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)

Salem, but why is your monthly mortgage payment??

That's what the majority of posters on here have been saying, that because of very high rent and mortgage payments in the SE 40k doesn't seem like a lot. Obviously in other parts of the country where rent and mortgages seem to be less than half then 40k does seem like a lot of money!

It all comes down to rent and mortgages I am afraid

I agree absolutely BlingBubbles. How can you compare when some folks mortgages and travel costs are sky high.

YANBU. I think the difference between £40k less tax and

Should have said that while I currently earn more that the £40k figure I am acutely aware that this could change very quickly and it worries me. We also only recieve CB and this will disappear next year.

£580 per mth, around £130-£150 per mth on fuel, another £60 per mth on childrens travel and lunches for DD1.

salem- when you say take home do you mean before or after tax?

before, would love if it was after lol, brings home between £2300-£3000 pcm depending on OT/time of yr etc

We earn quite a bit more than 40k but a lot of our income goes on overpaying our mortgage, into savings and into our pensions. As a result I think we live day to day on the net equivalent of about 45k.

We obviously live very well on this (or we would spend more and save less) but we have a few things that make it easier:-

We live in the north so everything is cheap.
Very low mortgage.
No commuting costs.
No debt.
Only one child.

We are currently ttc a second child so our income will go down and our expenses will go up. We both feel so lucky that this is not something we had to worry about.

Sorry - forgot my main point - that how much 40k is depends on what you have to buy with it.

There are choices you can make to make your money go further but I know for us we are probably in the region of 65:35 of good luck to good management.

(Our biggest piece of good luck bei g to meet and fall in love when we were very young so we were able to get on the property ladder very young.)

We did loads of travelling when we were younger and so didn't get onto the property ladder until well into our 30's. Lots of debt too down to our own mismanagement which i totally regret now in my late 40's.

We bring home over twice as much as the OP mentions and spend it thus, just to illustrate that like Parkinson's law of space you grow to spend the money you have. Well if you are pants with money like we are.

£418 interest only massive mortgage - a real worry
£800 various insurances, critical illness, private healthcare, two old cars, house etc
£178 electricity
£305 oil (old house)
£60 landline and mobile
£750 debt repayment
£247 council tax
£500 credit card bill repayment
£800 food

Bit more for birthdays, shoes, hardly ever buy clothes, odd holiday.

We don't have any savings, not a lot in the pension pot and I lie awake at night thinking how stupid we have been in the past. Paying off debt seems to be never ending as whenever the washing machine, car etc dies you don't have anything saved and therefore have to borrow again which is a vicious circle.

Entirely of our making, I feel so crap and envy people with the good money gene!

Puppypanic - we are in a very similar situation due to decades of travel and spending. We also earn similar and payments on loan and mortgage alone are well over 2K/month. No savings: I have no pension either.

We have made our bed and it is pointless to regret it. We have led colourful lives and we did what we did by choice for our own reasons. Now we are having to think harder about our finances and fortunately we do earn quite well.

Is that £800 per month on food?? How many children do you have Puppy?

puppy do you have a repayment vehicle for the mortgage? If not agree scary!

Puppy I know saying move house is not helpful but Jesus - move house! Gas, electric and oil that much?!?!

And the food :O how many of you are there?!

No repayment vehicle Noddy, I think about nothing else these days except what a mess we are in.

Acinonyx, I agree we made those choices and had the most fantastic time ever but obviously it catches up with you at some point. I guess being in our 40's closing towards our 50's has brought this cold light of day upon us. Funnily enough I wouldn't change the travelling for anything, just wish we had been more sensible since we stopped!

Cailin, we only have two children and a dog. Hands up you won't find me on the £50 a week food threads except to be totally in awe of how people can do it. We never eat out, have take aways perhaps 4 times a year but do eat organic food and always free range meat etc. I appreciate that this is an area that I need to work on in order to help pay off the debt more quickly.

Kayano, our mortgage rate is so good we literally can't afford to move - if we did we would just swap the hideous bills for a massively higher interest rate. Tbh I just think we are renting until we have to sell it and give all the money back to the bank in 20 years time or so.

It is an old house and costs a fortune to maintain and run.

It's not a fortune IMO but can be comfortable.

It's all down to different circumstances & personal choices really- I could say I was better off when I earned less money 5 years ago but then I lived with my parents vs. now when I have a mortgage & home improvements to pay for.

I don't mean to harp on but it should be easy enough to cut your food bill to £400 a month - we spend that much without being too careful - although you will have to lose the organic/free range stuff. If you could do that you could have £400 extra to chip away at debts which would be a great help.

You really don't need private healthcare. £800 per month on food is ludicrous so maybe you could aim to spend half that and the rest on your mortgage.

It might be best to rent out your house and rent in town meaning you will have far cheaper utilities and maybe get rid of a car or two.

CailinDana, you are so right I know. I feel like I'm drowning some days, there seems no point in trying to save a bit here and there when it all seems so impossible.

I don't have a weight problem but I can so identify with people saying that they eat the one more cream cake as they feel so miserable but then feel 10 times worse afterwards.

The house is falling apart, I don't think anyone would want to rent it tbh! It's a vicious circle.

i am shocked you can get a house a car and a baby on 20k

you could back in the day but nowadays, how?

sorry that sounds like i am suggesting you can buy a car a house and baby for 20k, I do hope you meant on an annual salary and of course the baby will not have been bought or for sale in the future and all that

Plenty of people have explained how Owllady. We're on about 31k but if we had only 20k we'd be fine.

Puppy it sounds like you can't see the wood for the trees. I know £400 a month doesn't seem much but if you think about it, that's £4800 a year, nothing to be sneezed at. It could help to clear your credit card, or stop you from getting into more debt, couldn't it?

how would you save up a deposit?