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.

Pay max into our pensions, maximum into our S&S ISAs and then anything else we invest in we try to avoid things which attract CGT.

We don't have a mortgage and no longer any school fees or uni costs (DD is past both stages now) so life isn't that expensive for us anymore.

We both travel extensively for work so don't tend to want too much more travel for holidays, but we do have a second home.

Biggest expense these days is cars and then rarely a bit of jewellery or a watch, maybe.

People say "live for today!" but I'm not even sure what that means, to be honest. I don't like throwing money away just being extravagant for the sake of it. No pleasure in that in my opinion.

We’ve always been told by financial advisors to get rid of debt really before doing anything else.

That is some interesting advice. Odd that none of the high-net-worth individuals I happen to know (through work in private aviation business) follow it, all happy to use someone else's money if they get it cheaper than what their investments bring.

You have had very sensible suggestions on here.

My words of experience are, if you know you want to have DC at some point, and your career will still be important to you, make sure you try to get that big promotion before you have DC.

I see it time and again, in a variety of sectors, including law, to keep the same trajectory in your career, you need to have wrap around, flexible childcare i.e. A nanny.

You should start thinking about that and whether you need to start a pot of savings for childcare that will enable you to maximise your career.

Threads like this just make me realise that slogging my guts out in the NHS for 45 years was completely the wrong career choice. The most I ever earned was a quarter of the OP’s salary.
The salaries mentioned on here are beyond my wildest dreams.

People don't fall into high paying jobs it often takes years of study and hard work .

If the lady can afford high quality cat food why not . I've just fed my two dogs diced beef for tea . Will I apologise for it , no absolutely not .

I'll see your piece of likely unwelcome advice and raise you a piece of unwelcome advice;

don't save it

invest it.

Well, depends on whether earning a lot of money is your only goal or if there are other things that matter, too.

There is actually a real reason why there's inequality.

We need a large portion of society to be in debt to maintain the debt-based monetary system that we operate.

If people stop taking out debt, then no money can be created.

Everyone cannot be wealthy, everyone cannot be middle class. The working class and the low paid are the literal reason this economy has come this far. They are essential. They spend money and keep the economy going. If everyone just let the money sit in a bank there would be no cash in circulation and the system would completely crash.

@hattie43

Thanks, I realise that. I earn relatively well myself - quite a way about the average U.K. salary - after 15 years of study, hard work and sacrifice and 3 university degrees including a PhD. Did I ask anyone to apologise? I am expressing sadness and empathy for those who have fallen on hard times, for whatever reason. It absolutely does sadden me that someone might be unable to afford a load of bread in a developed country. It could be any one of us, at any time, who might overnight be suddenly disabled or otherwise unable to work. My PhD isn't going to help me is that happens, is it.

Thankfully I didn't need to study empathy for the less fortunate, I was just born with it.

@andtheycalledthewindmoriah

Thanks that explanation does actually make sense.

I was more just saddened that someone can't buy a loaf of bread, in the UK in 2022. Minimum wage or 100k - everyone should be able to afford those basics imo.

I do school hours. I just try and be happy as my dad was too sick when he retired to enjoy his money. So I learnt alot from that. More money is more stress too lol

Don’t make the assumption that those on lower incomes don’t also work extremely hard, or aren’t educated. There are people working 2 or 3 jobs to support their families.
I think @lancsgirl85 made a quite a thoughtful point about inequality.
It’s not about higher earners having to feel bad or apologise - but how about just a little bit of awareness that a large portion of the population is struggling to make ends meet?
We all have our talents in life, but not everyone’s skills lead to a lucrative living unfortunately, hence the inequality.
However, if I were as fortunate to be in the position of having as much disposable income as the OP, then I would spend it on having lovely experiences with my family and friends, and eating good quality food, rather than on material things like expensive clothes, gadgets etc, which you’ll soon tire of and get rid of. Although a house in a nice quiet area with a lovely garden would also be wonderful.

You can’t take it to the grave

No, it simply can't be. This system is built on inequality.

It’s shit lovely. I’ve been there. I truly have

if you need a friendly ear. I’m always here

I also don’t think there is anything wrong with the thread. Everyone knows there ar high earners, if seeing that upsets you, just hide the thread.

there’s nothing to be embarrassed about now, or when she’s older. I seriously doubt she will be “cringing her tits off” when she’s older or any other such nonsense being written.

Nope. Nobody ever lies on Mumsnet. Ever.

Oops, I just did. 😂

Citygirly If children are on the horizon I’d look into and build a buffer for ongoing childcare expenses. With law plus medicine you may need a nanny rather than nursery for the long/irregular hours which is going to be a high ongoing cost.

You should probably be putting more into pensions for you (definitely anything above the higher rate allowance if you can) but I’d stick with the minimum NHS contribution for your husband as many doctors have been hit by the lifetime allowance (worth looking up guidance from the BMA on it). Also worth looking at Lisas and investing in stocks and shares isas.

You’re on a high income but childcare will eventually swallow a lot of it . You have a few years to have fun and build wealth/a financial buffer before children make that a different proposition.

I really don’t think she’s lying. These are standard salaries for their careers at this age.

High earners having no children means a large degree of flexibility regardless of what you spend your money on, with children the big hindrence are private school fees.

I seriously doubt she will too. But she should because boasting about your wealth to complete strangers is truly embarrassing.

I think it’s clear it’s upsetting you, I don’t see this as boasting, she’s allowed to talk about it, maybe it’s best to hide the thread if it’s upsetting you so much? 💐

No with children the big hindrance is childcare and then potential university. Plenty of high earners are happy to keep faith with the state school system and find our kids end up at the same universities as those who were sent to expensive private schools.

I don't have a mortgage but I do have a child at university so a chunk of money goes on his rent. Otherwise I save a lot. Jobs can be lost very easily for lots of reasons, so it's good to know that you won't starve (probably not the case if you work in the NHS but absolutely the case if you work in the law).

Otherwise money goes on holidays, meals out, exercise classes.

£600 on drinks out in bars, £1000 on travel, variable £ on clothing. Know we’re very lucky, count our blessings every day.

£150k combined income, split relatively evenly. 50% of my salary goes into my pension. We try to save £1k a month between us. The rest goes on mortgage, nursery bills (higher than mortgage!) and normal bills. We have about £600 each to spend, but I inevitably end up in my overdraft every month.