AMA Income over £500k

[AMAIncomeRelated]

Following the thread on the disadvantages of earning just over £50k, it got me thinking that if some people think that is a huge amount to earn, what do they think of my life.

We live in North London. Husband earns a lot, over £500k most years. We live in a big house, with a huge mortgage, 3 children at private school, 3 dogs, own a ski chalet which is let out as well as for our use. I don't work, I did try a part time job 5 years ago and whilst I loved it, it cause too much stress at home because my husband is used to me doing everything.

We obviously live very comfortably, but also there are lots of things we'd like to do but can't afford the big projects at the moment. My husbands job is very stressful.

AMA. I am absolutely not gloating, I know only too well how fortunate we are.

Do you volunteer or do anything like that?

@cestlavielife why do you feel it is sad that the OP doesn't work. You know employment is not the only route to fulfilment. That's a very limited understanding of what a fulfilling might look like.

I don't work. I haven't since the dc were born as similar to OP my dh was a very high earner so it made more that one of us was home and had the flexibility to work around the other.
Am I fulfilled. Sometimes yes sometimes no which would be what people working would likely say.

What I am is treated like a queen by my dh. I have a fantastic relationship with my 3 adult dc (as does my dh) and I look a darn sight better than friends who work as I have time and money to look after myself. I wouldn't trade in my life for many alternatives.

I think its interesting OP! I have a question - I work a lot in 'social justice' type field - I often see/ visit heartbreaking situations where amazing provision - ie. support groups/ adventure playgrounds/ (I particularly have an interest in children and young people) are closing because of loss of funds and I wish with all my heart I could help them.

I often think if I came into large sum the first thing I would do would be keep open a closing centre/ service etc - there are specific ones for me that I feel just devastated knowing they are going (due to austerity sadly. )

You have the power to completely change lives with your money - how much do you use the money to do things like that?

I've always presumed really rich people do a huge amount for charity but perhasps Im being overly generous!!

But generally speaking, houses are still one of the safest investments. You will capitalise more on the increased value on a more expensive house. Downsize in your old age and have the extra capital b

This is why people like us aren't rich!

Rich people hang on to it and invest it so they make even more and so they can hand it down generations.

I work with people who are really struggling and who are at risk of being made homeless. These are the people who give a tenner to homeless people!
I know because I work with them.
Rich people are usually tight with money IME.

I would give it all away too!

If you read the thread properly you would know that the OP was also a high earner and was earning more than dh. She will be returning to work at some point. So no, she didn't just marry a rich bloke.

And she's talking about household income. Not her income. So reign in your bile

What kind of backgrounds are you both from? We’re you both privately or state educated?

It's very easy to confidently state you would give all your money away if you were rich, when you're not.

I'm really interested in all (well some...) of the replies now. I will answer some of the questions but out of time now today to sit here and answer it all. I will come back on tomorrow for those that are genuinely interested, and lots of people have made excellent points far better than I could articulate.

It was never my intention to gloat or show off, I thought it could open quite an interesting discussion, and I believe it has, whatever your viewpoint...

How much disposable income do you spend each month and what do you spend it on? Do you have a lot of days out?

But generally speaking, houses are still one of the safest investments. You will capitalise more on the increased value on a more expensive house. Downsize in your old age and have the extra capital b*

Lots of them don't downsize though. They live in huge properties. My parents live in a rich area in Sussex. Nearly every house on that road is just a retired couple in it.

Yes!

Found this thread interesting. I personally respect you OP because you had a high flying career but chose to put your kids and family first. I appreciate most people cannot afford to do this but I also know many in your position would have carried on with the career and outsourced things like cooking and cleaning etc.
I could double our household income but I enjoy working part time and taking care of the house and cooking etc. I especially enjoy picking up DD from school most days etc and giving her a lovely home-cooked meal after school. If I worked full-time she would suffer with breakfast and after school and at her age of 4 I think it is such a long day. I do appreciate I am lucky and always plan for the worst.

Out of everything you've said this stood out to me the most. Surely you would know if money was going into your own pension pot or not? I can't believe any woman who's had a successful career pre children would just leave this to their husband to sort 🤔 I'd want to know the ins and outs of all our joint finances, particularly if I didn't have my own income any more!

Why wouldn’t she, her husband pays somewhere in the region of £250k a year into the system, they are therefore more entitled than most to benefit from it

I think it's terribly sad when people get their identity and entire sense of self worth from their job.

Once you retire you'll realise how quickly are replaced

I have two questions:
What do you do with your day?
What job does your husband actually do?

Interesting post OP.
Highlights how many resentful people there are out there.
You may not want to answer this one but…how much is your house worth/will it be worth when the work is done?

I ask because we are in a not dissimilar bracket albeit with two incomes, but we have chosen to have an unencumbered “cheaper” house rather a double fronter with a mortgage because I am quite risk averse.

Do you worry about your husband losing his job? One of us losing ours is what keeps me up at night despite having low outgoings aside from school fees.

(aware other people are kept up at night worrying about heating house/feeding children, all relative etc.)

Yh. I misread this as you having an income of £500,000 & was super impressed but its your husbands & the bulk of it goes on lifestyle expenses so no difference to a stay at home mum who's husbands on £100k give or take but does the bulk of state school runs/shops for whatever she wants at tesco or Aldi as oppossed to waitress/M&S & also used to work part time but gave it up to focus on the kids

Crack on with it though, nothing lasts forever so enjoy it while you can!

This is the problem with big incomes. The big expenses. Our net pay is significantly less than yours but our disposable income is higher as we don't have the large commitments

Can I ask how much you have saved / accrued (if it’s not too nosy). Your income is enormous but you obviously have large outgoings and a standard of life to maintain and I wondered how much was left. Thank you!

I’m just a bit shocked that after OP has paid the mortgage and school fees there is only £3k left! DH and I are retired and have no mortgage or children to support. We live on modest pensions of around 4k per month net, we don’t feel that well off.

I think it's interesting to see the budgets.

For example 14k a month seems loads. But when mortgage and school fees are deducted and you're left with 3k a month it suddenly doesn't seem so much (although my income is just below the £3k a month before expenses!)

For me it's interesting because I often wonder when you consider if it's worth it? Does a house that comes at £6k a month mortgage make you happier than my £600 a month flat? What's the pay off? (Although you have 5 people at home and we have 2!)

How much longer do you need to pay £5k a month school fees? Will you pay for your kids through u I if they choose to go?

How long until your mortgage is paid off? Will you downsize once kids fly the nest and is there equity to get them on the housing ladder?

Thankyou for posting because I certainly find the income and outgoings discussions interesting for high (to the extreme!) earners.

I'm currently doing a PhD in some AI/big data related field and a girlfriend who does a master in finance, we will probably earn a lot in the future, ask me anything!