100k+ salary, is it worth it?

[Goingtogetslated]

For the record…Not trying to be insensitive…

partner and I both earn approx 150k each. Working long and unpredictable hours with high levels of stress and responsibility.

Yet here we are living in a 3 bed terrace in the east end of london, a basic car, neither of us into high end expenses/dining out/clothes. We used to holiday a lot pre children, I guess would classify as our major expenditure in the past.

But is it actually worth it? A decent 4/5 bed house (with kerb appeal I admit) in the commuter belt seems to be coming in at 1.5 million minimum. Add the commuting costs/ extended nursery hours, paid help required theres barely anything left - relatively speaking.

Would we not be better off sacking it all in, moving to the countryside and earning enough to pay the bills?

We appear to be stuck in this middle ground where we earn too much to have any allowances from the state, contribute a lot to the government yet not enough for any real benefits in lifestyle

OP could easily move to another, cheaper area of London into a 2/3 bed flat and have more disposable income to go on holiday etc. but she won’t, because she’s obsessed with the size and aesthetics of her house. I don’t think anyone is bitter and jealous, it’s just galling that someone with a huge income has chosen an expensive lifestyle then is whinging about it.

Spot on. She wants the right house in the right area to match an idea of a perfect life. Just like a bunch of other people. But doesn't get that supply / demand don't match.

Anyone earning 150k I'd expect to have that level of comprehension on a simple concept tbh.

Is OP all the surgeons? She holds up all of London healthcare? She should stay then for sure. Didn’t even realise she was a doc tbh

It’s strange to me that so many people equate a good lifestyle with a huge house and garden. I don’t have a massive house - I live in a flat (with a garden) and earn about 1/4 of OP’s income, and I have a really great life. I went on 5 holidays last year, I’m self employed working mainly from home and most days work fewer than 8 hours so I have loads of free time to rest, indulge hobbies and socialise. I wouldn’t take a 6-figure job that meant working 12+ hour days because I’d hate that. But I don’t see having a 5 bed house as a necessity to improve my life. I’d like a slightly bigger flat, yes, but I don’t think my life would be improved by a house as it’s just more to clean (or pay for a cleaner).

Your setup sounds nice. I think it's the freedom and flexibility aspects? You have a good work life balance and have chosen a cheaper home plus more holidays etc- presumably if you're mainly remote you'd be able to live in an area where you could have a 5 bed if you wanted.

I didn’t realise OP did all the London surgeries, sorry!

I could definitely move to somewhere where I could afford a house rather than a flat, yes, but commuting costs wouldn’t make it economically viable. Someone on this thread mentioned Market Harborough, which is actually where I grew up (I don’t like it or want to move back but that’s another story) and I actually looked up the cost of a season ticket to London out of interest. It’s over £800 a month. That’s the same as my mortgage on my flat!

I also want to stay in London because it’s where all my friends are and I like living in a city. That’s the lifestyle I want, as is flexible work that gives me lots of free time. OP could probably have similar take home pay on a lower paid job where she paid less tax, and she could work less hours and have more free time. I can understand why if you’re working all hours of your life the high wage doesn’t feel worth it, but it’s a choice - just get a different job and make different choices to build the lifestyle you want.

That's what I mean really, the good part about your situation is that you have freedom to choose.

I'm in the commuter belt, 5 bed detached £600k, season ticket to London < £500, 5 mins walk to station.

OP if you want a 1.5 million pound house, then obviously thats expensive. You don't need one though.

I’m a high earner who is in a professional role at a bank. Apparently the government want people like me in the UK. Why am I not in the UK?

I'm in the US and made just over $400k last year. Call it £300k a year. It’s a very high income but, with that, let me share how my expenses shake out in the UK.

After taxes I would bring home about £12,500 a month. I have 3 children, all with SEN (ASD, ASD, dyslexia, all 3 have ADD). They need small class sizes, limited disruption in class/ clear routines and my elder two need an accelerated curriculum with support in their weak areas (team work and sports).

A 4 bed home in a suburb of London is £750k. Mortgage on that is £4,000. Rent shook out to be about £3500, that’s if you could find a 4 bed rental! Childcare, I leave for work at 5am, I’m at my desk 6-6pm, return home at 7pm. We have lunch provided at work. That means I need childcare 4:30am-9am and 3pm-7pm. That’s 9 hours a day, 45 hours a week. That’s £60k a year, or £5k a month. Bear in mind, to keep my network I need to go out 2-3 evenings a week with coworkers and clients. In the UK I can’t afford to do that.

Ill stop right there because that’s where I stopped when offered an amazing role in London which would be great for my career (and I think great for the UK to have someone like myself in that role). Instead it will go to someone who either has no children or has a spouse staying home. I’m a single parent. Ironically it’s an ESG role! My ex husband doesn’t pay a fair amount of child support compared to his income. To be fair, with my earnings that shouldn’t be a problem.

In the US, I take home $20k a month after healthcare costs and pension contributions. My housing is $3500 a month and my childcare is $4000 a month. I have 3 children at a Catholic private school for $25k a year. I live in a full amenity building with swimming pool, gym, community room and front desk who handle all my deliveries, stand in as emergency childcare and a 24/7 maintenance team. My home is 8 mins from work and 5mins from school. I run two cars with no real stretch to the budget. I struggle because I don’t have my family here but I sleep at night because I’m not worried about my finances.

The government has working people fighting each other rather than dealing with the real problem, which is the inequality in the UK between the owners of capital and human capital.

House prices need to come down 40% at least in the UK, the government needs to lay off landlords, finding a better balance so tenants have availability of housing and childcare costs should be fully deducted from gross income from the lower wage earner.

@Aintnosupermum Really interesting comparison.

But for someone who works in a bank, expecting house prices to fall by 40% when they been rising for 50 years, is wildly unrealistic, and what do you mean by “lay off landlords”?

If you ever needed a better example of someone totally missing the point and being completely unable to see the bigger picture ^

@Mirabai I wasn't sure what she meant by that at first either but I think she means stop penalising them.

A decent house in a nice area of London costs 1.5+ She posted a house that is indeed “nondescript” - a horrible modern box in a not nice area 2 miles from the station. I wouldn’t buy it either.

OP doesn’t say she doesn’t have a good life just that the stress and the long hours she’s working for her salary is making her question whether it’s worth it. And given London property prices, to buy a bigger house will mean a lot of that salary will be taken up in mortgage.

It's so bizarre that people are trying to claim this. I bought a flat in Zone 2 on a salary of £62K, on my own. I have to pay the mortgage, council tax, bills and food on my own, and I still have plenty left over for nice things like holidays and put £700-1000 a month into savings. How can someone earning over twice what I earn AND having a partner on the same salary be claiming poverty?

Now, obviously having kids is more expensive, but not so expensive that a 300K household income isn't enough. What an earth are these people spending their money on? I don't think a lot of people realise just how appalling their money management skills are. A household on 300K, even with a few kids, should be living a lovely lifestyle with plenty of money left for holidays and luxuries. It makes no sense.

@Confused19831983

No, I'm not a communist.

I just dont think wealth inequality is ok.

Or that people on very high incomes should moan about their diamond shoes being too tight.

No one feels sorry for you.

And, no.

I'm not jealous or bitter.

I have no desire for the ops lifestyle or miserable attitude.

You don’t understand the difference between wealth and income; that’s what they were explaining to you.

What job do you do? How much do you earn?

Knowing might make your answers meaningful.

@Lostinalibrary

Oh well, now the very clever higher earners have explained it to me, I'll just agree with them

🤣🤣

So why aren't they investing then? They're on huge incomes, and probably have been for some time.

I think some people are just entitled. They feel entitled to live in London AND have a big fancy house AND go on fancy holidays AND fritter money away on everyday stuff like takeaways and not do anything beyond working their PAYE jobs to create the kind of wealth needed to do all of that. People like to pretend this is some modern problem, but it was never possible to live this kind of lifestyle on doctors' wages without significant inherited wealth or other sources of income. OP has a comfortable life, but what she wants is a luxurious life.

If you want to live a life where you basically don't ever have to worry about money at all and buy absolutely everything you want, then no, you're not going to get that on PAYE. You need to be a multi millionaire.

@Mirabai no she didn't say she was looking for properties in London, she said within the commuter belt hence the link to that house. That house might not be to your taste but it is still 4000 square feet. I'm sure she could find something else that is less of a 'box' in other areas in or within commuting distance of London that are still huge. I lived in zone 4 and we didn't need 1.5mil for a 'decent' house. I think this use the word decent is just plain offensive by the way.
Just so everyone is aware.... If you live in London and your house is less than 1.5mil your house is not decent or you're in a shit area. That will be most Londoners then.

Imagine the reaction if you told someone on benefits (sorry 'these people') they just don't manage their money well.

She’s not saying she’s poor though - she’s saying that on those salaries they still have fairly average lifestyle - 3 bed terrace in the east end of london, basic car, doesn’t have high end expenses/dining out/clothes.

A 3 bed terrace in Stoke Newington would still be 1.25 million.

And so the question is whether the long hours and stress to get those salaries is worth the gains? Maybe not.

You may learn something.

I thought it was fairly obvious that 'these people' was referring to the ones on decent incomes claiming they can't get by, not people on benefits!!!! If you're not getting much money in the first place, then obviously it doesn't matter if you manage it well, you'll still struggle.

A household income of £300K is absolutely enormous by anyone's definition. Nobody on anything like that kind of money should be struggling in any way, and if they are, they have serious money management issues. My friends are on a combined household income of £150K and have just bought a beautiful three-bed house in a nice bit of South London and had their first child last year. They regularly go on date nights to restaurants and have just had a holiday in Mauritius. I think some people here are on another planet.

I think you missed the inference of double standards.