..to struggle to comprehend huge salaries?

[missbunnyrabbit]

I was reading the thread about how much people earn having been to grammar/private schools and I just cannot get my head around how much lots of people earn. My head just cannot imagine such huge salaries. People earning over 100k, what on earth do they even do with that money? Do they buy everything gold-plated? That's a joke BUT I have no idea what anyone does with that sort of money or what it could be needed for. This isn't a bashing thread or anything like that. I'm just a bit stunned.

Does anyone else's brain struggle to imagine such huge amounts of money?

There is a world of difference between living off nothing for a short time with plenty of savings and living off a small amount for years on end

People are driven to extend themselves to the fullest, so spending will always match the salary. It doesn’t mean those people aren’t lucky, but they just won’t feel it that way because they will have enormous outgoings of their own (yes, through choice but still less disposable income than people on here seem to understand due to those outgoings).

The more you earn snd the more you mix with high earners, the higher the stakes become. It’s just how people are/how society is. It’s not difficult to understand.

People always overlook tax as well. If you want to send 2 children to private school that’s 40k a year. That’s 80k approx pre tax. Just for school. 100k doesn’t go very far when you make expensive life choices!

We spend ours on a massive mortgage and school fees x3. We have enough for the odd great holiday and several less posh ones too.

@Newnews

We have just reached peak mumsnet , where someone actually says “we earn 30k a month but we’re not rich” Jesus wept

I know - madness.

£30k a MONTH is super rich

A better question is whether these people can imagine what it like to live off average earnings

No, I couldn’t, to be completely honest. I could try to but I would never fully understand it

@CSJobseeker

Some of the comments on here are embarrassingly tone-deaf. No one in the UK is paying astronomical tax or has an overall tax rate of +50%. Here are the 2021 take home salaries for someone on:

£50k = £37,662 (25% tax, NI etc.)
£100k = £66,689 (33% tax, NI etc.)
£200k = £117,161 (41% tax, NI etc.)
£300k = £170,161 (43% tax, NI etc.)

If you make huge pension payments that reduce your take-home pay, that is a choice that you are very lucky to have.

If you are paying a huge mortgage on a big house, or are paying school fees, those are choices that you are very lucky to have.

EVERYONE has to pay council tax, utilities, food, fuel etc. - these things aren't special costs that only apply when you earn a high salary. Bills will be higher on a large property, but again - that is a choice that you are very lucky to have.

You cant make huge pension contributions to reduce your tax bill. That ended some years ago

There is a million lifetime cap and a £40,000 a year contribution cap.

What happens is that to mitigate against that the employer pays you more and you pay tax on that. (because they dont have to pay employer contributions)

Nanny so I can actually work to earn that money.
Private school fees.
Big mortgage (modest London house)
Those together are around £6k per month. So that explains why I never seem to have huge amounts of extra cash left!
I think if you have a bigger salary you make life decisions based on that (eg staying in London rather than moving out / private school etc). So the money does get eaten up in ways that don’t make gold plated anything possible at the end of the day!

Some of the comments on here are embarrassingly tone-deaf. No one in the UK is paying astronomical tax

43% tax feels quite astronomical when you see the tax bill actually. Not complaining but surely you can see there’s a difference between 25% and 43%.

@Itsnotgreatlike

A lot of people really don't understand the calculations for PAYE and NICs.

I don't think £100k salary is in the realm of yachts and private jets. But if you earn that much and also spend it all, that's something you're doing by choice. You're free to do that obviously, but not having much disposable income after paying for all the things you have chosen to pay for is different to not having any disposable income after paying for food and utilities.

I don't begrudge high earners their money. Some of them work very hard for it and deserve every penny. Some of them are buffers who talk the talk. It's as naive to think that every high earner is a hard working high achiever as it is to think that every low earner is a workshy layabout.

Mumsnet is just strangers on the internet so irrelevant - but in RL most of the people around me have choices. Brought up in stable families (not necessarily rich but stable) , no illness, disability or anything bad like that. They chose to prioritise ‘passion’ over money. And having fun instead of being career oriented.

Fine by me - but don’t moan about how lucky and privileged I am. They could have had the same.

A better question is whether these people can imagine what it like to live off average earnings

Yes, because we have lived off completely average earnings. I’m fact very low earnings at one point. It has taken a lot of years to get to the £100k income.

Our combined income is 150, I'm the higher earner. We live in London in a bog standard three bed terrace. We are not rich. Kids aren't in private school, we couldn't pay the fees for two.

What we do have is the luxury to not have to look at prices in the supermarket, two or three weeks holiday in summer, short breaks in the half terms, kids activities (horses), pay ridiculous amounts for medication and specialist food for ddog without worrying about it. We both have substantial pensions. The kids get what they want within reason eg they want Air Force 1s, they have to wait until Christmas as they have trainers that fit already.

Ten years ago when I was on mat leave and DH wasn't earning much it was very different. I used to have to walk in the rain with dts in the buggy instead of taking the bus into town as we just didn't have the money.

For a start they pay huge income taxes and get no child allowance.
What's left is a comfortable income but a very long way from "unimaginable spending power and wealth".

    People I know who earn 100K work very long hours,  have a nice det house (heavy mortgage) second hand cars, annual holiday abroad, don't worry about the heating bill, kids in state schools.

For us we saved a lot of it, formed a large pension and built a small house too for income, meaning we are able to now be part time in our 40s. I was a SAHM for several years too as a demanding job for one parent meant it was tricky for other to work, so his salary enabled me to stay home. No appetite for clothes, restaurants etc here but we do have a large, beautiful house that we love (also requires lots of looking after/maintenance) and long holidays. No private school but loads of extra curricular for the DC, lots of instruments, etc, hobbies for DH and I. And we've always bought second hand when it's practical/economical, and I alternate food shops between regular and budget supermarkets too.

We both come from poor backgrounds, with parents that may struggle in the future (and certainly no inheritance 😂), so it's been really important to save.

So what is the fascination with private school? Seems like people who are blatantly wealthy are down playing it because they send their children to private school, which is basically the cost of a years wages for the average person.

A better question is whether these people can imagine what it like to live off average earnings

Well yes because very few people graduate or jump straight into £100 000 jobs Dh has only had large salary increases in the last 5 years since he did his distance Masters course. Maybe that's why we don't spend excessively, we were perfectly happy with our lifestyle 5 years ago.

You cant make huge pension contributions to reduce your tax bill. That ended some years ago

If you read what I actually wrote, I said:

"If you make huge pension payments that reduce your take-home pay ..."

@Justheretoaskaquestion91

Some of the comments on here are embarrassingly tone-deaf. No one in the UK is paying astronomical tax

43% tax feels quite astronomical when you see the tax bill actually. Not complaining but surely you can see there’s a difference between 25% and 43%.

Yes, obviously there's a difference between 25% and 43%, but there's also a difference between £300k and £18k a year, someone on £300k a year probably pays more tax than I actually earn. My 25% tax possibly has more of an effect on my 'lifestyle' than 43% tax has on the lifestyle of someone earning £300k, when you move over and above what's actually essential to survive on. I think that's part of the issue really, not what's actually paid but the effects it has on the survival and lifestyle of those paying it.

These people earning six figures and saying they are struggling don't know what it's like to really struggle.
For a start, that private health care and private school fees is completely optional.
We earn a combined total of 3k a month which isn't rich but still decent, minus nursery fees, mortgage, other bills, council tax about 500 left to spend for a whole month (mostly petrol and food). That's with grandparents looking after the toddler 2 days a week plus me on the Wednesday, I wish I was earning 5k!

@Justheretoaskaquestion91

Some of the comments on here are embarrassingly tone-deaf. No one in the UK is paying astronomical tax

43% tax feels quite astronomical when you see the tax bill actually. Not complaining but surely you can see there’s a difference between 25% and 43%.

The context of my post was that a PP was claiming that were paying >50% tax in the UK. Which was bullshit.

@bordermidgebite

There is a world of difference between living off nothing for a short time with plenty of savings and living off a small amount for years on end

Newnews

We have just reached peak mumsnet , where someone actually says “we earn 30k a month but we’re not rich”
Jesus wept

I know - madness.

£30k a MONTH is super rich

@Livpool
The thing is it is not super rich, super rich is having yachts, private jets, multiple homes across continents and never needing to actually work.

I am not saying that £360k pa is not a great income, it really is great, but it is also not super rich. As an example Jeff Bezos earns more than £30k a second, he is super rich.

[quote Changechangychange]@NothingSafe oh of course it’s a choice (and one which is completely out of my budget). The OP said she couldn’t imagine how anyone could spend £5500 per month, I am explaining that it is pretty easy to get through that amount without bathing in champagne or buying a yacht.[/quote]
Ah yeah of course, apologies! I've been rubbed a bit the wrong way by people who earn a lot saying earning a lot =/= rich because they're not doing the champagne or yachts, haha, and missing the point that they're still rich despite not having what you might expect as the trappings of being loaded!

@NannyOggsWhiskyStash where i live (in London), it can be cheaper to send your child to private school than to pay over the odds to get a house within 0.5 miles of an outstanding state school. And in some of the richer areas in London like Richmond, Pinner , Chiswick, there are some black holes with regard to state catchment where your child can't get into the nearest Outstanding school but rather than move house and pay stamp duty, some parents choose to educate privately. And then for the next child, they pay privately too because they want to be 'fair'. In my area, the state secondary school catchment is 0.3 miles (so while I am technically in it, I would be out of it by the time my future child reaches secondary age so would probably have to pay for private if my child doesn't get into grammar). And I read that in nice areas in Bucks/Kent like Amersham and Tunbridge Wells, the state comp isn't very good as its a grammar school area and anyone with money whose child doesn't pass the grammar school exam is educated privately.

@OrangeMiBody

This will annoy people, but I’m a high earner and love it and appreciate it every single day. There are no “yeah, buts…” from me, I’m so happy that I’m paid a lot. It makes my life much easier.

Both my husband and I earn over £100k for a combined income of just under £240k. We don’t have any children (by choice) and have a really fantastic quality of life

I actually don’t mind paying high levels of tax. I think it’s fair. I also think very high earners should pay higher taxes.

With our money we-

• Have two properties (one large and rural, the other small but in the City so saves on hours of commuting when working from our offices).
• Have also purchased my parents’ home from them. They have a life interest. The had originally planned on leaving it to me as an inheritance but I was concerned about how they’d manage maintenance (it’s a big, old property) so instead bought it (at market value- middle of three independent valuations). The money they now have means they can pay for a gardener/maintenance person each week, plus don’t have to worry about money for care etc.
• Contribute a huge amount to our pensions- we’ll be able to retire early.
• Invest
• Support a family member who is unable to work due to lifelong disability.
• Continued in education. I’ve funded additional degrees and diplomas for myself which have then furthered my career and earning potential.
• Travel with the luxury of business class/first class flights, and great hotels.
• Lots of pets who bring us huge joy and we don’t have to worry about vet bills.
• Support causes we care about- in philanthropic ways (charity donations) and selfish ways (memberships of certain museums etc giving early access to events).
• Can spoil nieces and nephews.
• Don’t have to worry about bills.
• Have private healthcare. I’ve recently had a pretty upsetting diagnosis. Money won’t cure me, but the trappings of a high salary often brings things like income protection/death in service benefit which takes away a lot of worry, should things get very bad.
• Nice hotel breaks, meals out, great wine.
• Occasional designer bags. I’m not big into fashion etc but do like a decent leather bag from one of the more demure designers. Even on the non-designer side, having money to hand when I need a new winter coat is a privilege.

So that’s us. We’re not super wealthy. We’ll never go yacht-shopping or have staff but none of that interests me. I don’t want a lavish lifestyle, I just enjoy having more money than we need and the security that that brings. I’m conscious of how lucky we are so do try and help other people and causes where I can.

Fair play to you and personally, I'm not annoyed. If I was annoyed at everyone who is in some way better off than me I'd be permanently exhausted

May I ask where you live? (just vaguely!) I'm interested as that's not HUGE amounts AFAIC (I'm in London and I know how it – and other big cities –can swallow up money).

I'm sorry to hear about your health diagnosis. I agree things like good healthcare and insurance can help, but this just goes to show that money is really only one way of being 'fortunate'.

@balonsz

rich to me is assets & in most cases not living off a pay slip

I agree completely.

The thing is it is not super rich, super rich is having yachts, private jets, multiple homes across continents and never needing to actually work.
I am not saying that £360k pa is not a great income, it really is great, but it is also not super rich. As an example Jeff Bezos earns more than £30k a second, he is super rich.

Yep. If you want to be properly informed before you get riled up about the 'super rich', watch Succession