgage is 170K with 950 per month of BTL income to cover it.
A quick look at the BTL & Tax calculator shows that at 4% interest and a grand a year in costs they should currently be making £1980 a year in net profit after tax.
In 2021 when the full impact of this change hits this would reduce to £280 a year in profit.
But... That assumes no rent rises in the next 5 years.
Assuming rents rise in the next 5 years much as they have done in the last 5 years, then the monthly rent by 2021 would have risen to £1200 from today's £950.
And funnily enough, assuming the same calculations on other income, costs, and a rate of 4%, this then puts them back into net profit after tax of £1930 a year.
The 'elephant in the room' is their 'lifestyle'.
£66,000 a year in net disposable income after the mortgage on their main house and the kids school fees (which they're not yet paying) should be enough for anyone...“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
It doesn't say she is a lawyer. We should make that clear, so as not to offend all those lawyers who earn a living from not handling whiplash claims. (There are some, I believe...)
She uses her maiden name, Megan Goodyer,Senior Associate in the Personal Injury Department, Stewarts Law LLP. I bet she's getting loads of emails taking the proverbial
http://www.stewartslaw.com/people/megan-goodyer.aspx0 -
HAMISH_MCTAVISH wrote: »Eh?
The BTL mortgage is 170K with 950 per month of BTL income to cover it.
A quick look at the BTL & Tax calculator shows that at 4% interest and a grand a year in costs they should currently be making £1980 a year in net profit after tax.
In 2021 when the full impact of this change hits this would reduce to £280 a year in profit.
But... That assumes no rent rises in the next 5 years.
Assuming rents rise in the next 5 years much as they have done in the last 5 years, then the monthly rent by 2021 would have risen to £1200 from today's £950.
And funnily enough, assuming the same calculations on other income, costs, and a rate of 4%, this then puts them back into net profit after tax of £1930 a year.
The 'elephant in the room' is their 'lifestyle'.
£66,000 a year in net disposable income after the mortgage on their main house and the kids school fees (which they're not yet paying) should be enough for anyone...
I say the elephant in the room as the article is loaded to looking at the private schooling fees. There is very little on the BTL or even why they have debt and no cash savings.
The premise is, not only by you, but many on the telegraph, that they should remove their children from their schools to save cash. But no mention of forgoing the BTL investment.
We know how much their kids schooling costs as it's all laid bare. We know nothing of the BTL stuff, other than what the house is worth and the mortgage outstanding.
The whole article is based on their fear of BTL taxes. So I'd say the elephant in the room here is the BTL. Not the children's education.
This says it all really....The couple could, alternatively, sell their buy-to-let to pay the school fees - but they don't want to miss out if the property rockets in value in the future.0 -
Theres another comment on the telegraph from someone who earns 180k, who also see's himself as rather hard done by.
However, listing all their outgoings, they spend £1,500 PER MONTH on family expenses, which they state is "mostly food". How you spend that much on food per month is beyond me.
He states the last £1,000 per month goes on "activities" and dining out, and he has nothing left from his 180k salary each month.
It's a different world.0
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