6 figure incomes and can't afford a load of bread?

[LemonyFresh]

Is it just me or has there been a influx of posts about household incomes of over 100k or similar and complaining or wondering how they're skint at the end of the month and struggling? Is it a stealth boast or do these people actually struggle?

Am I really in the minority with a household income of less than half of this?!

I know we tend to spend to our means but even when DP and I are having a flush month I don't see the point in over spending for the sake of it.

Savings for what shasta

I'm still finding it hard to understand how people with so much money would put themselves in the position of having so little.

I used to suppose that people earning this sort of money were generally well educated. The employers must want a pound of flesh or two from them as well.

Are people really that stupid that they spend money on stuff they can't afford so can't afford the basics like bread.

Why do they spend so much of their wage on working, rather than taking a job that gives them a good disposable income?

Surely, it's not just greed and keeping up with the Jones's?
I find it very strange.

gilly the OP who said this was being financially abused by her Husband. Just because a Husband earns a high wage, it does not mean that the wife has access to all or even an equal share of it.

It's perfectly possible to have a decent wage and a house worth loads more than the mortgage payments would suggest, and still have to look at eating potatoes for two weeks to make ends meet.

big mortgages

gilly It happens often because while they earn more their overheads are really high. Good friend of mine and her DH are making about £120k between them and have twins. They are both doctors who must be on call. Their childcare is £45k a year and they live in a tiny tiny flat close to the hospital that costs a fortune. Their babies are getting closer to school age so not having to have daytime care will reduce their costs. They literally have no money. I order them food and buy things for their kids (like coats and shoes). I know my friend and her DH skip meals at the end of the month. It's awful and our government ought to be ashamed of themselves.

And hers me ans my dad surviving on less than 16k between us when i have extra needs due to ill health, yet we can afford a loaf of bread!

I saw the article and was not shocked. Our school fees alone amount to slightly over 65k. DH and I have 4 children between us (2 together, 2 from different partners). We live in Central London, so the mortgage is pretty steep (not complaining it was our choice), although the convenience of getting around etc is unquestionable. We share the car and have one for the nanny to get around . All 4 DC are in private schools around the area, though the financial contribution on my side for my DD who I brought into the marriage is minimal (my ex pays 80% of it ), DH pays full fees for his son. We take about 3 holidays a year, sometimes with all DC's other times with only 2 (shared custody for the other 2) We have a full time nanny, the children have extra curriculum activities which tend to cost a fortune in London. There's the usual £300 a week groceries shopping , nights out for DH and I, pocket money, play dates, numerous birthday invites for the DC, clothing for all of us , school uniform and equipments, monthly savings etc (the list seems to be endless). We both work in the city, DP in finance( co-owns his firm), I in the legal field and have been lucky to be very fortunate. So although we can still afford more than a loaf of bread, I can understand the lady in the article. Sometimes the outgoings seem endless, I have friends who are much better off than us , with fewer children and expenditures (at least so it appears) who cannot stop complaining about how skint they are. IMO, what is enough is very subjective.

My husband and I bring in just over 20k between us including tax credits. We are both part time as we have both had major health problems.

We live in the north, have a morgage and I can honestly say we do all we want to do including have a holiday every year.

However I do understand that in some places mortgages and rents are high, childcare is more expensive and the cost of living in general is well above the norm.
I don't think you can judge someone until you live a week in their shoes.

hafenmelondon1980 you read that post and do not see that you really are not describing anywhere near a usual situation do you? Poor you.

Hmmmm but actually yep reading a few posts though I do sometimes laugh at what people think is "normal everyday" outgoings.

@jagoojagoo, never stated that it was the norm. Simply that I can understand but not relate to the lady's point of view. What's normal for one person isn't necessarily normal for another and I am fully aware that many live just fine with much less. I am in no position to judge anyone's situation.

wanttobesupermum for some reason I thought you were in the US but if not and you're in the UK then I'm struggling with your post about your doctor friends. If they earn £120k between them as doctors then I'm really not sure why the government should be ashamed. Doctors are amongst the highest paid group in this country with good job security and amazing pension provision (although nobody is saying that hospital doctors have an easy job GPs do though ). You also need to keep in mind that this amount will go up considerably as they become consultants (unless they don't work full time). There is no need whatsoever for them to live literally right next to the hospital for on call reasons and so that is a choice they are making. In addition if they have childcare costs of £45k for two children then something isn't right there at all. Of course if you are in the US then the situation might be completely different.

I agree with your post in general though. Its about outgoings. DH and I earn far more than my DP - probably over three times as much. My DP have far more disposable income than we do since they have no mortgage and their children are all adults and no longer dependent on them.

Savings for what shasta?

Perhaps just because it's prudent not to piss tons of spare cash up the wall. Can you really not understand why people might save?

Had a quick glance through posts and I'm clearly in the minority because I think it's beyond ridiculous to be skint on a £100k income.

I live in Surrey, in a typically expensive commuter belt area, commute in to London every day, we have 2 children under 2 and a household income of approx £55k per year. Money is very tight but we're just about managing.

I've amazed at what some people view as essential if you live in or near London.

A live in nanny, private schooling, expensive holidays are not life essentials!

Housing, food, clothes are life essentials!

I think private school fees take a massive chunk.of.earnings.

In London to have two.chikdren at private prep.will be circa £30k.so you effectively need to earn £60k.just to pay the fees.

No one has to send their children to private school but for many it is their expectation particularly if they went as children, although private school fees have risen way above inflation. Once you're in your'e and it is very very hard to jump ship.

At over £100k you lose your personal allowance and get no child bemefit. It's not hard to see that of you're on £100k.ish with school.fees you will.be pretty skint.

I'm not sure how anyone with a household income of £100k could afford two lots of private school fees. Unless perhaps they had no mortgage.

We certainly couldn't.

I think it's perfectly possible for someone to be earning that kind of income and not be able to afford basics - not because life costs that much, but because they're prioritising non-essentials or mismanaging their money (not budgeting properly, etc).

I'm in an industry where there's a large hike in salary on qualification after a few years' training, and lots of people who qualify suddenly feel like they're rich and can spend money without having to check their bank balance for the first time ever. I can imagine that their finances could quite easily spiral out of control if they don't get a handle on them, to the point that they feel they can't live on a high salary.

Dh and I have a household income of around £90k pa. I would never describe ourselves as skint, but we don't have a lot of spare money to spend. That's partly because I'm currently paying a fortune into my pension as I had a long period without a pension when I worked (for a very low salary!) for a charity for 8 years. We also overpay into.the mortgage which itself is high because we live in a very expensive area. Also, DH's parents live in USA and to go and see them every two years in the summer holiday costs £5k for all of us with flights, car hire, hotel etc.

We made our choices - 4 bedroomed house, holiday abroad most years etc which means we can't afford to make other choices - dh would love a newer car as his 12 year old car is starting to need quite a lot of work. But we have no false concept of ourselves as broke. We can always afford food, petrol, bills, gym membership, evenings out etc so are pretty well off.

I think one thing that makes a difference to your perception of how broke or rich you are is how much spare cash your friends and colleagues have. Dh and I are conscious that we have the smallest house, oldest car, cheapest holidays etc of most of our friends so sometimes it's tempting to think of ourselves as not well off, but we know we are in comparison with most of the population.

I think a somewhat unfortunate combination of prioritisation of non essentials (I include private school fees), a sense of entitlement that £100k ought to be a you a certain life style (it might have done in the past but it doesn't these days) and that human desire to keep up with the Jones' can leave you being broken on £100k.

it also deoends if you prioritise now or the future. we would be financially a lot better of if DH wouldn't work - childcare costs are a lot higher than his salary, and my job requires me to live near London (1.5 h commute though).
So, we have a big mortgage (for us, not huge for southeast), and substantial childcare costs (childminder, no nanny!), package holiday every 2 years, no car, clothes are second hand, food supermarket own.
But, come pension age (or once kids need less childcare) we will have way less outgoings, 2 pensions plus workplace pensions and own our small but beautiful house. Worth it!!!!

Thank god I live up north , have a job I actually like and family around for free childcare to make my 'pitiful' shockingly low salary (well by mn standards ) stretch to a nice house holidays and a car I own outright.

Indeed. I recall reading one of Xenia's namechanges (it's usually her that refers to salaries as pitiful, I think) refer to something like 12k for part time work as pitiful, or something like that. Low teens, anyway. Had a wry smile to myself as I realised that the figure she was decrying would pay for my family's housing, food, council tax, mobiles and water each month! With lots of time off to look after the DC. Ours is a rather bog standard house, having said that, but I thought the point was a salient one anyway.

If I earned 100k I would use nearly all of that to pay down the mortgage as fast as possible and then save as much as possible. I certainly would not pay for private school fees, private medical care, expensive cars, expensive holidays or regular coffee shop trips.

Nobody knows what's around the corner, especially these days. I think we are living in very troubling financial times and bad luck can visit anyone. The people who waste money now could have deep regrets later.

*can you really not understand why people might save?'

Er, yes. However 'saving' especially in cash, without a purpose, is rather nuts.
'Invest' the rest, is more like it. Splitting hairs maybe.
Savings are necessary, but anything beyond emergency levels or short term objectives is a waste of money.
Since 2000 inflation has been >55% no long term savings are worth holding in cash.

I do think those on £100k are in for a bloody shock unless they are putting a large chunk in a pension. They are spending their tomorrow

I'm cringing with embarrassment for some of the £100k earning MNers who've posted. If you're skint, it's because you budget badly, especially if you've got no children. If you're skint because you pay 2/3/4 lots of private schools fee, you're not "skint", you've made a choice - from a position of extreme privilege. Yeah, yeah the schools are "terrible" where you are. This is always the excuse snobby people use when they complain they don't have much because they've spent it all on educating their children for £10k per child per year.