Average incomes

[flabbergastedfinances]

Found out that the average family income is around £30,000 a year and I can not believe it. I don't know a single family on anywhere near this low, lowest is possibly 70k mark between two teachers but majority have two earners pulling in 40+ each or one higher earner on 80/90k+

How on earth is 30,000 even possible in light of minimum wage and benefits/tax credits etc? What is even more shocking is that I used the where do you fit in calculator and we are apparently in top 98% of families in the uk. No chance, absolutely no chance.

We might have a high ish mortgage (still only £1000 so not outrageous) and have slipped into bad spending habits (Uber's, eating lunch out every day, new clothes now and then) but we are hardly excessive. We can't afford to run two cars, can't afford foreign holidays, can't afford the posher shops like Boden or northface new and yet this chart tells me we have it better than nearly everyone else in the country?! What am I missing?!

We have a child in childcare a few days a week, so that and mortgage are biggest expenses but combined that's only £1500 and I see everyone else buying £300 coats, spending 1000s on holidays, children in private schools and I am utterly stumped.

How can the average family income be £30,000? Which families are surviving on that? None I know that's for sure and I just refuse to believe that's an actual reality

None of your friends earn less than £70k combined household income? And you didn't realise this was high?

God save us!

the truth is we DO struggle

Only due to serious financial incompetence, which is ironic if your husband works in finance.

If you are at home with the kids, why do you also eat lunch out every day?

Xpost - although you still say that you only 'often eat what's in the house'

Hang on... are you sure you're right in saying you're in the top 98% of families? Most families would be in the 'top 98%' and there are only 2% worse off than you. That doesn't seem right from your other posts! Are you sure you've entered the information correctly?

What job are you in that you are so ignorant of normal life?

I assumed minimum wage increased yearly like a progress review or how teachers pay goes up

Teacher’s pay goes up? Not since Gove was in charge.

There's a site where you put in your salary after tax, and how many dependents you have abs it tells you where you sit in the uk so it said we were on 98%

If people want to get away from min wage jobs, they do have the option of gaining qualifications which would enable them to earn more.

Many people in my extended family went into FE or HE as mature students (on top of working full time) to enable them to get out of manual / low paid work.

And sometimes, you have to relocate to get a better job if there is high unemployment in your area. Both me and DH did that - moved a long way from our home areas where unemployment was high and wages were low.

You can't ^blame' other people for how you find yourself- it's up to each person to do the best they can for themselves.

OP... I get what you’re trying to say and I’m sorry that you’ve been flamed somewhat.

By now , you will have realised that your household income is way above many people’s yet you say you are still struggling. It might be that you need to look at exactly what your outgoings are and see if you can make some savings there.
Do you have any memberships that could be scaled back? Do your children have expensive after-school clubs? Maybe rethink your food shopping and meal preferences. Do you run expensive cars?

It is quite true to say that many folk tend to live within their means. As income increases then we get a bit complacent and start adding a few more luxuries. Maybe there are things that you spend on , which may seem usual to you but are beyond most other people.

I have lived in a council flat with absolutely no money left to spend on food. I have also been a SAHM as childcare wasn’t the norm that it is now and we really struggled. My husband retired from a fantastic job and we are comfortable now.
It’s been a long journey for us but we do understand and appreciate what money can or cannot buy and we always live within our means.

It's also interesting to note that with a £30k household income, the chances are that household is a burden on rather than contributor to the treasury.

So on average, since we're talking averages, the population takes out more than it puts in.

I only mention it because there are so many people (including on MN) who like to talk about 'my taxes' as if they're doing us all a favour.

If people want to get away from min wage jobs, they do have the option of gaining qualifications which would enable them to earn more

In theory. In reality, the cost of education is astromomical and if you need to start from GCSE up, how do you do that and work to keep the roof over your head?

If people want to get away from min wage jobs, they do have the option of gaining qualifications which would enable them to earn more.

How, though? If you are on NMW where do you find the money to pay to go on courses, even assuming the hours of your job can be fitted in with study?

@flabbergastedfinances

What do you struggle with?

Blimey!!! We are on £44,000, that's two of us on full time.hours. We are better off than a lot of people we know as no mortgage, but £70,000 is a dream that's never going to happen

The OP obviously means the 98th centile, not top 98%

As already mentioned, OP is in a bubble. In reference to the comment that low incomes are topped up by benefits, I would like to remind people that if you have no dependents and no disabilities, low incomes would have to be ludicrously low to be topped up. This is why some families keep having children as once they are gone, they are on their own financially.

@lemurllama - she means there are 98% who are less well off than them. That the site she has used puts their household in the top 3%

OP have you ever heard of a cost of living increase? No, neither have most people doing 'low level' work because employers don't really do pay rises anymore yet the world keeps on getting more expensive. People struggle to even be allowed benefits anymore when they work (heard of the shit that is Universal Credit?) ... no I expect not.

If I was you and you were truly embarrassed at your dumbness as you state I'd ask for this thread to be deleted.

'but you don't stay on that for very long But you don't stay on that for very long do you? Plus there are child benefits and hopefully credit things to top it up so on paper it's low but in reality it's higher?

I think you need to shut up now OP. You do realise that not all 'poor' people get benefits don't you?! Most people on NMW will stay on NMW. There is no progress in a lot of jobs! Not everyone on a low wage has children and there is no such thing as 'credit things' if you don't have children (and not for long thanks to Universal credit). *
*
You are sounding more and more goady and ignorant in every reply you post. I can't actually believe that anyone could be this stupid to continue posting. Boo bloody hoo that your mortgage and childcare comes to £1500 a month. I barely even earn that a month anymore (oh and I work in the nhs in a clinical, degree level role!) Get some perspective on life before you publicly shame other people.

@JinglingHellsBells

Wow we are also in the SE and our house is modest at around £250k. That’s £400k difference. Maybe we have a different definition of modest though.

There's a site where you put in your salary after tax, and how many dependents you have abs it tells you where you sit in the uk so it said we were on 98%

So you're sitting on the 98th percentile? Wouldn't that put you in the top 3% of household incomes?

Oh, FGS, I’m in London and hardly know anyone who earns 40k. Neither I or DH earn that and we are in our 50s with top degrees and postgrad degrees from top universities.

I don't know a single family on anywhere near this low, lowest is possibly 70k mark between two teachers but majority have two earners pulling in 40+ each or one higher earner on 80/90k+

How about the care assistants, retail assistants, bin men, cleaners, waiters, road sweepers, library staff, etc? All doing worthwhile jobs but definitely not earning as much as two teachers.

Two people working full time jobs (37.5 hours per week) will be bringing in just over £32k between them.

You need to pull your head out of your arse.

Oh dear! The rich leafy suburbs must be difficult for you!

I don't know a single family on anywhere near this low, lowest is possibly 70k mark between two teachers but majority have two earners pulling in 40+ each or one higher earner on 80/90k+

How about the care assistants, retail assistants, bin men, cleaners, waiters, road sweepers, library staff, etc? All doing worthwhile jobs but definitely not earning as much as two teachers.

Two people working full time jobs (37.5 hours per week) will be bringing in just over £32k between them.

You need to pull your head out of your arse.