To wonder what a ‘good wage’ is?

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Not really an AIBU but something I’ve been pondering on, and posting here for traffic and opinions.

I often see people mentioning that someone earns ‘a good wage’ or indeed a high wage, but what that means in practice is clearly dependent on many factors, not least the area someone lives in but also their dependents.

I work in an industry where I talk to people on very high wages all the time about their jobs, which I think skews my view of what’s normal. I was involved in a discussion in another forum recently where it was mentioned the average salary at the moment is £27,000. Of course this is a mean average, skewed by a few very high salaries, and most people are below that. But many people were commenting that they didn’t know anyone who earned that much and had never earned anywhere near that themselves.

I’ve also been fascinated by this calculator from the Institute of Fiscal Studies that shows where households fall in the stratification of the country www.ifs.org.uk/wheredoyoufitin/
I think a lot of people would be surprised by it. When DP and I each earned the average salary (no kids) we were still in the top 25/30% ish of households which seems mad, and we live in an expensive area.

I’m wondering - what do you think a ‘good wage’ is, and at one point does something become a high wage?

DH and I earn just shy of £4K a month take home. We've two DC. We feel well off. We can pay our bills, run a car and have holidays. The kids can enjoy paid for activities. However we are careful with our income. Aldi shopping, cook from scratch, one night out a month maximum, picnics when out with the kids, do as much free activities as possible, just Freeview telly, don't buy stuff unless we actually need it.

Depends on the industry too. I'd say £40k in teaching or nursing was good and indicated you were quite high up/or on your way on the ladder. But £40k in the city would often be entry level jobs. Sometimes DH has new starters on £35k and i say blimey that's low, and he says well they haven't got any experience/are straight out of uni etc. But i worked for 13 years and finished quite high up in a different field on £38k

Wage is one thing. Income is another. Lots with high income have relatively modest wages. Rental income, and investment income seem to make a big difference to some people. Plus contractors with low salary but high dividend personal service companies.

My interpretation of a good wage is if you can afford things you like in addition to things you need.

Apparently our household income is in the top 97% that has surprised me, admittedly we are both fairly high earners, but it shows how many people must be struggling so much for the average to be so low 😞

MrsKoala
Am i reading that link wrong? Because when i put the numbers in it says thy are in the top 24%. That's an after tax household income of approx £5k
£80k household (£40k plus £40k), average council tax of £1500 ....
after tax of £1505 per week = more than 92% of households

£50k is an ok wage. £100k up is a good wage imo

Don't you put the amount in after tax?

Interesting - I feel very privileged to be in the 9th decile. I’m on 32k, husband on 38. No kids. Yorkshire.

When I got this job (pre promotions) on a starting salary of 18k, that was more money than I knew what to do with. Before that I’d been on about 8k and supporting my —cocklodger— ex. I couldn’t wrap my head around the idea of having money for myself. So I think a ‘good wage’ is very subjective and really depends on your circumstances and what you want/need to feel comfortable. Personally, I could happily live on about 20k, but wouldn’t want to go much lower.

First, you will need to add together the incomes of yourself, your partner and anyone else who lives with you, after deducting income tax and national insurance. In addition to wage or salary income, don't forget to include any benefits you receive, income from savings and investment, profits or losses from self-employment, and any other sources of income

Another here that for us, a decent wage is over 18/20k!!
A ‘good wage’ would be Around £30k and a ‘high’ wage would be 40k+
That being said - I’ve had the fight tooth and nail to be paid fairly and I’m only on £21k

I would say a good wage was £60,000, high wage 100,000, and a decent wage 40,000. Of course, if two people are earning an ok wage then there is a good family income but the question wasn't on family income, because those lower earners get top ups in tax credits so it's hard to actually work out family income. I've gone back to university to invent my career but I doubt I'll earn anywhere near those amounts.

We are in central Scotland and Dh earns 45k. We aren't rich by any stretch of the imagination But we can afford for me to stay home with the kids.

I'd say 40k up is an ok wage . 65k+ is good and 90k+ is loaded BUT it All depends on so many other factors e.g. Our mortgage is £140/month!

I would say a good wage is roughly £25,000 or higher. Both dh and I earn good wages (he's on about £25k, I'm on closer to £35k). Nobody else in either of our families earn that much, apart from one cousin I think (I'm not necessarily privy to his financial situation but he's a solicitor so I think it's reasonable).

The circles you mix in affects your views on these things. I mix with a wide range of people when I'm not at work. Amongst my friends (some of them are aquaintances rather than friends really), there are cleaners, shop assistants, teachers, childminders, solicitors, factory workers, business owners, etc. So some friends earn minimum wage part time, up to others who own 3 successful businesses between the couple and manage to own 2 holiday homes as well as putting 4 children through private school. Everyone seems to think they're about average, which surprises me as I'm very aware of how lucky I am to earn the salary I get.

Mortgage £140 a month [faints... gets up.... passes out again]

WTF!!! Wow!

DP earn about £30k combined. We have a two bed house with garden, a cheap mortgage and we can easily afford one foreign holiday a year, to run two cheap second hand cars and we don't go short at all.

We live in a cheap, rural coastal town and I commute to work. We couldn't afford to live closer to my job and still afford a house. Our town has no cinema, one supermarket, a few run down pubs and that's about it. There's very little to do here but it's affordable and friendly.

We manage perfectly well.

In London with kids and needing to use private nursery, pay for decent holidays etc I'd say you'd feel comfortable on £5k a month after tax. But would still have to budget for all the extras, save up for any 'big' things.

Our mortgage is £270/month.

Around here I'd say £20-30,000 is a good income. I'd say a high income is over £40,000.

I find it odd how MN seems to have lots of people on 6 figure household incomes and paying for tutors, school fees from pre school for 3 kids etc.

IMO an ok wage is £35k; a good wage is £60k, and a high wage earner is £85k

I see those as the boundaries where your lifestyle choices can change

My income is just over 30k a year. 2 years ago it was 9k. (I was a student working 16 hours). Lone parent, 3DC's, no maintenance.

I am more skint now. So even though I'm on a 'good wage' I actually have less disposable income. So it's all bollocks anyway!

*Runninglateeveryday

I was going to say anything over 20 is good, I'm in a minority! I earn 27 now and feel quite privileged, I earn 14000 for 8 years and was always broke*

Identical situation. Got promoted now on 26k don't know how I coped before!

I'm single and in Cardiff. I could have a good life on 20k.
I always have to 'translate' MN. When they talk about a 'decent wage', I think they mean over 60k. I've heard 30k being discussed as a not very good wage, whereas you'd be well off here with that. Obviously you have to compare with the cost of living in your area.

I’d say ‘s/he earns a good wage’ for £30k plus. Just means a good, liveable amount to me. High wage I’d say £50k plus

It's all relative according to where you live and what you do.

We live in the SE, in one of the most expensive places in the country. We are both professionals.

Our idea of a good wage is probably much more than people that live in different areas.