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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:
salemsparklys · 27/08/2012 18:38

Our private healthcare is £50ish for a family of 5 per mth, we use it for DH's/my glasses, if any of us need physio etc, also get £ back if your in hospital. Its taken off before DH's wages even hit the bank so we dont notice its gone tbh.

Puppypanic · 27/08/2012 18:51

Ok I think I'm feeling more positive thanks to you lovely mnetters!

The health insurance is a weird one. I watched a close family member die from cancer a few years ago and they had private healthcare, it helped a lot to see that they were getting the best care possible and as quickly as possible. I know this sounds really silly but we've had it for 15 years and I can't help thinking it would be sods law if we cancel it and then illness strikes plus it would feel like the whole 15 years of premiums would seem like a total waste if I never got to use it which is so stupid I know. That's what insurance is all about isn't it, hoping you never have to use it.

Is it easy to move credit card debt once you are already at the limit? I wouldn't have thought they would want to know once you had racked up the bill. It is the priority though to pay I can see that.

Socknickingpixie · 27/08/2012 18:57

goingfor gold if you tell me how many hours you both work and how much childcare costs i will tell you how much you could be entitled to

PooPooOnMars · 27/08/2012 19:00

Yeah its easy to do a balance transfer to another card. The one you are with won't just suddenly give you 0%, you'll have to move it. Halifax are doing one at the moment, you can apply online.

If you are paying interest on your credit card you are going to be wasting a huge amount of money and it will take you so much long to pay off. How much is on it?

You have to apply and then see what credit limit they will offer you which will depend on your income. If its not enough to transfer the whole balance you can take out two or however many you need.

What you must not do though is keep building up credit card debt.

I can see why you want your healthcare. You can definitely save money on your shopping though!

GoingforGoingforGOLD · 27/08/2012 19:09

Hanks socknickingpixie that's very kind

We both work full time so 37.5 hrs I think it is

Nursery fees are £1000 a month (varies slightly as Dp works shifts so two weeks of each 4 they do a longer day)

I can't honestly believe we'd be entitled to anything but my employer would be amenable to me reducing my hours and I'd so like to be at home more, it's certainly worth looking into

AvonCallingBarksdale · 27/08/2012 19:14

Do not have time to read 29 pgs, but, 40K is a meaningless figure. IT all depends on where you live. We are in prime commuter belt and DH earns a lot more than this, but we live month to month really. Not on our uppers by any stretch, but certainly not many luxuries going on. If we lived in south Wales, say, 40K would be a huge salary.

meetupmisery · 27/08/2012 19:37

Our household income is way above this, I never feel like we have loads, i know we have so much more than in past but I think we going terribly wrong somewhere with our budget and general use of income. I don't think 40 k is much.

Socknickingpixie · 27/08/2012 20:04

goingforgold.

asuming you have no declarable income higher than £300. (not inc child benefit,maintainance childrens income)

you should be getting approx 3200 pa ctc

QueenofPlaids · 27/08/2012 20:10

It's not a dreadful income by any means, but depends on your outgoings, dependants, location etc. For a singleton, you'd probably be pretty well off (unless trying to buy in London), but I would think a large family would find it pretty tight.

I live in an Edinburgh suburb. Ordinary - albeit detached - house on a mediocre street, 2 ageing cars & no DC. We do have gym, don't have Sky & tend to eat nice food / wine in the house more than go out.

We pull in 90k+ depending on bonuses etc. I don't have to worry about money, but have spent a massive amount renovating our house, so aren't splashing the cash either iykwim. Once it's done though, I expect I'll feel pretty well off, but not 'rich'. Rich to me is when you would have to make a concerted efforts to overspend & could buy Louboutins as if they were Primark specials Grin

When DP was unemployed, we just had my salary which is quite a bit more than £40k. We actually did a spreadsheet of costs & had he been out of work long term, things would actually have been pretty tight.

Tbh I think the gap between the middle / reasonably well off and the actual rich is part of the problem. In the current climate, I don't know many people who don't need to think about their spending to some extent. Add to that job insecurity and I doubt the sole breadwinner on 40k would be feeling like 'champagne all round'.

Kayano · 27/08/2012 20:36

I got very excited over an £8 pair or primark shoes today actually

Grin

I didn't even like them but they were such a bargain!

GoingforGoingforGOLD · 27/08/2012 20:52

On my current salary? And including dp's? So £45k We should be getting child tax credits?

PooPooOnMars · 27/08/2012 21:02

Tax credits on 45?

My dh earns 20 and i earn 6 and we had ours stopped in April!

GoingforGoingforGOLD · 27/08/2012 21:05

That's what I thought, they stop at £26k or something but it's this childcare element that causes my confusion. I can't seem to determine what if any influnce that has on the equation

ditavonteesed · 27/08/2012 21:11

entitled to start benefits calculator and type in the figures, it is spot on.

PooPooOnMars · 27/08/2012 21:18

Sorry i meant my dh earns 40! The rules changed this year i believe.

ShellyBoobs · 27/08/2012 21:22

We have 2 kids..... My mortgage is £1500 a month, my Council tax £141, my child care £40 a day and that's not to mention food, petrol, phone etc. I earn just under £40,00 and it just covers all of out outgoings.

I don't get it, Jadeano, on £40k, even with no pension contributions, net monthly pay is £2,477.

That doesn't cover the outgoings you've listed, let alone the other bills which would be included in someone's outgoings.

Confused
DairyNips · 27/08/2012 21:25

That's double what we live on, we'd be very comfortable on that.

Socknickingpixie · 27/08/2012 21:30

goingfor i used the current hmrc tax credits calculator

its confuseing how they work but those are the numbers spouted out by hmrc.
dont forget they have elemants and preimums for both parents working or working different ammounts of hours.

dita dont forget that calc will not take into acc some benefits impact on another.

morethanpotatoprints · 27/08/2012 22:18

Kayano.

I went to Primark and got a lovely winter skirt purple/green/black flannel the block colour type. £2 and its lovely.
Theres loads on offer at the moment. At these prices you can get a whole new wardrobe for £50, lol.

MrsBaggins · 27/08/2012 22:43

Susanne thanks for your support.
Am sick
and tired of nurse bashing.

l will stop hijacking this thread now.

I am very conscious about the time in which people buying their houses plays a huge part in how well a salary of £40k will be viewed.
I purchased my house for £150K my next door neighbours moved in and paid £400K 8 years later.
These type of jumps in house prices are crippling young families .

TalkinPeace2 · 27/08/2012 22:50

My house cost me £63k
the other half of the semi is currently on the market for £255k and at the peak one sold for £290k
mortgages depend massively on WHEN you purchased

BlingBubbles · 27/08/2012 23:00

Mrsbaggins you are right about that, we bought our house for £235k, the people who owned it before us bought it 8 years before for £155k - nice for them!!!!

Viviennemary · 27/08/2012 23:37

There is no doubt that house prices have risen much too high. Lots of young couples on reasonable salaries can't afford to buy a house at current prices. And that's by no means just in London.

Morloth · 28/08/2012 00:02

I think when people say they couldn't manage on it, they mean they couldn't manage their current life on it.

My mortgage is $48,000 a year all by itself. So obviously $40,000 a year isn't going to work. If we only had $40,000 a year then obviously things would have to change and we would learn to manage.

It depends on which direction you approach it from as to whether it is a lot or not. When we were in London the rent on a 2 bedroom flat on an area we had to live in (due to a contract) was almost 22,000 pounds a year. And when it was on the market they wanted 575,000 pounds. We couldn't afford to buy it.

MrsBaggins · 28/08/2012 09:48

I also think it makes a difference as to whether one partner earns 40K or 2 people earn 20K.

If one partner earns 40K and then there is a SAHP - there wont be the childcare costs ,possible commuting costs .
Although the tax will probably be higher.Confused