To think if you are a family of 4 and struggling on £100k…

[LetMeSpeak]

That it is purely down to mismanagement.

I saw a debate on social media and I also know a few people on 6 figure salaries, have extremely nice houses and cars. Yet complain that they are stuggling the same way others with less money. Aibu to think if you are really struggling even in this economy, a lot of it is due to mismanagement with your money?

the financial mismanagement is not anticipating that interest rates could go up that costs of living could go up and that someone could be sick get long term ill or lose a job, if you are on a 100k, you should budget for saving for a rainy day before maxing out spending, it is much harder to budget for a rainy day on 20k.

when on a really good salary which 100k is; even in London; you have enough to save so you should not be struggling as you should not have taken yourself to the edge in terms of financial commitments thinking ahead in life is essential if you can't afford your house if interests rates rise by 1% you should have bought a smaller house elsewhere. People stretch themselves too far not thinking of the consequences of even the tiniest curve ball to keep up with Jones etc etc or just because they think some area is not good enough for them or whatever. I do feel sorry for those on lower incomes even 50K that are now struggling as there are less options but my sympathy for those on 100k saying they can't eat or heat homes is somewhat limited as sensible planning would have still meant some sacrifices but there would havve been flexibility,
the cost of living rise has been known about for months so those on higher salaries could have been prepapring in a way the really poor could not

Having a nice house and nice car isn’t “mismanagement”. It was affordable a few years ago and now is much less affordable therefore people are struggling because everything has gone up and people don’t want to change their lifestyles. Everything is relative.

Inc part time workers. The average full time salary is 32k a year.

Perhaps if we stopped worrying about how some plebs have less than others and turned the focus onto the rulers who make it hard for everyone ?

They’ll be grand, they have just been given big tax cuts with more in the way. 🤷🏻‍♀️

it's all relative - we have an income of approx 125k. We're not skint or pleading poverty but are no where near being able to afford private school or several foreign holidays a year or a cleaner or any of that stuff people think might become affordable with that sort of income.

15 years ago we had an income of 25k and 125k would have sounded like we would be millionaires but the reality is - it's not and we're not.

Our lifestyle is improved but not substantially

• we have upgraded from 3 bed semi to a 4 bed detached in same village but similar location and style of house
• our cars are now 5- 8 years old rather than 10-12 years
• we can eat out monthly
• we don't worry about if washing machine or dishwasher breaks
• we have had holiday abroad (majorca self catering) but not every year - more like every 3 years
• we can pay for insurances annually rather than monthly

my point is really when you look at tax and actual net income it's not the fortune people imagine. I thought we'd be minted and never have to worry again but we're not and given the cost of living increases we are still watching the pennies as closely as we did when we had 25k

@jumblemumblet - is that a pre or post tax salary? Does that include housing costs? Are you in social housing? I struggle to see how you have a comfortable lifestyle in the SE on that salary from rent alone. Even a 2 bed in a crappy area would be ££££

I don't think you're unusual. It's a myth that everyone increases their outgoings in proportion to their increasing household income. Some may for sure but definitely not all.

well personally I don’t expect them to downscale. im just hoping that they start to take some responsibility for their past actions and mismanagement which had put them in such a position.

im talking about huge mortgages. The ones that people are just able to afford.

I'm not sure what you mean by this? It would be unlikely a bank would lend someone money they can only just afford, until recently they had stress tests.

If you had started this thread a year ago I would have totally agreed with you, but the pace that things have changed in the last 7 months means that people haven't had time to downsize (and even if they could moving house isn't cheap), and people who financially planned out having a child and the expensive early years will still be a few years short of things easing up.

We are a family of 3 on £48k income but a small mortgage compared to many (£450pm) and minimal childcare costs (before the summer £16 a week for lunch club between playgroup/preschool, now £5 a week for breakfast club) as we work our hours around doing the childcare ourselves (no family support). There are probably £100k families with the same or less disposable income.

We have been struggling the last few months. Fortunatly we are coming out of the hard early years and I have increased my hours significantly this month when DD started reception, but I won't see any difference in my pay packet until the end of next month. I also have a big pay increment coming up, so the stars have aligned somewhat in our case. But families a few years behind us even on £100k must be feeling it too.

They aren’t thinking about hour they would be able to afford it the financial situation changes.

That applies to anyone taking out a mortgage surely?

I am not sure I told anyone to downsize, have you got me confused with someone else?

I was talking about all the spending in someone else's budget that was NOT related to housing, transport or essential bills.

Two people earning £50k a year have not just been given big tax cuts

People earning £100k a year each also haven't been given big tax cuts

Again talking from your backside

Lenders stress test

No one is able to take out a mortgage they can only just cover

If they lose their jobs or have to take pay cuts after the mortgage is in place that's not mismanagement

@latetothefisting

It's not 3x anything

It's not even double the average household income if both parents work full time.

As the average full time salary in the Uk is over 31k

@Simonjt did you buy your flat & holiday home recently? you don't find childcare costs a stretch?

This quote always comes to mind with this type of thread. It’s all relative, isn’t it.

im talking about huge mortgages. The ones that people are just able to afford. It feels like people are are getting those mortgages because they can. They aren’t thinking about hour they would be able to afford it the financial situation changes

this is very revealing/, you are a low earner in rented? Anyone who has a mortgage knows there is an affordability test which checks up to about 7 or 8 percent interest. So there is no such thing as barely affordable mortgages any more

but when you take energy increases, fuel increases, food increases etc then it all adds up and impacts.

Someone asked if they should sell one of their cars. Yes, this is exactly what dh and I have done. It does mean I can’t look for another job but I’m not crying that I can’t afford to run 2 gas guzzling huge cars.
Nobody needs 2 huge cars for a family of 4.
Sell one and if you absolutely have to have 2, then buy a small, older economical one.
That is just one area where you can save money.
There are others such as do not buy new clothes. Buy second hand-I do!

It's offensive to say anyone on £100k is struggling. I'm embarrassed for anyone who thinks this way.

No they bloody arent. People who are struggling are those going cold or hungry or worrying if they can put any roof over their head. Not those with big mortgages who could downsize or trade their top of the range SUV for a normal family car with a few years on the clock.

There are not enough eye rolls.

Shall we rip down half the housing stock in this country then so everyone can buy a small house? Or is it more reasonable to realise that people cut their cloth accordingly and when things change drastically it's not as easy as everyone tumbling down to the cheaper end.

@ChilliBandit it's HA, £825 a month

well personally I don’t expect them to downscale. im just hoping that they start to take some responsibility for their past actions and mismanagement which had put them in such a position.

Well you can say that about anything can't you?! What about all the lower earners whose lifestyle choices have led to them being low earners? Should they not have the right to complain either??

Everyone lives to their means. No one predicted the cost of living increasing to the extent it has done.

No one is having a great time of it at the moment.

There's no point playing 'who's life is shittest', it's fairly shit for everyone

Our flat was bought four years ago, holiday home about 18 months. My husband is on adoption leave at the moment, so not earning but no childcare costs. When he is back at work we’ll need childcare for two days a week as we both work part time.