If you are really rich

[sopsmum]

Now, I know this is all subjective, but if you are rich how did you do it. Do you have lots of different income streams. And how much take home makes you rich? Our income is fine (could always have more!) but everything is so expensive.

On paper we are rich. Don't live in London house but have a biggish house with lots of equity. Mortgage is a lot lot less than I see others paying on rent for smaller houses. I'm a professional. Husband owns his own business with largish turnover. I'm lucky to be mid 40's as those younger than me appear to be even more fucked.

But, we don't live extravagantly (no new cars). One child in private school (with a bursary) but state primary for the others. Literally no idea how I'm going to pay their fees when the time comes as I can't really afford the fees for the one that's already there. Have only paid for 1 term so far and am dreading the next payment already.

I haven't been to the supermarket for 2 weeks so just eating through the cupboards. Paying the kids football subs nearly killed me. We never eat out. I'm constantly careful about what I spend and haven't bought myself any new clothes in over a years. We didn't go abroad this year. I had to put the car insurance renewal on a credit card. The roof is leaking.

It isn't just the school fees that have done this by the way. We were fucked before we started shelling out for those. I'm just very interested in how others manage as everywhere I look in my affluent little bubble everyone else is having 3 holidays a year and buying new kitchens from Neptune. A friend of mine spent £11k on 2 weeks in Majorca. Seriously what the fuck.. I'm just wondering if I'm totally out of touch with what is a good salary and starting to think everyone else must be taking home £10k a month.

This isn't a poor me thread. I know I'm privileged. I grew up without much money at all and know for certain that family is more important than money. I just thought as time went on we would be better off. I definitely had more disposable income earning half as much in my 20's.

How much is your income?

It’s a bit vague otherwise. Your neighbours could be on double it whatever.

imo you're not rich until you don't need to work. So, you have assets that provide a wealthy lifestyle, but other people run those businesses.

Anyone who can't survive another 20 years unless they continue to work is 'well off' rather than rich.

It's very easy to be blind to just how much money people in the top 20% have - even those on 6 figure incomes are just scraping by in comparison. The vast majority of people who fit into the rich category inherited the wealth.

Dickens nailed it when he wrote "Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

Maybe have a look at which of your outgoings you need to economise on.

Our income is over £100K and I think we're extremely well off. Not 'really rich' as in the title but we are certainly not struggling.

We have a tiny mortgage, both cars are paid for and no debt so we're in a very fortunate position. It's definitely not always been like this and we're both still pretty careful with money because up until DH started his own business 5 years ago, we had to be.

I know there will be plenty of people on here say that it's 'not that much', but not living in London, I think it is and we're very fortunate.

If you want to be rich you need to inherit, invent something or a service or win the Lotto.

That wasn't me yulet !! I completely agree 300k is loads!!

We have a healthy 6 figure income. Plenty of people do seem to afford the lifestyle I want to have. They often only have 1 person working. I've got the right sort of job as does my dh. We bought early so have lots of equity. If you saw my house you would think we were rich whereas we have just made some savvy house moves.

I've probably over exaggerated the fees. We can just about afford them because I'm being super careful and we put a bit aside before now. We couldn't do it out of income though, but hopefully careers will have progressed in a few years. We used a state primary deliberately to save a few years. We can't afford new cars and holidays as well though. Or to get the roof fixed.

In the meantime everywhere I look in my affluent area (think market town environment) people are putting vast extensions on their homes and spending £5k on a new sofa. Whilst sending 2 or 3 kids to private school and planning ski trips and summer safaris. I feel like I'm living in a twilight world and I'm struggling to understand just where that sort of money comes from particularly as I have always thought of myself as a relatively high earner.

I'm guessing it's either inheritance / family gift;
Enormous 300k salaries or
Multiple income streams.

It's very easy to be blind to just how much money people in the top 20% have

You mean the top 1%? 20% of the world (or even the UK) is not in the "too rich to need to work bracket" . I am in the top 1% and I definitely need to work. Jeff Bezos is also in the 1%. He would consider me a total pov.

Me and DH have a very high combined income and still don't feel rich. I think it's more of an attitude/mentality.

We have no kids yet but baby coming in December, currently doing up our house and had to move out due to builders destruction, living with in-laws to avoid paying rent and honestly this house is just getting so expensive stuff comes out of nowhere! I see others moving out to do extensive luxury re-modelling renting round the corner for 6k a month at the same time as paying builders and mortgage on a huge London townhouse earning less than us combined and I'm like wtf! How do they do it?!

Lots of my friends/acquaintances fund holidays & home improvements through family gifts & or remortgaging.

Most likely very large salaries for the primary earner

I'm not rich ( I wish!) But my parents for all terms and purposes are and lived accordingly. We went on 3/4 holidays abroad every year, had new and expensive cars (my DF had a taking car in the 80s!)
However, they taught me that I always had to "earn" things. So never got expensive presents from them and my weekly allowance of was enough for a meal deal at mcdonalds and a movie ticket. Didn't have a PC until I was 16 and my first Discman I had to buy it myself at 17.

Went to private school, had a live in maid, nanny and gardener/handy man.

My DF is an entrepreneur and my DM is an academic, but her family was proper aristocracy (the type of everything you can see from this point is ours), so had an independent income from them.

We are probably also in the top 1% of UK - made money by working overseas, but it doesn't suit everyone.
Would never spend 11K on a holiday to Mallorca, regardless of income!

Can't believe a poster earning 300k doesnt think they're that rich
My dh has temporarily got a pay rise which means we are about a £1000 per month better off which is about 25% increase on normal monthly earnings and i feel rich - I wouldn't know how to spend 300 k !

We're in the top % and although I feel comfortable I don't feel particularly 'rich'. We take normal holidays, fly economy, run normal cars

Now, I know this is all subjective, but if you are rich how did you do it.

• ours is entirely through work, no inheritance or a penny of parental money. Sales based jobs, bought property at the right time, started own business which is doing really well. V lucky.

And how much take home makes you rich? Our income is fine (could always have more!) but everything is so expensive.

-We're on £200-300k plus, so not super rich but v lucky. We're also v lucky in that income is projected to grow and savings (if you include business saving) are £1m+

This was utterly unthinkable when I was growing up, and sometimes I look around and can't believe it

I'm always intrigued to know what the self made businesses are that pay out 200k plus a yr.

How do you have a six figure salary, a low mortgage and not be able to afford to go food shopping op? Or even buy new clothes? What do you spend it on?

I suspect some of those people who you are looking at have jobs where they get share grants as bonuses.

Interesting - Top 1%

Nationally: Men: 200k, Women: 100k

But huge regional variations, so London you need 300k to be the 1% whereas in Wales only 100k. 160k in London doesn't put you in the top 5%.

What do you mean on paper you are rich OP? Do you just have the one house or multiple? A significant amount in investments?

I wish I knew bluntness. I literally have no idea. Our mortgage is £1500 a month and council tax £350 so I guess that is a biggish chunk before we start. Mortgage is low for size of house we have and is comparable rent wise for a small 2 bed flat.

Some of these comments.

I got it through hard graft. Hard graft
No handouts, I’m not a work shy sponger! No implications here, of course.

Many people on ‘handouts’ are working full time.

Because a vast amount of people living in poverty right now just DONT work hard enough. They need to up their 12 hr shift, appreciate the beauty of the zero hour, and just work fucking harder.

Fucking ignorance.

@snottysystem In our case high end sales (without being too specific). Business is circa 10yrs old now and has a number of employees

It's just so subjective. If you have nothing, then a £40k salary seems fantastic.

I don't have to work (although I do p/t) and I have horses and a gym membership and other trappings but I'm not rich by any stretch.

My oh earns nearly £500k a year (he doesn't support me btw - I have my own money) but he doesn't see himself as wealthy.

I have a friend who inherited multi millions. They're rich by anyone's standards!!

We just have the one house and some small investments. Nothing accessible. House is worth about £1m, maybe a bit more.

How do you qualify for a bursary?