All about representing quantities of money with grains of rice. Some videos depicting large sums are surprisingly thought provoking.
The salary question?
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All about representing quantities of money with grains of rice. Some videos depicting large sums are surprisingly thought provoking.
I've always had a rough idea on what my mum and dad got wage wise although its only recently they're a bit open about it. They're good with money though o despite me earning more than them combined when my boiler broke last year i lent the money of them to fix it. It's my aim for the next few years to actually make decent use of my money instead of wasting it on junk food, games and things not so important. i do think with some people (me included at the moment
) that regardless of what you earn you seemingly have no money left!
Associate
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I wont share financial info with my friends or colleagues. Unfortunately some people get jealous and I have had it taint friendships in the past. Realistically, they just don't need to know and everyone is better off that way.
Family is different. I am very open with them.
Family is different. I am very open with them.
Lucky for you - there are people in my family I know aren't really trusting and shouldn't have that information due to jealousy reasons, or reasons that they'd use it against me and my partner; and some of my friends I would feel the utmost comfort sharing the entirety of my financial position.
What makes you think your family wouldn't get jealous but your friends would?
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I only have a small family. So parents / siblings only really.
My family knows, and generally speaking, I am relaxed/open about it. Me and some close colleagues
But at the same time, I am pleased for someone if they are earning well. Regardless of if its more or less than me and regardless of the difference. I think many people get bitter or jealous when they work hard but don't earn the same (even if its in a totally different segment, etc) - especially if they feel they're not earning what they should be.
But at the same time, I am someone who if I am not happy with what I am earning, I do not take it out on those around me, I get off my backside and do something about it myself.
*shrugs*
But at the same time, I am pleased for someone if they are earning well. Regardless of if its more or less than me and regardless of the difference. I think many people get bitter or jealous when they work hard but don't earn the same (even if its in a totally different segment, etc) - especially if they feel they're not earning what they should be.
But at the same time, I am someone who if I am not happy with what I am earning, I do not take it out on those around me, I get off my backside and do something about it myself.
*shrugs*
This shocks me to be honest that its so low to be in this bracket. £80,000 a year allows for more expendable cash each month however, its certainly not a lavish lifestyle.
Soldato
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This is what I have learnt over the last few years. When I was in my first job after college, I thought £20k a year was something amazing to target. Then when I got there, I thought the same at £30k, £40k, £50k etc etc Now I'm beyond that point, I have realized that the more you earn doesn't always mean the more you can spend. The tax man takes a huge chunk for starters, so what you get in your hand each month isn't a million miles away from someone earning much, much less. It's not a huge change in lifestyle.
What is different, is to reach that point means taking on more work, responsibilities and stress.
My partner and I don't earn a lot at the moment but we saved for years for a deposit on a house (made sacrifices). When looking for a house we had a budget of up to £300k. We ended up buying a house for £160k. Mortgage will be paid off in about a year. I will be 32 and partner 29 then.
I keep a monthly spreadsheet of our finances and we have a set amount of "fun money" which we pretty much never reach since we are naturally frugal people. We don't have expensive hobbies and we are planning long term. We definitely treat ourselves but I guess we don't see value in material possessions as much as we used to.
When our salaries increase we will just allocate a certain % to the fun budget and the rest will go towards investments with the aim to retire early (before 45).
It can be done, just not along with buying a big house, expensive cars, high end gadgets/clothes/house furniture.
We also don't plan to have kids so that does help.
But I admit my friends don't know any of this as I feel like it would be awkward if I said I was mortgage free at 33 when they all have big houses & mortgages and all plan to have kids and move several times. The majority earn more than me I think.
I keep a monthly spreadsheet of our finances and we have a set amount of "fun money" which we pretty much never reach since we are naturally frugal people. We don't have expensive hobbies and we are planning long term. We definitely treat ourselves but I guess we don't see value in material possessions as much as we used to.
When our salaries increase we will just allocate a certain % to the fun budget and the rest will go towards investments with the aim to retire early (before 45).
It can be done, just not along with buying a big house, expensive cars, high end gadgets/clothes/house furniture.
We also don't plan to have kids so that does help.
But I admit my friends don't know any of this as I feel like it would be awkward if I said I was mortgage free at 33 when they all have big houses & mortgages and all plan to have kids and move several times. The majority earn more than me I think.
Soldato
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Well you'll definately pay your mortgage off early if you aren't having kids
Yeah true. No idea how much kids cost though to be fair! Are they as expensive as people say?
The ratio of takehome pay to work/responsibility/stress can often take a nosedive at a certain point, for example a manager earning perhaps 10-20% more than the top earners in their team but with at least two of the other three things massively elevated.
Even when you are earning more there's also the question of whether you are actually trying to change your day-to-day lifestyle anyway versus accumulating wealth for a rainy day / future lifestyle changes. Since buying our house my income has trebled and many people would have probably looked to leverage that salary to take out a bigger mortgage and move up the housing ladder, whereas we've stayed put. We haven't been overseas together in over 8 years, yes we bought a new (used) car but nothing that extravagant, most of the stuff I buy I'm always looking for value over best of breed. Where I have splurged out I've sometimes been hit with buyers remorse after a month or two - does that new car really help us that much? Was the excitement of upgrading my PC better than the actual reality of what it gave me? Do I actually need a dozen suits compared to half a dozen (even more relevant a question in the current situation!)?
Childcare alone costs a fortune! I'm lucky where i live childcare is cheaper but for my youngest to be in nusery it is £34 a day. Then in school term time our middle child goes to the same nursery as they do breakfast club where they drop her off at school, that £7 a day.
Then school dinners / uniform/ trips , the food and bits. Soon adds up. I don't regret having kids at all but i do regret not spending the free time i had before children doing more then sitting in front of a PC! Anyways off topic...
They are, but mostly in loss of income; I turned down overtime opportunities etc. to spend more time with my family and my wife switched from working full time to part time.
The cost of after school activities such as swimming lessons and gymnastics clubs can add up to £100-200 a month per child.
Quite a refreshing post, most people seem to figure out the maximum budget they can afford and spend that. I remember when we bought our first house I said we were looking to spend perhaps £125-175k but would flex for the right property and got really funny looks from the estate agent at the idea I would consider something under £150k if I had a budget up to £175k. Second house we spent £235k but could've gone to say £300k.
I also agree if you are frugal you can make big strides forward, a sad little game I sometimes play when I see people moaning about how they can't afford a house or a deposit or whatever is have a quick scan of their posting history and lo-and-behold many of them have better PCs, foreign holidays, nice cars, replacing one flash smartphone with another etc etc, basically better kit than I have despite earning a fraction of the income, which is fine as a lifestyle choice no issue with that but don't come moaning about affordability if you make those choices.
I'd completely forgotten about childcare! I buy vouchers via salary sacrifice so it doesn't feel like an expense any more - but yes that's a massive cost, especially in the early years.
So just to get this right. That's £34 after any help from the Gov? As in that's what you have to pay out of your own pocket for childcare? Wow that's crazy! Is this the norm?
Didn't realise it cost that much. Eye opening.
Soldato
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Yeah, I remember chatting to a guy a fair amount years ago on a car forum. He was a similar age to me (mid 20s I think) and was always moaning about how he was still living with his parents as he couldn't afford a house.
This was 20 years ago.
Now, this guy had just bought a porsche cayman s, some very expensive 5.1 speakers (worth thousands), TV, amp, computer etc etc.....and all he kept saying was there was no point in buying a house because all he could afford was a tiny 2 bed semi, and he wanted something like what his parents had (4 bed detached). His argument was that house prices were too much, so although he constantly moaned about his situation, he carried on spending his money on crap.
Looking back, if he had of bought a house back then, he would be in a far, far better position.
That is true. I guess it affects women more say as they have to take time out of their career to raise their children which can hinder their career progression. But also it makes sense to trade in those financial opportunities for your family as that is time you won't get back.
Balance is everything.
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