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.

People think if they deny their good income it makes them look virtuous and humble. 🙄

School fees

Clearly you have poor comprehension skills. Where in my OP did I say we "overpay" our pensions? Please direct me there as I'm unable to see that.

Further, have you read through all my posts? Your post would suggest not.

Thank you. A question to you and all who pay private school fees. In what ways do you think it is much better than outstanding state schools? What is offered above and beyond state schools and do you think you get value for money? Asking as I didn't and go and my friends don't yet have children.

Well Tarquin is 5 now so we have just had to shell out for his own Butler, Penelope will only wear designer now she’s 18months.

quite a lot goes on weekend shoots in grouse season.

in fact we struggle so much some months I’ve had to start making my own jam.

cost of living increases are a nightmare. In fact my DH (with his very important job) is considering having to give up one of his mistresses which he’s concerned about as he might actually have to do the hobby he’s been saying he’s been doing for the past 10 years!

The private schools near us have much smaller class sizes, more clubs, nicer classrooms, better equipment and better sports facilities. To live in the catchment area for the best state school in my area a house would have been £100k+ more than what we bought for.

Private school. Burns a lot of cash 😬

😂😂😂

If you have an outstanding state school then you might as well go for that. My kids only went to private school as there was only one state school and it was terrible. The teaching at the private didn’t really seem any better but their pastoral care and lack of bullying was worth the money alone. Due to personal stuff the fees ended up being one almighty headache causing me sleepless nights so make sure you have every contingency covered for when life throws you a curveball.

@OMG12 you've just made my evening. Thank you. I'm bored at home with the DC you see, while DP works a night shift in his mediocre 30k a year job.... 😬😂

Agreed. We're one £180k combined before bonuses and shares etc and in central london with a second baby on the way it feels pretty normal. Some savings, some pension, some holidays, a LOT of rent and nursery (saving for deposit)

OMG12
thank you for that! Love it 😂😂

Mortgage overpayments and renovation costs on a big, listed house. Literally that is it. It is a money pit!

@Citygirly

Clearly you have poor comprehension skills

lol thats funny coming from a lawyer who doesn't know what folk spend money on

• smaller class sizes
• greater individual attention
• greater pastoral support
• more amenities affiliated with the school (own pool, sports ground, better playgrounds etc. etc.)
• greater variety and quality of extra curricular activities
• more up to date equipment and quantity of resources
• more consistent higher attainment over time
• greater school trip provision - skiing, major cities, wilderness excursions etc.
• a safer environment with overall better behaved children with fewer social problems
• less bullying for high-earner offspring on account of social status - everyone at a private school will be well off so an equal playing field and limited jealousy, although there are invariably one or two kids in mansions, with second homes, and a boat
• More social opportunities for the parents, and parents generally get involved and contribute to what goes on in the school
• What I've noted is that being in a prep school tends to band the children and their families together, many of them migrate to grammar together and 'new' children don't get much of a look in to these 'clubs' (high earning or not), the relationships stay and many of them provide employment opportunities to one another and/or intermarry and are then even more super wealthy.

Thanks for voicing just what I was thinking!

City, on this "Thank you. A question to you and all who pay private school fees. In what ways do you think it is much better than outstanding state schools? What is offered above and beyond state schools and do you think you get value for money? Asking as I didn't and go and my friends don't yet have children." -

I never really considered state schools as I and my siblings only ever went to fee paying schools from age 4 - 18 so I was just carrying that on. All the 9 cousins in fact on our side of the family are the same - fee paying schools 4 - 18, same next generation too so far although I would certainly leave it up to all mmy children how they choose to educate their children.

Much better in all kinds of ways but that will vary from family to family. Eg a very specific point for our family as I am a lawyer who has done a huge amount of classical singing (and indeed met my chidlren's fahter in a Cathedral - he is an organist) was the children having choirs in school from age 6 singing the kind of latin church music we like. obvously that is not somethingthat matters to most private school parents but I am just using the point to illustrate how much parents differ in what matters; also parents' choirs in the school and having other parents who sight sing well and enjoying being in that choir, high quality etc. Clearly all those things you can get outside a private school of course.

Clubs being in school so you do not have to be taking them to them out of school. Also before and after school clubs which are nicely run and part of the school (we both work full time).

i wanted single sex schooling from age 4 - 18 which we managed for all 5 children. That is quite hard to find in the state sector. Again many parents in both sectors would not like that but we did. I also wanted selective schooling by IQ in effect from age 4 or 5 to 18 so just about everyone in the school is likely to go to a very good university.

Very much got value for money in my children's fairly academic London day schools. I like having things like fields and lakes at school too and school chapels and old buildings and that kind of thing. I remembre to this day in my first school when I was very tiny being in the school choir and singing in the chapel. I also played the hymns at a daily Christian assembly almost eveyr day as a teenager which was useful practice for me at the piano. Just masses of things that were good and worth it. If you earn a lot remember that shcool fees are not crippling. I picked my career age 14 (London lawyer) because I wanted enough money to make choices like this.

Well I’m glad it’s made your evening - but it’s a real concern, after all this time DH is having to face up to the fact he can’t in fact ride a bike - he was at boarding school since conception and he just never found the time between lessons on being posh and the ever popular “how to look down your nose at pauper plebs” class, not forgetting the extra curricular class on how to manage on only £1mill a year.

@Robinni

safer environment with overall better behaved children with fewer social problems

What do you mean by social problems?

I've heard private schools are awful for drugs, sexual harassment and bullying.

Parents at state schools get involved with the school and socialise too.

@Xenia

What would you have done if your kids didn't meet the 'IQ' criteria or had SEN

Also going to a prep can give easy access into an associated grammar. So look for long term implications and where leavers of any school you're considering usually head off to for secondary level.

😂😂😂 brilliant

I mean kids who think it is normal to swear, to kick, to hit, to generally be abusive, to not get on with their work, and to generally be horrible. That wouldn't be tolerated at all at a private school - because people are paying for top notch.

I remember a boy once said 'bloody hell', he lost his lunch break for a week and his parents were called.

We own a company dealing in conveyancing. We have a high turnover due to a great reputation. we plough profits back into the business, technology, IT support and looking after staff and retaining them, because we care about our staff and our clients. If we were ruthless we would cream it in and have earned £250,000 plus without investing into the people, IT and supporting our clients. We could be the 1% of high earners, but at the moment due to our ethos I'm doing the personal budget, looking for meal deals, have not bought clothing for months....we have not had a holiday in four years, occasionally we will go out for a meal and spend £75. For every staff member we employ means that we are supporting their family, so at the mo we are supporting 11 staff and their family, so it works out 40 people, Our company, is supporting 40 people. There is a major responsibly that we carry! We worried about what is happening in conveyancing the private equity companies who shaft the public with low cost quotes, but do addons and offer poor service The estate agents who obtain referral fees of £300 plus to refer clients to their pet conveyancer who employs unqualified staff and need every communication signed off by a manger. So yes you asked what do you high earners spend money on. For us it is staff and systems and fighting, battling those private equity trusts whose interests are not looking after the public, putting their interests first, gaining more market share.

Hey Paul the other one or three of mine went through private school and I quite regularly had the parents going oh fark 🤣
The ones with real money that is not the social climbers in the middle