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Original poster

More you earn the more you spend ?

18 replies

Kay286 · 15/08/2023 18:53

Interested really on the above. This is not a boost, opposite really I suppose !
Ive been really skint in the past - when young , low earners paying a high mortgage and high childcare costs - literally 20 a week left after bills we used to put in an envelope and decide on buying the kids an ice cream a cheap 2.5 cinema ticket each etc etc.
we’re now in a much different position furher in careers , paid a good chunk off mortgage , no childcare costs etc and we do have savings ….
but we still seem to spend a ridiculous amount of disposable income every single week !
I’m trying to get a handle on it, budget better as soon we’ll be buyer a new house and mortgage will be huge !
I just feel like we’ve got used to having such a higher amount of money and it’s easier for it to trickle away every week ! I used to be so good with budget when I had to but now I can’t !

OP posts:

trooop · 15/08/2023 19:20

YANBU I am a very low earner and if I earnt more I would treat myself to a punnet pf strawberries every day, and steak out once a week :)

Combusting · 16/08/2023 10:43

Not in our case. We are a high income household, but there are standing orders set up on the first of every month were a big chunk goes out into savings accounts and mortgage overpayment, and we give ourselves a much smaller set amount of money as a personal spending allowance. We don’t see large chunks of her salary which go into savings and overpayment so no, it does not get spent. All salary increases however, minor are diverted into this standing orders for overpayments and savings so lifestyle creep does not happen at all.

Coral569 · 16/08/2023 15:53

I think so. Our household take-home pay has trebled in 6 years and the other day I worked out that the bills coming out of my account alone are more than what our entire take-home pay used to be. I wonder how we used to live! Then remember that we could hardly afford to eat, had direct debits on credit cards and it's taken a while to get back on our feet...

paddleboarder12 · 16/08/2023 21:05

We did this, my DH and I have always spent very slightly over what we’ve earned. Luxury expenditure becomes normal and feels necessary and spending creeps up. Luckily we’ve always paid into pensions so could retire at 52 and 55, however we’ve never had any saving despite being on a very high earning household.

shivawn · 16/08/2023 21:52

Our everyday spending has mostly stayed the same over the last 5-6 years despite our wages jumping up in that time, we have increased our food budget quite a bit in that last year due to cost of living though.

I find we spend more on holidays as we earn more and will soon be buying a house worth almost 3 times our current house value. So I guess it's lifestyle creep but it's worth it in my opinion.

We always increase pension contributions with every raise and save a little bit more money every year. It's all about balance really.

G5000 · 16/08/2023 21:56

Yes. But what's the point of earning more if you don't enjoy it but still live like a pauper? My aim is not to be the richest corpse in the cemetery.

alwaysmovingforwards · 16/08/2023 21:57

Combusting · 16/08/2023 10:43

That's a great way to either retire early and comfortably, or have money to set up the next generation. Either imo is better than frittering away excess money on tat.

SlowlyLosing · 16/08/2023 22:03

We have always earned relatively well, and now in top 10% uk household income.

We were always very frugal whilst living well imo, could save half our income.

For a few years my income doubled and I made a conscious decision to spend more to make life easier - get a cleaner, not obsess over every purchase, not spend data on comparison sites, have a starter and dessert when we go out.

Tbh I think my new way of living is quite similar to my peers with incomes similar to my lower one. Now my income has dropped back and I'm really struggling to rein it in, really regretting loosening the purse strings in the first place.

We're now tight, have 2 SN dc and are aware we may need to provide for the rest of their lives so motivated to save hard.

ZenNudist · 16/08/2023 22:08

G5000 · 16/08/2023 21:56

Yes. But what's the point of earning more if you don't enjoy it but still live like a pauper? My aim is not to be the richest corpse in the cemetery.

Agree. I'm working so I don't have to scrimp. I do save. I buy what food I like but not overly luxurious e.g. steak is still a treat. I turn the heating on if I need it to dry clothes in the summer drizzle. I buy what clothes I want but not to excess and make sure I get the wear out of stuff. Kids go to what activities they want but we aren't spending a fortune on that. Holidays abroad crept up from 2 (1 paid by family) when younger to 3 or 4 abroad and 2 UK breaks a year. Theatre trips, meals out. We don't go overboard. My car is a bmw but 5 years old now. We still live in a 4 bed semi which is big enough for us but I could afford the massive house (with the massive mortgage). I prefer the flexibility and the disposable income.

I'm not planning on retiring particularly young. I want to enjoy life. Holidays and meals out make the hard work worthwhile. I know how lucky I am.

I lived on less when the dc were young and never particularly scrimped then but probably took less expensive Holidays and drove a rubbish car. I've never budgeted but don't think I'm extravagant.

I know people with less money than me who piss it away. I'm sure my expenditure would make a tighter person wince too.

Original poster

Kay286 · 17/08/2023 04:10

@ZenNudist sounds very similar to us - we don’t waste it and spend on thing we all
enjoy doing , meals outs , shows , concerts , nice holidays and trips !
I’ve had a few key treat designer items which I’d never have dreamed I could have but don’t need more and we’re one off purchases.
we do have a very decent chunk of savings aswell - kids have all they need etc.
u fly trans Atlantic fairly regular to see family.
I just sometimes wince how much money probably trickled away without even thinking about it - and then worry I should be more sensible ! but I also want to enjoy life.
we do probably need to think about retirement savings a little more tbf. But I’d rather enjoy money while young !
We do however have a really old crappy car and are not car people !

OP posts:

Original poster

Kay286 · 17/08/2023 04:14

@G5000 Im swaying between this and I really need to rein it in and be more sensible ! Espec as I technically could be mortgage free ! We do enjoy life and u can’t imagine going back to how we used to live and didn’t really notice how we got here but love the freedom—- I should save more tho !

OP posts:

Original poster

Kay286 · 17/08/2023 04:16

@shivawn definitely a lifestyle creep ! We are also looking to buy a house about 3x ours (could actually be mortgage free if not for this) but we now live abroad and houses are crazily priced so needs must ) definitely need try be more sensible due to this and think about pensions aswell.

OP posts:

ZenNudist · 17/08/2023 07:27

The house is where I've drawn my line. We moved into a 4 bed semi in our 20s, were mortgage free 7 years later and then haven't moved. It's very convenient for the kids schools/ activities. Now In our 40s, salary has multiplied but don't fancy the mortgage really. Want to invest some money.

G5000 · 17/08/2023 16:18

Now, don't get me wrong - I certainly don't mean you must stretch yourself to the biggest mortgage and fanciest car possible. Not what I have done, always smart to have a buffer so you can still afford to live even if your income drops. But I don't limit myself to the cheapest hostels only, when I can reasonably afford luxury hotels.

Cupcakekiller · 17/08/2023 16:25

Yes, I earn £37k which is low by London standards but a good wage in the Lancashire town I live in. Getting divorced and feeling very skint at my reduced income. Ex H only earned £21k but that reduction is hitting me hard. Feel like a pauper.

declutteringmymind · 17/08/2023 16:29

Definitely!

It just gets swallowed up!

Although recently I have set budgets and actually am saving.

I think inflations doesn't help. I'm taking home a little more per month but it's disappearing just the same.

Car insurance, repairs and maintenance, uniform, fuel, all stuff that we 'need' but not much left over at the end of the month.

My biggest bill this year is tax. I'm really feeling it.

SisterhoodWhatever · 17/08/2023 17:21

We didn’t change our spending patterns that much except for having really lovely holidays.

We chucked extra money at pensions and paid off the mortgage early so will both be retired by 56 which is in a couple of years. Big plans to motorhome and travel for a number of years. We didn’t go for the big house that our friends did as we wanted to retire early.

We are looking forward to time together.

I think my generation which is older Generation X still has a decent number who can retire early but I think we will be the last.

Beenaboutabit · 17/08/2023 18:02

Spending has increased with increased income but saving has increased more.

We’d rather retire early than splurge now. We still do a lot and enjoy life but we do it to a budget. We’ll be able to retire at 55 (next year) on about 20% more than we spend now and we need a bit more then because we’ll be doing more!

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