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

[mummymacbeth]

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)

Vivienne
More than half of the people in this country do exactly that.
It is a failure of the imagination of the rich to comprehend such.
Which is why so many politicians and Journo's make such crap decisions

"£688 a month to pay for council tax, untilities, insurance, petrol, clothes, TV licence, school trips, other extras."

Where has the figure of £688/month come from?

talkinpeace if debts are unsecured not priority debts (current housing,ct,water) and they are in dire straits then they should be perfectly capable of sorting out affordable repayments.

yep sky tv and smart phone as well as none essential new clothes are not necessities but neither is exercise. paying for exercise is a luxury and a choice

But they aren't managing on that amount. They are getting help from somewhere. Be it their parents or the state or loans. Not saying this is right or wrong. I'd like to see a budget on how somebody could pay mortgage or rent and food and all bills for a family if one person only is working and earning £19,000 a year gross.

When I saw this title unthought YABU but then I realised that's what we are on as a couple. That said we do live somewhere v expensive so over 10k a year goes on rent alone. Child are is not much less. We are comfortable enough in that we have full Sky/Internet etc but don't have a car. Don't get a holiday every year. That said we COULD save, we're just both terrible at it. Managed on just 1 wage for 3 months of my maternity, and 3 months when DP lost his job so it is do-able. No credit we cant afford.

I agree about the exercise sock - the last time I went on an exercise kick I started running. Totally free (apart from the cost of a pair of trainers) and very very effective. Looked lovely on my wedding day I did :)

Vivienne - the approx monthly take home pay of someone on £19k is £1290.

The fixed monthly outgoings of my family are £1000 so we could easily manage on 19k and still have 290 left over for extras.

Vivienne
What on EARTH makes you think that people earning under £18,000 have parents who can lend them money.
Round here there are families who are third generation non working and the older generation are all on disability benefits in rented or council or ex council houses.
ONLY the top 10% of the population have free resources to pass on to other family members.

It astonishes me how LITTLE Mumsnetters know about how the bulk of the country actually live.

The three bed terrace across the road to me is rented to two couples four children under 10 and two single guys.
THAT is how people cope on low incomes.

BTW that take home pay doesn't include CB or CTC which would add a fair bit to the amount.

Part of it imo is the idea of the salary. We've lived on everything from free milk vouchers up to what we're on now, but when we were on a low salary I used to 'make do and mend'. On 40k, you do feel like you should be able to afford swimming lessons etc and see them as one of the benefits of earning a higher salary. They are not essentials but if you can't afford whatever it is you've decided a 40k salary should be able to pay for, it is easy to feel hard done by.
Between 20k + benefits and 40k the main lifestyle differences for us were the kids classes, another car (not buying it, we were given it, but upkeep at around 1500 or 2000), not going to the coop at 9pm for the discounts, and less stress over things like needing a new boiler. That's a big difference actually, the lack of stress that one unexpected bill will tip you over the edge. 20k + benefits used to work out for us closer to 26k I think, and of course the 6k is tax free so nearer 8k so 28k (that's just how I seem to remember it)

I think I must be coming across as somebody who doesn't have a clue on how people manage. But people can't manage without state help. Quite a few young couples that I know seem not to be able to afford to buy a house. Even when they are on reasonable wages.

So that's how I can't understand how people manage on gross income of £19,000 and pay a mortgage or rent. So if people are getting CTC and housing benefit then that must be taken into account.

Vivienne my mortgage is only £320 a month, very easy to afford on 19k. We saved for years and years to get our deposit. We had to choose a cheap house in an area with a poor reputation (though it is actually a great place to live). A couple on 19k would not get any housing benefit. They would get CTC but not much.

cailinDana

with a 19k income befor deductions and 2 children 1 parent working no childcare costs

cb would be 1,820 rounded up to £35 a week as i cba to go to the penny
ctc would be 3,322.50

vivienne if it would help tell me how many kids this family would have what childcare is and what the rent is. that way we can include these things

Tax free

"20k + benefits used to work out for us closer to 26k I think, and of course the 6k is tax free so nearer 8k so 28k (that's just how I seem to remember it)"

So not too much different from someone earning £40K, by the time they have had their tax deducted. (Although that doesn't take into account the £20K would have some tax deducted).

merci 6k is 6k not 8k thats a very weird way to view it. 6k is what you get in your hand.

if you have 6k thats not tax free then you dont have 6k you have 6k minus what ever the tax is

It was just at the beginning of the thread somebody said they could easily manage and be fairly comfortable with one person earning £19000 a year and paying rent or mortgage. I think they had one child. And I thought that would be really difficult. I know a young person who earns £1000 a month net and lives at home. Makes out he can't afford to pay his parents any rent at all. And can hardly manage. Now this sort of thing really annoys me.

Like I said Vivienne, DH DS and I could manage fine on 19k. We wouldn't be rolling in it but we wouldn't be struggling either.

That young person you know is taking the piss. What on earth does he spend his money on?

Well I don't know all the inns and outs. But he did rack up a fair bit of loan when he left his job for no good reason and didn't have one for a few months. It does worry me when I see these adverts for those pay day loans on TV. But that's another story. I think they should be banned.

Thanks for link. I agree, the comments of move elsewhere then aren't helpful as the work isn't elsewhere is it?

How could you not afford to pay rent to your parents on 1k a month? Thats just ridiculous

According to Wiki, in 2011,

'the after-tax earnings of the median household was around £26,000 per annum while average net household income (after tax) stood at £38,547.00.'

Lots of interesting stats here

Young man in London:

Fares: £120pcm
lunch: £ 40pcm
phone: £ 25pcm
s/loan - debts: £300pcm
barber: £ 15pcm
toiletries: £ 15pcm
work clothes £100pcm (if needs to be smart)
modest spends £200pcm

That would leave about £80.00 and I don't think he would be doing anything very extravagant although the debts would have been foolish. As a parent though I'd rather my son repaid his debts than paid housekeeping. He coudl do without spends but personally I think that would be unreasonable.