Are earnings too low / living costs getting too high??

Buffman

Buffman

Buffman

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West Midlands
Is it me or do earnings seem to be getting too low/living costs getting higher?

Particularly with house prices continually rising. Even with a couple each earning the average wage (what like £28k?) doesn't seem to go particularly far if you want nice things or a decent size house (Midlands /North).
Let's not even get started on the London housing bubble.

I struggle at the thought of having kids (or even a dog) in future purely because of the expense/required reduction in working hours.

I recall reading that were the first generation worse off than their parents which rhymes true..
https://www.google.co.uk/amp/s/amp....00-pounds-less-in-their-20s-than-predecessors

Does anyone see it getting better?
 
We are failing to improve productivity in the UK and so we are slowly failing behind.

A bubble is relative. Despite what it may seem London isn't in a bubble. It is one of the lowest debt to value markets and those that own properties have mortgage to earnings ratios similar to the rest of the UK. The lowest LTV areas are also in London. London is worth around 33x more than it's debt. That is extremely healthy.
 
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Personally I think earnings are just about in the right place (in the balance of everything else) the problem is housing/rental prices going stupid - especially in some areas and that people who are doing the "right thing" i.e. saving money, etc. are getting hammered by interest rates and so on.
 
If you have 2 people earning 28k you should easily be able to afford kids and a mortgage... Yes you will need to be froogle etc. but so you really need to spend £70 per month on Sky and £40 each on mobile phones etc? The amount of money that you can save these days by getting the best deal on gas/electrcity/broadband along with being sensible in the supermarket is crazy... Honesly it is possible to live very cheaply and still maintain good stuff but it is also very easy to live expensively.
 
rubberduck said:
If you have 2 people earning 28k you should easily be able to afford kids and a mortgage... Yes you will need to be froogle etc. but so you really need to spend £70 per month on Sky and £40 each on mobile phones etc? The amount of money that you can save these days by getting the best deal on gas/electrcity/broadband along with being sensible in the supermarket is crazy... Honesly it is possible to live very cheaply and still maintain good stuff but it is also very easy to live expensively.
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You have to balance that with actually getting some enjoyment from life though - or what is the point? (I'm not talking going mad).
 
rubberduck said:
it is possible to live very cheaply and still maintain good stuff but it is also very easy to live expensively.
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Some people have the idea that luxuries are a basic need.

If you can break the addiction you can chuck all the tech out of your house and save a great deal of money.
 
rubberduck said:
If you have 2 people earning 28k you should easily be able to afford kids and a mortgage...
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If you have two people in one household both earning £28k then you are already some way above the median household income, so of course you can afford a fair amount of stuff. Good for you. Now what about the more than half the households who earn less, and in many cases, much less. Jobs are becoming increasingly polarised, with a large proportion of the jobs created in the last decade being minimum wage jobs. What well-paying jobs there are are now the province of well-qualified people with the right friends. This situation will get worse. Within individual companies, the money is moving upwards, with the ratio of ways between top and bottom widening all the time. Productivity is stalled for many reasons, but one is the fact that working harder no longer means a pay-rise. Now it's required to avoid you being replaced by someone else.
 
Yes. Londons fine though, the salaries make up for it. The problems lie in areas being bled into by London commuters, wrecking prices for those of us working locally. In the last 5 years my rent has more than doubled, but salaries in the south west are pants.

Next year either gonna move up north or to London.
 
Rroff said:
You have to balance that with actually getting some enjoyment from life though - or what is the point? (I'm not talking going mad).
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You dont need to spend vast sums of money to get enjoyment out of life.... Plenty of people in 3rd world countries with no smart phones and sky TV who are much more content that you or I am... I am not saying cut modern tech off completely but is very easy to get 'good enough' tech these days while being froogle.
 
Chris1712 said:
Yes. Londons fine though, the salaries make up for it. The problems lie in areas being bled into by London commuters, wrecking prices for those of us working locally. In the last 5 years my rent has more than doubled, but salaries in the south west are pants.

Next year either gonna move up north or to London.
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Might have some of these wrong but from a quick google (I'm in the South West) - Average salary here (actual monthly take home after tax, etc.) is £1227.25 which has only slightly increased over the last 10 years, while average rental has increased from £492/m to £832/m with only 18% of the market under £500/m - for my immediate area the average rental is slightly over £1200/m which shocked me as that is catching up with the area I lived in London for a few years is now commanding (though with the improved transport links to Bristol and proximity to the railway station to Bristol I guess it isn't surprising).

EDIT: House prices are weird looking at the latest figures as some of the top end houses on the street have only increased about 10% in the last 10 years while some of the not so great ones have doubled in value.
 
Rroff said:
Might have some of these wrong but from a quick google (I'm in the South West) - Average salary here (actual monthly take home after tax, etc.) is £1227.25 which has only slightly increased over the last 10 years, while average rental has increased from £492/m to £832/m with only 18% of the market under £500/m - for my immediate area the average rental is slightly over £1200/m which shocked me as that is catching up with the area I lived in London for a few years is now commanding (though with the improved transport links to Bristol and proximity to the railway station to Bristol I guess it isn't surprising).
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Source? I know I posted it but interested in seeing the data, I'm certainly feeling it :(
 
rubberduck said:
You dont need to spend vast sums of money to get enjoyment out of life.... Plenty of people in 3rd world countries with no smart phones and sky TV who are much more content that you or I am... I am not saying cut modern tech off completely but is very easy to get 'good enough' tech these days while being froogle.
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Personally I'm pretty content as far as anything goes with my lifestyle. I don't think it unreasonable though for people who do put in a reasonable effort to earn a wage to expect to be able to afford some small luxuries and not have to live too frugally.
 
I work in powder coating and have done so for 15 years and my money has increased by a couple of quid an hour above current minimum wage. Which isn't great however my bills and mortgage are low. I always switch and hunt new deals to save money all the time. I find it fun to be money smart, because money is tight from debt from my days of being single. I regret borrowing money and I have vowed never to do it again after paying off my balance.
 
rubberduck said:
You dont need to spend vast sums of money to get enjoyment out of life.... Plenty of people in 3rd world countries with no smart phones and sky TV who are much more content that you or I am... I am not saying cut modern tech off completely but is very easy to get 'good enough' tech these days while being froogle.
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Frugal, Froogle was an early version of google shopping.

And Tech is not expensive, hand crafted items of true quality made from the best materials - they are expensive. They do last a lifetime though, unlike tech.
 
Meridian said:
If you have two people in one household both earning £28k then you are already some way above the median household income, so of course you can afford a fair amount of stuff. Good for you. Now what about the more than half the households who earn less, and in many cases, much less. Jobs are becoming increasingly polarised, with a large proportion of the jobs created in the last decade being minimum wage jobs. What well-paying jobs there are are now the province of well-qualified people with the right friends. This situation will get worse. Within individual companies, the money is moving upwards, with the ratio of ways between top and bottom widening all the time. Productivity is stalled for many reasons, but one is the fact that working harder no longer means a pay-rise. Now it's required to avoid you being replaced by someone else.
Click to expand...

Or by automation.

Also many are not willing to get skilled up to earn a higher wage. Rather blame the system or other people.
 
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