How much do you earn?

leespot

elephantrosie wrote: »

have a discipline of no debts. you can get CC without interests for a whole year or longer now, but make it a life rule to say no to these. i would much rather pay the interest rate to keep me on my toes than to have free loan.

That might be appropriate for people who cannot manage their finances with any discipline, but to suggest someone else should pay interest is not correct. You're obviously happy paying money out when you don't need to - but that doesn't mean others should.

WineDarkSea

Our household income is quite high now (not quite 6 figure but getting closer), but we've not really increased our spending from when it was about half this amount and I automatically save any pay increases. However we live in a two bed flat as a family of four due to house prices. We feel poor compared to other families locally but can save a lot of money due to lower mortgage etc - last year we saved £14k without scrimping and with a few big expenditures. We are younger than many other parents for the area (possibly same age of you going by your username), so bought after house prices had gone crazy. The parents now aged 40 plus are more likely to have bought when cheaper and made money to upsize. It's all relative and about choices, and sometimes luck - inheritance or some good career moves. I'd rather not have a £300k mortgage so we'll stay in our flat with ten year old car, minimal holidays etc appearing less well off than we are.

ani*fan

This is an interesting thread. Thanks for starting it OP.

Me and OH bring in around £57k between us per year, after tax and pension it comes to around £3,370 per month. We have no kids (yet) and 2 cats.

Our monthly outgoings are around £2,250. This includes debt repayments (£200 min), saving for our house (£200) and saving for our wedding (£200). We just bought our house so that cash will soon be diverted to renovations and decorating.

This budget includes birthday and Christmas presents, haircuts, clothes, and basically everything else we could possibly need except holidays which we to fund out of the excess. We have no surprises, and no emergency fund as we have rented for some time and don't own cars.

For the last wee while the excess £1,100 has gone to boosting the savings pots, overpaying debt (£10k paid off, £8k to go) and holidays. We have one per year. Our next one will be our honeymoon.

It's different for everyone, but don't be overly worried about what other people do. Do what you want, it's your money and your priorities will change over time.

leespot

We earn just under £60k between us. We're comfortable on that money and our outgoings are only around £1500 per month so we have quite a bit left over. Only have our daughter, not planning to have more kids.

Very subjective topic as lots if people will have different uses for the amount left over. We're literally spending everything on renovating our house but when that's finished will be taking some time out to enjoy being with family a lot more.

michaels

OP like you we are 2 adults and 3 kids. Our total post tax household income including pay, tax credits, interest income, cashback and some airbnb is 32k. Our mortgage is then 625 per month interest only and council tax is 160 per month. DW does not work so we have no childcare costs (although do spend a fortune on clubs, music lessons etc). We run 2 cars(2 year old from new and 13 year old) and heat the house all day as dw is at home.

Our only holiday is with grandparents in Devon. Kids get 40 quid android tablets and 60 quid chinese phones rather than apple products and clothes from next and m&s and fast fshion rather than designer or department store wear. We shop around for food including Aldi and don't drink or smoke. On the outside we probably look ok but compared to most locally we probably live on 1/3 the average.

GarthThomas

My wife and I are each additional rate tax payers, but still choose to think carefully about what we spend. We put a certain amount each month into the joint account, another amount into each of our accounts for spending, and the rest is invested. One thing about being a high earner is that you have greater uncertainty about it continuing at the same level than do lower earners. If I was on £30k a year there are any number of jobs that I could do to earn that. At my level, they are exceptionally rare, and I could have to take a 70% drop if I don't find the right thing next time.

michaels

Apologies to the op for going slightly off topic but do couples mostly have 'household money' or individual money? I guess following my parents we only have household money, everything is in one pot from which all spending comes. Savings are held in dw's name for tax purposes but it is all joint money, neither of us has 'our own money'.

Is this normal or unusual?

leespot

We have separate bank accounts and split the bills 80/20 - whatever is left we share. That split leaves us with the same amount each month remaining so totally fair right across the board regardless of who earns what.

mollycat

michaels wrote: »

Apologies to the op for going slightly off topic but do couples mostly have 'household money' or individual money? I guess following my parents we only have household money, everything is in one pot from which all spending comes. Savings are held in dw's name for tax purposes but it is all joint money, neither of us has 'our own money'.

Is this normal or unusual?

For me, (but probably not for others, this ^^ is unusual).

Own bank accounts, never had anything joint.

Split bills 50/50.

Individual savings, but neither of us has any idea what the other has.

Has worked fine for 30+ years.

[Deleted User]

At the moment £10K but I am mortgage/rent free due to inherited property. Still a struggle trying to keep up with maintenance/repairs. Not much left at end of month after bills and a few beers.