High earners of Mumsnet

[LongPauseNoAnswer]

I have seen quite a few threads where high earners are ripped to shreds and run out of town with torches and pitchforks. I thought that starting a thread for high earners would be a good idea so we have a space to talk money - savings, investments, tax etc.

My background is working class, I was a single parent working 3 jobs. I started my own business which has been amazingly successful so I’m definitely nouveau riche

Anyone else want to join me?

I like this thread and reading your posts OP, but I don't agree with the suggestion that this is in everyone's reach. Is your message that 'anyone' can follow in your footsteps? That may be true, perhaps it's so simple that anyone could plausibly do what you do! but I doubt it. You are undermining the ingenuity of the eureka idea you had in the first place. There are simply not enough unique, commercial ideas to go around to underpin the notion that it is possible for anyone to set up a successful business. And possible for {everyone{? No. The race to the top cannot be achieved by everyone as capitalism makes it so. There isn't enough money for everyone to be successful. I get frustrated when successful people try and inspire others to join the race because the more people that do, the harder it becomes and the thinner the rewards. It only seems simple to you now because you're looking back in hindsight and can see the 'formula'. I think you should see yourself as unique and quit the motivational pep talks. If someone is capable of getting what you've got, they'll figure it out themselves. To all the others, you're doing is peddling dreams to dreamers. This is what happens in all the women's networking groups... daily memes about believing in yourself. If your idea sucks or if your business model is unviable then no amount of self belief will make it work.

@ididitsocanyou I hear you but I took this to be more about how to manage money and build wealth rather than about one great entrepreneurial idea. Am reflecting my biases here but would love to see more women , whether super high earners or not, think about how to make themselves financially secure. Maybe we should reframe the discussion away from ideas to how to build assets whatever your income level?

I earn good money but I see so so many people in my profession living hand to mouth, and equally so many women on here making themselves financially vulnerable and not having a handle on their money it terrifies me! We need to take responsibility for our finances and see money for what it is. It will never make you happy but not having enough will make your life very hard. I'd love to see more open discussion about finances among women . I don't understand why we are so reluctant to talk about something that is so critical to quality of life.

[quote LongPauseNoAnswer]@combatbarbie there are loads of posts I didn’t respond to on this thread. No need to feel personally victimised - Should I respond to every single post?[/quote]
You didn’t acknowledgment me and I feel personally victimised (or something )

@familychallenge I appreciate I went off thread. I think I was just trying so hard to imagine how you did it that I got sidetracked! I can't really join in here as I'm not a high earner. I think you should crack on and keep it as you intended it to be. It's interesting.

@familychallenge

I earn good money but I see so so many people in my profession living hand to mouth, and equally so many women on here making themselves financially vulnerable and not having a handle on their money it terrifies me! We need to take responsibility for our finances and see money for what it is. It will never make you happy but not having enough will make your life very hard. I'd love to see more open discussion about finances among women . I don't understand why we are so reluctant to talk about something that is so critical to quality of life.

My biggest bugbear on here is the automatic riposte to a person who needs advice on how to protect assets in a cohabiting situation as always “get married“

All the it’s so simple and cheap why wouldn’t you? Absolutely no consideration as to the obligations that work both ways and the fact that your assets will no longer be your own to automatically take with you if you split up.

@ididitsocanyou you are why we need people like me repeatedly saying that YOU can do it too.

You don’t need a miracle lightning strike idea. There are very few original ideas. My idea wasn’t original.

How many Italian restaurants are in your town? Only one? How many Italian restaurants in your country? You go to the one you like, the one that does the combination of pizza toppings you like. Even though they all do pizza and can recreate the pizza you like. Still you go to “your” one.

Business is exactly the same. There isn’t only one doctor, dentist, pub etc. My business is the same as a thousand others but my customers come to me because they like me, my style, my marketing and how I do business.

Your narrative is what keeps women down. You don’t have to be special or have that million dollar idea. Find what you like, see what others are doing and then do it your way. It’s honestly that simple.

If my post came across snarky I apologise. I’m cooking dinner and didn’t reread it. I’m really passion about helping women start their own businesses, I coach women in startups for free in my city and I hear your argument all the time and it just doesn’t stand up under scrutiny.

Only just noticed the thread.....

Mind you I never seem to have much spare money (that is what comes of having your first child at 22 I suppose and spreading them out since 1984 and even now the twins are costing £50k a year at law school and will next year too......) Hopefully the end is in sight as I started looking for the last property I will help the children with - I only give them each a set sum for a first property and pay for their education and then it stops......

So I seem to specialise in giving the money away rather than having a problem as to where to put it and let us not even mention the 2003 divorce which cost me almost £1m.

I have not read the full thread but I agree that people who decide everything in life is luck and if you are not doing well or from a poor background there is no point trying to earn more and just give up and cry in a corner that is just self defeating. Of course some things matter- I will never be basketball champion as I am 5 feet 4 and in my 50s and female I will not be making it to the England football team either with all the high pay that brings but people who start off badly off in life can and do in the UK manage to do well. It is one reason lots of people want to live here as we are a fairly open society compared with some countries.

Just seen this thread linked. Apparently as I am on MN now I can’t be a high earner as we never take a break.

Have a well earning main role and I am focussing other income streams. We have a couple of rental properties and I am building up investments. My main priorities are clearing the mortgage and school fees and funding the DC through Uni.
Women need to know that we can do this.

I found Your Money or Your Life inspiring so have avoided too much lifestyle creep.

@ChazsBrilliantAttitude I like your approach and I love to hear people talking about creating long term income from a good wage. I think of this as banking the winnings- I earn very well but there is a precarious element to my work and so I want to ensure I am secure. For me that means some cash savings and the rest in ISAs in equities, paying down mortgage and a couple of rental properties. Many women invest very conservatively with their whole portfolio and limit long term growth. I keep a higher cash balance than some to ensure never being a forced seller but have the bulk in long term growth assets (equities and property) at relatively low cost. I want options and this is how I think my money can give me that.

I kind of hate the phrase but I try to spend mindfully. I like nice cars but buy 2-3 years old and keep for a while rather than new ones. I spend on holidays and experiences but set myself annual budgets so I don't just go over the top and spend for the sake of it. I love a Michelin restaurant but am pretty happy with Pizza Express and friends so I mix it up

I was lucky because my income went up gradually and then jumped- I was already living well so I didn't live up to new income and banked the jump. I know this is easy on a high income but I think the principles apply to any income level, once you are past meeting needs.

[quote LongPauseNoAnswer]@ididitsocanyou you are why we need people like me repeatedly saying that YOU can do it too.

You don’t need a miracle lightning strike idea. There are very few original ideas. My idea wasn’t original.

How many Italian restaurants are in your town? Only one? How many Italian restaurants in your country? You go to the one you like, the one that does the combination of pizza toppings you like. Even though they all do pizza and can recreate the pizza you like. Still you go to “your” one.

Business is exactly the same. There isn’t only one doctor, dentist, pub etc. My business is the same as a thousand others but my customers come to me because they like me, my style, my marketing and how I do business.

Your narrative is what keeps women down. You don’t have to be special or have that million dollar idea. Find what you like, see what others are doing and then do it your way. It’s honestly that simple.[/quote]
I hear ya

There should be a thread for high earners as people with different incomes have different goals and money saving/spending strategies.

When I was 20 and didn’t have much money I wanted to know how to stretch my money for a house deposit.

Now I’m 30 I want to know what stocks people have and are you investing in whisky or gold? And how are you saving money???

Not any of my friends have any idea of the money my household earn and I will be keeping it that way, me and my husband enjoy the luxuries between each other as we earned them and they aren’t to be shown off to other people..... but if higher earners want to talk business they should be able to and if lower earners want tips and tricks from people that have been there and done it then that means they have goals!

If there was a thread for only 1million plus earners I would be reading what they had wrote to get Inspo not to tear them down.

@organisedmother I'm not a million pound earner but I have over 100k a year to save. As I said what I do is pretty unexciting;

1. I overpay my mortgage to the max I can every year with the goal of getting rid of it ASAP- while it is cheap borrowing I find great security in knowing it will soon be all mine

2. I keep approx 2 years expenses in cash

3. I invest mostly in global equity ETFs- cheap market exposure- I put money in every month so I average out the cost and try never to sell them. I reinvest dividends so that the assets accumulate

4. I use all the tax efficient options I can- ISAs and pensions- and keep investment costs as low as I can on the basis that costs are certain, outcomes aren't

I think developing the habit of saving with what excess you have is very important in building wealth and security. Even if you just hold cash it's hard to explain how much more secure you feel when an unexpected expense is not a crisis. I've never been entrepreneurial and really admire those who are and create wealth and businesses- but most (not all) people could make themselves more secure with good habits. Money is freedom, and having a good base makes things cheaper if you need it- you get better mortgage rates with big deposit, lower costs on credit if you show yourself credit worthy, much cheaper to pay annually than monthly for lots of expenses etc etc.

@familychallenge do you have an investment manager for the equity investments? I’m starting to look at these.

My monthly pension payments have taken a beating. I haven’t added to it in 3 months. My pension is Third Pillar in the Swiss system and is in Swiss Francs so I make all the contributions myself. I earn in Euro and US Dollar from my business. The conversion rate has been horrendous so I haven’t been able to move from my USD account to my CHF one because the rate is so bad. 1 dollar is only .91 Swiss Francs. It used to fluctuate between .96 and .98.

Do I take the hit on the conversation and keep adding or leave the cash where it is until the rate improves? I have until end of April before tax return time to move it into the pension fund.

They should teach money management in school

@LongPauseNoAnswer I just buy Vanguard global equity ETFs for global exposure. Cheap and easy.

Why are you in Swiss system- do you live in Switz? In some ways it doesn't matter, it depends on what your fund is invested in. So if you are converting to Swiss francs and then invested into global assets, the conversion will cancel out- you will convert at a shit rate but then if you use the francs for buy a global portfolio the francs will go a long way. If the investments in the Swiss fund are mostly Swiss then that's different. The franc is historically very high, and it's hard to see a trigger that will make it drop short term. It might be worth paying for some specialist advice on that because it depends why you are in Swiss system- if you are planning to retire in Switz then it could make sense but if not then you might want to diversify a bit.

Can somebody fill me in on the 'xenia' quip which has completely gone over my head.... I want in on the joke