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

It must be so blissful to be this out of touch with reality.
I work in a school with families working every hour under the sun to bring home 20 - 25k a year if they are lucky. And yes their jobs are stressful too.

You recognize you fall in the top 1% yet still allude to gov.support.

You understand that for most people they must commute to London due to the extortionate prices. Seeing as you consider yourself so financially stretched, maybe move out of london?

This is possibly the most bratty, distasteful mumsnet I have ever witnessed.

I live a 35 minute train journey away from central London & our 4 bed house with off street parking and a garden cost 400k. You need to be more realistic about what you want. Nobody has to pay over 1million for a house, unless they want to.

Choices. We were medical and not bringing in anything like your income but comfortably off with three kids. I worked three jobs when my kids were small and had a mothers help. My husband was on call every other night and every other weekend in the days when GPs covered their own on call.

Meant I had to be home to take the phone for him on those nights and weekends. So as soon as we could we found an on call service. I worked nights at the general hospital, I also ran clinics in the community between 5 and 7 four nights a week and did one Marie Curie night a week. So knocking out around 68 hours a week. We did that for a few years then I took a better paid full time job (50 hours) running a home. Would I do it again, no. Though I didnt start work till my youngest went to school...so they had me at home till they were in school. By the time they were at uni I was working all over the UK and away every week for a few nights.

The saving grace was I worked nights so I was home to take the kids to school and up by the time they were back from school and had time for catch ups before I went off to work.

If you are going to use this hard work to give you a big pot of money so you can ease up on the pedal and move to the country mortgage free then go for it. If you arent even saving...whats the point?

Yeah sorry, no.

Something like this? https://www.rightmove.co.uk/properties/134032997#/?channel=RES_BUY

Your lack of awareness is utterly staggering. The top 5% of earners earn over £85k - as others have said this salary puts you in the top 2% - times two!!! The bottom TWENTY PERCENT survive on less than £14k. ( including benefits). You include “ help” in your outgoings and a huge mortgage. There’s two easy solutions right there. As to “ only” 1500 a month left for yourselves after all bills / outgoings - either you are saving a fortune or you are in fact going out and enjoying meals and trips out - as that means you have £346 a week to spend!!! You do realise that for example , people in care homes are allocated £30 a week disposable allowance , and students an average of £50?! I completely get that you obviously feel that working hard and long hours you “ should” have a better lifestyle. Try telling that to nurses, doctors and others making life and death decisions, putting in 12 hour plus shifts with little or no perks ( no comfy offices for them) and many juggling 2 jobs. If you really feel dissatisfied, make the change - move, downsize , do a less stressful job. It’s a matter of priorities and spending habits. Open your eyes.

Something must be amiss with your finances. My husband and I combined income is about £130k and we live very comfortably, with all the things you say you 'want', the car, house with land etc... I know London is expensive but sounds like you need to check what you're spending on...

I do live in the country and have the luxury of a remote job, perhaps you can look into moving out the city to get more bang for your buck

Hi,
I think it depends what you want out of life. I used to be in a job which paid 3x what I earn now (no where near 100k I hasten to add), but left it behind. Hubby and I now live on much less but I'm much happier.
You have a high household income and that will bring you some of the benefits you have eg a house in London, but it also comes with incredible stress I'm sure.

I agree. OP is wasting their time given the cross-section of the population that post on MN.

OP:

The reason why you feel like you don't have what you should deserve at a household income of £300k is that the UK has an extremely narrow tax base.

54% of UK folks take out more than they pay in.

This means that those of us that make income in the £50k to £200k range are heavily taxed to subsidise the lives of: retired folks who don't pay tax & NI, unemployed, disabled, disabled folks etc..

Essentially, the tax base in the UK has become far too narrow with the tax-free income set at £12,570. The top 10% pay about 60% of the taxes in the UK which is absurd.

Other countries (Denmark, Sweden, Norway) do not have such a high tax free floor so they have way more people "paying in", which means they have more skin in the game.

We just don't have that in the UK. Thats why it feels like work doesnt pay for the high earners that go through PAYE.

The only "answer" is to try to shift your money to capital from income, as that incurrs lower financial burdens (tax).

Best way around that is to max out your pension now at £60k/year, thus driving your taxable income.

We are in the same situation (Gross income of about £300k) and got tired of working crazy hours to subsidise everybody else.

It is simply not sustainable.

I am a single parent.
Was just calculating following my effective paycut due to tax increases this month( Scotland).

if I earn £110 my take hone pay is no more than a house hold of two people earning £35k each. That is quite depressing. No child benefit , no child support from ex partner and everyone assumes you are rich!

Gosh people on here! Everybody's situation is different so op should not have any stress because she's a higher earner?!

If you really read what she is saying, she is saying are the large salaries even worth it.
I would be pissed too if I couldn't afford a decent size house on that income, this is about stupid house prices and other costs in London and lack of job opportunities elsewhere.
It can cause people to get trapped in the rat race, with little time for the enjoyments of life that is what they are saying, is this really worth it.

op- Don't just look at the common commuter routes in the south. Look at rail networks I know many who commute Warwickshire, midlands Stafford etc as times can be as little as one hour train and the rail pass measures out with cheaper living saves a lot.

@TheThinkingGoblin

It is absurd that so few people pay so much tax.

If only there was a way to redistribute that so that more people earned more....

Also, the reason that the op doesn't have the lifestyle she thinks she deserves is because she seems to think she should deserve a lifestyle of a millionaire

@TheThinkingGoblin haven't those retired people paid in throughout their working lives though? And aren't they taxed on their pensions?

I am sorry to read your post. It sounds like you are not happy and I know for sure money can't buy happiness. You sound trapped ! I suggest you and your partner take time out and ask the Holy Spirit to help you identify the desires of your heart as living those will be what ultimately makes you happy. God made us all unique with certain giftings and living in those those giftings give us so much joy. Once positioned on that journey, life is easy. I wish you well.

I totally get where you are coming from. I know someone on a v large income in the north where it would go much further. However for that they have to eat, sleep and breathe work. At some point they will want a family and that level of work simply doesn’t fit in. I look at her and think that the 100k+ income definitely isn’t worth it especially with the amount of tax paid

But she can afford a decent sized house, just not in central London. She could afford something lovely just outside of London.

Totally get it @Goingtogetslated . Same here with the only difference we live in zone 1. Horrible responses and very judgemental too. Ppl come here for sharing and advice not for slating each other. Everyone is different and everyone struggles in an individual way. I almost never comment but felt compelled. Yes, huge tax bills, mortgage, childcare add up and at the end of the month there is not much left. P.s. not a big spender - no cleaner, cook myself etc for those who love teaching others how to be frugal.

OP please ignore these comments from horrid mumsnetters. I hate the whole “oh my problem is worse than yours” attitude in this world. Your issue is your issue and actually unless someone has walked a mile in your shoes they have no reason to judge. I live near to Waltham Abbey and I will say any part of West Essex you look at will be particularly expensive.

In regards to managing your finances, I wonder if you’ve both, in your busy lives, have lost grasp of your financial management? You need to use a spreadsheet to truly work out your actual monthly budget and spending and I bet when you see it in that way you’ll realise how much disposable income you have if you are stricter on controlling what you spend.

Good luck, I do totally feel your pain.

A 60% marginal tax rate is absurd no matter how much you dress it up.

You know what happens when people face that rate?

They get fed up and end up working even less.

That rate is also by no means limited to high earners.

Graduates with student loans also pay a marginal rate between 50 and 60% due to tax & NI.

Thats why the UK feels like it is sinking.

The productive working folks are being taxed into oblivion to pay for a sicker and ageing population.

This is simply not sustainable because when people (young and old) face this they will opt to leave the country (emigrate), which will then malr things even worse.

@Citygirl09

Not much left out of around 14k a month?

How much more would you like ?

I think the property in London is so expensive, even millionaires find it hard to get something there.

Is the job you do only in London?
No other big city? I think London is just the most expensive place on earth and hard as it is to believe, €300000 a year is not enough for what you are looking for!

Yes that's exactly what she is saying in her post, is it worth it. If she wants to stay in London or the usual commuter routes she still can't get a house or lifestyle she thought she was working towards. But can't get that wage elsewhere.

No, they actually haven't paid in anywhere enough tax to fund their pensions, healthcare, and social care.

And that is the main problem that the UK faces.

Too many retired folks and not enough working folks.

That demographic imbalance is crushing the UK.