High earners - how do you spend your salary?

[Citygirly]

DH and I earn just under £140k combined.

We do maximum pension payments (his is 9% as NHS) and we also give about 10% a month to charity.

Other than that, we plan to start overpaying the mortgage. We invest £1k a month (so £500 each) and save £1k for holidays. We of course do general/specific savings but then have a good chunk left over for disposable income.

AIBU to ask other high earning households how they tend to allocate their money? Just want to see if we could be using it better or this is about right for comparables.

Why do you need to spend it? What's wrong with saving?

crossed posts but why do you need to save it? What's wrong with enjoying the things money can buy?

I should stay of mumsnet as some of these unpleasant boastful threads make me depressed

Jaffa cakes.

Paying off your mortgage early is definitely not my strategy. It's the cheapest money you'll ever have to invest. The only reason to do so is if you don't have any other income streams/ investments and retirement is looming.

Majority of my salary goes on housing and private schooling. I invest in wine and property. We go on holiday a lot though too. I have seen too many friends and colleagues die early to not have half an eye on a good time.

Read through OP posts only - I think the advice to have multiple pots and investment for the future is good to enable early retirement.

While you don’t have kids currently, I think putting more money towards them now would be a good call - if you are in a 3 bed semi you will definitely want to move and it makes life a lot easier if you are already settled in the “forever home” before having them. Trying to move or self build with young children is a mare. So maybe put more money towards moving plans to expedite them.

Also re. private school, some are of the opinion they want kids going to private school so they are mixing with children from similar backgrounds - despite excellent free schools in area. Friend of mine went to a regular school, had high earning parents and was constantly teased about having nicer clothes/bigger house etc. Another went to a prep but was treated like a pleb as parents only teachers (according to them) and not owning own business/lawyer/doctor. Most doctors I know have their kids in prep, unless for some reason they want a religious school…. For the simple reason it’s easier for the family to mix socially with the parents/kids, with a level of commonality and no jealousy. Something to consider for the future.

I hear you.. any particular brand? Have tried a lot of the variations but considering just going back to good old original orange Mcvities. May as well splurge 😉

I agree Robinni.

I’ve only read two pages and already I’m smiling to myself.

I love these kind of threads!!!

We have a joint income of about yours OP. We pay the mortgage, bills, pension etc but spend alot of it on holidays and travel - probably about £30,000 a year. As a family of 4 we take at least 3 trips a year overseas for 8 weeks. Both of us work in healthcare and see too many lives cut short. We put enough away for a rainy day, but make sure we see as much of the world while we're on it!

I think people saying that 140k isn't a high earner is tone deaf but I understand why people want to discuss those things.

I earn well for where I live (top 10%) but earn much less than posters here, and I feel extremely comfortable. I'm in a better position than almost all my friends because I didn't spend a couple of years after uni enjoying my newfound income and going on holiday etc as they did, and instead bought a house ASAP - again obviously very lucky that those were the choices we were making rather than eating or heating but it does put me in a different position now - my mortgage is 1/2 theirs and that means I have enough money to pay a cleaner, have a posh gym membership, buy nice (to me!) wine and go on holidays. They probably cost me £350 per month in total, will be a chunk more when I've got the capacity to plan something long haul.

I feel like what I don't know is where to start on things like investing, but I have enough cash now that I really ought to at least start dripping money in. It's not something my parents have ever been in a position to do so I just have no idea. I'm not putting loads extra into my pension because I have a DB scheme and assuming I don't change industry it will end up valued so highly that I'm likely to top out my tax free pot so there's no point.

Obviously this is a great situation to be in, but it doesn't change the fact that I end up looking for advice from people who have been through similar situations.

Mortgage
holidays
cleaner/dog walker/personal trainers/gardener/hairdresser
food/eating out
kids activities

😂

I'm a tramp income wise by Mumsnet standards and I always buy McVities. I know I should be eating smart price on our income but they don't come close to the real ones!

I think it's beneficial for you to realise that it's not ok to pretend you need help so that you can boast about your earnings.

Seriously, sweetheart. You're going to be so embarrassed about this when you're older.

My dh is in banking and earned much more than this at 27. It just shows the poster is clueless as to other professions existing. It is very much possible.

I have gone long on McVities rich tea I managed to secure them at 1.9 for two packs which I’m very pleased about, that’s an investment that’s going to prove lucrative.

generally speaking most of my money goes in my pension now. I cannot wait to exit the rat race even if I won’t be wealthy in my dotage I won’t be working so I’ll be happy.

i’m hoping that that will mean that I’m able to support my daughters in their career choices as well and help them by providing childcare I do you think that’s probably the best gift you can give your children.

@orwellwasright what is wrong with somebody from a humble background asking other high earners how they manage their money?

The girl has no social reference points.

If she were from a family of high earners they would already have an investment portfolio and be guiding her as to how to wisely manage money for the most beneficial long term outcome. Probably would have her as a director of several family businesses already.

MN is for everyone and honestly I don’t understand why any time an individual so much as mentions money be it their earnings or inheritance they are met with women being jealous/suspicious/outright nasty.

You’d hate me then I was on 100 grand a year at 22 back in 1999.

We save it and also help family. Mortgage is paid off. Earn around 200k combined and live in London suburb.

Probably live a similar lifestyle to those on a quarter of our combined salary and don’t do anything particularly special with it.
DC is at a state school, no debts.

What our income affords us is not having to worry about money and if something needs replacing/breaks, we can buy it without it having any impact.

Nando’s.

Seriously - that is high earning. I live in London too and that is high earning and not sure why you think otherwise

Lordofmyflies

I can see the argument for seeing the world while you are on it but don’t you worry about the impact on the climate emergency and the future for your kids? I’d feel too guilty to fly so much.

I have nothing really constructive to add to this thread, except that Morrisons own Jaffa cakes are banging and far better than Mcvities.

Hi Boris.