to think this income, savings and wealth calculator might give people some perspective on where they fit in

[cakeorwine]

It's from the Office for National Statistics. (based on pre Covid)

www.ons.gov.uk/visualisations/dvc1802/calculator/index.html

It uses the OECD equivalised disposable income - so basically it looks at your household and determines the relative income needed. Some people might take umbrage at this - especially with the increase in energy bills. The idea is that certain households need more income for the same lifestyle compared to a household with fewer people in.

For example - a household with 2 adults would need an income that is 1.5 x bigger than a household with a single adult in to maintain a similar lifestyle.

It doesn't take into account situations like separated parents, chilldren being away at Uni, but it does give an indication.

I think it might surprise some people where there income and savings are. But then again, a high income in some places is offset by a high mortgage.

The equivalised income is used in all set of datasets when looking at poverty.

Turns out I am doing ok...which has surprised me.

This is fascinating. The percentiles people are reporting on does seem to contradict many MN user assumptions about the affluence (or not) of people who use the site.

I’m interested to know how having £150k equity in a property equates to me having ‘£0’ when equivalised?! I don’t have zero I have well over a hundred grand 🤷‍♀️🤯

Ok that makes me feel like the UK is ducked though because it says I'm top 10% and I do know I live a good life but I'm not rich. I still try and cut down on our bills, I can't buy whatever I want and I consider £40 for an item
Of clothing too expensive....

So how am I supposed my rich... and how poor are our poorest people? That's unacceptable that someone in the UK working full time could be so many leagues poorer than me!

You must have hella high outgoings because I’m in the bottom 30% apparently but I happily spend £200 on an item and I have zero debts 🤷‍♀️

Yeah I’m not sure it’s right - spending wise.

@SeenYourArse we live in central London. So yes outgoings are massive and DP income is much higher than mine.

It's based on ONS figures.

Although we are top 10% for income, assets, savings etc. Maybe we're just not spendthrifts as we're only in our late 20s so we're wary of spending without knowing the future.

I could spend £200 on an item, but I wouldn't. It would seem obscene.... and we want kids etc soon and know they cost a bomb

Income top 30%
Savings bottom 40%
Property wealth top 50%
Spending top 50%

Top 50% for income (but only just), top 30% for savings, can’t remember for property wealth but we own a house and fairly low in spending. We are careful and try to save each month though - lots of our friends have more work done on their houses, change their cars more often etc but have less savings. We do spend on holidays and outings etc though.

Top 20% apparantly. My bank balance and savings don't reflect this at all!

I think for months and even years before I spend £200. And it would generally be on things like furniture. I just upgraded my hamster's cage; that cost £230 including delivery as its a giant 5 feet long wooden cage/shelf that is bigger than my desk and was made by a UK tradesman (so I guess it counts as furniture). Also in the top 10% for household income. My mortgage is 20% of our after tax income (which I think is an ok percentage) so around £1020... In London and in a flat so council tax band c (so probably lower than a lot of people since london generally has lower council tax).

I do spend £40 for a dress but I have to love it as it is the top end of the budget. . My general budget is £35 for a dress but it increased to £40 cos of inflation; and I guess a dress is a whole outfit so its the equivalent of having a £20 budget for top and £20 budget for jeans (and I don't wear jeans and tops).

We do eat out quite a bit which is probably why our spending is top 40%. I buy fairly expensive makeup but most makeup is below £40 anyway and even though its a tiny item, it can last a year or more and I only replace when its all used up.

I get where @TheWayoftheLeaf is coming from, we are comfortable but we are definitely not rich. I still try to save money where I can. We shop at Aldi. We are not that great in terms of savings and property wealth either- top 50% but we have only owned a property for three years as in late 20s/early 30s.

Top 10 for earnings, a little lower for the others

interesting - above average for income and capital but quite far below average for savings - perhaps I should be putting more aside?
I didn't do the spending section as I honestly don't know what I spend on what, and trying to work it out would send me into a panic, but obviously I must be above average there too as I pretty much spend most of what I earn. So long as the number in the bank account is positive rather than negative the day before pay day I feel I am doing ok, and the leftovers go into the savings account.

did you input the info right?

Your equivalised net property wealth of £150,000 puts you in the top 40% of households in Great Britain.

Retired.
Income bottom 30%
Savings Top 30%
Property Top 10%

Top 20% for earnings, top 10% for property wealth and savings. But we are quite old and have had no mortgage for ages so easy to save.

did you put it in as 150k 150,000 or 150000 ? I think it may only recognise numerical digits and if you put in punctuation or letters it thinks it's zero.

It puts into perspective how little money we have with me as a stay at home mum. Bottom 10% - me working again we are up to too 30%.

My income is top 10% but my savings are only top 40%. I'm very surprised about the savings; mine are well into five figures and at least 1 in 3 households have more than that?

I am top 40% for income and top 50% for property wealth. But am single parent, so if I can't do my job for any reason, there's no safety net of a dual income. Nice to be just above average though, not overly worried about energy prices, although am reining in usage and cutting back other things to adjust for cost of living increase.

if you live in London/SE, thats probably why.
Yes, SE. I hadn't thought of that.

Really interesting thanks!
I did it with and without 2 children in nursery costs and the difference was painful in terms of spending average!

Interesting that for a family of 2 adults and 2 young children, savings of about £100,000 only puts us in top 30% - found that quite surprising.

Wasn’t the question easily accessible savings? I took that to mean cash, instant access or as near as damn it. So, while I’m in top 10% for income, property and spending (!!) I’m only in top 40% for saving. But, I have far more savings than the instantly accessible ones. Maybe I should re-do it and see what it’s says, I don’t need any more easily accessible savings though, what would be the point?