..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?

Erm not sure why you quoted me there? What you say doesn't follow on at all ?

It was a general observation that you can't say you understand what it's like to have not very much Off on the basis of having lived off a reduced income for a short period of time when you have walloping great savings to back you up

So what is the fascination with private school?

If local schools are decent, I have no idea. I'd rather save the money for a house deposit for DD (we definitely couldn't afford to save £30 000+ a year for her I hasten to add). But if the schools were awful and you lived in daily fear of your kids being stabbed or drawn into gang culture I can see why parents would make private education a priority.

super rich is having yachts, private jets, multiple homes across continents and never needing to actually work

Being super rich may mean that someone can afford those things, but it doesn't make them mandatory. Warren Buffet still lives in the same house that he bought in 1958 for $31,500.

It's all about choices - no-one is forced to spend just because they are wealthy.

Big salary comes with big outgoings and in almost 100%cases an awful lot of stress.
People rarely have a luxury of finishing at 6 or switching off work for the evening and weekends when they earn 6 figures.
And no, I don't think they were just lucky, it is a lot of sacrifice. I hear a lot of moaning from people with a modest salary about how life is tough, but they made a choice to pick something 'rewarding', 'fullfilling' or something that makes them happy instead of attempting to join the rat race.
Good for them, just don't blame others and don't think they have been lucky or have an easy life.

We take home around £5.5k a month and it doesn’t go far. I often wonder where we’re going wrong.

We have a hefty mortgage on a larger than average but not huge house. Both drive 10yo cars. No private school or massive pension contributions. No ponies.

We are very fortunate, I know that, and we don’t have to think too hard about the weekly shop or popping out for dinner, but it’s not what I imagined a ‘six figure combined salary’ would feel like when we were younger and poor.

Not well off on 90k a year?

Right…

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

This is just an example of the chip-on-shoulder "us vs. them" mentality.

As has been pointed out, I would say the vast majority of six-figure earners know exactly what it's like to live on MNW or average earnings. I certainly do. And I use it as motivation to strive for better every day.

Either through choice, circumstance, drive or a dose of good fortune (or a mix), they moved on. Doesn't make them evil or deserving of scorn.

"These people", indeed.

Big salary comes with big outgoings

This is a total myth

I don't struggle to understand them, exactly, and I certainly understand how people can spend all that money. What I do struggle to understand is why some professions pay so much in the first place. (I don't mean roles in medicine, some types of law, or other professions that contribute to society as a whole - though they tend not to be the really well paid roles anyway.) I particularly struggle with the differentials when you look at how badly paid care workers, or classroom teachers, or some of the uniformed services are, for instance, or other roles that keep society running, like hospitality, production workers, delivery drivers etc.

I also really struggle with the sheer lack of imagination and empathy that some (not all) of those earning these salaries exhibit. This is especially the case when it comes to understanding how difficult it is for people with the "average" income or below to survive. It's not like you get special lower energy rates or anything when you're poor; and as a percentage of your income, it has much more of an impact. That £20 a week that the government and some of its supporters are so snarky about for instance? That's probably a tiny glass of wine or a gilt-encrusted breakfast crumpet to them, but for some people it's the difference between being able to feed their kids or feed the electricity meter.

And where I REALLY struggle is when (some, not all) people with those incomes say things like, "Oh, but I worked so hard" - like poor people don't?! And often don't appreciate just how much their income is due to luck/family inheritance/their grandparents having bought a house for £100/being clever enough to be born into a wealthy family with good connections/go to the right schools, universities, etc.

What's that meme again, the one along the lines, if hard work was genuinely rewarded as it should be, every poor village worker in Africa would be a millionaire...

@idontlikealdi if you don't mind me asking, could you afford the fees for one? I do understand not sending one child to private school if you couldn''t afford for both!

A better question is whether these people can imagine what it like to live off average earnings
Yep, been there and done that, been on below average earnings, minimum wage, working 60+ hours a week, working 40 hours a week whilst studying full time, then earned average wages for a four years, then slightly above for a bit more, then it reached the point where everything came together for both myself and my husband, but that involved launching his own business which meant his income went from £35k, to £8k for around a year, before rising over the three years after that until he got into six figures.

So been there, done that, have years of those T-Shirts.

Well what is comfortable/wealthy/rich/super rich and the lifestyle it buys is subjective, but what is undeniable is that if you earn £30k a month take home, you're in the top 1% or even smaller fraction so you have far more money at your disposal than almost everyone else in the country.

If you choose to spend it on very very expensive versions of essentials like housing, childcare or schooling, that's your choice and it doesn't change the fact that you have more money than the average person who doesn't earn enough to qualify for a mortgage on a house in an expensive area or has to manage childcare by juggling the cheapest combination of childminders, wrap around clubs they can find and favours they beg from friends and family and no money available for private schooling because they consider the provisions near to where they can afford to live unappealing.

So your 'basic' life of your choice of housing, childcare, schooling with no consideration of what it costs is unimaginable luxury to the majority FFS.

The UK has extremely high income inequality compared to most developed countries: The bottom 20% average £15k and the top 20% average about 70k. At some point the gap will grow so large that people will realise they pave had enough and try to vote for change, though I think it may well be too late by then. Labour under Corbyn presented a fairly moderate manifesto of reform. ( basically a typical Labour manifesto under any leader but Mr Tony “£30 Million Quid property portfolio” Blair) and he was labelled an extreme leftist/communist which the majority believed. I think the ship has sailed and the British establishment will never allow any meaningful change/greater equality.

It's always a pleasure to see people on three or four times average earnings moaning about how hard up they are.

And that people with higher incomes pay more income tax.

@CSJobseeker

Big salary comes with big outgoings

This is a total myth

For reference - we have a high household income, one of us earning £100k+, the other just under. We live in a beautiful area up north, in a normal home, and our outgoings associated with our jobs are very low (we rarely need to commute).

The smart clothes I wear for work cost the same as they did when I was on a lower salary, DH doesn't need to wear smart clothes ever.

Many of the statements above apply to people we know on much higher salaries than us too.

@Gilmoregale

I don't struggle to understand them, exactly, and I certainly understand how people can spend all that money. What I do struggle to understand is why some professions pay so much in the first place. (I don't mean roles in medicine, some types of law, or other professions that contribute to society as a whole - though they tend not to be the really well paid roles anyway.) I particularly struggle with the differentials when you look at how badly paid care workers, or classroom teachers, or some of the uniformed services are, for instance, or other roles that keep society running, like hospitality, production workers, delivery drivers etc.

I also really struggle with the sheer lack of imagination and empathy that some (not all) of those earning these salaries exhibit. This is especially the case when it comes to understanding how difficult it is for people with the "average" income or below to survive. It's not like you get special lower energy rates or anything when you're poor; and as a percentage of your income, it has much more of an impact. That £20 a week that the government and some of its supporters are so snarky about for instance? That's probably a tiny glass of wine or a gilt-encrusted breakfast crumpet to them, but for some people it's the difference between being able to feed their kids or feed the electricity meter.

And where I REALLY struggle is when (some, not all) people with those incomes say things like, "Oh, but I worked so hard" - like poor people don't?! And often don't appreciate just how much their income is due to luck/family inheritance/their grandparents having bought a house for £100/being clever enough to be born into a wealthy family with good connections/go to the right schools, universities, etc.

What's that meme again, the one along the lines, if hard work was genuinely rewarded as it should be, every poor village worker in Africa would be a millionaire...

Excellent points, well made.

We earn maybe £220k as a household but I don't think you'd know by looking at us. We live in a normal victorian 3 bed semi, our car is second hand from 2008. I just don't have to pay attention to prices in the supermarket which my mum can't comprehend as I grew up poor.

We save about 60k/ year atm that goes into investments - that's the money that could have been used to keep up with the Joneses but honestly I'd rather have the financial independence and the opportunity to retire earlier. If we have kids, the nursery fees of 1.5k/ month will eat a chunk of that and if they don't get into a decent school in the area then we'll be forking out private school fees as well.

We rent a flat out because we didn't manage to sell it - but we actually make a loss on it each month due to taxes. Taxes also eat 60% of what I make over 100k.

@IntermittentParps-I like to see people who are fortunate to have a great income acknowledge it-it’s the people who pretend they’re not and whine about how they just can’t manage on massive salaries who are irritating! You obviously appreciate how much easier it makes your life. After all, what is money for?

@PigletJohn

It's always a pleasure to see people on three or four times average earnings moaning about how hard up they are.

And that people with higher incomes pay more income tax.

The OP asked about what high earners do with the cash.

Some high earners answered and suddenly we are all moaning - not the case - most high earners on here were just answering the question.

I would add that last year due to Covid we had to do it on much less. I have been close to breaking down , I probably did under most peoples definition. We also have a mortgage of £1,300 per month on a very modest home. Reading all your comments has made we realize how insane we are.☹️.

*I find it fascinating how this thread has brought all the higher earners coming to defend their salary and tell you that it’s actually not that much money and don’t you know they have to be so careful too?
I mean they shop at Aldi!!

All the while they don’t seem to question at all the fact that, if they have to be careful with their £100k salary , with a ‘simple 3bed house’, those who are living with MW must have a really hard time indeed…..*

This is a bit disingenuous, people may not be questioning it on this post but that wasn't the question the OP asked.

I think you'll find that most posters know exactly how fortunate they are, and how much harder that it would be on minimum wage. But the question was where does the money go, and the fact is while 100k is going to make life very comfortable, it isn't buying Tesla's and flying first class at all

me realize.

[quote Subbaxeo]@IntermittentParps-I like to see people who are fortunate to have a great income acknowledge it-it’s the people who pretend they’re not and whine about how they just can’t manage on massive salaries who are irritating! You obviously appreciate how much easier it makes your life. After all, what is money for?[/quote]
Forgive me being dim, but I'm not sure which of my posts or points you mean.

@PigletJohn

It's always a pleasure to see people on three or four times average earnings moaning about how hard up they are.

And that people with higher incomes pay more income tax.

With respect, I don’t think many on here are moaning. They’re just answering the OP’s question, which is where their money goes.

@Ledwood85
This is just an example of the chip-on-shoulder "us vs. them" mentality.
As has been pointed out, I would say the vast majority of six-figure earners know exactly what it's like to live on MNW or average earnings. I certainly do. And I use it as motivation to strive for better every day

I used to earn 10k a year for several years, then 20k a year as a teacher for several years. I now earn ten times that. However, I think economic inequality is Britain is too great - both between individuals and regions - and Britain has quite shameful levels of social mobility.