To Q why many high earners still live paycheque to paycheque?

Such a stupid response.

I earn over £100k. After I've paid mortgage and essential bills (utilities, council tax etc) I have £1200 a month left. From that I support a child at uni to the tune of £500 a month, which is the gap between what she gets from full maintenance loan she's entitled to, what her dad gives her (he's unemployed) and what she needs to pay rent and have a modest budget each week. She can't have a termtime job because her course is intense (medical) but did work all summer.

From the remaining £700 I spend £400 commuting to my job. Leaving £300 from which to budget for food, other household expenditure, petrol, kids' birthday and Christmas presents, and clothes for me and the younger child. At the moment both the washing machine and dishwasher are broken and the only way I'll be able to replace those is on credit card, which I then won't be able to repay.

This situation won't go on together but my spouse left 18 months ago (affair), we're trying to sell our house (which I'm still in) and until I can reduce the cost of housing, this is how it is.

It is ridiculous to assume that everyone who earns over £100k is rolling in money, without any knowledge of what their cost base is, or why.

2 in private school is £60k post tax round here - not a hope of sending with an income of £120k.

For us, we have a profoundly disabled DC who needs 2:1 care 24/7. We have no family who can help and we are only funded to about an hour a week so we pay a fortune on carers and on the equipment DS needs. We aren’t eligible for a lot of the support other families receive due to our income so instead it gets swallowed up. In school holidays, this costs us about £100 a day. DS gets through special needs buggies like a knife through butter - we have to replace them about every 4-6 months. They’re over £200 a pop. He needs a specialist car seat - £1000. Specialist bed - £5000. SALT is £70 for 30 minutes once a week.

My DH is on around £100k and I work p/t so I earn between £10-£20k. I know that’s a much higher combined income than many people but I can honestly say we feel skint at the moment! Certainly less well off than we were say, 5 years ago when our income was less.
Mortgage has gone up and is almost £2k, we’ve had no holidays in 2 years and are O/D mid-month. We don’t have a penny to save. Shop in Lidl/Aldi, I’ve bought no new clothes all year, kids have only had essential items.

Im normally the first to say 100k doesn’t go that far but it’s ridiculous to earn 10-20k & be skint & unable to afford a holiday particularly when 2k is quite a low mortgage vs your income. Even with 2 in private school there should be plenty left over. Presumably there’s either a lot of debt, &/or a huge amount going into savings/investments or maybe you actually have 5 dc in private school.

It happens really easily. I've worked hard to opt out, but many don't have that option.

Two higher earners in a household often don't have much choice over work location. This means high mortgage, perhaps less grandparent help, and may influence private school choice.

When all your co workers are sending their kids to private schools and have expensive clothes and cars, there is pressure to keep up to fit in. You then feel you have to remodel the kitchen so that your kids /family doesn't feel judged at the private school.

I'm glad to be away from that.

We have friends in that situation. Average house but in London, twins in nursery which costs a lot more than £2k.

They'll be ok in years to come, but at the moment they're spending more than they earn on an average house, childcare costs and the usual bills.

Well then do it? Go on I dare you.

Of course you'd have to give up your career that I assume you worked hard for and the sense of accomplishment that provided....oh and your apartment too as those on benefits don't receive money towards a mortgage or get to be choosy...but it's OK as you'll just ask the council for housing except....ah, you're in London you say? Still, housing benefit will pay for a private rental except...

local housing allowance only covers on average a third of rental properties and of those properties only a handful will accept benefit claimants but probably not the kind that 'choose it as a lifestyle'...and maybe not in an area you'd like...

ah well, temporary accommodation isn't so bad and at least you'll be able to save for your kids private education without housing costs...that'll help to get them out of the poverty trap...what's that? After £6000 savings they start deducting your uc and after £16,000 you're entitled to nothing? And after your kids have grown up and left you'll be left with standard single person uc with no secure housing, no work prospects, no private pension and no safety net?

As I said, go on, I dare you....

Mortgage, insurances, tax, bills are all through the roof.
Food prices have gone up, cars need petrol, school are constantly announcing themed days, activities and events/clubs which swallow a fair amount and then on top of that, we choose an easy life over a cheap one so we have a cleaner.

We live paycheck to paycheck but we thoroughly enjoy our lives.

I earn over £100k. The whole lot goes on the mortgage at the minute as interest rates are so high. We live in an expensive area and have a 90% mortgage.

Everything else is paid for by DH's minimum wage job.

Mine was because of the industry and company we was with and what we did and from what we got told about how our part was doing well, we presumed we would be in business for years then it was nice to be earning a good wage and the freedom, although in hindsight i should of presumed and saved instead but at least for me now, its lesson learned.

Its not unusual for a mortgage in london/South east to be 2k a month.

^ and the rest!

I'm bad with money. Spend way too much of it on 'stuff'. I actually spend less now than before (say 10yrs ago) so it's not necessarily life style creep. I can afford what I buy I guess but most of it is probably not necessary. Would have more money if I practiced restraint. But the stuff makes me happy (not just short term happy). No debts though except hefty London mortgage.

If you have a more expensive house, more expensive car, more expensive schools, more expensive holidays etc it will use up the higher wage in the the same way that the less expensive items will use up the lower wage. It's not rocket science.

Mortgage, childcare, school fees, holiday home, holidays…
with cost of living so high at the moment we all feel that the lifestyle we are used to is now very expensive. It might have felt like a lot of money once… but not any more (and yes, most people have less and don’t feel sorry for higher earners, and they are not starving)

My DH is on around £100k and I work p/t so I earn between £10-£20k. I know that’s a much higher combined income than many people but I can honestly say we feel skint at the moment! Certainly less well off than we were say, 5 years ago when our income was less.

100k is the equivalent to 80k 4 yrs ago

My DH is on around £100k and I work p/t so I earn between £10-£20k. I know that’s a much higher combined income than many people but I can honestly say we feel skint at the moment! Certainly less well off than we were say, 5 years ago when our income was less.

Mortgage has gone up and is almost £2k, we’ve had no holidays in 2 years and are O/D mid-month. We don’t have a penny to save. Shop in Lidl/Aldi, I’ve bought no new clothes all year, kids have only had essential items.

Yes, I know there will be posters thinking “boohoo - I earn far less and manage, get better at managing your money.” I feel embarrassed that we’re living this way when our income is good - I just feel like everything has got so much more expensive.

I have friends in London who pay almost £2k per child in nursery. If you have two pre schoolers and earn more than the free hours threshold, it's feasible that after childcare and London mortgage costs, you have hardly anything left

I earn less than 100k and take home more than £5k after tax & 8% pension is deducted.

We live pay check to pay check. We didn’t start this way, but we made long term financial commitments years ago when we never thought the UK would flatline economically for 16 years. After committing to a large mortgage and private school fees for two DC’s secondary education, school fees have rocketed and will soon rise by 20%, the mortgage has doubled. The low emission zone forced us to upgrade from our old diesel. Taxes have creeped up, I expect more hits come October. Inflation hit us all.

Luckily, we were conservative and made sure we had head room before making these commitments a decade ago. But we are now just about out of wiggle room.

We both work, and as the DC get through education and we pay down the mortgage, there is light at the end of tunnel. We will end up with a paid off house and we have been making pension contributions, so we will be fine in the ling run. But cash flow is tighter than we imagined it would be.

Just look at nursery fees, love 🙄

The people on £100k are not living in really cheap housing, shopping in Lidl, and wearing stuff from Primark.

People on 100k definitely shop in Lidl and Primark!

stagnant wages, inflation & money doesn’t go do far. A lot will be housing costs, someone who earns more than me but has less left over isn’t necessarily bad with money. They just might be younger and renting.

I know several who do the latter two, if not the first!

I have money left now but a few years back I pretty much live pay check to pay check.

e.g. when I earned £250k a year I only had a few thousand saved, everything else was spent (mortgage, school fees, holidays, eating out, clothes).

Basically I just like nice things and think life is for living.

Not sure if someone has already mentioned this but taxes are really high.

And like people have said before. Mortgage rates are pretty high even on a modest semi if you live in South East.
Nursery fees are high and you don't qualify for free hours/funding.

Commuting costs are high

Job is likely stressful so you want a holiday or 2 per year.
Pension payments take an extra 10%

Rainy day fund

Bills

Loss of tax free allowance if you're over $100k

No child benefit

All of a sudden that high salary isn't so high anymore and the difference between you and someone receiving free childcare, child benefit and UC isn't so huge, yet the whole country hates.

Because apparently you're rich.