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.

Perfectly possible in finance or law or tech or something

Blinkingbatshit
I felt the same initially, however I am open to seeing just how comfortable some people live.

We don't earn as much as you and your DH, but we do live further north and our housing costs are next to nothing.

We try to put 1.5-2k into savings/investments each month using ISA allowances etc. Pay max into pensions (very lucky to have amazing work based pensions). We have a separate savings pot (currently use the chase 1.5pc savers) that we use to save for holidays.

As for spending money we really just spend what we like. I get a subsidised gym membership through work. I sometimes buy expensive clothes that I know will last. We spend a lot on food and wine although I have been cutting back on the latter due to poor sleep. DH spends quite a lot on tech and his computer but I don't know too much about that!

I don't know why posters are giving you a hard time or asking for this thread to be moved. Just don't read it if you are having money problems!

My 27 year old son earns more than his (just retired) father was.

He has a STEM degree and a Masters (and the student debt to go with it) and works in finance in London.

Not just possible, but fairly common.

The only sensible way to spend your money imo.

Both of us are very, very high earners but apart from people who know us well, no one would suspect it as we don't have a flashy lifestyle (no fancy cars, no holidays to the Maldives, no expensive clothes and restaurants...). Generally speaking we don't want to attract attention/jealousy and aren't interested in these things anyway. We also don't have much time for leisure these days... We spend a lot of money on private school fees and children but other than that the money goes to buying properties (for investments or secondary homes), financial investments and savings/pensions.

What’s very very very high?

‘Tone Deaf’ Bingo
Scroll on if you don’t want to read it.

Yes we’re currently in a 1 bed but looking to buy 3-4 bed detached but in expensive SE location.
Forgot to mention we have £400 car payment per month to buy my car outright. When this ends in 18months time, will be DH’s turn for a new car for a similar monthly payment.

we both expect to promote again over the next 5-7 years to have an income of roughly £220k-£240k, and at that point will probably be in “dream house” territory.

to be honest as long as we stay on this income I can see us making space for £10k of holidays per year as we both love it!

I have a friend who is a nurse in London who earns less and bought a flat without parental help so it is possible. I imagine her outgoings are very low though - she opted to live in a house share for years to save so she spent less on rent which made a huge difference I am sure. But she had to live in just a bedroom for a long time to do it.

I think I'm adding plenty of 'profit' to this thread (interesting choice of word, you're very money obsessed aren't you).

I've got a few decades on you, OP. I think you're going to look back when you're older and cringe your tits off that you were so keen to show off about your earnings/wealth that you literally pretended to strangers on a public forum that you don't know how to spend money.

The most important advice I can give you is not how to spend it but to make sure you have a decent income protection policy. I'd made partner before I had DC and had the standard partnership policy (which was designed for middle aged men having heart attacks etc). It was very generous which is just as well because I was hospitalised for 6 months with severe postnatal depression after having DD2 and have not been able to work since. That policy pays me an indexed link amount equivalent to my old drawings until I'm 60 and thank goodness it does.

This isn't a pity post as I've been able to lots of interesting charitable projects since stopping work but losing my hard won career was traumatic enough without losing the income stream on top.

If you’re 2PE in the City OP and the age you’re at then I would maximise my earnings and make the step into a US firm and work your bollocks off before you have kids! Go get ‘em

We also have the same for my car but £170 a month over 3 years. Then will do the same for DH but trying to save in the meantime for a large chunk of it.

DH will be a consultant in 6 years and I will have been promoted hopefully in the next 4-5 so income bump around that time too. So we should hopefully add around another £80k minimum to that I think. (I hope!)

We allocate £12k to holidays a year currently and will want this to go up once we have DC. It's something we really enjoy and I think it's really important to have as we make lovely memories and get a good break from our stressful and time intensive jobs.

I think I am well off financially.

However, how my money is spent is my own business and I will say no more.

😂dream on.......

@orwellwasright I think your contributions to this thread are much more about you rather than me or anyone else who has posted along the same vein. If you don't think this post is beneficial, then no need to try and engage.

I can't draw any other conclusion than that this thread was posted in aibu to stir things up. Why not post in money and have an actual proper question otherwise?

As for those telling people not to comment on the thread if they don't like it, the op asked if it was unreasonable to ask for others to post what they spend their high salaries on? So those who find that unreasonable are perfectly justified to say so, indeed they've been invited to. So maybe those complaining about people who think it's not reasonable need to scroll on by instead.

OP, I would prioritise reducing debt eg overpay the mortgage if allowed

And save, save, save

Financial security is a wonderful thing, if you can achieve it

I do think it was insensitive to post in AIBU

If I had an income of £140k I would use £100k to pay off the mortgage each year.

I think £40k is more than enough for a childless couple to live on and I’d want the security of owning my home outright as soon as possible.

If you break up or one of you can’t work then at least you’d have paid a good chunk off or you could sell and buy somewhere cheaper.

Why do you need to spend it. We have an income similar but a little higher than yours and just pay our mortgage, the usual bills, hobbies and private pension and then save what is left. If we need to buy anything I.e. New bed is most recent purchase, we just buy really good quality so it lasts. Why do you need to spend it? What's wrong with saving?

OP your money is your money. Do not let your dh dictate where hair, nails, lashes money is spent from providing it's from your account. Keep your own bank account. Don't assume earnings will keep increasing and maintain agency over your personal spends from your personal pot.

We save/invest some and have good pensions, but otherwise spend it on living well. Decent house, currently renovating again. A lot of travelling - 5* hotels or luxury villas. Reliable cars - not flashy but new and with all the extras. DCs in private schools and get to do any and all hobbies they want to do. Eating in fancy restaurants, buying good quality sustainable clothes etc.

I have no interest in being the richest corpse in the cemetery. And I've had some health scares which really make you re-evaluate things.

-------------->

This way to the thread for serious wealth boasting.

No stealth needed here.