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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

175k salary and all gone

1000 replies

175allgone · 26/05/2024 02:02

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.

OP posts:
Pollipops1 · 26/05/2024 07:28

I don’t earn as much as the OP but I think the 15 hours & tax free childcare should be universal as everyone needs help. The old child benefit wasn’t means tested nor is things like winter fuel payments.

DuchessNope · 26/05/2024 07:29

Oh lol completely missed that OP said she lives in SE London and also Islington.

What a weird made up thread it’s not like it’s wildly unbelievable or out there.

Glittertwins · 26/05/2024 07:29

Pollipops1 · 26/05/2024 07:25

This is a frustrating situation for OP but she has solutions. Move to a cheaper area to decrease mortgage, find different childcare options! Life is shit and hard for all of us, but she just needs to take some time to cut her cloth accordingly

its the race to the bottom isn’t it

Quite...
It's not exactly easy to "just move house", "just change nursery" either.
I'm relieved we don't have the childcare bill at all now. Even years ago, 2 in full time was more than our mortgage on a low rate. Our DCs are in state school, I must have had a crystal ball because there's no way we can afford 2 in private the rate that fees have gone up now.

WednesburyUnreasonable · 26/05/2024 07:30

While I agree OP shouldn't expect sympathy (although I’m not sure they do?) for what is ultimately a very fortunate financial position, maybe the people scoffing at the childcare costs and suggesting it’s some kind of unusual flippant extravagance can include details of how they found full-time childcare costs for 2 children in Central London for considerably cheaper. Remember to discount tax free childcare and the free hours, as OP isn’t entitled.

Gimmethemoney · 26/05/2024 07:31

DuchessNope · 26/05/2024 07:29

Oh lol completely missed that OP said she lives in SE London and also Islington.

What a weird made up thread it’s not like it’s wildly unbelievable or out there.

Think there was a comma missing - South East (England), London.

CommeIlFaut · 26/05/2024 07:31

How do people manage in Islington on £175k?

Well, of course people do. And on far, far less. Bur they are living very different lifestyle to the one you are living and aspiring to.

You are a stone’s throw from the City. You live in a (judging from your mortgage payments) £1M+ house, and your kids go to a (I presume) smart private nursery. Your neighbours are likely to be living on much more than you. A pair of junior associates at a pretty normal law firm be bringing in 400k+ between them. Similarly, in finance. Others have reasonably ‘normal’ jobs but family money (the two doctors I know who live in London, one in Islington, are both independently wealthy.) Trying to match that lifestyle on 175 isn’t possible.

That’s why there is a rush out of London when people have children. My NCT group had all decamped to Herts, Essex and Surrey within the first two years!)

SharonEllis · 26/05/2024 07:31

175allgone · 26/05/2024 03:00

I’m just honestly curious as to how people manage when supposedly I’m on such a great salary

You might be 'curious' but clearly not bothered enough to do some research & have such a limited social circle that you have noone to ask. Islington has been very expensive for a very long time - you chose to live there. Presumably you are intelligent enough to know interest rates fluctuate so when, pre-kids you had all that excess salary you could have saved? The vast majority earn far, far less than you & survive by making different choices.

Pollipops1 · 26/05/2024 07:31

There are a lot of other places to live other than islington.

@Dakotabluebell no one is saying otherwise but 2.5k mortgage is not a ridiculous amount for London particularly on that salary. Where should the OP move too that’s considerably cheaper?

Whereareyounowwwww · 26/05/2024 07:31

Is that a combined salary? You said it goes into the joint? So what is the other salary that comes in and what if that spent on?

KTSl1964 · 26/05/2024 07:32

Well you are managing - you have £1000 left and once kids at school ££££££ - that’s life!!!! Your lucky many are surviving- and you claim to be paying around £75,000 of your salary in tax and pension - your obviously ploughing ££££ into your pension - get real - many on here are living hand to mouth - appreciate what you have and have bloody gratitude

partying2 · 26/05/2024 07:32

The £2k childcare cost per kid is normal in London for those that aren’t privy to this.

Why are so many people judging the OP for her high salary - good on her as she’s probably working so hard to earn this and entered a good profession.

Onceuponatimethen · 26/05/2024 07:32

Op I can see the issue here which is that working hard for a large salary and then having big fixed costs makes it feel like the return isn’t there.

If you are both earning and both of you earn under £100k each you will still be entitled to tax free childcare, which can cut 25% off the nursery bill. If one of you earns just over, say your salary was 103 and DH earned 74 the rules say you can still get TFC if your workplace pension contributions bring your taxable salary down to under 100k. You can ring HMRC and they will talk it through. If someone earns £120k and pays £21k annually into pension they will be entitled to tax free childcare eg.

We know someone locally who used to live in N1. Moving out of London to somewhere half an hour away by train has been great for them. Lovely 4 bed detached with garden and I think their mortgage is about £1.8k. You would save a fair bit on childcare and other costs as well.

Can either of you move jobs to boost salary and/or get roles where you can wfh more, which will save on commute costs?

Itsmyshadow · 26/05/2024 07:32

We have a similar household income to you but have much more to spare each month. The difference is mortgage and childcare.

Our mortgage is £1600 and childcare about £1500 (3 DCs, 1 in nursery, 2 in wraparound).

We live in a lovely town in the SE, but my commute to work is 1.5 hours (55 minutes on the train). That’s the trade off.

We couldn’t afford to buy a house in Islington, nor would we want to to be honest.

If I were in your situation I would move somewhere out of London. Get a bigger house for the same mortgage and dramatically reduce childcare costs. St Albans and Harpenden have great fast trains into north London.

Dakotabluebell · 26/05/2024 07:33

Pollipops1 · 26/05/2024 07:28

I don’t earn as much as the OP but I think the 15 hours & tax free childcare should be universal as everyone needs help. The old child benefit wasn’t means tested nor is things like winter fuel payments.

You think the government should give free childcare to people earning £175k? Why? They can afford to pay. The taxpayer can't.

verdibird · 26/05/2024 07:33

Wow. So, I’ll give you some perspective on how others live. 11 years ago, DH and I bought a property in a rural area in the East Midlands…4 bed Victorian house in need of TLC with acreage…for £227,500. I made about 40K a year, he took a break from work to fix up the house. Then, he went to work, and we were on 80K-90K a year for a while. The house was a fixer upper, and we paid off the mortgage on an offset one when the rates were low and spent another 70-80K on the house to get it up to standard. we did a lot of the work ourselves…many an evening was spent laying and sanding floors, painting, rebuilding garden walls, etc. It was tiring, and we are glad we are done.

It was my first house I bought at age 45, DH’s second (he had a small terrace house before). I waited a long time because I had American student loans to pay off and it took me a decade to do so, and I wasn’t getting into any more debt and saved for a larger deposit. I worked as an professor so was a student a long time to get my doctorate, hence the loans. I also had to save money to pay all the immigration/visa fees/surcharges and now just have to get citizenship (will be v. glad when that is over because the process has been stressful).

One car, caravan holidays, household cleaners in bulk, did (and still do) all our own cooking including bread making in the bread machine and a vegetable garden. We eat out very seldom, and I took sack lunches to work, as does DH now. we bought a fancy coffee machine so we don’t spend money on coffees out. No children, no consumer debt. Car was bought with cash. we put solar panels up to pay for the electrics. Any extra money went into savings and pensions. I’m retiring early in my late 50s as I socked away 5 years of salary, DH continues to work as he enjoys it. Retirement will be modest in the countryside with a caravan we bought used for UK holidays, I’m spending my time continuing to write books and gardening.

I get childcare is expensive, I do. But crickey you are in a v. expensive area. Either wait till the kiddoes get into school and deal with it, or get a cheaper house and put that extra money in a pension. On that salary, you might want to read about the FIRE movement (financial independence, retire early), downsize and save your salary. In a decade you could find yourself in a position to retire. I would think a 175K job would be high pressure, and you can only do that so long or it will affect your health. Good luck.

Hermione7 · 26/05/2024 07:33

Willyoujustbequiet · 26/05/2024 02:37

I'm trying so hard but the violin is just so tiny I can't seem to be able to find it.

🙄 pointless

Pollipops1 · 26/05/2024 07:34

You live in a (judging from your mortgage payments) £1M+ house,

The OP may be living in a 1m pound house but 2.5k is not paying the mortgage of one!

JohnCurtice · 26/05/2024 07:35

Pipsquiggle · 26/05/2024 07:27

It's the childcare. Would it be cheaper to get a nanny? How old are your DC?

Depending on your house, I actually think your mortgage and bills at £3.5k in Islington is very good.

Agreed.

I’ve started to think Op is just here to wind people up because the figures don’t make sense- £2.5k a month is a mortgage of about £500k, so unless OP has a huge amount of equity (or is living with her kids in a studio flat) she doesn’t live in Islington (which isn’t in SE London).

HairyToity · 26/05/2024 07:35

Unless you are going to keep popping kids out the childcare will reduce, it'll get easier. Hang on in there. You'll then be fine unless you opt for private education....

Dakotabluebell · 26/05/2024 07:35

Pollipops1 · 26/05/2024 07:31

There are a lot of other places to live other than islington.

@Dakotabluebell no one is saying otherwise but 2.5k mortgage is not a ridiculous amount for London particularly on that salary. Where should the OP move too that’s considerably cheaper?

Literally anywhere.

Cattyisbatty · 26/05/2024 07:35

That is still a high salary for London unless you’re living way above your means.
Private or state school - you say wraparound care so your kids must be in primary. Must be more than 1 child.
Exotic holidays?
Expensive cars on finance?
cleaner/gardener?
Big mortgage?

We are also London, income is less and we are paying uni rent x 2 for kids, we have our own mortgage and living costs but we run older cars, don’t have big holidays every year (haven’t all been abroad together since covid but are going this summer), dh and I have a week in the sun ourselves in the autumn too.
We go to theatre a fair amount but don’t eat out much due to dietary issues, although shop Ocado/Waitrose and organic stores re said dietary issues .
Have private health insurance.
Have a pet.

Would be interesting to see where your money is going.

CurlewKate · 26/05/2024 07:35

You could always get a second job. Have you considered taking in ironing?

TemuSpecialBuy · 26/05/2024 07:36

We earn more and still live a fairly basic bitch life
we have a slightly nicer than average house.

We shop in aldi and drive a shitty old car. Our main hol this year is a caravan in norfolk

We dont gamble or drink and havent bought designer gear since pre covid.

I spoke to some close friends because i couldnt work out what i was doing wrong having historically been excellent with money
2 couples had the same Or higher outgoings
The third couple had parents.who paid for the nursery and nannythey use for their kids as well as 2 x nice holidays every year.

There was a thread on here recently by a woman who was shocked her total benefits package was almost 5k pm (equivalent to a 90k pa pre tax salary)

FrancescaContini · 26/05/2024 07:37

175allgone · 26/05/2024 03:08

So I should move to a cheaper less desirable area and cause gentrification?

One of the funniest things I have ever read on MN: “cause gentrification” 🤣

Where’s the OP? Having nightmares about living in poverty on 175k?

Pollipops1 · 26/05/2024 07:37

You think the government should give free childcare to people earning £175k? Why? They can afford to pay. The taxpayer can't.

@Dakotabluebell I said everyone should be entitled to subsidies for childcare, where did I say free childcare? why not? People who earn well pay a lot in tax too.

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