Low earner

[Mondaymanic]

What do you consider to be a low earner?
I was always content enough with my pay, always would prefer more of course but generally not feeling hard done by.

Lately I've learned most my friends earn far more than me and consider my pay very low but I'm conscious their view might be skewed. I earn around 27k no children and partner earns the same. Of course I know this isn't amazing pay but is it not decent?
I love North in a v cheap area if that helps

Well I earn very little and if I worked full time it would still be not enough to live on, so I think that is low. So our household income isn't high because that it for.all of us. A lot of 'high' incomes are negated by how many people are relying in that income . My husband couldn't afford the childcare/ housework/ admin that I pick up for eg. So it's not enough for family life with the hours/ distance he has to put in.

The Micawber principle us all that matters really:

Income 27,000, expenditure 26,500, result happiness.

Income 27,000, expenditure 27,500, result misery.

A great deal also depends on variables: where people live, rent/house prices, commuting costs, etc.

@MidnightMeltdown

When I was growing up, the advice was that you're doing ok if you're earn your age.

So if you're 27 then you should be on about 27k. If you're 40, then you should be in 40k etc. This was a few years ago though, so you probably need to earn a bit more now to account for inflation.

However, it's still the case salary should be judged according to age.

But how can this ever work when plenty of careers "max out" at a certain income?

Surely it depends on your outgoings ect? I earn 22k and my partner earns 24k. Certainly not high earners (especially not by MN standards where everyone seems to be on a six figure salary), but we are comfortable because our outgoings are relatively low.

To me £27K seems a high income as I'm on 8.3K (21K pro-rata)

BUT it's all relative, e.g. I know I'm very privileged as :

Our mortgage is tiny due to an inheritance

Loads of free time to enjoy myself

Approx £1K for spends / saving per month

We have an extremely well insulated house and mains gas = low bills

DH earns 28K

My car does 55mpg and costs £20 tax per year

@MidnightMeltdown

When I was growing up, the advice was that you're doing ok if you're earn your age.

So if you're 27 then you should be on about 27k. If you're 40, then you should be in 40k etc. This was a few years ago though, so you probably need to earn a bit more now to account for inflation.

However, it's still the case salary should be judged according to age.

Wow a lot of people would be disappointed if expecting that or have to be very ambitious or maybe the norm for the middle classes! I’d say most people doing well and be comfortable on a 30k (fte) salary (except of course in south east) but below that not necessarily low income, I would think of someone e.g. on 23k (fte) as being on a low income on average but obviously not if they were e.g. 17, that would be a very good salary!

Depends on your circumstances and where you live - in London where I live that would be considered a low wage. My daughter is 23 and earns 30k and only has her car to pay for.
I earn £17k part time(20 hrs) but I have paid off my mortgage and don't need to get more.
When I had a mortgage I had to earn over £40k to live comfortably as a single mum (but with maintenance of £1000 pm When I was married ourjoint income was over £100k, ten years ago.

When I was married ourjoint income was over £100k, ten years ago.

Those jobs probably pay similar now though which is a huge problem. Salaries even good ones have hardly changed in the last 10 years.

I think the “it depends on your outgoings” line is a bit disingenuous tbh- yes it has an impact on your disposable income but 80k is never going to be a low income just because you’ve chosen to have 4 kids and take on a massive mortgage, for example. But I do see that living expenses are so much more expensive in some places that what’s “fine” where I live is “low” there.

@grotsneg
No - he makes £220 a day now so £90k but we are divorced so I don't see a penny of it, I live on my £17k a year

I was talking more statistically & allowing for inflation of course it should be at least 25% more

I don’t think that’s low. I earn about 24K, but I am much happier now than I was 15 years ago. Back then I was working part-time earning about 40K with bonuses, but the job was stressful, I often worked (unpaid) evenings and weekends, clients were given my personal mobile number by our PITA receptionist when I was on leave as apparently in a company of 100 people, I was the only one who could help them. It was exhausting. So if you are happy and financially are coping, I would not worry if your job is considered low paid or not.

You can earn a low salary but be comfortably off and vice versa. Outgoings and savings are a much better indicator of how well off you are but yes, I’d consider your salary to be low. However, as you say, in the north it’s very different and I’m in the south so my comparison is skewed.

A low earner to me is less than about 20k.

I would not worry if your job is considered low paid or not.

This is very true. Its sad nobody stops to ask this... and there's no excuse as if you are aged 30/40 currently we all managed on less than we used to earn at one stage.
The work balance is UK is horrible. People will just say increase your earnings assuming everyone wants to or has the means to do so.

I've found that what a lot of women see as a good salary, a man would consider utter peanuts. Women don't negotiate good salaries, are reluctant to change jobs and don't chase high paying roles.

Junior and entry level roles in my industry have risen to 35 to 40k in the last 12 months. While kids earn that, women are oblivious and think 25k is as good as it will ever get.

Demand more at the hiring stage and an annual pay rise. And a job move every 12 to 24 months.

Some of the salaries here are quite scary as far as life expectations are concerned - my 17 year old earns £9.50/hr on a part time rate, local hotel pays £11/hr. I think if you’re a graduate you need to set a higher bar.

I think if you’re a graduate you need to set a higher bar

I'm a graduate and earn £10 per hour. I have a happy, stress-free life. I'll never pay back a penny of my student loan and I couldn't give a flying fig!

Earn £75k/year and hubby £70k/year. Surrey based.

There is a big difference between £40k/year and £70k/year (transition from a junior to a more senior role).

London/SW is practically in another dimension vs North when it comes to salaries and costs. Seen some of the mortgage payments and school costs on here and I thought "I wish I paid that".

Private school costs will vaporise a huge chunk of that money down south. We have a DD2, and no plans for more. Education is just too expensive and it would be too much of a financial stretch for us.

@ThreeLittleDots

I think if you’re a graduate you need to set a higher bar

I'm a graduate and earn £10 per hour. I have a happy, stress-free life. I'll never pay back a penny of my student loan and I couldn't give a flying fig!

You earn 50p an hour less than my kid who is still in school, not exactly a great advert for a university degree is it?

@Idonea

I've found that what a lot of women see as a good salary, a man would consider utter peanuts. Women don't negotiate good salaries, are reluctant to change jobs and don't chase high paying roles.

Junior and entry level roles in my industry have risen to 35 to 40k in the last 12 months. While kids earn that, women are oblivious and think 25k is as good as it will ever get.

Demand more at the hiring stage and an annual pay rise. And a job move every 12 to 24 months.

You are being unreasonable. Are you child free? Are your kids adults? I'm asking because a lot of mums have enough to do without constantly changing jobs especially in this climate. Your being insensitive.

You earn 50p an hour less than my kid who is still in school, not exactly a great advert for a university degree is it

The point is that I've deliberately chosen to earn £10 per hour instead of enduring a more stressful path and higher wages. I've failed at nothing. I'm a sucessful and respected working professional.

The idea that anyone 'should be setting a higher bar' for themselves i.e. earning a higher wage just because of their age, background, education etc is snobbish nonsense.

The most important thing is contentment, as the OP mentions.

Well dh and I have just filled in our details for ds1 student loan. Admittedly it was through lockdown so his income was reduced whilst mine on the whole was almost non-existent.
Our joint household income was £18500.
We are currently catching up on the bills we couldn't pay so are still living on a pittance.
This is with 2dc still living at home.

Yabvu

To me low pay is less than 30k. I think 30-35k would be an ok wage depending on age. Just my opinion though.

@ThreeLittleDots

You earn 50p an hour less than my kid who is still in school, not exactly a great advert for a university degree is it

The point is that I've deliberately chosen to earn £10 per hour instead of enduring a more stressful path and higher wages. I've failed at nothing. I'm a sucessful and respected working professional.

The idea that anyone 'should be setting a higher bar' for themselves i.e. earning a higher wage just because of their age, background, education etc is snobbish nonsense.

The most important thing is contentment, as the OP mentions.

Snobbish nonsense is one way to look at it but on the other hand you could look at your 30k debt and wonder what sort of chain that will be around your neck for the rest of a £10 an hour career? Yes you may be content but with that huge debt on your shoulders for the next 20 whatever years until it’s written off it’s only going to drag you down.