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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

In thinking 40k income really isn't a fortune??

731 replies

mummymacbeth · 25/08/2012 19:25

Yes, a thread about a thread kind of. And I am fairly sure it has been done before but still!

I really don't think a forty grand gross income is a fortune. Our income with two kids is currently a bit less than that, though has been that in the fairly recent past. It is - and was - a bit of a struggle. We are not in the south east, we do not have a huge mortgage, expensive cars, kids are at state school and we don't manage to get abroad every year. We are living from month to month. A "fortune" it ain't!! (ref the post about someone wondering whether to have a fourth child)

OP posts:
mercibucket · 26/08/2012 09:57

Yep, cakebump, I'd feel way more than comfortable too on 40k if I didn't have any kids :)

It's the flippin' kids that cost all the money, and that's what we've ended up spending it on as our income has increased. First swimming classes, then footie, then gym, better shoes, nicer clothes etc etc

I dream of living on 40k with no dependents - I'd fall to sleep counting my pennies every day :)

mercibucket · 26/08/2012 10:02

Has anyone worked out what 40k is net per year yet? I guess for single earner and joint. We also now pay a huge whack on pension contributions as dh is a teacher and contributions have increased a lot. I know some people don't pay towards pensions so maybe that doesn't count, but I guess someone will be paying for those pensions and pension credits later on. Or maybe not actually, once the Tories have finished!

LilyBolero · 26/08/2012 10:02

Ven't read the whole thread, but 40k is about 29k after tax, which is about where the proposed benefits cap would be.

And that apparently was plunging people into poverty...

LilyBolero · 26/08/2012 10:03

Sorry, should read Haven't read, on phone!!

mercibucket · 26/08/2012 10:06

And maybe some would say they are paying for dh's pension, so swings/roundabouts :)

ShellyBoobs · 26/08/2012 10:08

We also now pay a huge whack on pension contributions as dh is a teacher and contributions have increased a lot.

That's not compulsory, though, so no different to anyone else choosing to pay into a pension, surely?

CherryBlossom27 · 26/08/2012 10:18

IMO your disposable income is the one that matters, e.g what you have left after essential outgoings as everyone has different outgoings like travel costs, different mortgage rates, rent, etc.

It really depends on where you live I think. By that I mean what area are you living in, e.g. London or Bolton for example as obviously it is more expensive to live in London plus the housing costs are much higher in London.

I think it also depends on what you consider essential outgoings e.g car, holidays, days out cinema, cigarettes, alcohol etc.

Another factor is how much money do your friends and family earn, as I know someone who is doing really well (in my eyes), but her sister earns a lot more so this person feels she's not well off.

PropertyNightmare · 26/08/2012 11:30

Yanbu. £40k a year makes for a reasonably modest lifestyle. Reasonable house, car etc but nothing very impressive or fancy.

BlingBubbles · 26/08/2012 11:40

Cherryblossom, you are spot on, it all depends on your disposable income, someone on a 100k could have the same disposable income as someone on 30k. Everyone's outgoings a month will be completely different, for example every month we put money away in savings for us, put money in savings for our DD, pay into investments and pay pension, plus all our bills and mortgage and childcare. To us paying those things are important so that reduces our disposable income quite a bit, however should our financial status change we would stop saving and stop the investments to ensure we had more moment to live on.

M0naLisa · 26/08/2012 11:43

£40k is a lot to me.

The lat year we earns an annual
Income of £6k so go figure!!!

LynetteScavo · 26/08/2012 11:50

If you earned 6K you would have got a lot of working and child tax credits, though, surely.

M0naLisa · 26/08/2012 11:53

Not really cos it was only from one job so when that job finished w didn't get wtc or ctc at £80 per month but DH claimed jsa when out of work

M0naLisa · 26/08/2012 11:53

Sorry we of got ctc and no wtc when that job finished

BuntCadger · 26/08/2012 11:54

Yanbu, the take home is considerably less and it isn't bumped up by tax credits. Often the mortgage payments are fairly large too. It's all relative, but around 40k in south east in privately owned and 3 kids is not a vast sum.

M0naLisa · 26/08/2012 11:54

Grr autocorrect.
We only got ctc and no wtc when that job finished

BuntCadger · 26/08/2012 11:55

M0na - but surely on an income that level you have help with housing costs, prescriptions, tax credits, school meals?

movelikejagger · 26/08/2012 12:07

No 45K is not a lot but it depends where you live.

Anotherusefulname - how on earth do you run 2 care, have sky and holidays of £19K PA - well done for you but what is your mortgage or rent?

If you live in London, pay for full time childcare and have a recent mortgage then it is not a lot.

Did you have to pay for your own education? i.e. do you have student loans?
It is all dependent on your outgoings.

My husband and I have no debt other than student loans and a mortgage - we earn more than 45K but all our money goes on mortgage, insurance and childcare fees. At the moment we are not able to save but that is because I had to use savings when on mat leave and also needed to help out a single parent we knew who fell on very bad financial times.

This is the only time I have not been able to contribute to a pension too as I needed to have the cash.

There is no way we would entertain running a car in London on our income - so public transport everywhere.

We also have no other family - so it is not a case of ever being able to rope in family to help for childcare.

movelikejagger · 26/08/2012 12:11

mercibucket - my employer contributes a whopping 1% to my pension - go figure what that return it - it is nothing really, but I am aware that many people have no pension eligibility at all.

In some ways i wish had become a civil servant or a teacher for the holidays....and the great pension.

M0naLisa · 26/08/2012 12:13

Yeah we do. But we still have bills and arrears to pay plus food and gas and electric. £180 per week gets you no where.

valiumredhead · 26/08/2012 12:21

It complete;y depends what your mortgage is , where you live and what your outgoings are.

CakeBump · 26/08/2012 12:21

I've been signed off work sick since May, and they stopped paying me last month. I'm still classed as employed there though, so I can't claim any benefits.

DH has his own business, which is struggling as its a new start up. He hasn't taken any personal money out of it yet at all, although to be fair our rent and bills go out of the business account.

So our personal income is 0k at the moment. No benefits. We are also non UK.

I think if you can't live on 40k a year then you are not cutting your cloth according to your means...

NarkedRaspberry · 26/08/2012 12:22

This site gives figures.

For a couple earning £40k gross (18k and 22k) the net is £31,924.

Take off (modest for SEast) housing costs of £600/month = £24,724.

Take off a season ticket to London for 1, say £3,500, = £21,224

Full time childcare for one under 2 say £900 a month = £10424

Standing charges of running a car (£2,400 according to AA) = £8,024

Leaving £668 a month for petrol, food, clothes, household insurance, council tax, utilities. Comfortable on one child.

DizzyBeeisSchoolShoeShopping · 26/08/2012 12:24

I disagree, I earn less than half what you earn and I still manage to save £100 a month.

DizzyBeeisSchoolShoeShopping · 26/08/2012 12:26

movelikejagger, but you can choose the amount of your mortgage - you buy a house to cut your cloth. If houses in London are too expensive for the amount o mortgage you can service then you move out of London before buying a house - surely?

alemci · 26/08/2012 12:35

depends where you live and how old your children are. i don't think it is a great deal as everything has become so expensive.