To wonder how ppl do it...afford it all?

[wishywashyy]

How do ppl (I mean the average joe!) afford everything? I know, I know situations are different BUT in general
Mortgage
Car payments (usually 2!)
Childcare
Savings
And general living

It doesn't add up
Mortgage/council tax on average would be what? 700-800?
Car payments x2 600?
Childcare (let's just say one lot) approx 1000
That's 1400 alone at least!
Saving? I suppose that's depending
General living? Another 800-1k
So That's 2k
Then there's other bills which would be 500ish
That's 2.5k in total

That's a take home of about 40k! Gone! And no savings!

I'm baffled and freaked out at the thoughts!!!

I find it easier by far now I work full time and my children don’t need childcare. When I think back to how we managed when I worked 4 days and had childcare for 2 kids, even only part time as my husband had days off in the week, I don’t know how we managed. Our mortgage was over £200 a month more than now as well due to interest rates.

It can be hard going for sure with little ones but they don’t stay small forever

We really struggle I only work 3 days a week due to disability but my husband is on 43k
We rent and never take holidays. Every month ends with very little in the bank.
If I quit my job I doubt I would be able to claim anything more as they would take my husbands earnings into account. We just get £90 basic child payment every month.
It's not sustainable.

Also when I trained to do my job I had to pay £1000 a month childcare while I did unpaid training.

Car payments aren’t something I’d ever choose to take on. I know that some people need a car to get to work and don’t have the savings to buy and maintain an older car so they don’t have any choice. I’m amazed that so many people who could buy outright choose to pay over the odds to get a shiny, new car every 18 months. I’d never buy a new car either - they lose so much value. To me it’s all a bit fur coat and no knickers.

I sometimes think, with housing, some people expect too much - such as a bedroom each for the children, or a downstairs loo. I would consider those nice-to-haves. Certainly, my DC shared a room until they left home, and we only have one loo. If people got a two-bed place instead of a three-bed, it would be more affordable.

I do have a car loan but I keep the car for a few years after it’s paid. I would never have a lease car, unless I say had a job with a car allowance that would keep paying for it

My OH and I have only ever had quite inexpensive but reliable cars that we buy outright for £3/£4k so never had expensive monthly car payments.

• the car payments are luxuries which should only be taken IF you have that money spare
• if you have childcare costs, presumably 2 x FT workers
• savings are for when life is cheaper, i.e. don’t beat yourself up for not saving whilst DC are in childcare
• a budget is needed sorting out essential costs bills which are usually covered. Then you know exactly what’s leftover and cut adjust your luxury spend accordingly.

The average household income is £29,900k.
The average salaries quoted are calculated based on full-time salaries. A lot of people work part-time or have multiple part-time jobs and generally earn less.

No idea. We have 3 kids and couldn't afford childcare, so I wfh and look after the kids. We don't save much money and if we do, it always gets dipped into, and we only have one car. We don't go holidays abroad.

And £1k for general living seems very high to me.

We are finally comfortable after years of struggling.

Really cheap mortgage (£600 for a four bed detached). One car which we paid for outright. And, we've both worked really hard to earn more than the UK average. My salary has doubled in the last two years because I studied for a professional qualification. My husband has worked until the early hours every day to build up his own business.

It's not been easy.

If you want to buy a car, however old and cheap, you still have ongoing running costs. My point was that there are people who can't afford car ownership at all.

Credit cards and loans some of the time, but therein lies the slippery slope.

There was a thread on here a month or so ago where people admitted how much their own parents helped them out financially, it was quite an eye-opener.
My MIL bungs £20 or £30 in DH's pocket when we visit her "for petrol".

Another poster has already mentioned it but some people are better paid than what you might think.

Lived without a car until I could afford a cheap one so no regular payments there (and don't need two?!) but maintenance etc can be lots if you have a surprise thing that needs fixing.
"general living" we are well off but don't spend a grand a month!?
Bills less than £200 unless you include food.
Council tax and mortgage is the big painful one.

@daisypond

I sometimes think, with housing, some people expect too much - such as a bedroom each for the children, or a downstairs loo. I would consider those nice-to-haves. Certainly, my DC shared a room until they left home, and we only have one loo. If people got a two-bed place instead of a three-bed, it would be more affordable.

I agree.

People have much higher expectations these days and would probably think they were living in poverty if they lived as the average family did a few decades ago.

It's great that living standards rise but with it comes the unrealistic expectations around what life should be like.

I'm not talking about a life of martyrdom, surviving on lentil stew and wearing a coat to bed in winter, but more that maybe you can't have 2 cars and go on holiday every year and redecorate/furnish every few years.

We live in the north and bought our house for less than £100k 15 years ago, overpaid it massively and now we own outright.

We save up and buy second hand cars at least 3 years old and keep them for at least 5 years. Cars can last 10 years without needing substantial work unless you’re unlucky.

Childcare up here for 3 days a week is £550, or about £460 with government top up.

We started out in life on £30k between us, went up to £60k between us working full time, and now it’s about £50k with me part time.

Plenty left over for savings and holidays.

The key for us has obviously been the mortgage, but that was a bit of luck and some good financial decisions at a time when it was more cost effective to save interest in mortgage payments than it was to put anything in savings. I don’t think that’s changed much tbh.

@Bluntness100

The average salary in the Uk is 32k op. Eighty percent of mothers work. So easily affordable if you earn the average.

I assume you mean if there are two out at work? As mother on her own even if earning 32k, would not be able to pay above as per listed, okay minus one or two things not necessarily relevant for that person. Also in most parts of London, North especially you had to show proof of 35k to rent a two bed flat. Which you really would need with a child.

I don't know many in average jobs, on their own in London, working full time with a child or more to care for, paying all their rent, bills, food, bits and bobs, and a little left over if lucky, how is that possible when most two beds are £1300-1400 a month? Of course there is the necessity now to claim something, but that's not how this was phrased, so I'm just wondering.

Mortgage - rural Lincolnshire! We have a 5 bedroom house which is £450 a month. DH earns £37k.
Car payments (usually 2!) - our cars are bought outright. I saved up DLA and Carers Allowance to buy mine and DH bought his when he was a single guy.
Childcare - I stay at home
Savings - we have money left over as we don't go out to pubs etc
And general living - we just manage, somehow?!

Not everyone has the same outgoings
I don’t have high costs childcare or car for example
People either manage , or get into debt

I afford it by not spending nearly that much.

Car payments are not a standard cost - I bought one 10 years ago for around £1k and spend maybe 600-1000 a year on it inc tax/ins.

Children are also optional if you cant afford them - thought I accept they are the 'norm'.

Mortgage less than £500 - I live in a cheap area. Bills £500 ish - food £3-400. I've no idea what the 800+ in addition to this is meant to cover?

My imcome is nowhere near 40k. Not even close!

I know someone who warns 23k, their partner earns 80k yet this person still wear t shirts and shoes that have holes in. They have a lot in savings , renovated a flat in the suburbs of London, have an expensive car. But the holes in clothes and shoes makes no sense, I’d rather have clothes than money in the bank . They don’t have holidays it’s all save save save.
I’m on 18k have adult child and one in secondary, I save for specific things yearly holiday usually a week, days out . I even cycle to work to save the £110 monthly travel cost. It’s all about specific circumstances

I don't have DC and earn quite a bit under that. Couldn't afford children

Mortgage £380
Bills about £400 (inc c tax/gas/water/insurance/denplan/petrol)
Management fee £100
My car is paid off

Leaves me with about £100pw for food/clothes/vape/coffee/socialising etc.

Key Statistics for UK Salaries
As of Q1 2021, the average salary for the UK is £26,193 an increase of 1.6% from 2020
Average pay for employees increased 4.8% from November 2020 – January 2021
In 2020, the average UK wage increased by 3.4% to £25,780, this includes all forms of employment type.
The average full-time salary in the UK also grew to £31,461 per year, a 3.42% increase when compared to 2019.
Latest Government data reveals part-time workers in the UK earn on average £11,234 a year, a 6.1% increase from 2019’s figures (including gig economy workers)
Full-time salaried males earn 21.2% more than their female counterparts, which averages at £5,942 less each year.
Men in the legal professions take home more than £32,000 more than their female co-workers, the largest sector difference.
Those aged between 40 and 49 earn the most of any age group in full-time work, averaging at £35,904.
Men over the age of 60 earn 32.5% more than their female counterparts, averaging an extra £7,764 each year.
Graduate age groups have a gender wage gap of 10% in favour of men, averaging a difference of £2,480 each year.

standout-cv.com/pages/average-uk-salary