175k salary and all gone

[175allgone]

This will ruffle some feathers, but after tax, mortgage , childcare, living expenses….there doesn’t seem much left. SE London, commuting, wrap around care. Whilst I appreciate I’m not having to watch my bills I’m hardly living an extravagant lifestyle.

One of the few sensible posts on this thread.

They have equity in their properties but not huge homes. Being out of London is my point and having less childcare costs.

Our combined family income is 200k
Live in good commuter distance to central London with relatively low mortgage. Yes we are comfortable and can build savings and put money into pensions etc However, I would not call us rich. We put 2 children through nursery at a high cost and we are now paying for them being at university at similar high cost.
I would say 200k is needed to be comfortable in London now and I also wonder how others live.

Yes, I would struggle to cut down to four days.

I work in FS and it is a common problem that people’s base salary is entirely consumed by childcare + no gov support as overall salary likely to be over the cap, but the only ‘profit’ they make is via bonuses.

Again an issue very specific to having high London childcare costs

The level of vitriol directed at a woman discussing childcare costs is absolutely insane.

childcare, regardless of where you are, is stupidly expensive and should be universally subsidized. We should want women to both be having children and working as a society.

It makes me so mad @Matthew54. I held onto my job because my family helped so I didn’t need full time childcare. I’m so grateful for that because I love my job & Im good at it.

@Matthew54

The level of vitriol directed at a woman discussing childcare costs is absolutely insane.

Agree. 😔 Childcare bills & the troubles facing working parents are the real issues here, not the OP’s salary.

Well there is me who lives in the SW works full time and takes home £2500 before anything and I pay for private school ffs. Even I know I’m privileged on that amount as a single parent with two kids - I have nothing and no wrap around care or family. Would love to swap

I never said give up your job. But if you're struggling to pay your bills, then moving somewhere cheaper and looking at cutting your childcare bill is great advice. It's hardly bitter or short sighted to suggest living within your means.

Those professionals are required in London. But there are hundreds of places to live in London that would be cheaper than Islington, and even more outside London. Living in London is not a god given right.

There are lots of things people do to manage- they plan in advance- for example having 2 kids who need full time childcare at the same time, saving and investing in advance and not spending all their savings on a deposit JUST before they have kids, getting an investment property that brings in an income, being smart about childcare (both compressing hours, taking annual leave on a weekly basis etc etc). It doesn’t sound like you’ve done this which may be why you’re finding it a shock.

IDK what you really want though? Reassurance that everyone else finds it difficult- yes sure. It’s true childcare fees are short term but if you’re considering private school and then uni then that will be just as bad, if not worse. So best idea is not to just look at the headline salary and actually look at take home pay vs expenses.

I think in your position with that level of mortgage if you want to feel
more comfortable I would probably put the kids in a decent state primary for a few years and really use the time to save, and then either consider moving out to a cheaper area with decent state schools (loads in N London). That’s the sort of advance thought process most people go through.

BUT yeah YABU you live in one of the most expensive places in the world- I’d imagine most people who raise a family in Islington and who aren’t in social housing/ got given a house will need to earn an awful lot of money!

They have equity in their properties but not huge homes.

Equity is often driven by when you got on the ladder though.

They make much more sensible choices than you??

We're on 100k combined, 200k mortgage so monthly payment only 750, had kids with a 4 year gap so didn't have to pay for nursery for 2 at the same.

I’m way past the childcare stage now, but I was on a high salary at that point, and honestly, this is just the way it is when children are little. If you’re in a job that commands that kind of salary you need really robust, flexible childcare and it costs. Unless you decide to go the private education route, your budget will ease considerably once they are at school.

There are lots of things people do to manage- they plan in advance- for example having 2 kids who need full time childcare at the same time, saving and investing in advance and not spending all their savings on a deposit JUST before they have kids, getting an investment property that brings in an income, being smart about childcare (both compressing hours, taking annual leave on a weekly basis etc etc). It doesn’t sound like you’ve done this which may be why you’re finding it a shock.

Who has a load of spare money to invest and buy an investment property whilst renting?

If that happens, and too extremely, she will likely just reduce her hours as will many high earners because when it doesn't become beneficial enough to earn more money people often won't. Many on such high incomes are paid that much because they're expected to work a lot of hours foregoing family time. That's also why childcare costs tend to be so high as kids are in full time and longer hours than some. So if income tax goes up a lot, people will likely work less unless the math is still mathing for them. It needs to make sense still for their family and so raising taxes for higher earners doesn't always result in more tax income in nor greater productivity. Starmer is no doubt alive to that having been in a high earning role

@Dibblydoodahdah this is someone who thinks she lives in SE London and believes she will cause gentrification if she moves to a cheaper area!! I lived in N16, which is very close to OP and very expensive. Nurseries are insanely expensive and in London it's on another level. As a single parent I could not afford to give my child the quality of life they deserved living in London so I moved out. Life is hard and sometimes it is not fair! But I will save my sympathy for those who really do have it bad. The OP has options and until they have exhausted them all I don' have much sympathy.

While you’re claiming that the country can’t afford to properly support disabled people as a reason to slash disability benefits, how can you justify extending childcare subsidies to those who can well afford it themselves ? Under proposed government plans, some mental health conditions will no longer qualify for PIP and among the proposals are replacing cash payments for some with vouchers or ‘treatment’. The eligibility criteria will be narrowed so that even people with severe disability will struggle to qualify. And some form of means testing is being considered. All in the name of savings in welfare.

How would you explain to the people affected that the country can’t afford to support them, but can afford to contribute to the childcare costs of those earning in excess of £100,000 a year ? If the government isn’t responsible for supporting people with disabilities who have no choice in the matter, then it definitely shouldn’t be supporting the lifestyles of those who do.

It's not someone earning more...it's someone thinking they are struggling, but she has a house, husband, kids, lives in a great city with access to loads of things. There's more free things for kids in London than where I live.

It's up to you, OP. We all have to live within our means.

If you want more disposable income, you need to either increase your income or reduce your costs. Moving to a cheaper area is one way of reducing your costs, but there may be others.

The reality is, you have far more income than the vast majority of people in this country and a very average number of children, so if you feel like you don't have enough money, it's entirely down to the choices that you're making. It is a fact that most families manage on much, much less, even in London. So the question really is whether you want to carry on making the same choices or whether you want to make different ones.

being smart about childcare (both compressing hours, taking annual leave on a weekly basis etc etc).

You can be as smart as you like but not all jobs allow for this

We have the same! We buy our cars out right to save having finance in them. We thought we’d be well off but it’s the childcare costs that do it for us.

Yet the poor are meant to work and put their kids in nursery rather than claim UC. One rule for one..

@labracadabras can you set up an Instagram page and tell me how you do it!!!! On similar and it is a lot of juggling!

I get it OP.
i have take home of £6200 and only minimal childcare costs (teens). Your childcare bill is massive. It goes so quickly. Mortgage £2400 but by the time I’ve paid bills and mortgage and and saved a modest amount for a rainy day we are counting pennies. My holiday budget is only £2000 a year (UK cottage) but I can’t even afford that this year after some unexpected bills. Haven’t taken my kids abroad for 6 years. I budget very tightly.

Your op says SE London?

@Rosscameasdoody You must be confusing me with another poster.

While you’re claiming that the country can’t afford to properly support disabled people as a reason to slash disability benefits, how can you justify extending childcare subsidies to those who can well afford it themselves ?

Where did I say anything like the above.

All I said was childcare should be subsidised for all. I don’t think that’s a particularly controversial take…