Personal Allowance

[Pestilence]

Wat

£500+ pm debts, £600 mortgage, plus bills, insurances, 2 cars, shopping etc. Soon adds up.

Once the debts are gone, though, we're pretty much on easy street.

 

[danielanthony]

The trouble is, these figures from HMRC don't include all the benefits working people get including Housing Benefit, Child Tax Credits, Child Benefit, Working Tax Credits and any Disability Living Allowances.

Try http://www.entitledto.co.uk/ to see what you could get compared to working full time, I put myself and the missus working part-time and earning £25k between us with 4 kids, with the odd lower rate disability such as ADHD:

So we'd get £34,363 cash plus about £18,000 NET from working, so £52,000pa NET. So I could work part-time, earn peanuts, and still be in the top 5%.

 

[No1newts]

The trouble is, these figures from HMRC don't include all the benefits working people get including Housing Benefit, Child Tax Credits, Child Benefit, Working Tax Credits and any Disability Living Allowances.

Try http://www.entitledto.co.uk/ to see what you could get compared to working full time, I put myself and the missus working part-time and earning £25k between us with 4 kids, with the odd lower rate disability such as ADHD:

So we'd get £34,363 cash plus about £18,000 NET from working, so £52,000pa NET. So I could work part-time, earn peanuts, and still be in the top 5%.

Seriously?

 

[HangTime]

All bills + mortgage really shouldn't be more then 2k a month in London

I dunno, if you are say a typical family of 2 adults 2 kids then you will be wanting a decent house; I'm no expert on London prices but I'd imagine assuming no big deposit you'd be looking at a £270k+ mortgage. So over a 25 year term at say 4.5% (quite optimistic looking at historical rates) that comes to over £1500 on its own. Council tax, utilities & phone/broadband will probably add another £300. Transport, who knows, but could easily suck a couple of hundred. We've used up our £2k budget already and still haven't touched on stuff like insurance.

edit: I should point out, although one could get by on that sort of budget, when it comes to talking about being wealthy, I don't think those numbers are unreasonable (if anything, they are on the low side - many genuinely wealthy people would probably view a family home in London that costs only £300k as slumming it)