In thinking that this salary really isn’t anything to brag about

[WinterAx]

A good friend’s 23yo DD has just accepted a new job where she’ll be earning 31k. Since that time, I haven’t heard the last of it with regards to what a ‘high earner’ she will be now and how much more she’ll be earning than any of her peers. I’m being told she’ll no doubt be jetting off on lots of exotic holidays and buying a Range Rover and such like. Now don’t get me wrong, this is a good friend of mine and of course she’s a proud mother but... 31k... really? Is this really considered ‘high earner’ status these days?!

Admittedly we don’t live in a city so living costs aren’t high and I know she owns property already with her boyfriend who also earns a similar amount... but I’m just genuinely interested what sort of salary outside of the city is considered to be good these days? If you can genuinely be comfortable on that sort of wage I’m thinking of semi retiring!!!

That's NOT how tax works. Even the 45% rate is for the bit of earnings over 150K.

Coddiewomple is that really how you think Tax works?! It works in bands so everyone pays 20% on the bit between the top of your personal allowance and the higher rate band (about £44k I think?)

That's a fantastic wage for that age outside of London!!

I'm not on much more myself and live outside and London but I'm 36yo!!

Is your friend Mrs Bennett, OP?

thanks LadyWithLapdog I know how to calculate tax.
It's still (nearly) half your salary in the "bits over" and it's a ridiculous amount. the day I reach the highest tax bracket, I am not staying on PAYE because I wouldn't pay that, it's ridiculous when you are not eligible for any help others get!

I am not going to argue about something that takes less than a minute to calculate, my point was just that the daughter doesn't have 31k in her pocket, and that her mother shouldn't encourage her to live like a high earner. It's dangerous.

thanks LadyWithLapdog I know how to calculate tax.
It's still (nearly) half your salary in the "bits over" (including your bonus ffs! ) and it's a ridiculous amount. the day I reach the highest tax bracket, I am not staying on PAYE because I wouldn't pay that, it's ridiculous when you are not eligible for any help others get!

I am not going to argue about something that takes less than a minute to calculate, my point was just that the daughter doesn't have 31k in her pocket, and that her mother shouldn't encourage her to live like a high earner. It's dangerous.

It's a good starting salary. My DS got about that when he graduated.

the day I reach the highest tax bracket, I am not staying on PAYE because I wouldn't pay that, it's ridiculous when you are not eligible for any help others get!

Haha! The point is you are not eligible for any help other get is because you earn a significant amount more - you still keep 60% of a pretty decent salary as a HRT

No salary should be bragged about. That's just nasty.

31k for a 23 year old not in London is loads of money!

She certainly WILL be jetting off on exotic holidays and feeling quite cash rich especially compared to her peers.

How can people earn over 45k and still not understand very simple maths? Baffles me.

Anyway, op, that's a great salary for a 23 year old, and an above average salary at any age. There isn't a connection between working hard and salary though.

In corporate governance if you don’t have a degree or certifications then it will probably stay in the 30s for a long while (perhaps forever) assuming she stays with the company, and might even drop if she needs to leave as most of the high payers in this feel wouldn’t trust a non-grad in a corp gov leadership position so promotions are capped. It’s very likely that at 30 most grads her age would have outstripped her salary wise, and some non-grads too.

31k at 23 is excellent. I'd be delightd if my dc earned that.

You sound a little jealous?

God I'd be mortified if my mother told people that, my parents have never asked what I earnt and I'd not think to tell them. It is a great starting salary though especially if someone doesn't have a degree. She should be proud.

Graduating a couple of years after the recession have meant it's taken DH and I about 4 years to each get above that level. We are certainly comfortable but not enough to throw money away on a range rover

I've calculated her tax: 10% on the first 10K = £ 1000. Then 20% on the remainder 21K = £4200. So £5200 tax. Still leaves over 2K a month net. At 23 that's good going.

Tax in the U.K. is relatively low if you compare with e.g. Sweden or Denmark (up to 60% on 40k). But then they do have amazing infrastructure and public services.

If her and her partner both take home £2k a month and live in a cheap area they probably have about £2-3k a month in disposable income after essential outgoings. I would say they would be living rather luxuriously!

I'm 22 and I only know two people around my age who earn more than 31k, they both work in finance in London. Oh and a friend who is a successful model earns more than that but her earning fluctuate month by month. The majority of graduates I know are on 19-24k. 31k is masses of money if you have no dependents, I imagine your friend is just very pleased that her daughter is doing so well. And it is a good salary irrespective of age, sneering about it isn't a nice thing to do, plenty of people on here survive on a lot less than that with families.

Im in my 30's and only just after 12 years and 6 years in a management role started to earn 30K. For 23 she's doing pretty well.

That's a great starter salary for a 23yo.

I’m being told she’ll no doubt be jetting off on lots of exotic holidays and buying a Range Rover and such like.

I earn more than that and I can't afford to do any of those things!

I'd say owning a property at her age is more impressive personally.

LadyWithLapdog There is no tax on the first £11.5k. Her total tax is £3898 per annum, total NI is £2740. Take home is £24,361.

I've calculated her tax: 10% on the first 10K = £ 1000. Then 20% on the remainder 21K = £4200. So £5200 tax. Still leaves over 2K a month net. At 23 that's good going

That's wrong.

She will pay tax at 20% on anything over the first £11500 and NI at 12%

If she has a student loan, she'll also pay £900 pa.

That's a fantastic salary for her age and the fact that she doesn't live in a big city.
If I earned that kind of money it would solve most of my problems.

I wish I earned that! (Emergency services worker)
Ollivander, I wish you did too. You're all amazing!

It's a good salary for a 23 year old. I was on half that at that age!

However, your friend telling everyone her dd's salary is rather gauche and I'd be pissed if it were my mom that was blabbing to all and sundry.