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Do I need to worry?

(12 Posts)
Cardboardi Sun 12-Nov-17 21:54:42

This is very first world so apologies in advance.
Our financial situation is different to everyone I know. We have £200,000 in actively managed investment, from the profit of which which we draw our living expenses. We own our house. Between us though we only earn about £20,000 max p.a.. This is for us plus one child. I feel I ought to be looking for a better paid job, so we can have better cash flow, save etc. but i love what I do at the moment and really don't want to. Husband says I don't need to and we are financially secure. WWYD? This is stressing me out. We never feel in need, but then I know we spend a lot less than other people we know (we're pretty low maintenance).
Parents on both sides are financially secure and we have no other dependents. Investments aren't anything risky (except insofar as all investments are risky).
I just feel that I would be happier living on a salary rather than relying on the investment profit.

Cardboardi Sun 12-Nov-17 21:57:01

To be clear, the £20,000 figure is combined earnings through self employment. Then we use profit from investment to sort of 'top up' living expenses. Hope that makes sense.

Caulk Sun 12-Nov-17 21:59:07

Stick with it. Jobs where you love what you do are hard to come by.

Cardboardi Sun 12-Nov-17 22:11:13

True! Do you think it sounds like enough of a financial cushion though? (In case eg we need expensive medical care suddenly)
If we didn't have a child I would consider us loaded, but feel more concerned now with someone else to look after...

SonicBoomBoom Sun 12-Nov-17 22:37:19

Are you in the UK and able to use the NHS? If yes, why the worry over medical costs?

BarbaraofSevillle Sun 12-Nov-17 22:49:08

Do you feel comfortable? Can you spend as you need to? Do you own a property outright or do you have rent/mortgage to pay? Any childcare?

If you have no housing costs or childcare, £20k plus investment income may indeed be enough to live on.

Being low maintenace and happy on your income is a much better position to be in than being high maintenance and having to earn the income to support such a lifestyle. IMHO.

Cardboardi Mon 13-Nov-17 21:59:36

Yes in UK and able to use NHS. It was just an example - could be any sudden big cost. I think the thing is my family are very financially careful and husband's are much more carefree, so it is hard to know if I am being over cautious or he is being reckless.
We have a family loan for 2/3 of the value of the house, which is being paid off at a manageable rate per month and won't go up or down.
Childcare not necessary at the moment as my work is very flexible (self employed).

isthistoonosy Tue 14-Nov-17 05:25:52

Do you have a pension and plan to clear the loan before you retire?

Will you want / need a bigger house at some point?

I assume big bills are most likely to be related to the house or job loss, do you have some cash you can access quickly if needed?

Personally I would want to be earning enough to cover bills and not relying on the investment income.

Cardboardi Tue 14-Nov-17 21:40:24

No pension, but loan is from parents and the balance will come out of our inheritance if /when they die. Both self employed in areas that don't have a top age limit, and no plans to retire unless we had to due I'll health (we love our work and it's not physically demanding -arts). Will not need a bigger house ever. Big bills are all house related.
We can always draw on the capital in an emergency but would much rather not. I too would prefer to live on a salary which is why I am considering the job change.

Cardboardi Tue 14-Nov-17 21:41:47

The house is also saleable in an emergency, good area which holds value.

ofudginghell Tue 14-Nov-17 21:50:27

Many people would absolutely love your lifestyle and financial situation op.
I know I would even though we are ok as far as our household bills and rent are all paid each month,only a very small amount of debt due to be paid off this time next year and 2 young dc and a newish adult ds who now works full time.
Compared to where I was 20 years ago our life to me is rich as in bills paid and security.
I would love to own a home eventually but had my dc young so a mortgage and only a low pension will have to suffice until the dc are all older.
My parents are good examples as they had us young,bought their first house when they were 40 and are now mortgage free with two good pensions and still working part time for holiday spends and luxuries but they have the security of their own home and time to enjoy it all.
I hope to be like them at their ages.
Life isn’t all about what’s in the bank is it.
I say enjoy it op grin

Cardboardi Tue 14-Nov-17 21:57:12

Thank you. it is good to get perspective.

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