Are we on a low income?

[biganlittle]

I earn 33.5k pro rata’ to 4 days a week.
DH full time of 48k, I know there’s some high earners on here but I’m guessing the majority earn less, maybe not as little as us.

We have a little one in nursery still which I think makes us feel that much more skint!

Are we low paid? Both in jobs that we needed qualifications for and I have a degree but part time for years and 2 maternity leaves I think has held me back.

I think the problem is the middle classes are being squeezed with high rent, mortgage increases (I believe), and cost of living. Nursery is another factor.

I earn 2k/month doing 20 hours a week, am a single parent, nursery will be free of charge, my rent is paid, and I have 2k for bills and fun money.

I'm as well off as someone on 30K but with a fraction of the stress.

It's all swings and roundabouts though because I am not building a pension, but I am building savings.

But I feel extremely wealthy because I work part-time and am able to basically live as a stay at home parent.

I hope you get job satisfaction as that will be your main advantage.

Feel better now after your nasty little comment?

How the heck do you manage?

Do you have low housing costs? Benefits? Grow your own food?

The OP's income is by no means low of course, but I'm interested to know how yours works.

That's amazing! I'm going to start a thread for advice, because I can't seem to achieve this level of financial control. I'm impressed.

Our household income is similar, I’d say we’re pretty decently off tbh.
but we live within our means, we have a low mortgage (which we over pay and still is only £600), we have a second hand car etc.
we can afford a foreign holiday every year and have several weekends away without having to save. While we have friends earning double what we do who have to penny pinch because they opted for a big house and new car etc. it’s just different priorities.

it’s enough of a wage to be comfortable depending how you choose to live

Is pointing out a fact nasty?

I mean… your breakdown sounds fine and you seem unstressed by it, so no great problem here IMO.

I suppose my question would be - day-to-day you’re fine, are you planning for the future / saving? Whats the pension situation like etc.

The Rowntree foundation says the required income for a good standard of living of a family with two children is £74,000 (which is c. 2x average salaries - slightly more).

How good an income is so variable based on housing costs, childcare costs etc

Well between you, you over double the average household income, so you are doing ok imo. But this is MN, a lot people on here seem to struggle when one of them earns over 100k, because they lose their childcare free hours 🤣

I just don’t understand why people want to know if others think they’re doing well. It makes no difference what people think as long as you can pay the bills and live comfortably it shouldn’t matter if so and so from MN says your doing well or not doing well lol

£900 will easily disappear as you haven't included many, many expenses on your list.

Your income is kind of average and you aren't going to be rolling in it with 2 small kids.

Perhaps start tracking actual outgoings if you want to know where your money is going and see if there are any cuts you can make or reallocate any spending.

If you can’t manage on £7k a month something seriously wrong. Obviously would need to move house or downgrade cars/ holidays. Absolutely ridiculous. I live in the north east. 3 bed house £750pm 4 children and we are on approx the same money. 1 child in nursery. We manage fine. Holiday abroad 1-2 x per year. Trips for birthdays anniversary etc with some savings.

This is an goady thread

I found this the trickiest time with balancing money, what with nursery fees, reduced pay for maternity ( I expect you did not get 1 year of full pay). You'll likely be comparing yourself to colleagues who got promotions as you got back from maternity leave. I think you're on mid income as long as your partner and yourself are splitting wages equally, but the bulk of it will go on nursery, mortgage, bills, debts.

These threads always decend into accusations of being goady or "I manage on less/the same so should you". I have a larger joint income than OP. But have a much larger mortgage on a VERY normal/average house and large travel costs for work and childcare (not nursery). Our income is also disproportionately earned between us, meaning my husband pays lots more in tax that we would if it was evenly earned.

Income is a tiny indicator of lifestyle quality and wealth. Which some really do seem to struggle with understanding.

It's okay to try and rationalise your financial position as OP has done. Some people have even pointed out where she could reassess spending to help ease the strain she's feeling.

Sometimes, people really do just need help and people pointing these things out. It isn't always humblebrag and goadyness. I'm sure we've all been naive about something at some point.

I'm suprised to see how this thread has gone. Usually on mumsnet most people seem to think that a household income of 80K or below is low and say that they are struggling. This thread seems to have attracted more normal/average human beings!

Obviousy you're not low income but you're definitely not in the bracket that isn't struggling with cost of living crisis and it's fine to say that moneey is tight, even when you have more than many. You might be struggling less but you're still struggling.

My salary is about 43K which isn't that much over average but I'm in the top 20% for disposable income because I am single and have no children.

My sister and brother in law have a household income that I estimate to be around 140K (I obviously don't know exactly but I know my brother in law earns over 100K and my sister has a part time 'average' job so must be 30-40K). They ought to be light years ahead of me in disposable income but they have a toddler and, because one salary is so much higher than the other, they don't get the free nursery hours that they would get if they both earned 98K. They also have a huge mortgage and mine is quite small (though obviously their house is gorgeous and mine is cute but basically a hovel!)

In real terms, the only lifestyle difference between us is that they can afford holidays and I can't. Otherwise, we seem to be fairly similar despite the 100K difference in household incolme. The figures alone aren't everything.

Not my part of Scotland.

I genuinely think any income feels low now. You project based on your means at the time and the everything just keeps going up apart from wages so if you’re on 20k or 100 it’s just not going as far as it once did sadly. For reference I’m on 28k in Cheshire and have had to move back in with my parents recently to afford to keep the car I need to do my job, which they’re now making me redundant from! I also don’t have any kids and only recently moved from Stoke which has a very cheap cost of housing compared to other areas. I genuinely don’t know how people in London and the South do it.

Unfortunately its just every man for themselves at the moment and that’s being weaponised against marginalised people and has been for a long time but that’s a different conversation ☕️

It is not a 'tiny indicator' ffs.

800 is a lot for food. There are lots of fish cheaper than skate.

No.

This has surely got to be a joke? We earn £45k between us and we live comfortably. If you’re on £85k and struggling then that tells me you don’t manage your finances effectively at all unless you have sky high costs?

It really is. It doesn't take too much imagination to understand that some people have much bigger outgoings for all kinds sof reasons.

I'd certainly say it isn't low but the standard of living you would have had on that income 5 years ago with two small children is very different to what you can expect now. Realistically veryone knows wages haven't kept pace with the cost of living but I think many people find there is a disconnect between what they expect with certain salaries on paper compared with what it can now afford.

As already mentioned

Some people with lower incomes will be topped up with benefits
Some people will have family money doing some of the heavy lifting, whether that's parents/grandparents gifts or inheritance
Some people will be living far more on credit cards/finance
Older people might have less left on their mortgages when they have switched on to higher rates (we haveots of school parent friends that are 5-10 years older and it's quite apparent, but will also work the other way)
Some people are just much better at budgeting and this is probably where you can work at to make the money you have go further

£200 for food per week does seem for having such small children (unless any of you have allergies, in which case I sort of understand). We probably spend around £170 with an almost teen and 8yo and could definitely work that down if needed.

Do you pay your own rent?