High earners - how do you spend your salary?

You can’t take it to the grave

Don’t make the assumption that those on lower incomes don’t also work extremely hard, or aren’t educated. There are people working 2 or 3 jobs to support their families.
I think @lancsgirl85 made a quite a thoughtful point about inequality.
It’s not about higher earners having to feel bad or apologise - but how about just a little bit of awareness that a large portion of the population is struggling to make ends meet?
We all have our talents in life, but not everyone’s skills lead to a lucrative living unfortunately, hence the inequality.
However, if I were as fortunate to be in the position of having as much disposable income as the OP, then I would spend it on having lovely experiences with my family and friends, and eating good quality food, rather than on material things like expensive clothes, gadgets etc, which you’ll soon tire of and get rid of. Although a house in a nice quiet area with a lovely garden would also be wonderful.

I do school hours. I just try and be happy as my dad was too sick when he retired to enjoy his money. So I learnt alot from that. More money is more stress too lol

@andtheycalledthewindmoriah

Thanks that explanation does actually make sense.

I was more just saddened that someone can't buy a loaf of bread, in the UK in 2022. Minimum wage or 100k - everyone should be able to afford those basics imo.

@hattie43

Thanks, I realise that. I earn relatively well myself - quite a way about the average U.K. salary - after 15 years of study, hard work and sacrifice and 3 university degrees including a PhD. Did I ask anyone to apologise? I am expressing sadness and empathy for those who have fallen on hard times, for whatever reason. It absolutely does sadden me that someone might be unable to afford a load of bread in a developed country. It could be any one of us, at any time, who might overnight be suddenly disabled or otherwise unable to work. My PhD isn't going to help me is that happens, is it.

Thankfully I didn't need to study empathy for the less fortunate, I was just born with it.

There is actually a real reason why there's inequality.

We need a large portion of society to be in debt to maintain the debt-based monetary system that we operate.

If people stop taking out debt, then no money can be created.

Everyone cannot be wealthy, everyone cannot be middle class. The working class and the low paid are the literal reason this economy has come this far. They are essential. They spend money and keep the economy going. If everyone just let the money sit in a bank there would be no cash in circulation and the system would completely crash.

Well, depends on whether earning a lot of money is your only goal or if there are other things that matter, too.

I'll see your piece of likely unwelcome advice and raise you a piece of unwelcome advice;

don't save it

invest it.

People don't fall into high paying jobs it often takes years of study and hard work .

If the lady can afford high quality cat food why not . I've just fed my two dogs diced beef for tea . Will I apologise for it , no absolutely not .

Threads like this just make me realise that slogging my guts out in the NHS for 45 years was completely the wrong career choice. The most I ever earned was a quarter of the OP’s salary.
The salaries mentioned on here are beyond my wildest dreams.

You have had very sensible suggestions on here.

My words of experience are, if you know you want to have DC at some point, and your career will still be important to you, make sure you try to get that big promotion before you have DC.

I see it time and again, in a variety of sectors, including law, to keep the same trajectory in your career, you need to have wrap around, flexible childcare i.e. A nanny.

You should start thinking about that and whether you need to start a pot of savings for childcare that will enable you to maximise your career.

We’ve always been told by financial advisors to get rid of debt really before doing anything else.

That is some interesting advice. Odd that none of the high-net-worth individuals I happen to know (through work in private aviation business) follow it, all happy to use someone else's money if they get it cheaper than what their investments bring.

Pay max into our pensions, maximum into our S&S ISAs and then anything else we invest in we try to avoid things which attract CGT.

We don't have a mortgage and no longer any school fees or uni costs (DD is past both stages now) so life isn't that expensive for us anymore.

We both travel extensively for work so don't tend to want too much more travel for holidays, but we do have a second home.

Biggest expense these days is cars and then rarely a bit of jewellery or a watch, maybe.

People say "live for today!" but I'm not even sure what that means, to be honest. I don't like throwing money away just being extravagant for the sake of it. No pleasure in that in my opinion.

@Robinni what is wrong with somebody from a humble background asking other high earners how they manage their money?

The girl has no social reference points

Lol. She's a lawyer FFS. They're not famed for their stupidity. She's not some 16 year old straight outta hicksville.

Not sur what high earners are, we're on 130k approx combined in the north west so comfortable but with 4 young kids it goes on nanny, kids activities, family activities, holidays, on top of the essentials.

😂

Sorry @SicParvisMagna just seen you have already got LISA accounts. Maybe speak to a financial advisor? Property abroad prob not great idea - depending where it is it could devalue more rapidly, plus if there is a problem you have to travel to go and sort it out… still mid pandemic so probably not ideal unless you have complete confidence in a management company abroad and a stream of locals to rent it whose income is secure.

Moving abroad could totally work DH can write anywhere can’t he? Wish you well whatever happens.

@Citygirly if you don't want people to tell you YABU, you maybe want to rethink about posting on the YABU forum. If you want financial advice maybe post on the financial forums, just a thought 🤷‍♀️.
But we know you didn't really post for advice and as @orwellwasright said, in the future you will be getting the ick when you remember how your current self behaves.
This isn't a case of read the room, it's more like read the country.

@SicParvisMagna I don’t have experience of renting a property out abroad but I have the reverse of that I have rented out my UK property whilst living abroad absolute nightmare cannot discourage you more strongly from that idea.

Help to buy ISA for first time buyers has closed to new applications. The LISA is the new thing for under 40s.

Otherwise I would agree buy a house circa 200k after a few years saving and wait until the crazy prices subside a bit…. Market is cooling some have said it will bomb 2026.

www.moneysavingexpert.com/savings/lifetime-isas/

I earn about £90k, but this is vastly more than my parents earned ( taking into account inflation). I tend to be careful with money which I think is due to my background. Interestingly, a lot of my friends who earn less but come from wealthier backgrounds spend a great deal more than me.. 30 per cent goes into my pension (,Inc employer's contrib ) and I max my ISA allowance. I tend not to eat out a lot but I take courses, go to the theatre and galleries. I do feel lucky to not have the financial worries my parents had.

@Onwards22
I'd love to say something useful to society but sadly just necessary evils - insurance and law.

Thanks! We both have a LISA, was paying in £200 each a month a couple of years ago, then my husband lost his job and we had to stop for just over 2 years. Now paying in £50 a month which is better than nothing I suppose. I would aim to max those a year if we can, and then would have to look into other investment ideas.

The house we rent sold in 2018 for £200,000. Luckily my best friend bought it as she had just come into some money so she bought it cash. Lucky bugger. I am on the Essex coast so I am assuming it's risen insanely since then.
Another possibility would be property abroad and either move or rent it out. But that seems like a very long term pipe dream currently.