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.

Totally agree Namechanger..having made the choices we've made, re private schools etc, we are in the precarious position of paying interest only on our mortgage, and are not in a position to borrow a single penny more. We live a quiet modest lifestyle, far moreso than our lower income friends & family, our house is in dire need of fixing up and we are in negative cash flow. So yes, I can hold my hand up and say, as a 6 figure salary household, we are most definitely struggling. But that's because we feel the state school options we have in our area are simply not an option. Which does irk me when I see our tax bill each year. But yes..it's still very much our choice.

I don't think any 100k earners have said they're skint, simply that 100k in London doesn't go as far as some might imagine and I understand that as someone who earns nowhere near those sums.

Where I live a regular 3 bedroom terrace is 400k, add in a couple of kids it soon adds up. You would need to earn a lot to buy a house as a ftb in my not so lovely area.

There is such a massive divide in house prices in this country I think people in cheaper areas don't understand that a 300k flat is normal in parts of the country or 500k just doesn't get you the house it would in other areas, a 1 bed flat here would be 200k minimum.

But why are the state schools in your area simply not an option? With a bit of help from parents or a bit of private tutoring most children will leave school with good results.

State schools clearly are an option, plenty of people send their children to them, they have no option

Er, yes. However 'saving' especially in cash, without a purpose, is rather nuts.
'Invest' the rest, is more like it. Splitting hairs maybe.

Right, that makes sense. I suppose I see investing as a kind of saving.

I think investing money into a pension is rather nuts. There are never any guarantees that pension will be available to you when you retire.

My guess is that the best investment is gold, as it's transportable and it isn't just a number on a piece of paper, which would become meaningless in economic collapse.

£300 a week groceries money

Yes people do understand how much to costs to buy a house in some parts of the country like London. Which is why most people I know who live in London live in the outskirts and commute in.

Depends how much bread you mean but a load. Like a truck load? Because a lot of people might not have that sort of money lying around.

Of course state schools are always an 'option'..and we have tried and tested the system already, but decided they are no longer an option for us. There were a couple of very specific issues relating to my children that rendered the decision more difficult which I won't go into here. But as I said, it is very much a question of choice..and not long ago it would not have been a choice that was open to us at all. And yes I also agree parental input is always important, whether it's state or private doesn't detract from that.
Both DH and I attended state schools and both did very well, so we never for a second assumed we would ever be considering private schools for our children, yet here we are...

Namechanger

There are 7 different legal structures that are termed 'pension'. You can access all sorts of investments including directly owning property. 'Nuts' is not understanding what a pension is and simply writing off a good tax wheeze without knowing what you're doing.

Your 'guess' is also fraught with issues, but would indeed have some place in a balanced investment portfolio. If Armageddon hits, very little beyond your native wit will help you. Making financial choices on that basis would also seem 'nuts' too.

I never mentioned Armageddon, I said financial collapse of a country, which isn't that unlikely.

A pension is just a promise, that might not be kept.

It's easily done. I earn 50k a year and we have no holidays, designer clothes etc. We have a decent house and car and my children go to private school but thats all the luxury it afford. Food is on a tight budget.

A pension of one specific type is a promise. You clearly do not understand what a pension is.

I think financial collapse that means ALL types of pension (we are actually talking about investments) are worthless would be Armageddon.

Namechanger out of interest how are you providing for your retirement?

I don't have a pension and I may not ever retire, I don't expect to and I don't want to. I hope to be always working at least 1 or 2 days a week. I have quite a few skill that I can market if I can't find work.

I have invested some money well, in more than one thing. I have a property which I own outright. All that I have I own. I have no debts, I've never had any. I also have some savings. I feel like I'm prepared for the future much better than most people, including many on 100k.

I only earn 13k, no benefits, no help from anyone. Poor people often understand money much better than rich people.

A lot of people are either not well enough to carry on working, or find it impossible to get a part time job after a certain age. There is enough well researched age discrimination in the employment market for those aged 50 plus trying to get a new job.

There's the usual £300 a week groceries shopping

HAHAHAHAHAHAHHA. HAHAHAHAHAHAHAHAHA. Oh, you're SERIOUS?! Here, have all the (gold plated)

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).

This is a very good lifestyle. Yes not super celebrity rich, but hardly struggling. And I can't begin to understand how you can actually spend £300 a week of food for 2 adults,nanny, 2 kids, and 2 kids you have shared custody of. That is over £40 a day.

It would be very easy for me to be self-employed. Like I said, I have lots of marketable skills.

Isn't the welfare state for people who are not well enough to work? Otherwise, why do we have it?

I have investments and savings and no debts. I can live happily and healthily on less than 5k a year.

My finances aren't bombproof but I doubt there are many rich people who are either.

I can vouch for that Brasty
Namechanger-Sounds like you could teach us a thing or two about managing money..you're probably right. I look back to the days when I was earning single figures..had no help from anyone trying to get on the property ladder etc..interest rates were sky high..the bills were coming thick & fast..but somehow I managed. In fact in many ways I managed better than we are managing now. Food for financial thought I think!

I earn 50k a year and we have no holidays, designer clothes etc. We have a decent house and car and my children go to private school but thats all the luxury it afford. Food is on a tight budget.
How the hell do you afford private school for at least 2 kids on 50K?

newt There are requirements for doctors to live within a certain distance to the hospital due to the requirement of being on call. They work in London hospitals. Before kids they were fine but having twins finished them off. They need childcare for about 90 hours a week between them as their shifts and on call times are at the same time. The twins are in one room, the nanny in the other and they sleep on a pull out.

What's going to save them is a move up north so family can help them overnight. Both are specialists in different areas so finding two jobs close to each other isn't easy, hence why they haven't moved yet.

I agree in 10 years they will be absolutely fine but right now, at the end of the month, they can't afford a loaf of bread.

I would seriously struggle on £5,000 a year. I could do it if I had to. But our council tax alone is £170 a month, then water, gas and electric on top.

Childcare for 90 hours a week is always going to be a killer financially.