Thats’s like walking on water. Nobody is that rich.
What is a good salary in UK at present?
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Thats’s like walking on water. Nobody is that rich.
Soldato
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I think if I was single with no dependents I could just about get by on 15K a year if I went back to Lincolnshire - no idea how I'd do it on less than that, as you really need a car out there, and you'd struggle to rent somewhere as well unless you went into a HMO if you earnt anything less.
Are you in a house share or living with family out of interest?
Self contained 1-bed but very modern/refurbed nice bedsit/studio in an ex-council complex for over 55s.
As a single person I would say 50k to be extremely comfortable Midlands and North. (House ownership, holidays and hobbies)
There are massive variables though. I knew of people who earnt far more than we do as a couple but blew it all on takeaway, pubs etc and have very little. Massive mortgage and a smaller house and not even kids. (We have 2). They must have been on circa 90K combined before tax which is a huge wage for the east midlands. Living in a 3 bed semi.
This seems to answer the OP's question though.
Your household's income : Where do you fit in? | Institute for Fiscal Studies
When you think about your income, do you feel rich, poor, or just plain average? Find out where you lie in the UK income distribution.ifs.org.uk
You put all your bits in and it works it all out.
We are in the top 35% (I sure as hell don't feel like it) but if I were to sell off my kids we would be in top 12% which just seems mad and explains why a lot choose not to have kids.
Back in 2007 before we had kids and wages adjusted for inflation we were working in a factory in junior leadership roles fresh out of school that anyone could do. With overtime we had a combined salary adjusted for inflation of 80+K between us. I think that paints a massive picture in itself compared to now.
Just put figures in.
90+ (that's a 85k combined income) & 0 kids
2 kids would make it 72pc - quite the drop. Wonder how they calcs it
90 is a surprise seeing all the fancy houses etc out there. Certainly don't think going to end up with a house in top 10pc of houses.
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Which is why this thread is so dumb really. Totally depends on individual circumstances. Bought your "forever" house 20 years ago and on 85k combined now? You're golden. Not on the property ladder yet on 85k? Enjoy struggling to make ends meet on your average semi.
Permabanned
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I’ve got 2.
Also op hasn’t stated location into factor. That plays a big part in it.
Game over.
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I've no idea but if my Mrs doesn't find more work by Jan the 1st we'll be living off of my £47.5k wage. That'll be fun, mortgage of around £1100 a month and it's myself, wife and two kids. We'll manage, but it'll be tight budget wise. We do have savings we can dip into but obviously the aim would be to not.
There'll be no more cafe stops at the weekend or other treat type purchases. I can live with that though.
There'll be no more cafe stops at the weekend or other treat type purchases. I can live with that though.
Good luck. Your situation sounds like hell on earth to me in terms of having responsibilities and commitments. I'm a lone wolf type of guy.
Caporegime
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Surely everything is relative though? If you are high earner on say 100k a year but you have a big mortgage of 4k a month to go along with it then obviously it is going to effect you some what as that holiday to the Caribbean will have to be traded in for two weeks in Magaluf. Not to mention the rate increases on a 4k per month mortgage will be huge.
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Fair point about mortgage rates, which can impact many that haven't got longterm fixed (housey smug smile) but I was really on about everything else. I can only use me as an example, but had I not had a fixed mortgage, I still would not have struggled to pay my mortgage and I would not have had to cut back on other things too much. Now I am probably massively under mortgaged for my earning level and also I'm 56, so have had it a while and it would have been probably gone had I not got divorced.
I see lots of people referencing location and levels of earning for more normal roles and I get the importance of that. For serious high earners however, wage weighting based on location doesn't really exist. My commentary about location being irrelevant is based partly on that but also the fact that people will commute to where they need to be. Wealth will still live to means, but you have more room to play with typically unless you run the lifestyle to the limit, which of course many do.
But no question that this debate is 100% circumstance based however.
Fair point about mortgage rates, which can impact many that haven't got longterm fixed (housey smug smile) but I was really on about everything else. I can only use me as an example, but had I not had a fixed mortgage, I still would not have struggled to pay my mortgage and I would not have had to cut back on other things too much. Now I am probably massively under mortgaged for my earning level and also I'm 56, so have had it a while and it would have been probably gone had I not got divorced.
I see lots of people referencing location and levels of earning for more normal roles and I get the importance of that. For serious high earners however, wage weighting based on location doesn't really exist. My commentary about location being irrelevant is based partly on that but also the fact that people will commute to where they need to be. Wealth will still live to means, but you have more room to play with typically unless you run the lifestyle to the limit, which of course many do.
But no question that this debate is 100% circumstance based however.
This. Once you get past a certain level it's irrelevant. Even here where its super expensive, once you're past 250k, it's basically fine regardless unless you have an extravagant lifestyle.
I know a lot of junior people on 100-150k that would still be shaken by the macro factors and cost of going out etc. I remember hiring one grad who was fresh in CH, who was on 100k + 30k bonus and he was like I could never spend 10k a month. Catching up with him recently as an informal mentor......he definitely spends it and only nowis really startingto get to grips with real life.
So the world is basically the same over. Its not fair but it is what it is.
My parent's mortgage was sub-£100 in the 90s up until it was paid off in the mid-2000s.
My parents were talking about looking forward to paying theirs off only 3 or 4 years ago. It was like £150/month!My parent's mortgage was sub-£100 in the 90s up until it was paid off in the mid-2000s.
And, for more fun context, I bought my first house only 12 years after my parents did theirs. Similar house values in present day. My mortgage on that first house purchase is still running (I've made it bigger, but the original is still its own account) and it costs me £800/month.
I know you are generalising with the figures, but once you start to earn over £50,270, you become increasingly impacted by the cost of living. You will unlikely be able to afford a holiday at all with a £4k/month mortgage on £100k a year after tax. (ignoring the fact that lenders won't allow you to take a mortgage with those amounts)
Pay rises are a joke compared to inflation. If you get a 5% pay rise and earn over £50,270, boom, you only get a 3% increase in take home pay after tax. So you now have a 3% increase to offset against price inflation 3 times that amount.
Raising interests rates isn't working either. Inflation has increased far higher on the items that we have very limited choice in the amount of spending - energy, fuel, food, etc. The logic seems to be, spend less on food and the price will drop along with inflation (most have already switched to cheaper brands etc). The reality is, people are spending less on clothes, holidays, cars etc - but it's not making any difference, people still have to buy food.
Inflation has been caused by the pandemic, Brexit and the Ukraine war. People's spending habits are not going to fix it.
The country is being forced to make sacrifices to ensure the top 1% can continue to live their extravagant lifestyles.
Soldato
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Raising interest rates is working but will need even higher rates, or longer periods of it, ulimately things need to break, thats the point.
People are not spending less on clothes, holidays, cars, we can observe relevant companies, IAG posted results recently, and its looking very good, Cruise lines are operating fully booked, Disney parks are fully booked, etc.
Inflation is not caused by the ukraine war or brexit. The impact of the pandemic is the money being printed at extreme levels, that is your inflation.
Sorry, I'm struggling to make sense of your post.
What do you mean by money "being printed"? If you mean literally - printed cash is in decline.
Are you suggesting that the war in Ukraine has not significantly pushed up oil, gas and food prices?
Cars registrations are still at an all time low for the last 10 years...?
| Year | Number of new car registrations (source: SMMT) |
| 2022 | 1,614,063 |
| 2021 | 1,647,181 |
| 2020 | 1,632,064 |
| 2019 | 2,311,140 |
| 2018 | 2,367,147 |
| 2017 | 2,540,617 |
| 2016 | 2,692,786 |
| 2015 | 2,633,503 |
| 2014 | 2,476,435 |
| 2013 | 2,264,737 |
| 2012 | 2,044,609 |
| 2011 | 1,941,253 |
Soldato
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I use the phrase money printing because its easy to understand, what is happening is quantitative easing via central banks purchasing government bonds, therefore monetizing the debt.
I.e. The government creates a bonds, the central bank buys it from them, thus the government now has currency to spend and spend they do, hence the inflation.
Ukraine war has pushed up prices, but this is not inflation, market sentiment and various supply/demand side surges is not inflation.
People are not spending less, forget about car registrations look at companies that sell something you can cut, like holidays, look at the airlines, they are doing well, look at the travel industry and other consumer discretionary, spending is not reduced.
The country is being forced to make sacrifices, (but not enough yet), because the people of this country allowed for the government to lockdown the entire country, then print countless billions to spend in various things.
The top 1% are fine in all situations, they can continue to live extravagant lifestyles regardless of what occurs.
You go from 32% tax to 42%. It's not that big a deal.
Though the child benefit claw back hitting at the same point does start to make the eyes water. At 11% for the first child and 7% for any additional, you can soon be nearing a 100% tax rate, particularly if you have a student loan.
At that point you'd be upping your pension contributions (or doing APC/AVCs if you've got a DB pension) to keep below the threshold, and for tax relief.