Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

How long could you live on 30% of your income?

160 replies

houselikeashed · 01/08/2020 15:00

Just that really. If your industry was shut down overnight with no warning. If your job was never going to end without a years notice period to save up in. How long would your immediate savings last you?
(You are not allowed to assume you would be eligible for any gov help schemes or UC.)

OP posts:
BoomBoomsCousin · 01/08/2020 18:04

We’d be able to survive indefinitely, 30% would still put us at a better than average income. But our lifestyle would take a huge hit. If it was indefinite, realistically we’d have to pull the kids out of their current school and move house.

We could probably maintain our current lifestyle for a year on our liquid assets. Much longer if we took equity out of the house.

In your situation, if I fully expect DH to get his former position and salary back I’d go the using savings and equity route while cutting back where it won’t hurt too much. If I didn’t expect DH to return to equivalent employment I’d be looking to move now and adjust lifestyle while I still had as much savings as possible. Would also look at what alternative employment DH could get and at increasing my own financial contribution.

ListeningQuietly · 01/08/2020 18:05

Morelistening
read the OPs posts

SleepingStandingUp · 01/08/2020 18:07

It really depends what that 30% is though. Both on 100k jobs so income now 60k is fine, you just adjust. Family Inc come of 20k so now 6k , totally different

Realistically on 30% of DHs income (just over 6k and assuming I lost all my benefits, we'd have to move in with Mil

Hollyhead · 01/08/2020 18:08

I think about 8-9 years, 30% is £1200 which would cover all bills but only leave £150 for food/clothes/unforeseen circumstances per month. Savings around 7k which we would have to eek out for essential spending, don’t have a feel for how long/how much that would last, if we needed on average a £150 top up each month then it would last 138 months. But obviously would need to factor in inflation/bigger unforeseen bills.

Charleyhorses · 01/08/2020 18:11

4 years. Just as well as I started a new job on 16th March and haven't had a penny in pay since 28th March.

sergeilavrov · 01/08/2020 18:23

It sounds like the question you may want to ask is how to live on around 21k a year, having entered into outgoings (often with contracts eg mortgage) for a household earning around 72k a year?

I think the suggestion of interest only mortgage payments is a good one.I wonder if there are any 100% grants to get solar in your area or via private providers?

In terms of increasing income: are there transferable skills your DH has that could work on a website like Fiverr? Lots of academics struggling with childcare who will bite his hand off for background research, transcription etc. it’s not amazing pay but it’s money. I’m looking for background research assistants right now, for example.

purplepingu · 01/08/2020 18:30

The wedding industry has pretty much shut down. Even through the government don't seem to think it has by allowing ceremonies for 30 people. I've been lucky enough to receive the SEISS grant and will get the second but that only covers me up until the end or August. And as it stands I've had every wedding cancel or postpone until the end of October. So there's a shortfall.

And I can't claim Universal Credit thanks to DH's wage. I think it's pretty accurate to assume I won't be working while next year as weddings as we know them are unlikely to happen again for a while.

It's rubbish and I feel for you OP. I spent years building up a successful business to have a complete year's worth of income wiped out.

Bowerbird5 · 01/08/2020 18:36

I would be on £3,600 for the year. I’m on half now but don’t expect to be working much longer so it will be zilch then.

£3,600
We no longer have a joint mortgage but I have three years left on another house which one of my sons lives in.
I have saves in the bank and a good deal of stocks and shares.
So I could probably last about ten years. I might not live that long anyway.
I have a stash of fabric so I could make that up into skirts or trousers. Enough wool for several jumpers and scarves and hats. I wear what I like so wouldn’t bother about fashion. We would have to use the car less. I would grow more plants and veg myself so that would help.
I live in a beautiful area so I would cope mentally as I was always good at making ends meet when the kids were small. I would housesit for people for holidays.

unlimiteddilutingjuice · 01/08/2020 18:44

Maybe a year if I lived very frugally.

ListeningQuietly · 01/08/2020 18:44

When the price of everything rises
and the availability of everything falls
at the end of the year due to Johnson's stupidity on Brexit
many many people will suffer

unlimiteddilutingjuice · 01/08/2020 18:45

That's due to modest savings but also living in a way shitter house than I could theoretically afford.
Precisely because I worry about this kind of eventuality! Grin

FrangipaniBlue · 01/08/2020 18:49

30% of our household income is basically DH earnings, we could "survive" on that permanently.

Mortgage and essential bills would all be paid but we'd probably have to reduce the level of tv package and mobile phone packages we have, and we'd have to cut back on treats like meals out and takeaways, weekends away etc.

So basically no luxuries, only essentials.

UnaCorda · 01/08/2020 18:50

Ages. Probably indefinitely. But that's because I've paid off my mortgage and have minimal outgoings (not because I have, or have ever had, a huge salary).

ArthurMorgan · 01/08/2020 19:07

About 2 weeks...

flirtygirl · 01/08/2020 19:11

ListeningQuietly
When the price of everything rises
and the availability of everything falls
at the end of the year due to Johnson's stupidity on Brexit
many many people will suffer

Agree 100%

Serin · 01/08/2020 19:14

InMySpareTime
You donate a third?
Wow. Just Wow.
How nice are you!

Serin · 01/08/2020 19:15

We would just about be ok. But we are older and have no mortgage.

notmyyacht · 01/08/2020 19:31

30% of our income would put us at roughly 35k a year which would pretty much only cover our mortgage, food and probably most of our more essential bills so without dipping into savings not very long at all. If we used up the savings we have in our bank account (36k) we’d probably be able to last a year of maybe two if we were really careful and if we pulled all our money out of the stock market (170k) I guess we‘d probably manage to survive for about somewhere between 6- 8 years, but again we’d have to be really careful.

Thankfully my husband is the sole earner in our household and I'm a stay at home mom, because I think if we had to factor childcare into all of this (we have a two year old son) then we'd definitely be screwed and would probably have to sell our house and move to Colorado and live in my parent's guesthouse or something. (Which is actually bigger than our current house, so I guess it wouldn't be that bad! 😂)

Roomba · 01/08/2020 19:39

My cousin would do alright. She got a 'little job' (her words at the time!) as a TA at her son's primary school 15 years ago, worked up to FT hours and was promoted/got higher quals. She told me last week that she's never touched a penny that she earned doing her job, it's all gone in her savings account!

Whereas I'd starve within weeks, or have to be fully supported by a food bank. I do have a house I could sell, but not much equity and houses round here aren't selling much at the moment.

stopgap · 01/08/2020 19:47

We’d be fine.

HagridsBackTeeth · 01/08/2020 19:47

I have. fair amount of savings (hoping to buy) so a good year, maybe 2 if I was frugal.

RyanBergarasTeeth · 01/08/2020 20:10

Well 30% of my monthly income is £200 so i would be fucked in a couple of weeks if that

MitziK · 01/08/2020 20:10

@houselikeashed

Yeah I get your point about % rather than ££. Dh job was a pretty good one tbh. 30% covers mortgage and a few bills.
Seeing as 58% of my income is rent and council tax alone, considerably less time than you - assuming neither of us needed food, water, heat or light, that 30% would represent just under 3 weeks' rent alone.

So I'm sure you'll be fine with your mortgage and bills covered.

WellIWasInTheNeighbourhoo · 01/08/2020 20:31

Mortgage paid off so indefinitely, but it wouldn't be great or comfortable & I'd be very worried about unexpected bills.

SandysMam · 01/08/2020 20:51

I think all this shit plus Brexit will really make people think about their outgoings. I have a serious health problem and have lived like this for a few years in preparation for it getting worse. Not gruel and fingerless gloves but much smaller house/mortgage than we could afford, older car, good cash buffer grown from being sensible. And this is on an average income, not high at all and certainly low compared to Mumsnet standards. The peace of mind it brings is massive and more than makes up for pulling up in a second hand Volvo when my friends have brand new range rovers on the drive.
I keep hearing car companies advertising fabulous deals, trying to get people spending. It scares me that they are still encouraging the never never even when the world has taken a financial rocket and the worst might be yet to come!
We could survive for 2 years on 30% which I’m happy about.