Do you think £100,000 a year household income is a lot of money?

[SleepDreamThinkHuge]

I think it is a lot of money even in London where I live. When I hear people say things like "£100,000 is not enough to live on even in London" I think to myself what are they talking about. I have a family of four and we can only dream of earning that amount. The maximum I can see us earning is about £60k if we are lucky. Currently on over £40k combined income with still a relatively high rent and everything does go on bills and other necessities. But sometimes we are lucky and manage to save some money a year. Luckily no debt. I just think to myself £100,000 would be life changing even in London.

What are your thoughts? What do you consider to be average and above average in London and the city you are from?

Well £120,000/yr puts you in top 1% of earners in the U.K., so £100,000 per year is way waaaaay above average

A lot of money for what? Combined income of 100k wouldn't give you a lot of room to pay bills, potentially childcare and save up for a deposit anywhere in London without external help

Well it’s a damn sight more than DH and I are getting!

Well £120,000/yr puts you in top 1% of earners in the U.K., so £100,000 per year is way waaaaay above average

That's just for income though & 1 earner.

This is like asking whether someone measuring 6’7” is tall. Yes, some people are taller, but it’s still tall.

If you bought years ago it's plenty. The issue is housing costs & also if you have to pay childcare.

I think it’s more than enough & I’m in London too.

High earners tend to have a lifestyle to match so I can see how they wouldn't have much 'spare'. More expensive house and mortgage, maybe kids in private school, more expensive holidays etc.

Someone on £100,000 who chose to live in a 2 bed flat in the cheapest area, camping weekend once every three years, kids in state school, buying cheap food and so on would have lots of money left over.

I would love to earn that much. It is a fortune to me but I can understand how people who have very high expenses may not feel wealthy because they have a lifestyle that uses up that money.

It depends on outgoings. If you have a ridiculous mortgage and want to send the kids to a posh school you need more than living in Yorkshire and attending the local good comp.

Of course it’s high and it’s well above average! Anyone earning £100k is in a good position.

I think though you should consider the average house price in London - £522k. If your income is £100k you wouldn’t get a mortgage to cover an ‘average’ house. In much of London you’d only be looking at a flat for the mortgage you’d get on £100k.

So yes it’s a lot of money but a lot of people on that salary will need to consider moving out of London or moving to the outskirts at least to afford a very regular house. Whereas £100k in cheaper areas would mean you could afford somewhere really lovely to live. Add to this everything is more expensive - childcare etc.

I think what people mean when they say £100k isn’t a lot is that it doesn’t really buy you the luxury lifestyle that others might think you can afford - massive house, lots of holidays etc. It does however mean they can afford to buy somewhere and do many things that people on lower salaries cannot do so of course it’s still a massive privilege.

I'm in Central London and it is not enough. Absolutely everything is much more expensive.

I think it entirely depends on your housing situation! As well as whether you have children. A child-free couple I know earn that, have a high mortgage because low deposit, but they live high on the hog. When DP and I earned c. £85k between us, even with nursery fees for a one-year-old we were sitting pretty because we had a huge house deposit and thus relatively low mortgage. Two children would have broken us financially though.

£100k is absolutely life-changing if you have the circumstances to match and don’t succumb to lifestyle creep.

Well lots of people in London don't earn anywhere near that and manage. The biggest cost in London is housing, so those looking to own a house will need a large income. For most people though owning in London is just not possible.

Yes, it is a lot of money.

However, I know mortgages are higher in London, plus you’ll pay higher tax, so it’s not great as one might think on a day to day basis.

But, if you do have a one million pound house, then you’re in a better position to downsize and buy something out of London in years to come.

It's apples and pears really. I think it's plenty, but depends on outgoings, mortgages , childcare etc.

Context-dependent, innit? For me, 100k would be a big pay rise. For DH it would represent a cut in income.

'A lot' is meaningless without context.

It depends I think. 100,000 may be more than enough for some in London but for some it just may not be. Especially if your'e purchasing a house in this current climate.

Of course it is a lot of money but its all relative isnt it - people with higher incomes usually still live to their means

Yes. It’s a lot.

If you live in London (or the immediate surrounds & work in the city) and want a 3-bed+ house that you own not rent, 2+ children and either childcare or at least one parent on part-time/non working, the usual trappings of lifestyle (holidays, activities, leisure etc) then £100K won’t feel like a lot.

But it is a lot. Anyone who says otherwise should check their privilege and decide if they want to change their lifestyle/job instead.

Totally depends on your outgoings!

What I don't understand at all are the posts you get from time to time about a couple earning £100,000 plus yearly household income convinced they don't possible have enough income to have a baby yet... Some people are on another planet! 🤷🤣

yes, it is a lot of money.

Also, this whole 'well, it's not a lot if your outgoings are high', the same could be said for a billionaire!

It’s because they mean “we don’t have enough for a baby and to continue having the holidays, meals out and other trappings we have already”.

DH and I earn that amount and we’re both public sector workers who haven’t had a decent pay rise for years. If you were arriving into London now and trying to set up home then I don’t think you’d find that excessively generous particularly if you had commuting costs or child care costs. The reason we’re comfortable is we’re older and entered our relationship with a property each having bought when costs were more reasonable. Our travel costs are also heavily subsidised and as of next year no wrap around childcare costs ( currently a few hundred a term ).