To think that on higher incomes, having no money left often comes down to spending choices?

[ThatGoldZebra]

Sometimes when I hear what people are earning, I’m surprised when they say they have no money left at the end of the month.
I understand that everyone’s circumstances are different but at a certain income level it feels like spending choices and lifestyle play a big role. AIBU to think that?

A 3 bed end of terrace is pretty ordinary id say. What do you consider ordinary

No reason why you shouldn't choose those things to spend your disposable income on, go for it.

But they aren't essential.

I worked and lived in Basildon for 8 yrs. We rented for that time. I personally wouldn't chose to buy there. This may be the reason it's cheaper than most areas in the south east of England.

No matter how much we earn we tend to live to that budget and never worry about tomorrow, well tomorrow is here and many people don't have a rainy day fund.
In this country from the moment we start earning we start spending. We believe we deserve a "treat" for going to work. That treat starts off as a better than normal bottle of wine, then it's takeaways, yet another new top and a weekend away. Except very soon they aren't treats they are normal parts of life and not a penny is put away for the future. All done because the media tells you that you "deserve" it.
How many clever people leave Uni start a graduate job and think one day i may get married and have children so i really should start saving for that. £20 a week into the future pot and £20 a week into the pension pot along with a tenner a week into the emergency pot is only £200 a month, that's less than a daily flat white and the after work cocktails. Very few do it because we are constantly told to spend. Tomorrow is here and we all need to cut our cloth and try to have sympathy and understanding for each other no matter what we earn.

You have identified the cheapest ex-council property in a non-brilliant area. And in a bit of a state looking at the photos.

So not really ordinary no.

Looking at rightmove a very ordinary three bed semi looks to go for ~£350-500k. And at the cheaper end thy are about 70sqm which is small.

Properties costing £350-500k are going to require mortgages of £2-3k a month for someone who has bought in the last 5 years.

@Thechaseison71 even to rent in Basildon, the cheapest three bed house is on at £1600 pcm.

Meanwhile, Basildon estate agents are wondering why there’s an upsurge in their houses being viewed today… .

I've never stated that it was essential.

Books are an interesting example, as another form of entertainment where free access has lessened. People today are less likely to have a free public library nearby than they used to be, given the number of closures. There are communities today who were able to rely on a local library as a source of free entertainment 10, 20, 30 years ago, who now can't.

I definitely don't live where I grew up in London but we stayed in the SE as we are both Southerners, have family here, friends, familiarity. Once we had moved her, have settled out DC in schools and the community, we weren't going to move again as it is detrimental to the dC once they are secondary age d studying for exams. We were both born in London and grew up there, we already compromised by moving out . Equally, there aren't enough jobs in DH's area of work, it's quite London Centric. We have loads of friends where we live, we simply don't want to move at this stage.

This is very true.

No, they aren't and we have cut back loads, I think this does impact the local businesses as friends of similar income bracket have done the same. Healthier I suppose!

But that's not the point is it.? The point is people saying there's not houses available under 500k But as you said it's a CHOICE not to buy somewhere .. Not that theirs no availability

And I'm sure there's much worse places to live in theSE.

Well then it's a bargain to buy at 250k surely then lol.

Rent for a two bedroom flat around here is £1500-2000 pcm. Very unremarkable bit of SE London (zone 3, not central and not Dulwich or Brockley).

So you could live with your two kids in a two bedroom flat in Catford, and if you put them in childcare so you can work, you have £1000-1500 per month left out of your £125k salary to pay bills (likely £500), travel (£200 for a zone 1-3 travel card), clothes, food (£200-300), toys and everything else. Same if you have two parents on £60k each, except your bills and travel costs will be higher. Pretty tight.

And I chose to make this point which is personal to me. Wouldn't consider basildon even if the house is 230k and affordable. I'm also sure there are other areas down south that may be even cheaper so never discounted the possibility of a SE house under 500k. I have no experience of those places so can't comment

Ite a false choice and you are being deliberately obtuse. That house is not standard or ordinary. It is below standard in terms of size, location, benefits. Of course I could choose to live there and have a cheaper life, but the choice isnt made in a vacuum. "Ordinary" houses are, at the very least, what we as a society have come to see as such and I would dispute that most people in this country, would see that house as such.

Of course what ordinary looks like can vary. One of the ways in which the UK is often seen as different to other markets in Europe is our obsession with houses vs apartments, and the sort of catch 22 that as a result, when we do build apartments, we build cheap and small on the assumption that only poor people or perhaps single people would ever live in one.

Vs the frankly palatial apartments I have visited in various European cities that have square footage similar to my house, or bigger, with a lot of modern amenities and great outdoor space in some version of a large balcony or communal.

But overall, ordinary doesn't usually mean cramped in a part of the country people dont want to live.

It's not a very nice house or area and if anyone had the option of something else I think they would opt for something else. We are all well aware we do not all have the same options.

You don't want to move is a perfectly valid choice but it's still a choice.

Niether DH nor I are in same region we were born and raised in we've had to move much further than out of London to SE. Many of our relatives aren't in the same country for work and opportunity reasons.

We've also put of a moves needed for career advancments as our kids are in exam years on hold - we know some other parents who haven't with mixed results and we did years with DH working away in week to reduce number of moves in their childhood. Choices we made as we thought they best for our kids.

We have many peers who kept on the couldn't move as their carreer were so London centric - then late 30/40 after kids appear suddenly find those same oppounties or sideways moves in other parts of the country where they have a higher standard of living - as they realise there were other choices.

If you can afford it London is great as are many parts of the SE - lived and worked in a few prior to kids. However living there is a choice. Generations of mine and DH family have had to move for work and living cost reasons yes it comes with downsides - but you pay your money and you make your choices in life.

Worry for me is that so many affordable things are increasingly less so for next generation - that afforable housing areas are drying up really fast. They will be facing even fewer choices - whatever they earn.

Of course. Which is my point. Ordinary shouldn't be bare minimum. And frankly, I think its awful that we have got to a stage where we are arguing over whether this IS ordinary. It says something quite daunting about the state of people's finances and living standards in a country that is supposed to be one of the world's leading economies.

It auto corrected to daunting from damning. Both actually feel appropriate.

I don’t understand why you’re surprised by this. If someone has a massive mortgage and kids in private school then of course they can be a very high earner and not have much spare. Of course it’s a choice, but equally I expect they’re reluctant to lose their home and pull their kids out of school.

aye right pal.
Are you happy to share the address and what you paid for it? A one bed flat in Leith was over £100K in the early 2000s - no way could you buy one on £16K a year without a massive deposit.

Theres a lot too it, we have always been “comfortable”, but if you look at recent years, train tickets to London have gone from £120 return to £180 return where we live.

Salaries have not reflected that, increase over the years has been £9000, as an example salary increased by less than this. (Obviously a rail card is cheaper, but have to be paid upfront).

Like anyone, our heating, electricity, fuel has all increased too. 5 years ago, our money was worth far more.

Whilst it’s frustrating, we cut our expenses and were comfortable again.

However, we won’t change our house, as we’ve worked hard to get to that point, and many that are struggling it’s because of the changes affecting those also on lower salaries.

We have a friend whose mortgage changed from 11k per month to 17k per month… that’s a real kick in the teeth.

So you are not thinking of a move to Basildon or if in Basildon, a downsize?