To be in this job and feel poor?

[fedippp]

I trained for seven years, reasonably large student loan etc, to end up age 35 on 58k, and barely anything left at the end of the month!!! Mortgage is 1300 for a 2 bed semi, (up from 800 last year). Student loans are still hundreds a month. I have a car on finance as I couldn’t save house deposit and car deposit, need car for work. I eat beans on toast 3 nights a week. I feel like an idiot. I missed out on so much in my twenties to get into a decent job that I thought paid well and it seems to have been a waste of time! Does anyone else feel this way? I feel so disheartened.

One of the biggest changes is greedy banks and other lenders.

They don't care if you can't pay your mortgage- they'll repossess.

They will lend more than you can barely afford.
No advice about interest rate increases.

In my day, when I bought, the max mortgage was 2.5 times a salary.
Now, they'll lend 5 times.

This means people are over-committed and get into debt or have issues like the OP.

youre a senior teacher on the highest grade, years of experience and you earn 29k?

When all qualified teachers have a starting salary of 30k?

OK.

Yeah it's total bollocks OP. Someone on your salary should be able to afford decent food.

I guess in hindsight a cheap runaround and a cheaper house would have made sense, while you pay off loans, but too late for that now. I think a lodger is your only option really.

How do you know when I bought my house?? I bought my house as a first time buyer 2.5 years ago just after the massive increase in house prices, stupidly I only got a 2 year fixed mortgage deal so my mortgage went up last summer to £900pm. I'm not in the boomer generation, I didn't buy my house back in the days when house prices were substantially lower.

If you take home £3000pm then even with a mortgage of £1300 that still leaves £1700pm.

I think I feel reasonably wealthy on a lower salary than the OP because my salary has risen in the past few years. I'm used to living on a lower salary. People tend to live just within their means.

Yabvu. When I was in your position I got a lodger

Gas and electric prices don't vary by region of the UK do they? If the OP is able to reduce her energy bill (which seems astronomical for a single person in a 2 bed house), she could save that extra money for holidays. Having an energy bill of over £200 just doesn't seem right, that's a lot of money disappearing month on month. Equally, the cost of a car on finance could be a lot of money going out each month - a cheaper car could help save quite a bit of money potentially.

It's bad news for the UK when even 'high earners' (and childless ones at that) are feeling skint.

As others have said - in my opinion this largely comes down to the ridiculous cost of housing.

And it has been compounded in the last two years by the sudden huge increase in the general cost of living - bills, food clothes.

You may have three degrees, but you still don't get the point the OP is making.

I know what you mean OP, my DS is on the same salary as you and his DW earns similar and even so they are struggling, although they are left with the same as me after paying their mortgage and bills (I am on just over half what they earn but dont have a mortgage or rent to pay, if I did I would be in debt for sure. My outgoings are just council tax, gas, electric, internet, mobile phone and insurance, comes to around £390 a month. There mortgage alone is £1400 a month.

Lol. She asked if she was being unreasonable to feel poor on her salary. That was the question in the title of the post. My answer is yes as I don't think she is poor.

The reason I mentioned my degrees is because she says she feels depressed at being highly qualified yet earning less than her less- qualified friends. I also spent a lot of years in FTE, am highly qualified and still have less than friends who went down a different route. But that doesn't make me poor.

She currently pays over £200pm for her gas and electricity bill, which doesn't make sense for a single person in a two bed house. Unless she's growing cannabis in one of the bedrooms or something. This makes me think there are savings to be made in other areas of her budget too.

As a matter of principle, I've never ever had car finance in my 40+ years of owning a car @fedippp

I bought my first car when I was a student (earned the money in holidays) and always saved and bought newer cars for cash.

You could get rid of your finance on a car and buy an older car for £2K or less.

When my DCs started working, they bought bangers for £1K and even if they were sold as scrap a year later (not that they were), the loss was equal to annual depreciation of newer cars.

Also, the fact you have 3 degrees doesn't equate to a massive salary.
Just as some people with PhDs working in research earn far less than a train driver. You've saddled yourself with student loans which does beg the question if you HAD to do 3 degrees to further your career - or if those degrees were more for personal fulfillment.

I'd like to know where all these one bed properties are.
I'm single, do still have a child at home. We live in a 3 bed terrace.
As part of my retirement planning a year or so ago I was looking around at the type of property available
All the decent one bed flats were over £75k more than the best I could hope to get for my house.
Not that I want to live in a flat anyway. Nor will I move - my life is here
The point being that its very easy to say downsize - there isn't always the property to downsize to

You are 35 and own a house on your own. For most countries that is almost impossible these days for single person.
Rent out a room until you get car& student loans down.
Many your age with good jobs have to rent rooms in house shares.

We have had UK wage stagnation for years. Part of the problem is we have 18m more people in the UK than when I was born and in 2024 740,000 a year net lawful immigration highest in our history plus we have a benefits system which in effect subsidises many big employers like supermarkets to pay less because families on minimum wage will get state top ups. So wages don't reach their proper level as it were. Couple that with massively high taxes on the higher earners, no child benefit for many , higher earners losing the single person tax allowance and either 9% graduate tax on top for younger ones or vast amounts to paid to your children at university and perhaps people should leave. I would like about 20m people to leave as we are v ery crowded - even if we are worse off if they go.

It is quite hard to compare generations because some old people are not well off and some are and because over a 70 year life most people will have had some good and some harder times. I graduated in 1982 when we had that year the worst unemployment in FIFTY years - 3 million. It was very hard. We had also had 3 day weeks, power cuts and the country was on its knees and highest tax rate in the 70s was 99%. Yet that was not harder than my parents had it with bombs falling on them in WWII in England and national service and rationining extending into the 1950s. Nor do I feel I have experienced some kind of life long golden era of luck. I have no pension other than state, will work until I die, I paid off my mortgage last year. When I had babies I worked until in labour and took 2 weeks of annual leave because I did not even get the 6 weeks at 90% pay and I was the major wage earner. I have also paid 5 sets of children's university fees too - whereas my parents paid our minimum grant up to the maximum but had none of the fees to pay. I am very happy with my choices including of career and my life but what makes me feel luckiest of all is I don't seem to get ill and am happy - I cannot put a price on that, it is the best thing.

Get a lodger.

How have you worked out that £58k is £4k a month?

I think you're mistaking me with the OP. I said I had three degrees, the OP said she'd spent 7 years training for her career.

I agree with everything you've said. I also never own a car on finance. I've always had a second hand car. When my car did have a huge repair bill I scrapped it as it wasn't worth spending that much money on. But my second hand cars gave always lasted me a long time.

I agree that it was a choice for me to do three degrees, and I feel very privileged. I know lots of academics with PhDs earn very little as I was one of them ha ha.

My point was that I'm on a lower salary than the OP and I don't feel poor, I feel privileged. I think it is possible to live happily on a lower salary. I understand the point people are making when they say we shouldn't have to, but I think life is better when you appreciate what you have rather than feeling bitter about what you feel you deserve.

I switched off from the 'poor me' when you said you have a car on finance. If you can't afford it, get a cheaper one and that will save money.

You own your own home, more than many can dream of. Your figures don't add up unless you car is several hundred pounds a month and that's exactly the problem.

It's not £4kpm. I earn £72k and take home is just over £4k pm.

I had friend who was an architect and surveyor. He was self employed and became rich from absolutely nothing. He had a group of developers he worked for and he got properties from them at lower prices (on mortgages) that they did not sell. He had over 50 properties at one time. He rented a block of 25 houses to US air force families for over 30 years - I could go on. Perhaps you did medicine though? Any possibilities for doing private - especially abroad?

Sorry @SquirrelMadness .

I misread.

Training for 7 years? Bachelors, Masters, PhD?
Medicine/ Law/ Dentist/Pharmacy? Other HCP?
None of them guarantees a high income except City lawyers.

The mistake is the car and possibly taking out a mortgage where you didn't allow for a rise in interest rates.

OR you've got a rum mortgage deal and could get a much better one.

How much is your car finance? I bet you're spending £400 a month on it.

I noticed a comment I would have to agree with and say, could you not rent out a room with someone you are comfortable with. Regular income and someone to have to chat to if you so wish.

Other money making ideas is rent a car park space out if you have a driveway with a free space.

I think your feelings about it are normal tho.

Good luck

Regarding interest rates, really, what were they supposed to do.

They need somewhere to live.

And - renting might be even more expensive.

An adult in the top 10% of earners should be able to afford a two-bed flat.

£220k at 5% is £1,300 a month.

Regarding interest rates, really, what were they supposed to do.

errr....look at the historical rise of interest rates and make sure they could afford a big increase?

If they are clever enough to have 3 degrees, some appreciation of historical huge rises might be useful. So borrow less, buy a 1-bed, don't have car on a lease, - all choices.

We survived a hike to 15% but only because we didn't ever borrow the maximum, so we had wriggle room for interest rate rises.

It really does depend where you live. I live in the north west. That would actually buy quite a lot. My husband and mine combined incomes are £40k and we have one car and two kids. We get by fine...I used to earn more, but chose quality of life over career. Consider moving if your down south. Your money will get you a lot further if the pay drop in your field is small up here. Also if you eventually meet someone or maybe take in a lodger...cost per head will lower considerably 👍

I used to be a social worker. I have two degrees and was the most experienced in my team. I only earned an extra £3 and hour at the top of my payscale than I do now working as a cleaner 🤷🤷🤷 (I left my career as it was stressful and impacted my family as a result). Crazy times. My point is effort, intelligence and education certainly does not guarantee high income. Maybe you need to rethink your career too if that matters 🤷