2022 mini-budget discussion

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I think if someone on £100k can easily "struggle" with inflation/price rises and especially mortgage rates. £100k takes home £5.5k/month. If you're sensible and pay 12% into a pension (easy when on a big wage) that's down to £4.8k/month. Your mortgage could be £2.5k/month, going up to what? £3-3.5k/month? Larger mortgages (previously sold on your big salary) are going to rise much more than smaller ones. That could leave you with £1.3-1.8k/month. Say you're in the city commuting every day that could be £400/month so you could be down to £900 spending money. Maybe because you were so spendy before, you had a car on finance at £500/month which is still going out. Now you're down to £400-700 left. Seen as you live in London you probably can't get a big shop for less than £50/week so that leaves you with at best £300, at worst nothing. And we haven't even talked about bills.

It's really not that hard to understand how high-earners can easily get into trouble. Of course, it's first world problems. There's always options like the pension could be stopped, the car returned etc. But still. That's just off the top of my head...
 
kitkat9933 said:
You don’t always make your bed.

I had friends based in London that had a collective income of £300k split equally between them. They had 5 kids and a great life. The dad had terminal cancer and the got into a lot of debt in the US on treatments not covered in the Uk. He since passed away.

She now on her single salary has to support 5 kids, a mortgage based upon two peoples salaries at the time with interest rates rising. She doesn’t go on fancy holidays or have an even remotely fancy car. She doesn’t want to down size to take her kids out of school away from their friends and family etc .

His life insurance didn’t even cover the full debts.

She has a tough life and she’s doing a great job, sacrificing to make sure her kids don’t suffer more.

So please stop with this rubbish that people on higher salaries can’t have it bad, because that’s just naivety at its finest.
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5 kids ffs she has a massively over committed lifestyle fair play if she is managing.

As you have stated though its all her choice. What do you me to say?

I'm sure she doesn't need sympathy
 
Scam said:
I think if someone on £100k can easily "struggle" with inflation/price rises and especially mortgage rates. £100k takes home £5.5k/month. If you're sensible and pay 12% into a pension (easy when on a big wage) that's down to £4.8k/month. Your mortgage could be £2.5k/month, going up to what? £3-3.5k/month? Larger mortgages (previously sold on your big salary) are going to rise much more than smaller ones. That could leave you with £1.3-1.8k/month. Say you're in the city commuting every day that could be £400/month so you could be down to £900 spending money. Maybe because you were so spendy before, you had a car on finance at £500/month which is still going out. Now you're down to £400-700 left. Seen as you live in London you probably can't get a big shop for less than £50/week so that leaves you with at best £300, at worst nothing. And we haven't even talked about bills.
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Ah. Is this what you're talking about @kitkat9933 ?

Orrrrrr....

Would you say that...
kitkat9933 said:
The mortgage issue is because people got too used to crazily low interest rates and over extended themselves
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?

Or does that only apply to people on lower salaries?
 
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Slam62 said:
5 kids ffs she has a massively over committed lifestyle fair play if she is managing.

As you have stated though its all her choice. What do you me to say?

I'm sure she doesn't need sympathy
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What that lost her husband ? What that she had 5 kids which with two incomes was no issue? What that she wants to not have her kids lose less.
 
kitkat9933 said:
What that lost her husband ? What that she had 5 kids which with two incomes was no issue? What that she wants to not have her kids lose less.
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I'm sorry you're not making any sense, you say she has 5 kids, to do that and hold down a job paying 100k would be impossible for most people, presumably a nanny or something has been involved at some point.
I'm not criticising her, good luck to her, she's not the one pleading poverty on here.
 
Slam62 said:
I'm sorry you're not making any sense, you say she has 5 kids, to do that and hold down a job paying 100k would be impossible for most people, presumably a nanny or something has been involved at some point.
I'm not criticising her, good luck to her, she's not the one pleading poverty on here.
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Well they are school age so don’t need a nanny. They had a nanny when they were younger.

I’m not saying she’s pleasing poverty or me on her behalf.

I’m saying people on higher salaries can struggle to and that’s it. Some people self inflicted struggle and some not.

Just because people earn more doesn’t mean they can’t also have it tough.
 
kitkat9933 said:
Well they are school age so don’t need a nanny. They had a nanny when they were younger.

I’m not saying she’s pleasing poverty or me on her behalf.

I’m saying people on higher salaries can struggle to and that’s it. Some people self inflicted struggle and some not.

Just because people earn more doesn’t mean they can’t also have it tough.
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If what you say is true I'd not be surprised if she had a breakdown of some sort.
 
Nobody is saying it isn't a great income, but it is still a working income. People on this wage are not out buying Ferraris or doing 6 holidays a year. Of course they can lifestyle modify if situations change, but the same can be said even for a worker on the national average wage. Please note I am not asking for sympathy for 100k earners, I am just saying it is not rich.
 
I can't quite believe people saying 100k isn't a lot in some circumstances.

Its a lot!

Even if your mortgage is a lot that's yours. You could move somewhere cheaper and basically live the life of luxury.

Someone in 50k in a cheap area cant.


So even if 100k might not feel a lot in the moment.. Its a lot!
 
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Think we're talking about two different things guys - everyone can struggle/suffer/have hardship. I think is the '£100k can struggle' point

But I think the fundamental distinction here is about options - ie if I'm earning £100k and struggling to make ends meet, I have the option of moving to cheaper locations, downsizing, etc. Plus the fact I'm earning that means my skills must be in higher demand, which increases options.

If I'm earning £25k and I'm struggling.... well suddenly almost areas of the UK are out of reach, my options are much narrower....
 
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katie279 said:
Think we're talking about two different things guys - everyone can struggle/suffer/have hardship. I think is the '£100k can struggle' point

But I think the fundamental distinction here is about options - ie if I'm earning £100k and struggling to make ends meet, I have the option of moving to cheaper locations, downsizing, etc. Plus the fact I'm earning that means my skills must be in higher demand, which increases options.

If I'm earning £25k and I'm struggling.... well suddenly almost areas of the UK are out of reach, my options are much narrower....
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Exactly
 
katie279 said:
Think we're talking about two different things guys - everyone can struggle/suffer/have hardship. I think is the '£100k can struggle' point

But I think the fundamental distinction here is about options - ie if I'm earning £100k and struggling to make ends meet, I have the option of moving to cheaper locations, downsizing, etc. Plus the fact I'm earning that means my skills must be in higher demand, which increases options.

If I'm earning £25k and I'm struggling.... well suddenly almost areas of the UK are out of reach, my options are much narrower....
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Kind of but think about your life and how established you are. Nobody wants to disrupt their kids schooling etc...
 
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