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AIBU?

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Original poster

£85k per year

207 replies

pondfresh · 19/12/2018 21:28

In the course of a conversation with my cousin, she disclosed that she earns £85k per year but said she does not consider herself especially well off. She lives in the south east but not London, has young dc. She said she has no problem paying bills etc and they have a family holiday each year but she does not consider that they are wealthy. He earns less than this as he is a teacher. AIBU to wonder how well off someone is actually is on £85k and what would be classed as wealthy.

OP posts:
BadLad · 19/12/2018 22:43

If you earn a lot of money and spend it, you are not rich or wealthy. What you are is highly-paid.

If you save or successfully invest your high income then you will become rich / wealthy.

Habadabadoo · 19/12/2018 22:47

Is she and the family healthy?
If yes then she is very wealthy.
Health is wealth.

Pretendingtobeapsychokiller · 19/12/2018 22:54

I have excellent assets, and a rubbish income. I struggle from month to month because the bills are painful. My car is a silly luxury, and needs downgrading.

I consider myself relatively well off.

I can change my income if I choose, and I have certainly earned those assets through being incredibly sensible. I don't have holidays. My property will not collapse in value.
I'd rather have my situation than be renting on 85K.
If the shit hits the fan, I can sell my house. Job done.

sweetkitty · 19/12/2018 23:04

We are similar but have four DC. No luxury holidays, 2 oldish cars, ok house, one holiday a year, no cleaner. I would say we are comfortable.

Pernickity1 · 19/12/2018 23:16

My DH earns something similar and we’re definitely not what I’d consider wealthy (and I grew up dirt poor!) like pps said we have heavy outgoings so it’s all relative plus this is our situation too:

my guess is she’s a contractor and so has to either commute long hours or work flat out to keep her contract. Contractors earn a lot, even in professional jobs, but don’t often get much in the way of job security

Blankscreen · 19/12/2018 23:18

You are not wealthy on £85k a year. Take home pay is £4700 ish a month.
It's easy to have a big mortgage and high commuting costs travelling into London as well as high child care costs.
She's probably not watching every £10 but not that well off.

TimeWoundsAllHeals · 19/12/2018 23:19

Wealth is different to income. If you spend your income and it’s massive you don’t accumulate wealth.

Racecardriver · 19/12/2018 23:22

That’s barely enough to support a family. Unless she is unscrupulously using state services to fund her lifestyle she’ll be living pretty much hand to mouth with multiple sets of school fees to pay. My husband has a similar income. After considering taxes and my earnings etc we are probably earning a similar amount. We are just scraping by. Could easily go bankrupt in the next year.

Pernickity1 · 19/12/2018 23:26

Youmadorwhat it’s a similar tiered system in Ireland.

OlennasWimple · 19/12/2018 23:34

OP - you sound like my family, who earn about half my salary but don't appreciate what the real costs of living in London can be. On paper I'm the rich one, but it's not me who can afford to run two cars, go on two holidays a year and buy a new winter coat for everyone in the family every year.

Youmadorwhat · 19/12/2018 23:46

@Pernickity1 yes somewhat, less tax free allowance though and more deductions like usc and PRSI

Titsywoo · 19/12/2018 23:50

It's definitely not wealthy. Comfortable though. We earn a fair bit more than that but still wouldn't say we are rich. Sounds mad and 10 years ago I'd have laughed at me saying this but if you have big mortgage payments and biggish bills it's not so hard to live to your means. We don't have expensive holidays or new cars but we spend a lot on having a nice house as thats where we spend most of our time!

OhTheRoses · 19/12/2018 23:52

Too many variables to form an opinion.

I earn more than that but dc are grown, no mortgage, dh pays the bills. I have chardonnay tastes and wince when I look at my bank balance in the knowledge that I can't spend it and wouldn't if I wanted too. It's a bit sick that I do earn it as thanks to DH we are relatively very well off. One second home in France, privately ed dc, although both left school now albeot both at university this year, plenty of help at home.

We aren't wealthy in oligarch terms but we have enough to sometimes make me feel a little bit sick. It has also made dc v angey about inequality although they are growing out of that now.

busybarbara · 19/12/2018 23:52

It's a fantastic income but wealth is not income. Wealth is assets. You could be spending that 85k on just day to day stuff and have no wealth left at all

Believeitornot · 20/12/2018 08:55

If you earn a lot of money and spend it, you are not rich or wealthy. What you are is highly-paid

That makes no sense. A millionaire can spend all of their money. They’ll still be wealthy!

Trills · 20/12/2018 08:59

A millionaire can spend all of their money. They’ll still be wealthy!

No they won't. They also won't be a millionaire.

Kazzyhoward · 20/12/2018 08:59

When average earners are £26k, yes, £85k is wealthy and towards the higher end of the income distributions curve. When Libdems had a sniff of power in the coalition, they were talking about a cut-off of around £75k as being "wealthy" to suffer their proposed higher taxes, which I think is about right when you look at the figures. Child benefit is removed from those earning over £60k, so again, that's another measure of being "wealthy".

Believeitornot · 20/12/2018 09:03

No they won't. They also won't be a millionaire

They will if they’re earning a million a year

But I can see that people are being pedantic about what earning £85k means

Fundamentally it means you have a lot lot more income and, therefore, choices to be able to make. Having more money makes you wealthy. If you spend it all and can not earn anymore then of course you are not wealthy. Hmm

A salary of £85k puts you in a much better position than most people in this country. That’s the crux of the matter. If you’re stupid enough to spend it all then complain about lack of money then more fool you.

Nothisispatrick · 20/12/2018 09:04

Wealth is different to income. If you spend your income and it’s massive you don’t accumulate wealth.

I agree with this. Wealth is assets and actual money in the bank, not income that just immediately goes out to bills and monthly expenses.

Believeitornot · 20/12/2018 09:04

Also there is a finite amount of money in the economy. If someone has more then someone else will have less - because we aren’t living in a communist state.

That means we accept some people are poor and some rich.

Kazzyhoward · 20/12/2018 09:11

Wealth is assets and actual money in the bank, not income that just immediately goes out to bills and monthly expenses.

But if you have the income, the CHOICE is YOURS as to whether you spend it, what you spend it on, or whether you save/invest some of it.

If you spend it all, then it's your own fault you aren't wealthy in terms of assets. You're lucky to have the choice of a nice house, private education, decent cars, holidays, gadgets etc.

Missillusioned · 20/12/2018 09:13

I would say she is comfortable, but not wealthy.

Wealth refers to assets. So a person who owns large amounts of land is wealthy, even if they have a relatively small income.

I wouldn't call owning only the home you live in as wealthy, even if it's an expensive house. Even less so if it's mortgaged.

She does have an income in the top 10% of taxpayers, but if earning it is reliant on her working, rather than it being income from assets, she isn't wealthy.

She is very comfortable however and most people would be very happy to be in her financial situation

Nothisispatrick · 20/12/2018 09:15

If you spend it all, then it's your own fault you aren't wealthy in terms of assets. You're lucky to have the choice of a nice house, private education, decent cars, holidays, gadgets etc.

Well we still need to live. That’s our joint income and we have none of these things, no way we could afford private school and we don’t own a property.

As I said upthread, we’re paying back loans and a credit card plus I am on mat leave. We’re comfortable but really not wealthy by any means.

Believeitornot · 20/12/2018 09:20

Wealthy doesn’t just refer to assets.

It’s about having lots of money, resources or assets.

If you earn £85k, you earn a lot more than most people. You have plenty of choices.

The median and average household incomes for London and the UK should tell you that.

If, on a salary of £85k, you don’t think you’re wealthy, then I can only conclude one of two things:

1 - you don’t believe that the median income levels are correct Hmm, or
2 - you’re completely unaware of what it’s like to live on a median income and are coming from a position of ignorance

Missillusioned · 20/12/2018 09:22

To clarify, if you have to work for an employer for your main income, and if you lost your job you would need to get another one quickly, you are not wealthy no matter how much you earn.
You are comfortable if you earn a good salary however.

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