To be permanently skint, despite being on a good salary?

[cherriesandapplesandberries]

On paper, we have a good combined income of around £85,000, although it varies slightly and can even go up to around 90 on a good year.

But we seem to be permanently skint, and I don’t mean not much money, I mean absolutely nothing in the bank accounts, scrabbling round for loose change, stressing about how we will get to work, skint. This isn’t a begging thread by the way, I know sometimes people post on MN wanting others to offer them money and I don’t, I’m just trying to explain how it is.

We do have debts, loans and credit cards plus obviously the mortgage, childcare fees, cars which cost then obviously the needs of a growing family.

I know back when I was a young ‘un I’d have fallen about laughing at the idea my current salary isn’t enough to live on, but I just seem to be struggling all of the time!

@Namechanger212333333333 Except teachers pension are lower. The OP is saying far too low actual income for those level of salaries and a teachers pension. They may be paying into an additional private pension though.

Just let go of the idea that someone with your/your DPs job should have a particular lifestyle.
^^Best advice on this thread.

You've historical debt from something you wanted or felt necessary at the time.
You live in an expensive place, paying a high mortgage, because of something you want
You want to pay in to a good pension scheme securing your future
You're also paying for the costs of your future (pension) and the costs of your past (debt). Your present is also expensive (childcare, mortgage).

We all have to live within our means. If that means like @DisorganisedOrganiser you pay for lots of kids activities but eat beans every night, that's your choice. But be grateful you have that choice.

It was me who mentioned icy roads, not the OP. Job involves travel at very short notice, time critical, often in the middle of the night in winter. Damn right we want a car that copes well on the roads. Also need a car that defrosts quickly for safety, heated windscreen etc (unlike our second cheaper car which takes ages). Not fun driving winding lanes at 3am when it has rained then thawed and the roads aren’t gritted.

If the OP is paying student loan and pension then the salary does sound accurate

@cherriesandapplesandberries

we are not poor, but sometimes solidarity with others in the same boat can be therapeutic.

I’m glad you understood that the thread was conversational rather than seeking advice.

but you posted in AIBU not chat

So if it's just a thread to moan and chat on ... are you a maths teacher

A salary of £35k should provide a take home of around £2,100 a month and that provides for a 6% pension scheme.

A salary of £50k a year should provide a take home of around £2,950 and that provides for a 6% pension scheme.

You're saying that your DH only takes home £1,700 a month and you only take home £2,500 a month. What is happening to the £400 on his wages and the £450 on yours? That's £950 a month unaccounted for

@YappityYapYap The OP is exaggerating for sympathy and to try and obscure her and her DPs terrible money management.

You're almost there OP, come April and August when your loans end (guessing that will free up around 600) and you can breath again.

@theWarOnPeace Sun 12-Jan-20 09:47:04
So if your own income is £50,000 then your take home should be £3,100 a month, not 2500. Take home of £35,000 is approx £2,300

I'm on around 42-43k and take home 2400 net after pension.

@DisorganisedOrganiser Sure get a car you like. But defrosting quickly is a convenience issue, not a safety one. Also I have driven in places with almost constant ice on the roads, and contrary to what many British people think a 4x4 is not the best car to have in these circumstances. I understand it is because conditions are rarely bad in UK roads, but I find most UK people have a real lack of understanding round this, and it is one expensive car manufacturers are happy to feed into.

Sallycinnamum
Wow!
I never considered myself "idiotic" for giving up work. It would have been more idiotic to pay more than I earned, for someone else to look after my DC than to do it myself. Best years of my life being home with my DC thanks.
Oh and my career suffered not one jot.

@LadyAllegraImelda So you pay £700 a month into your pension?

Stealth boast

Poor me, we're so skint but I'll rubbish any suggestions of cutting back

Budgeting is your friend. See what you can cut down, meal plan, leave cards at home and use cash. Snowball your cards using, what's the cost.
If you are working, you don't need expensive TV packages. Cut ours down to the bare minimum, and haven't missed it at all. Only buy clothes if you have to.

The teacher pension scheme is around 20% for the higher salaries.

It is 9.7% at this level of salary @Grasspigeons

oops! 10%

Don’t want to get into an argument but defrosting quickly absolutely is a safety issue if you HAVE (and I don’t mean want) to leave the house immediately after you get the call and can not predict when you might be called in. If you just don’t want to allow extra time to leave then yes it is a convenience issue.

No OP.
OH and I earn a goodish salary and we are never skint.
In fact we save.

We don't spend much.

The £500 loan is a problem. Maybe one of you could take on an evening job short term to pay it off?
When the kids start school it may be enough with the after school club until you can pick them up? Afaik they’re usually open until 18:00.

With a combined wage of 90k it's not fucking rocket science, is it? Live to your means and not your sense of entitlement. Job done.

I take home a lot less than you 31k so not really 'the same boat' but in the last 2 years racked up a lot of debt and took out a loan to cover the credit cards... and then racked up another credit card debt.

In November It hit me that I really REALLY needed to change things.

My kids are 7 months and 3 years old. So I need to get this sorted before they start school.

First I paid off the last of my store cards and got rid of them!

I have nothing left on finance now so that's a big chunk gone too. (Outright own a cheaper 2010 car, so not a new swanky one) (outright own an old iPhone7)

I now have a £3000 loan and £2500 credit card debt. I should be paid off completely in 2022.
I have a mortgage too so I've got that down to the minimum I can pay while I'm in the debt.

I have all of my outgoings written down and planned to the penny.
I have to really stop my self shopping but it's do able! I have 2 girls close in age so clothes from DD1 can go to DD2 and I also now buy second hand clothes too (not all of the clothes we wear but about half)
I have also set myself a target of no new clothing for me this year! (I have too many clothes anyway!)

You can make many changes OP. It's hard when your used to a certain lifestyle but you can do it.

The only way that the take home can be far less than the estimate is if there's student loans and things like private medical insurance being taken off both salaries which is possible but I can't see someone on £35k a year paying £400 a month to a student loan. I think even on £50k a year, student loan repayments would be something like £230 a month, depending on which rate and agreement the student loan is being repaid on.

My DH is on £25k a year basic + overtime (approx 15-20 hours a month) + on call allowance (£180 a month) and we're in Scotland where more tax is paid and he is taking home around £2,100 a month and paying a 7% pension and private medical insurance. When you add his basic, overtime and on call together, his salary is about £33-£34k a year which is less than your DH OP. Your DH's take home should be around the same or a bit more. £1,700 take home is what someone on about £26k a year would take home

Poor me, we're so skint but I'll rubbish any suggestions of cutting back

Yep.

How on earth is childcare eating up one whole salary? Is there an earnings limit on the 30 free hours?

@karencantobe Sun 12-Jan-20 10:40:13
@LadyAllegraImelda So you pay £700 a month into your pension?

Nowhere near, I think it is around half that