Forum menu
That guy in the Telegraph article has created his own problems, the crazy school fees being the biggest contributor.
A £350K mortgage is a monster as well, however reading between the lines, I reckon he has an interest only one, and he needs to start attacking the lump sum at some point.
However I can understand the pressure to conform to an ideal, and him feeling that private schooling is the only option etc.
We took the decision to move to a nice area (Farnborough Village, Orpington) when our first child was coming up to school age, we lived in a horrific part of Gravesend, and there was no way she was going to school over there.
we weighed up the options, and decided that by moving somewhere nice, rather than paying school fees, we would all benefit.
We've got a big mortgage(£240k)but we've developed the house and added lots of money to it, but have decided that if our circumstances change, the house will have to go.
I've got no aspirations to jump any further up the property ladder, and feel we are doing the right thing for our kids - their school is excellent, and we've got good options for secondary schools when the time comes.
each to their own eh...?
"The past few years, since the 2008 credit crisis, have been extremely difficult and the squeezed middle have certainly suffered, along with others – the younger generation, in particular,” is the verdict of Nutmeg chief executive and co-founder, Nick Hungerford.
Linkedin suggests the case study works for this guy too. Lazy journalism?
Mebbe his missus should get a job?
written up as a sob story
Didn't strike me as that. He seemed pretty matter-of-fact about it, even mentioning that he could well imagine what people (ie: you lot) on lower incomes might think of it.
Of course, there IS an election coming up. Seems strange that, with the economy improving so well, the right-wing press should be promoting the idea that we're still all in (this suffering) together. The current leadership are keen to push the idea that things are getting better.
Ah - The Telegraph. I think perhaps the knives are out for CallMeDave.
[quote=thestabiliser said]Mebbe his missus should get a job?
Probably too many coffee mornings and shopping trips with the girls to attend.
righog - MemberWTF! How can anyone possibly be stretched on £120k a year?
Easy, coke/hookers combination must eat up.. ooohhh 80% easily. . . 😆
Read what you want to read, ignore what you want to ignore. Simple.
[img] 
[/img]
😆
Of course, there IS an election coming up. Seems strange that, with [s]the economy improving so well,[/s] [i]a housing bubble being inflated, and wrapped up as a recovery [/i]the right-wing press should be promoting the idea that we're still all in (this suffering) together. The current leadership are keen to push the idea that things are getting better.
FTFY Wopster 😉
My brother was on £110k plus a bonus and was unable to get a loan for a car. Our mother took a loan out for him and he missed the payments regularly. He blames having 3 kids for having no money. They don`t go to a posh school and our mother has done free childcare for years. Some people just cant help spending money.
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.
Other than the unconceived (and possibly Army, depending on her ability to grow wings or gills) bit, pretty much the decision we've taken with Lil Miss North.
We've effectively gambled on her surviving the spartan reality of a state education in The North(tm).
Easy, coke/hookers combination must eat up.. ooohhh 80% easily. .
You see, that I could understand....
Yet another non-story of "I earn considerably more than you but haven't a pot to piss in".
His choice what he spends his money on, just stop pretending you're struggling. My heart bleeds for him. It really does. 🙄
We've effectively gambled on her surviving the spartan reality of a state education in The North(tm).
Worrying isn't it. My 9 and 6 year old daughters are currently barely surviving their state education, despite the fact that they have learnt stuff that I couldn't have imagined as a 9 or 7 year old, the fact that they're in an incredibly supportive environment, with good friends and brilliant teachers. Still, I hope the gamble pays off. If they turn into benefits scrounging smackheads I'll only have myself to blame.
Is it someone off here?
Is it someone off here?
No mention of his bike collection, rad skills, or world class driving ability; so probably not.
I know if I were to have a conversation with someone on a council estate, they would think I was mad,” says Jackson, wryly.
Or STW. Much the same thing really.
Here's an interesting angle for you to consider.
A family of four where both parents work and generate a joint income of £100k from two equal salaries.
From experience close to this, I can tell you that the way you make this work when you don't have close family support, is that you really need a nanny. Not true in all cases I grant you, but true in ours for sure.
The nanny is amazing and is an employee and worth every penny. The cost is £2100 a month, which is about £500 more than our mortgage.
What is the point of my post?
It's not that there is not a lot left, it's that if both parents want to work and have a career and have kids, there is a massive cost to that and you can end up trying very hard just to make ends meet.
£ 73k take home out of £120k salary is still eye watering, £ 68k take home if he pays into a pension @ 10%. That's a lot gone before you start spending. May still leave a lot left over in many people's eyes but that's a lot to lose. Worst still when you think a couple each earning £60 would bring home £9k more than him.
Ah but then he can't have earned that can he, he's not really worth that £120k salary, and anyway he can afford to pay all that tax, he shouldn't have anything to moan about. In fact he should be a happy bunny he's allowed to help so many others so much worse off than he is.
For balance when the 40% tax rate was introduced the equivalent earnings threshold was around £72k, it's now £41.5K. That's a lot more people on ordinary incomes paying 40%, but then they can't deserve it either and don't need all that extra money.
Some people just cant help spending money
Well, most of them can but choose not to. There's a big difference between being poor and choosing not to have much disposable income.
What percentile of national household incomes does £120k fall into? Nowhere near the middle, squeezed or otherwise, I think.
Clearly he's an idoit ... school fees 🙄
He should have got himself down the local/not so local church and got his dust bin lids in the many excellent CoE schools that are available.
Plus you get a soul cleanse thrown in free once every couple of weeks... meaning all that money you've saved can be spent of stupid stuff like MTBs guilt free
Win Win
What percentile of national household incomes does £120k fall into? Nowhere near the middle, squeezed or otherwise, I think.
Between 95% and 99% percentile:
What percentile of national household incomes does £120k fall into?
1%tile
What percentile of national household incomes does £120k fall into? Nowhere near the middle, squeezed or otherwise, I think.
Depends on how you're measuring it. It's more likely to be the median than the mean but it's still unlikely to be either.
The mean salary in the UK is something like £25k and if you're earning more than £45k then you're in the top 10% of salaried earners (this specifically excludes those whose salaries are paid by bonuses or dividends).
I have a feeling that the mean household income in the UK is in the region of £40k so yes, at £120k, you're a long way out from that.
EDIT: wasn't going to be hard to answer that question really was it!
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.
he won't have that kind of bonus with that job, it's only the investment deal makers that get the ridiculous bens - he will get a salary reference increase and bonus based on the PLC return and his performance assessment
regardless, I have no sympathy for him
didn't read the article but if that 45k is paying for fees to salesian college (the local private) he's a 'king idiot because it's no better than the state schools (that kind of dosh must be the fee for Winchester surely??)
FWIW, the £120k guy is an idiot if he is really claiming he's squeezed other than through choice (though, it's quite likely that's just how the article is written given that it makes some other pretty stupid points about trickle down)
£45k was for Wandsworth something school - wherever Johnny Wilco went.
May still leave a lot left over in many people's eyes but that's a lot to lose.
But it's not lost, it's tax, it gets spent on things that everyone benefits from (in theory, if you ignore pointless wars etc...), and on the whole it's a very good deal. Why do people regard the proportion going to tax as their money? Apart from a few ultra-rich people who can/are allowed to fiddle the system, that money never was theirs and never will be, it will always be paid as tax.
Not wishing to provoke anything, but surely if you're earning a basic salary of £120k pa then a mortgage of £350k is hardly monstrous. Even in the good old days, 3.5 x salary was the sensible calculator you looked at, so with a salary like that, his mortgage is fine. His decision to have children however, is seriously flawed 🙂
But it's not lost, it's tax, it gets spent on things that everyone benefits from
Like free state education.....
I had a big mortgage. Worked every hour to pay for it. I got sick so couldn't work. I sold the house and managed to settle the balance, buy a house in Snowdonia and a small place in vienna mortgage free.
If you're struggling, look at your finances. So many bury their heads and hope the problem goes away.
£120k guy needs to send the kids to Grange Hill, move and drive a Dacia.
... so if a household in the top few % of incomes can't afford the comfortable life they want then there is something fundamentally wrong. In the specific case it may well be over-inflated property market related.
Perhaps a variation of Ricardo's theory on wages tending to subsistence levels in free markets - whereby property prices are so inflated in some areas that people sacrifice other aspects of a comfortable lifestyle to buy a nice house.
It sounded like he's got a £350k mortgage on interest only (given that he mentioned he needed to start paying it back at some point).
Decision to have kids, fine. Decision to send them to private school that he can't really afford - stupid.
so if a household in the top few % of incomes can't afford the comfortable life they want
I think that the 'they want' bit is key here... We'd all like a more comfortable life no matter what we earn.
... so if a household in the top few % of incomes can't afford the comfortable life they want then there is something fundamentally wrong. In the specific case it may well be over-inflated property market related.
Or maybe its cos he spends half his take home on private schooling?
iolo - Member
I bought a house in Snowdonia and a small place in vienna mortgage free.
Are you single?
Are you looking for a partner 😉 😆
So the point of that part of the article is that this guy no only earns £120k so before he could afford everything he chose to do OK but now struggles. So it's just saying even the better off are affected by the downturn so fair enough. It is hard to set your commitment levels when well off as could always lose income. Not nice to take kids out of their schools as settled in there. I remember being angry at my Dad when he said he might have to take me out of private education, fortunately we had assisted places back then to save me. 😉
Some people don't know how lucky they are
[img] 
[/img]
On another interesting issue, the story illustrates why cutting charitable status and tax exemption for private schools will only push access to those schools further up the income distribution band, making private schooling even more inaccessible and thus even less meritocratic.
Not going to bother reading all the rest of this, only got as far as
he's a financial compliance officer in the City for gawds sake, his bonus probably doubles his salary.
Nope. It probably doesn't. Compliance roles don't get the same sort of shiny banker's bonuses you're assuming. Nothing like it.
Yeah - I've just re-read it. It's the [b]choice[/b] for private schooling that's killing him.
He should move up north - I have lots of friends who have, can't believe how much better the life is - buy a really nice house near a very good state school and still be in the gravy.
... or maybe it's the log burner - be costing him a fortune in logs in south London!
ANd thinking about it how old were his kids? 16 & 17? Suck it up for another couple of years sweetheart then let the oldboy network take the strain.
paying for fees to salesian college
It's not Salesian.
What exactly do you think the 'old boys' network will actually do?
IME, unless maybe you're an Etonian or from one of the other prestige private schools (which is a very different thing from the best academic ones) then it'll do sweet FA for them beyond the education and learning they get at the school. Even then I'd suggest that in a lot of industries, Etonians and the like wouldn't get any benefit.
Well if there's no advantage what's he paying for private education for? A-stars? Scarcely.
Private schooling offers more than just good grades or access to some mythical old boys network.
Regardless of whether it's true, people think it means that their kids will stay out of trouble, some see it as a status thing and others believe that it'll give them confidence in themselves and a work ethic to succeed. It also offers opportunities (sports, trips, etc) that kids might not get otherwise.
Maybe a discussion for a different thread though given that I still think he's a muppet paying for it when IMO he can't really afford it.
What exactly do you think the 'old boys' network will actually do?
I was thinking the same thing.