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?

Its not about fees but I posted in response to someone saying that you couldn't afford private school in London or a house on 100k and we do both. An average London day school so fees around 22k a year. Only one child in private, Yes.
A household income of 100k gives you lots of choices. I think it is ridiculous to pretend it doesn't.

I dont want to pry @3WildOnes but how are you going to afford that on higher interest rates plus private schools?

Well you could say the same, but as the statistics show that most households have income less than £100,000, it would make no sense.
Your example of teachers is an interesting one. If teachers aren’t aware that many people have household incomes way below theirs, they could start by talking to the people they work with.
School support staff pay scale says £18k per year full-time. But often the job is term time only and only funded 12 hours a week, so now you’re actually only earning £5k.
Yes, a lot of people have an income over £100,000, but more people have an income that is much less than that. That’s an objective fact.

Well we fixed last year for 10 years. So we have another nine years with low interest rates at which point our eldest will have finished school. We also have savings from before we put ours in private school- we can't save much now, but that is the choice we made!

For our son we only had to pay 15% of his fees from age 4 to 12 as his father taught at the prep school (not all schools give teachers such a huge perk) and we knew a teacher couple one at the same school who had 3 children at the prepo school and the 2 boys went on to the boarding school where their father taught and was a house master and the family lived - free housing in London and free school fees from age 4 to 18 !!! If you costs out that free accommodation and food and school fees for that family it would take very high salaries to come anywhere close to those perks. It was probably a rare case however. Other than that our 3 sons had music scholarships from age 12/13 although that was only about £1k a year off the fees so more an honour than a financial help.

I am STILL paying £50k a year - they just finished law school. Hopefully the end is in sight soon of supporting children.

Interesting thread. I agree with a lot of the PP that said after housing costs, utilities, commuting costs etc, it doesn't feel like a lot. DH and I earn in excess of that but do not yet have children. We are waiting to try and maximise our salaries as much as possible before we do as we are aware of the high cost of childcare and the associated costs of children. We therefore consider it prudent to ensure we are in the best financial position we can be so we can maintain our quality of life and have the option of sending our DC to private school if we choose.

It was discussed upthread about couples waiting for some of the reasons I have outlined above and I think it is beneficial to do so.

Another point is that certain professionals can borrow 5.5x their salaries rather than 4/4.5x. Whilst this will allow some to buy bigger houses, it also eats up more of your salary, so it's swings and roundabouts really

Of course it is. All those going ahbutprivateschoolfees need to knock it right off

Indeed. There are cheaper ways to teach your child to be a blustering bullshitter and - if an all boys school - a misogynist. Just buy them Viz magazine and Nuts (is that still a thing, everyone read it when I was at posh school?), it will be much cheaper.

Its still a lot of money even if you spend it all.

This. ^

I'm not in London, but my husband and I bring home 100k before tax. and I think it is a lot. We are able to save 20percent each year, have both kids in nursery, afford a car (nothing special, but fairly new Hyundai from 2016), afford a mortgage on a 3 bed flat in the city. We also have disposable income for going out and some shopping. and it has been 10 years since I had to think if I can afford something at the grocery shop. I'm not trying to brag at all. but it is a lot of money and it's careless to pretend it is not. we lived on a household income of 60k. before and life was very very different! I'm in Edinburgh btw .

Depends on outgoings of course!

How about you just don’t borrow 5.5x your salary and instead buy a doer upper or something smaller?

£100k income is nothing. Puts one child barely through an independent school.

£250k plus as a single earner and you’ve got options.

Strange that the OP fucked off after 1 post. Not like it's a troll thread.

It's all relative though isn't it? When I was childless and single I earnt more than that and my lifestyle wasn't crazy and was commensurate with other people working in the city. Rent was my biggest expense at £2250/month add in holidays and socialising in London and £100k+ easily disappears

£100k is nothing

😂 fucking hell, this place sometimes!! It’s plenty and I know because it’s our income. Perspective needed!

Of course your lifestyle was crazy.

Almost no-one can afford to pay £2250 on rent (most people don't earn that much), plus bills and then holidays and socialising on top.

Like a PP says, it's still a lot of money, in both absolute terms and relative to everyone else, even if you spend it all.

Not sure that is right
£125,000 puts a woman in the top 5% ? men typically earn more.

Not a lot, but comfortable. It's people's choice to take huge mortgages or expensive cars, so I don't feel sorry for families who pay £2k mortgage alone and cry that with £100k they're "squeezed middle".

I'd be having to go to the waitrose food bank on that. It would be a huge struggle. Obviously I'm joking that's loads of money! I earn less than £20,000 and live in a really expensive city. Do any of you have any single male friends or relatives on that income that I can go on a date with please 🤣

Definitely not

It's on the low end for anyone I know

What jobs do you guys do to be on an income like that if you don't mind me asking?

100,000 sounds a lot but is 65,600 take home pay. That isn't much at all for a good lifestyle in London imo. I wouldn't want to live in London and not be able take advantage of all it has to offer.

It's the equivalent of £50k a year each

There are tens of thousands of jobs that pay that amount

Not quite. A salary of £50k per year x 2 is equal to an income of £74930 per year

£100k per year earned individually gives £65867

£755 per month less

Dh earned £100,000. Per year. His take home pay was around £4650 per month after pension and American health insurance was taken out (he had a U.K. salary but worked a lot of the time in the US)

@Kennykenkencat

Did you miss the fact this post is about household income

Not single person income?