[Closed] Life is hard living on £120k a year.

We-ell... It is very much a first world problem, but playing devil's advocate, if your mortage sucks up 80% of your salary each month, it doesn't leave you feeling very well off...

WTF! How can anyone possibly be stretched on £120k a year?

paying £45k pa after tax for school fees will suck up a fair amount

That takes the piss

he is paying fees for his sons schools so i suspect much of what is quoted is probably true. Also, he's paying almost 45% tax on that 120k due to loss of personal allowance.

But lets not let facts get in the way of a good troll......

It's the eye-watering school fees wot done it.

If only there was an alternative state funded education system......

Friends of mine earn around that a year - having a £600k mortgage doesn't leave them a huge amount of spare change. Don't forget the higher rate tax that kicks in on 2/3 of that salary.

We earn about a quarter of that - our teeny mortgage gets paid off this year. You make choices throughout life, some work out, some bite you on the bum.

Not attempting to justify the whining in the paper though, but if your expenditure is greater than your income, doesn't matter how much you earn, you feel the squeeze.

the guys obviously an idiot, was he educated at boarding school as well?

and the entire article is stupid, relying on the trickle down effect to help the poorest- its amazing some people still spout that!

But lets not let facts get in the way of a good troll......

Good point.

So let's start with whether you're aware that there are plenty of people on a hell of lot less than that who manage to bring up children who turn out ok.....

but if your expenditure is greater than your income

you're an idiot....

You would be surprised how little disposible income you have once you have established a lifestyle like that.

he is paying fees for his sons schools so i suspect much of what is quoted is probably true.

Sorry I missed the bit where it says expensive private schools are an essential of life for anyone aspiring to be middle class.

Most folk, for better or worse, live a standard of living that they can afford. If their income suddenly drops or changes for the worse of course they'll be 'hard up' if they don't change their life style.

But the trickle-down economics central to wealth creation is only effective if benefits accrue to every stratum of society. And the more the finances of people like Jackson are constricted, the less they spend on goods and services. The less they spend, the more providers of goods and services will suffer.

What a load of cobblers, the real issue is that they're spending too much, mainly on education, not that they've had to stop going to Pizza Express!

How can anyone possibly be stretched on £120k a year?

School fees.

Once you accept that your children [i]cannot possibly[/i] go to a 'normal' school with the losers' kids, you are committed to spending more than many people earn just on sending them to school every year.

MrsDummy has already started to fret about the costs of educating our un-conceived progeny. I've explained that with my excellent genes they'll survive in conventional education and once they're 16 they can go to the army to learn a trade. 🙂

expensive private schools are an essential of life

This goes back to the other thread about what people view as most important to them.

This family obviously are putting their childrens education ahead of fancy dinners, flash cars and other luxuries.

A lesson many others should learn.

I've heard it rumoured that there are options available where you don't actually have to pay for schooling.

Its all a bit socialist. The state provide it, and its paid for through taxation. Pretty revolutionary stuff.

Isn't the point of paying an enormous mortgage so that you get to live in the catchment area of a decent school? I thought thats what the system was designed to create?

So the story is, chap earns money and spends it on things he deems important and doesn't have enough to spend on everything he would like to.

lack of disposal income does not make you poor, not being able to afford the things they pay for, 50 K + fees fro schooling for example, makes you poor.

Clearly what your expenses are will have some bearing on how wealthy you feel but not enough to outweigh the points above

hmmm, thinking about this, i think he is not being entirely transparent, after tax, he is probably bringing home a net of £70k, after school fees that leaves him with £25k to service a mortgage of £350k on interest only which will be circa £1300 pcm, so thats circa 15k. Leaving him with 10k for the year.

Me thinks he gets a tidy bonus to top things up.....

Broadly:

Education = investment
Flash car/restaurant = consumption

Which is better?

(Great topic for many pages though!!)

Why would anyone want to be the subject of that kind of article? They should have volunteered for Gogglebox instead!

For Farnham, £350K isn't a huge mortgage 🙂

I've heard it rumoured that there are options available where you don't actually have to pay for schooling.

Psst, don't tell anyone but I was sent to just such a socialist institution. I've never forgiven my parents mind....

You would be surprised how little disposible income you have once you have established a lifestyle like that.

That is entirely their own choice though. It [i]was[/i] disposable income, and they decided to use it. Be it for a ridiculous mortgage, car, or whatever else. The only 'squeeze' is of their own making. Which I believe is the point here.

Meanwhile, back on Earth...

LHS - Member
You would be surprised how little disposible income you have once you have established a lifestyle like that.

Not hard to change lifestyle.

I used to go to Costa everyday and do my food shopping in M&S, now I have less cash and spend about £5 on food a day. I'm still far better off than many people in this country never mind the world.

Education = investment

But is paying for an expensive (private) eduction a better investment that getting a free state one and saving the fees?

That should be for individuals to decide - its not a question that lends itself to a yes/no answer. Horses for courses and all that.

Discovering the joys of Aldi has been a positive of this downturn IMO! The wine is surprisingly good.

WTF! How can anyone possibly be stretched on £120k a year?

I am guessing 120k before tax, he has a 350K Mortgage and pays 50K to send his children to School.

I am surprised they have got any money left to buy food.

However much you are paid, if you are living beyond your means, you are living beyond your means, It looks like that is what they are doing.

private education - sadly having had kids fall into the just failing the 12+ trap & also seeing the fallout from another breezing it & then feeling totally at sea in a school of wealthier middle class kids I can see why people opt to pay for what they want or even see as necessary rather than accepting what the local authority is able to provide.

Isn't the point of paying an enormous mortgage so that you get to live in the catchment area of a decent school?

You'd think if he was so annoyed at paying all that tax that he would try to get the most value from it. Short of being involved in a horrific car crash or getting a life-threatening illness, sending your kids to state schools is probably the best way of doing that. For someone who works in the finance sector he seems to have little idea of how to best manage his own finances.

If he lived in a 2 bed terrace he'd have plenty of dosh to spare. 😀
Does going to McD's count as 'eating out'?

What pisses me off is in some social circles everyone sends their kids to private education. Its ridiculous. Alot of pressure- numb nutted-idiots.

For Farnham, £350K isn't a huge mortgage

The article says £120k basic, no mention of bonuses etc - he's a financial compliance officer in the City for gawds sake, his bonus probably doubles his salary.

And apparently he's at the top end of the squeezed middle! If ever I needed confirmation of my working class status.....

Picking up on the opening sentence, when did £120k represent the 'squeezed middle'? 😯

These people live on a different ****ing planet!!!!

I really don't see what the problem is.

There are plenty of people earning £25k a year who deem it absolutly necessary to get all sorts of loans and store credit to buy new cars, TVs and other status items.

Investing in his kids education should be applauded.

you don't actually have to pay for schooling.

Then...

its paid for through taxation

It's all relative.

Imagine trying to downsize to a council flat on £60 a week. That would feel about the same for most of the contributors on here.

Unless of course, you just like to feel jealous of those with more money than you and relish the opportunity to crow about their misfortunes.

For someone who works in the finance sector he seems to have little idea of how to best manage his own finances.

Well he'll fit in perfectly then!

There are plenty of people earning £25k a year who deem it absolutly necessary to get all sorts of loans and store credit to buy new cars, TVs and other status items.

Why work hard effectively as a slave when your children may come out with an average life at the end of it?

I knew a lad who was put through the best schools by his leading heart surgeon Dad. Boy he was a bloody waste of money at the end of it. I think he went to work in a shop.

Unless of course, you just like to feel jealous of those with more money than you and relish the opportunity to crow about their misfortunes.

Not at all, just incredulous that someone is written up as a sob story when he is only a victim of the (seemingly daft) financial decisions he has made....

There are plenty of people earning £25k a year who deem it absolutly necessary to get all sorts of loans and store credit to buy new cars, TVs and other status items.

Investing in his kids education should be applauded.

Fine… you're spending your money to give your kids an advantage enjoyed by a tiny minority of the countries population, that will enhance their life chances hugely disproportionally.

Good for you! But when your in a position to do that, the 98% of the population who can't afford that, really really don't want to hear you whining about it!!! 🙄

swapping Ocado deliveries for trips to Tesco

*phew* for a minute I thought he was going to say Asda. Life ain't so bad after all

some people always see the negative rather than the 'look how lucky we are' side

that household isn't the squeezed middle though - wife, 2 kids and a very good salary - their household income is better than 90% of other households in the UK

Read what you want to read, ignore what you want to ignore. Simple.

Nice Contura 850 in the background.