The salary question?

[Dirk Diggler]

It's not really 40% versus 20% either. When you take into account NI it becomes 32% versus 42%.

When you exceed 120k you don't even get your base rate tax free allowance, but again it's not particularly something to moan about if you're in that situation, although I do know plenty that do but that's another story.

I suppose it depends. I know someone on around £90k that does exactly the same. Smashing dat pension!

Throwing £50k into a casino just to avoid additional tax is a bit mental IMO. That's a lot of cash that he/she isn't getting access to on an annual basis. Life is for living, and whilst it's sensible to be tax efficient and save for the future, that person doesn't have the balance right if they're throwing 50% of their earnings into a pension pot.

 

[DanTheMan]

What is your job title and how much do you get paid?

Compliance caseworker, HMRC. £31k.

As I say, always happy to discuss. Money = freedom for me to a large degree so it's always interesting to see how people earn theirs. Plus it helps as a tax inspector to know the going rate for economic activities
.

 

[moon man]

I think people realise I am on peanuts with the work I do (min wage) but I am mortgage free and my house and location are amazing, drive an 18 Yr old car by choice, keep 5 figure buffer for when I don't work.
As long as I can pop to the coast to walk and surf I'm fine not one for chasing money but did purchase 100, 000 shares in a gold exploration cimpany for fun, more because I don't do lottery and its fun following them

 

[jon86]

I have the same mortgage vs retirement investing discussion with friends and family. Some people prefer to save more into retirement due to their low mortgage interest rates versus what they're making in their retirement accounts, and some don't mind paying extra down on their mortgage for peace of mind in owning their house outright. Like someone said above, retirement schemes are very much at the mercy of the government anyway, so who knows how government policy will change what our retirements look like over the next few decades.

 

[Martynt74]

I think people realise I am on peanuts with the work I do (min wage) but I am mortgage free and my house and location are amazing, drive an 18 Yr old car by choice, keep 5 figure buffer for when I don't work.
As long as I can pop to the coast to walk and surf I'm fine not one for chasing money but did purchase 100, 000 shares in a gold exploration cimpany for fun, more because I don't do lottery and its fun following them

Mate, you're living the dream as far as i'm concerned from your previous posts!

 

[Raymond Lin]

I think people realise I am on peanuts with the work I do (min wage) but I am mortgage free and my house and location are amazing, drive an 18 Yr old car by choice, keep 5 figure buffer for when I don't work.
As long as I can pop to the coast to walk and surf I'm fine not one for chasing money but did purchase 100, 000 shares in a gold exploration cimpany for fun, more because I don't do lottery and its fun following them

To me, this is the happy medium, throw in travelling a couple of times a year and that’s it. I can’t take anything with me when I die anyway which isn’t that far away. It will be here in a blink of an eye so I don’t plan on working 12hr days every day for that. On national average wage + weddings, so it can be as low as national average up to usually just under 40% tax rate (before deductible), depends on the year…obviously this year is zero lol. Drives a 10 year car with no monthly payment. That friend of mine who is on 6 figures, actually everyone I know that are on 6 figures, works 12hr days. Sure they are earning more but they are also working a lot more, and I am not sure if this is part of it, they all like a drink when they are off, spends what I consider to be obscene amount on alcohol when you work it out annually. They claim it relax them, whereas I have a cup of coffee to relax lol.

 

[Scam]

If that means you are still struggling to live comfortably then there is something broken.

Yeah it's called the housing market.

Beaten to it. The graph @Chris1712 posted says it all.

 

[Martynt74]

To me, this is the happy medium, throw in travelling a couple of times a year and that’s it. I can’t take anything with me when I die anyway which isn’t that far away. It will be here in a blink of an eye so I don’t plan on working 12hr days every day for that. On national average wage + weddings, so it can be as low as national average up to usually just under 40% tax rate (before deductible), depends on the year…obviously this year is zero lol. Drives a 10 year car with no monthly payment. That friend of mine who is on 6 figures, actually everyone I know that are on 6 figures, works 12hr days. Sure they are earning more but they are also working a lot more, and I am not sure if this is part of it, they all like a drink when they are off, spends what I consider to be obscene amount on alcohol when you work it out annually. They claim it relax them, whereas I have a cup of coffee to relax lol.

Yes, i have a friend who's a solicitor, he's 34 now and on a decent wedge, he's being groomed for partner roles in the future with various Partner training away days with roleplays on different scenarios etc. He expects when he gets to that point he'd be on ~£250k or so, but he's having some very serious thoughts as to whether he wants that life. Working 12+ hour days and then going to networking events is not what he classes as enjoyment, and whilst the money would be good is there much point if you're worn out by 50?

We were having a chat a while back about it, he was saying whilst his monthly income is high, his actual hourly wage is nowhere near as impressive!

 

[DanTheMan]

I've never been in the position where I had a pathway to earn a significant amount of money but for long hours but it can't be an easy decision to make. I honestly am not sure id want to be in that position.

There's absolutely no way I'd be willing to work 12 hour days whilst my daughter is young for any amount of money but I know I'd always regret not giving it a go. Maybe when she's 13+ but definitely not in the next 19 years.

Honestly, we're pretty much where we want to be in terms of having a good work / life balance and being able to afford the things we want at present.

In my last role dealing with wealthy people day in, day out, a hell of a let of them were very stressed and unhappy with terribly complicated private lives due to the sacrifice they had made in order to make money.

 

[Ayahuasca]

I don't know how anyone works 12+ hour days in a job that requires you to be mentally focused. I have to do a fair bit of reading and processing of information in my role and I'm pretty much done after 6.

Not surprised people are smashing the bevvies in every evening!

 

[Basher]

I don't know how anyone works 12+ hour days in a job that requires you to be mentally focused. I have to do a fair bit of reading and processing of information in my role and I'm pretty much done after 6.

Not surprised people are smashing the bevvies in every evening!

In my case a lot of the time was travel - either driving or more often flying. Days before lockdown were about 15 hours door to door (left the house at 5am, got home for 8pm), now it's more like 10 hours. I struggle to be looking at a screen for that long, though.

 

[wingman]

There's no achievable salary I'd work 12 hours a day for, certainly not as a long term career.

Fair play to those that do, you must love the work you do, and to that end I'm somewhat envious.

I enjoy what I do but I'm happy to work 8 hours a day, and truth be told the actual work I do is far less than 8 hours (most of our company would attest to this).

 

[Raymond Lin]

Yes, i have a friend who's a solicitor, he's 34 now and on a decent wedge, he's being groomed for partner roles in the future with various Partner training away days with roleplays on different scenarios etc. He expects when he gets to that point he'd be on ~£250k or so, but he's having some very serious thoughts as to whether he wants that life. Working 12+ hour days and then going to networking events is not what he classes as enjoyment, and whilst the money would be good is there much point if you're worn out by 50?

We were having a chat a while back about it, he was saying whilst his monthly income is high, his actual hourly wage is nowhere near as impressive!

During this lockdown, because he is working from home, he tells me that he is working more. Whereas before he would leave the house at 7am, get to the office at 8am, leave at 8pm. Now he is working 7am to 8pm, often not taking a whole lunch hour. At leat at work he can leave the office to get a sandwich, perhaps sit in Pret. At home he just grab something in the kitchen and go back to his desk.

 

[Nitefly]

I don't know how anyone works 12+ hour days in a job that requires you to be mentally focused. I have to do a fair bit of reading and processing of information in my role and I'm pretty much done after 6.

Not surprised people are smashing the bevvies in every evening!

The trick is to survive on adrenaline, making you immediately become ill as soon as you allow your body/mind to have time off.

 

[wingman]

The trick is to survive on adrenaline, making you immediately become ill as soon as you allow your body/mind to have time off.

Interestingly I'm currently reading a book called Not Working: Why We Have to Stop - it's not a guide, self help, or motivational book, but it touches on how modern society praises people working harder even though we're fundamentally not all built that way.

 

[Ayahuasca]

The trick is to survive on adrenaline, making you immediately become ill as soon as you allow your body/mind to have time off.

Sounds great, I think I'll give it a tr..... miss

 

[happy_2008]

50K in london and SE isn't a lot

When you exceed 120k you don't even get your base rate tax free allowance.

Pretty sure its £100k not £120k.

 

[wingman]

Pretty sure its £100k not £120k.

£100k is where it starts declining, you lose a portion for every extra £1 you earn I believe.

 

[quickshot89]

£100k is where it starts declining, you lose a portion for every extra £1 you earn I believe.

Yep, I've just been stung with this.

 

[Guest2]

It doesnt matter what everyones salary is anyway, for the next 1000 years taxes will skyrocket to pay for Coronavirus / furlough payouts. Earn any sort of good money and you'll kiss goodbye to at least half of it!

Might consider moving to another country if/when that happens