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.

@MidnightPatrol Although their mortgage might be a 'paltry' £1300 a month, we don't know how much they pay for their car and the student loans for 3 degrees.

You can't pick out one outgoing in isolation.

OP doesn't seem to be able to budget.

@TinkerbellsAssistant

We survived a hike to 15%

I wondered when this would come!

You didn't ever borrow the maximum because you didn't need to.

Your argument boils down to 15% of a small amount is as bad as, or worse than, 2% of a large amount.

The problem is that now it's 6% of a large amount and large is so much larger relative to salaries that your argument is worthless.

But even back then, you get a fixed mortgage for X years at 15% interest, your mortgage payments were fixed for X years.

With high inflation your salaries went up substantially over those X years so the mortgage became more and more affordable.

On the other hand, if you got a mortgage X years ago at 2% but had wage stagnation for a decade there's little to no corresponding improvement in affordability.

The mortgage is the one thing here that OP has a right to be angry about, a jump from 800 to 1500 per month because a chancellor couldn't add up is disgusting.

You're either being deliberately obtuse, or you just don't grasp basic economics.

The hike to 15% was on a far smaller amount relative to salaries at the time. And, of course, plenty of people didn't survive it and got repossessed.

I sympathise. That sounds like a sad situation - for everyone being snide to OP yes it could be worse, but things can always be worse. She's still allowed to be upset at her struggles

So far on this thread people have guessed that the OP studied law, medicine or architecture. How depressing that no matter which 'sensible' degree you choose, you're still fucked.

I make no comment on when you bought your house but £900 a month is £400 less than she is paying, and quite a big difference in terms of take home pay.

To illustrate, let's say you earn £50,000 with Student Loan payment plan 2. Take home is £3,060.

To cover that extra £340 to make a £1,300 mortgage payment, you need to earn £57,200.

You are not being unreasonable for feeling this way.
Practically speaking, I'd look at going for a cheaper car first. If that doesn't help, explore relocating to another part of the country if it is possible.

Are you an architect by any chance?

i totally get why you’re disheartened. At 35, having trained for 7 years in a good profession it’s fair to expect to afford a reasonably comfortable life.

But… you are where you are unfortunately. Hopefully rates will drop a little. What’s the term of your mortgage? Have a look at all of your debts- mortgage, loan, student loan etc and pay off the highest interest loan as a priority. I’d take a lodger to do this and reconsider the car you have, I know you’d rather not, but if you want to improve your circumstances you’ll need to take a short term hit.

Things will get better. Can you speak to your employer to discuss a pay review or possibly a car allowance?

To be fair i dont think you realise how well you have done. £58k a year is a big salary and to own a 2 bedroom house on your own is a big achievement.

when you say what is the point? Well if you didnt work hard to get the salary you got then you would be far worse off than you are now.

Well said! People spend more money than they can afford on properties and cars and then are suprised they are broke...

Yes I see that my mortgage is lower. But I also earn less.

I do understand that the stagnation in wages in the UK has led to a huge drop in living standards, the inequality in this country is disgusting and hard working people should be able to earn more.

I just object to someone who earns £58k, has no dependents, owns their own house, has a car on finance, has job stability etc, calling themselves poor. I don't think they are poor. They could always choose to trade their car in for a cheaper, older model, get a lodger, investigate why their energy bills are insanely high. Ok we can argue that OP shouldn't have to do these things. But poor people don't have the same choices.

OP is choosing to prioritise living alone in a two bed house with a car on finance over having holidays and eating cheaper food (focusing on those things because she's said she can't afford holidays and has to eat beans on toast). Which is fine if that's what she wants to prioritise, but it is still a choice that many don't have.

Yes I recognise that my financial situation is not exactly the same as the OP, but I am a long way from considering myself poor.

This is tricky, as so little information is given, especially in terms of the figures. Have you ties to your area? If not, try moving somewhere cheaper. You would find that, not only housing, but many other things are cheaper. Otherwise, consider changing jobs, or lifestyle, or accept your lot. It's a hard thing to say, but it is what many people have to do. Student loans are a burden, supposedly balanced by higher earning potential. However, that doesn't take expenses into account.

When people overcommit for their mortgages it never ends well. I recall years ago, I was 30 and really wanted to buy a property. My colleague/friend at the time got a mortgage on something like 6/7 times her salary, I had to get a guarantor mortgage and eventually I removed the guarantor from it etc... but luckily I was turned down for the big mortgage. Guess who was whingeing years later about how they'd borrowed too much and what an expense it was for them?! Luckily her rich parents helped her out in the end. I knew people who did fixed rate mortgages and then were shocked when the term ended and they shot up after that.

The hike to 15% was on a far smaller amount relative to salaries at the time. And, of course, plenty of people didn't survive it and got repossessed.

No it wasn't.

If your interest rate goes up by c.10% that is a huge amount because even though house prices were lower, so were salaries.

I know. I've got the T shirt.

My heating is on 22 degrees and I hate cruises, there is no envy here 😂 Some gratitude would be nice since we're working our arses off to fund your lifestyles though.

She also has a student loan

And they funded your education. So you also show some gratitude.

I think the point here is that inflation has gone up so much and student loans are so high that even someone on OP’s wage can’t live how they thought they could on that wage.

COL is getting tighter and tighter. And although the OP is hardly living on the breadline, I’m sure it’s disappointing

After getting their own education for free🤔

"Get a lodger" started early in this thread!

I'm sorry, I know it's all relative, but £58k is a very high salary in most parts of the country.

You have a lifestyle problem rather than a salary /job problem.

Ah, the stuff I would do on £58k If was on my own with no partner or kids!

So, I get that the £58k has a few caveats attached to it, but it is ridiculous to assume that it is normal for a single person to struggle on your salary.

First thing I would do is sell the house and buy a nice one bedroom flat with a good sofa bed for visitors, or a not as nice two bedroom..downsize property by £50k or knock £500 off your mortage payments by moving. That's the main problem, you are living in a property that is clearly too expensive for you.

I bet you could get a cheaper car as well, knock another £50 off the monthly outgoings.

This should be a great time for you, there should be holidays and socialising on that money.

Time for big changes I reckon.

We have £260K coming in between us and feel that is the amount we need to feel comfortable, but how fucking ridiculous is that?

People on £50K should have the life we have on 4 times that salary. I do hope that people remember how much this govt is taking from us in tax when they go to the ballot box. How the previous Tory govt imposed austerity on us and started us down this road. But of course they'll just blame the boomers because that's easier. And no, I'm solidly gen X.

OP please don't post in-depth details of your outgoings on here. People don't want to help, they just want to salivate over your private information and suggest unrealistic cuts and other daft ideas that will either suck the last bit of joy from your life, or cost even more. An old banger? Ffs. Oh and why the hell shouldnt a single person live in the two bed house? Honestly, the jealousy on here is insane.

Poor, my arse.

Get a lodger and stop whining.

It's tough times at the moment, if it helps, think of the positives! You earn more than average, you own your own home (and it sounds like you live alone which is a treat). Is there a chance you'll earn more and develop in your career, you still have 30 working years left to progress.... also will you get a payrise or bonus in April? Could you do your role for a different company to cut down commute costs or increase salary (I moved around at the same level at work and each time it was at least a 10% increase - although my job is available in most companies which helps).
I'd focus on 3 things - budgeting/cost cutting, increasing salary in your chosen career field (which I'm assuming you enjoy), a side hustle/extra earning potential (lodger/pet sitting/selling on vinted etc) but also try and remember why you chose this life, you must love your house and you got to buy it, I'm guessing you like your career and it pays more than most careers/jobs... sometimes it feels a slog

OP please don't post in-depth details of your outgoings on here. People don't want to help, they just want to salivate over your private information and suggest unrealistic cuts and other daft ideas that will either suck the last bit of joy from your life, or cost even more. An old banger? Ffs. Oh and why the hell shouldnt a single person live in the two bed house? Honestly, the jealousy on here is insane.

Quite.

I dont think you should downsize as you will waste money in stamp duty. Two bedroom houses will probably keep their value more than a one bed. I would def try to get a nice quiet monday to friday lodger to give you some fun money or to pay down the mortgage or put in pension/ invest, and then one day you will feel richer. 7 k tax free from lodger is worth about a £14k pay rise but arguably easier. Also don't downsize to a flat as you will have to pay service charges etc which could be as much as a small mortgage. Having two beds is a really useful thing to have in case you ever get into serious financial difficulties and need to rent a room out. Plus then you can share some of the Bill's too.