Page 11 | To ask what you think a reasonable lifestyle is for this income?

MumMRM · 10/09/2023 18:41

What a weird question to ask, how would anyone know without information of their outgoings?

Princessandthepea0 · 10/09/2023 18:48

Batatahara · 10/09/2023 13:06

I agree people all know tax exists but I also think those who pay basic rate tax don't quite internalise how much higher rate is - I think a lot of people hear "salary of 100k" and think "that's three times my 33k salary" but the way tax works it's nothing like three X that and you lose things like tax free childcare at 100k too.

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Also, loss of personal allowance. That’s how you can get a bonus of 23k and see roughly 7k whilst the government takes 16k. Marginal tax rate of 70%. Absolutely mental.

Starwind74 · 10/09/2023 20:11

I really don’t see the point of this thread! Is it just me

Megirlan123 · 10/09/2023 21:44

I’m not sure why you are asking. It’s nothing to do with anyone else 🙈

LaDamaDeElche · 10/09/2023 22:19

On that money people can live very comfortably. Definitely holiday/s, private school - depends on outgoings.

SUPsUP · 10/09/2023 22:20

Interesting thread
The thing I find staggering is how much some of the things people assume this income level buys actually costs these days.
eg a Neilson holiday for a family of four in summer (nice but not high end luxe or trip of a lifetime territory) is £6-8k.
A new Volvo (quotes a few times here as an expectation) - a new XC90 starts at £70k and can easily be a staggering £80/90k new.
Youre not buying one of those on this income, let alone the pony in a horse box behind it!
(which always makes me wonder who IS buying this stuff?)

NickyT64 · 10/09/2023 22:47

Momeymoney · 08/09/2023 09:23

They have a DS (11) and a DD (8). Mum and Dad both work full time and when combined their income is £155,000 before taxes. What is a reasonable lifestyle for them to live? How much can they afford to spend on cars, can they afford private school, holidays, etc?

Who is “they” ??
why are you asking?

Bellyblueboy · 10/09/2023 23:02

LaDamaDeElche · 10/09/2023 22:19

On that money people can live very comfortably. Definitely holiday/s, private school - depends on outgoings.

I think unless the couple is mortgage free private school fees for two children would be a stretch on that income.

the kid are secondary school age. So minimum £25k per annum. Possibly £40k.

£2 - 3k a month gone on school. Again yes affordable but not easily.

LaDamaDeElche · 10/09/2023 23:06

Bellyblueboy · 10/09/2023 23:02

I think unless the couple is mortgage free private school fees for two children would be a stretch on that income.

the kid are secondary school age. So minimum £25k per annum. Possibly £40k.

£2 - 3k a month gone on school. Again yes affordable but not easily.

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Depends on their lifestyle. If they prioritise educating their kids privately over holiday/bigger house in good area etc - totally doable. Also depends on the are of the country they live in.

HarrietJet · 10/09/2023 23:12

LaDamaDeElche · 10/09/2023 23:06

Depends on their lifestyle. If they prioritise educating their kids privately over holiday/bigger house in good area etc - totally doable. Also depends on the are of the country they live in.

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Well yes, you've just made the same point again. It's dependent on housing costs 🤦‍♀️

Emilizz34 · 10/09/2023 23:15

Impossible to say . My dh earns twice that and I also work . It depends on your preferences for size of house ,cars , holidays , education etc . Some people on a high income live in a small house , drive old cars and go on modest holidays . Others choose the opposite . Whatever makes you apply and is within your means

FleetwoodMacAttack · 10/09/2023 23:24

Definitely nit enough for private school fees unless mortgage free/vey cheap school!

Sengah · 10/09/2023 23:28

3WildOnes · 08/09/2023 11:13

Our income is a fair bit less. Live in London and have three children, large ish mortgage. We pay for private school for one child from salary (grandparents pay for another). One old car. Go on a few nice (but not luxury) holidays a year.

How do you do this on income that is a fair bit less?! Will no 3 go private? V curious.

Sengah · 10/09/2023 23:34

@SUPsUP I agree. Wildly off estimations. That salary doesn’t take you anywhere in London. Private school? You are joking. I reckon those affording the holidays/cars etc on this thread are earning closer to 250k min unless they’re older or have had help from family.

LaDamaDeElche · 10/09/2023 23:35

Well yes, you've just made the same point again. It's dependent on housing costs 🤦‍♀️ Not sure why the face palm, but no I didn't make the same point again. The first post I said going to private school would depend, but that holidays would be no problem, and in the second post I gave an example as to how it would be completely doable depending on sacrificing said holidays and living in a cheaper area and house than most people on that salary would normally, in order to afford private school. Perhaps improve your comprehension skills before leaving asinine remarks with passive aggressive emojis.

Yesterdayyesterday · 10/09/2023 23:55

This is us, we have a similar income and are in South East (but not London). We are ~40, two kids 9 and 6.

We live in a very middle class village with great schools and housing is very expensive, so we have a 3 bed + study semi detached which we bought 10 years ago.

We have one middle aged car.

We have a 2 week holiday in the summer eg Eurocamp, visiting family in the US etc (3-6k), plus maybe a week in cottage in UK and a couple of weekends away.

We couldn't afford private school for 2 (and don't really want to), but DC do various extracurriculars including music lessons.

We can save £1-2k per month.

The one thing that is difficult would be buying a bigger house. A 4-bed detached would add at least £300k onto the mortgage (which is currently £170k). It might be doable but I think if would be tight.

HarrietJet · 10/09/2023 23:55

It is completely dependent on mortgage costs, as @Bellyblueboy said.

No idea why you had to argue with her.
£115k with a large mortgage is peanuts.

3WildOnes · 11/09/2023 08:12

Sengah · 10/09/2023 23:28

How do you do this on income that is a fair bit less?! Will no 3 go private? V curious.

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The third will also go to private for secondary but the oldest will have left school at that point. So we will still just be paying for 1 in private. I dint think we could afford to pay for two in private so we are very grateful that we have family helping us out in this way.

We make sacrifices in other areas. One old car bought outright, our food bill is low compared to others, clothes from vinted, etc.

We prioritise education and holidays.

Batatahara · 11/09/2023 08:37

SUPsUP · 10/09/2023 22:20

Interesting thread
The thing I find staggering is how much some of the things people assume this income level buys actually costs these days.
eg a Neilson holiday for a family of four in summer (nice but not high end luxe or trip of a lifetime territory) is £6-8k.
A new Volvo (quotes a few times here as an expectation) - a new XC90 starts at £70k and can easily be a staggering £80/90k new.
Youre not buying one of those on this income, let alone the pony in a horse box behind it!
(which always makes me wonder who IS buying this stuff?)

I think the answer is that it's not - in the main - the same people buying all of those things.

So some couples are prioritising the new Volvo and paying it off on finance, some are prioritising holidays, some houses.

For example, we choose not to run a car even though it sometimes makes our lives less convenient, we choose not to have any pets. That gives us an extra few thousand a year which makes nice holidays affordable

Heatherbell1978 · 11/09/2023 09:32

Everyone saying 'definitely not enough for private school' - not everyone lives in London and pays £30k a year for private school! Our DS will go next year for upper primary which is currently £12k a year. It goes up for secondary and by the time he leaves in 8 years time we will probably be paying £25k a year but thats something we're saving for.

LoveTheDetectorists · 22/10/2023 00:06

Aserena · 08/09/2023 17:54

Okay, this is fun.

I don’t earn that much so no actual experience or sums have gone i to this, but this is how I would imagine the lifestyle of a family on £150k in my area:

They have a large detached 4 bedroomed house. Either modern or newly refurbished. Spacious garden and drive space for 3 cars. Property is either secluded and private, or has a nice view.

They drive a large Volvo and medium size Toyota, which they bought from new and trade in every time the warranties runs out.

Not privately educated (no indy schools near me) but their children do all the hobbies: ballet, horseriding, rugby, theatre-school, instruments etc.

They have at least 2 holidays a year, one of which is renting a UK holiday cottage somewhere picturesque, and the other is abroad, like skiing in winter or summering in Southern France or Italy. Every alternative year or so, they do something really special, like a fortnight in Disneyworld Florida, or a December trip to see Father Christmas in Lapland.

They are members of things like the National Trust, local Zoo and subscribers of Which?, National Geographic, Aquila, and all the streaming services.

They don’t spend ostentatiously on day-to-day stuff (they often shop in Tesco, as well as M&S and John Lewis) which has enabled them to save very well. When their children go to university they will live off mum & dad and invest their student loan. The interest they will make on that will be added to the considerable deposit that their parents will give them for a starter home.

They own a labradoodle, a tortoise and have hens at the bottom of the garden.

Hope that answers your question 😁

Actually it’s a Staffador
🤣🤣🤣

Hopper123 · 13/01/2024 06:26

155 before taxes seems a lot and obviously it is and many people are on a lot less but it really doesn't stretch as far as people think. Tax wise it depends on if its one person income or two as tax would be less if it is two person income therefore more money to take home. We are on a similar income. We live in a nice but not at all fancy 4 bed semi in North of England on 250k mortgage, have a nice car but to be honest that's most of our luxury, we haven't been on holiday in about 7 years as it just seems too much to spend on just two weeks of the year. Most of the savings we make go towards tax savings for Jan and July so we can't actually spend any of it or use it. We'd love to send our kids to the private school for secondary as our local state ones are terrible round here but I'm not convinced it will be doable for us. Our monthly outgoings all in with indemnity, insurances, registration fees for work etc included comes to around 6k a month so not as much left over as people might think. We also help out with a family members costs who is really struggling. We do live a comfortable life though. We dont holiday but we still make the most of holidaying at home, we don't go out to eat often but we can still eat well and enjoy some trips out with the kids. I think it depends on your individual attitude towards life and what you want from it. We feel it is a struggle some months but others would feel they live like Kings on what we have. People will usually increase their outgoings as their pay rises so just because the earn a certain amount doesn't mean they have loads of disposable income.

Ellmau · 13/01/2024 11:45

Is this because one of you and your DP is a spender and the other isn't, OP?

MasterBeth · 13/01/2024 12:02

Ibetthatyoulookgoodon · 08/09/2023 10:09

Depends massively on where you live and how 'ambitious' you have been with your property purchase / mortgage. We earn 300k between us and don't feel like we are rolling in it but then we live in one of the most expensive parts of North London and have a big mortgage and a holiday home on the south coast. We could have made different choices (and may do in the future) and we'd have loads of money left over for different stuff.

Incredible. You are rolling in it precisely because you're able to spend your massive household income (top 5% of the country) on expensive London and second-home property. That's what rolling in it means.

"I'm not as wealthy as you think because my private jet fuel is very pricey" is no argument.

laclochette · 13/01/2024 12:51

Depends where they live and - this is the big hidden factor - what their family wealth is. Friends of mine who earn a third of what I do have a lot more spending money than me, because they had homes bought for them outright, whereas I have a mortgage.

With house prices as they are, the big difference between lots of money and getting by is much much much more to do with family wealth than it is with salary.

This sort of income in London is not a lot. I make over six figures, have a mortgage on a one bed flat and have to be much more careful with money than I had ever imagined someone on my salary would have to be.