On £25k but 'poor'?! Misery thread...

[typer0612]

Very similar boat here however i am on circa 30k a year which goes higher sometimes depending.

I am also the same age as the OP and have a toddler who is giving me sleepless nights along with nursery bills.

Deposit itself is the hardest bit, i've gone past the deposit stage now and have it in one account ready - Moving out of my rented flat in a few weeks then looking at properties but even then that is a minefield also due to schools and so on.

I empathise but you'll get through it dude, remember to pay attention to your other half as with everything being so busy it's easy to forget.

Good luck.

[simoid]

WeirdNeville said:

crazy about cars said:

Kozy said:

I'm thinking about starting a "On £48k but poor" thread.

Genuinely baffled as to why I can't afford anything with a household income of that level.

Yeah, I know how you feel mate. Same with myself I feel as if I need to start a "on £100k but poor" thread. The tax is just insane at this level.

Do you not think that's a bit distasteful in the context of this thread?
Ok, £48k as a single family income could be pushing it, particularly in the South East. But if you're on six figures and 'poor' then you're just st with money.

OP's problem was that his income simply didn't make ends meet. £48k puts you in the top 10% of earners, £100k puts you in the top 3%. Are 97% of people even more poor than you? Or are they just better with what money they do earn?

I think you may be due a whoosh.

But, in any case, £50k p.a. may be in the top 10% of individual earners, but when it's the only household income between for example, 2 adults and 2 kids (so perhaps a min 3 bed house) then it might start to look less wealthy very quickly.

[NerveAgent]

MajorProblem said:

Say you've got zero debt and around 3k a month coming in. Now go get yourself balls deep in borrowing that makes your monthly payments 3k.

You'd be surprised what you can have.

Very few people will admit they have their whole lives on tick, or are drowning in debt, they just show you the good side.

Absolutely this, we have a household income way above average for around here, yet sometimes I feel like other people have more money. I have to keep reminding my self that they buy everything on credit, have massive mortgages they have no intention of getting under control etc.

[Kozy]

Yes £48k is a combined family income. It's good but not exactly great, I don't live in a cheap area either.

My post wasn't serious though. I do OK and have most things paid for. I appreciate that more often than not, people with the nice cars, big houses etc usually are up to eyeballs in debt, and I am not keen on doing that.

[bogie]

NerveAgent said:

MajorProblem said:

Say you've got zero debt and around 3k a month coming in. Now go get yourself balls deep in borrowing that makes your monthly payments 3k.

You'd be surprised what you can have.

Very few people will admit they have their whole lives on tick, or are drowning in debt, they just show you the good side.

Absolutely this, we have a household income way above average for around here, yet sometimes I feel like other people have more money. I have to keep reminding my self that they buy everything on credit, have massive mortgages they have no intention of getting under control etc.

I know quite a few people on 6 figure salaries that live like that, its almost "normal" in our debt fuelled modern society. Few people go from £20K a year to £100K a year jobs in a couple of years ...so along the way the gradual salary increases are taken up with a bigger mortgage, a newer car more often, a nicer holiday, 2 kids arriving etc

Then don't forget the small matter of taxation. When you are at the lower end of the scale you dream and think that another £10k will solve all your financial requirements. It wont. £100k may be 5x more gross salary, but you pay 10x the tax than someone on £20K so in reality you are not 5x better off

60% of all those flashy new cars appearing on drives each year are company cars....most of the remainder financed...people are not paying cash for them

For many people, no matter what they earn, it will never be enough. Whether you choose to live a cash lifestyle or a highly leveraged debt based lifestyle is a financial strategy for life. There are some things which you generally need to get in debt for e.g. property. The rest are optional luxuries......

[C.A.R.]

Thanks to all the well-wishers who have posted

I wrote a notice confirming our intention to vacate the property today, so it's now more 'real' somehow. We have started boxing things up and have solved the storage issues we had with larger items (thanks to family and friends). Ironically, we received a letter last week that our rent was going up from £715/month to £730. A small rise but only coincidental that we are leaving!

I've written-off the 1 month deposit we put down in order to live here as I figure I'm going to have to pay the water and electric bill from it, anything left is a bonus which can come straight off the credit cards. This at least gives me a clean sheet when I get paid at the end of February, my folks want £300 housekeeping but this pales in comparison to rent & bills we were paying. I'm still hoping to pay off £1,000 a month or close to it.

The good news is that business is doing well. I've never been more busy working for anyone. Just last week the MD took delivery of an AMG C63, so a raise must be on the cards - right?!! I kid, but it would make this lodging period shorter and sweeter.

D-day is the 7th March...

[crazy about cars]

simoid said:

I think you may be due a whoosh.

Indeed :P

No matter how much you earn there will be always one clear winner - Mr. Taxman.

@C.A.R : Happy to know that everything is going well at the moment - well done!

Edited by crazy about cars on Tuesday 4th February 08:12

[Kozy]

Update on my situation, (some 12 months down the road from the OP living with parents with the wife and kid).

She had a break down last night and said it's affecting our relationship. We discussed calling it quits and moving back into rented and saving at much slower pace.

Looked at rentals, couldn't find anything suitable under about £600pcm. Added up all the bills on top, decided that it was pointless as we'd just whittle away all our savings and be back to square one. We can hack another 3-4 months where we are.

I did suggest moving back into rented and spending the deposit on the equipment I need to run my home business alongside my main income. She doesn't believe it's a good gamble.

[C.A.R.]

Purity14 said:

All this female breakdown/depression/affecting our relationship nonsense etc.

I just read it as "I'm not having my way, and I want things my way, so make them my way or else..."

Perhaps there is something wrong with me?

I don't think there's anything wrong with you, I think you've just assumed that all women are rational don't get hysterical easily. Whereas that is really not true!

It does concern me that reading Kozy's situation could be like seeing into a crystal ball almost, but I'm just hoping that she doesn't get too fed up too quickly whilst lodging with my folks. It's not difficult, and we get our own space too when they go out and do whatever it is old people do!

[simoid]

C.A.R. said:

... we get our own space too when they go out and do whatever it is old people do!

You don't want to know

[Kozy]

Purity14 said:

All this female breakdown/depression/affecting our relationship nonsense etc.

It's not nonsense. It does affect us as a family, we are not operating like a normal one.

[jonah35]

Its very easy to earn 25kpa and appear you're doing ok.

Little rented flat in nice part of town £600pm up north, nice new leased audi etc and the odd holiday and clothes.

But, you never accumulate wealth.

To truly accumulate wealth, even £75k pa isnt much to build up savings, equity in a property, shares, investments and a chunky pension whilst at the same time appearing wealthy.

It is normally either a. Appear wealthy but be skint or b. Appear skint but be wealthy.

I

[ben_h100]

Can understand the title of this thread. Even on 32k it can be a struggle saving with a mortgage, bills etc. Plus actually enjoying life a little.

Makes me wonder how any young person can get on the housing ladder.

[jonny70]

jonah35 said:

Its very easy to earn 25kpa and appear you're doing ok.

Little rented flat in nice part of town £600pm up north, nice new leased audi etc and the odd holiday and clothes.

But, you never accumulate wealth.

To truly accumulate wealth, even £75k pa isnt much to build up savings, equity in a property, shares, investments and a chunky pension whilst at the same time appearing wealthy.

It is normally either a. Appear wealthy but be skint or b. Appear skint but be wealthy.

I

Most people dont have wealth .They have the house they own with a mortgage and the pension they pay a little bit of money into.They live month to month , they have very little savings and whats an investment?(to most folk) heres an article for example a third of Brits have less than £500 in savings ; http://www.theguardian.com/money/2011/feb/16/fewer... (TBH if thats how they live as long as they have a decent rainy day fund ,then why do most folk need to accumulate wealth?)
(obv I dont subscribe to the above , but thats how most people live)

I would be interested for you elaborate on accumulating wealth ? why do you think people should ? and how much should they accumulate?

[okgo]

ben_h100 said:

Can understand the title of this thread. Even on 32k it can be a struggle saving with a mortgage, bills etc. Plus actually enjoying life a little.

Makes me wonder how any young person can get on the housing ladder.

They earn more money or live somewhere cheap or borrow from their parents/inherit or all 3.

[Kozy]

okgo said:

They earn more money or live somewhere cheap or borrow from their parents/inherit or all 3.

Most people are given it by parents or inherit it these days.

The average age of the first time buyer without those means is about 37 now.

[bogie]

ben_h100 said:

Can understand the title of this thread. Even on 32k it can be a struggle saving with a mortgage, bills etc. Plus actually enjoying life a little.

Makes me wonder how any young person can get on the housing ladder.

I thought the same in 1988, was in low paid job, a few years out of school. Then 5 years later property prices had "crashed" i.e. readjusted and interest rates had come down from 14% to 6%. After saving/borrowing some more I bought my 1st house in 1994....

..its just timing and determination, patience. There is no right in this country to own your own home. There is no right to be "well off". If you want to achieve something in life you have to find a way to do it.....

[okgo]

People are scared or against making any sacrifice in order to save from what I see. Everyone I work with in my team earn over 50k, are all in their mid to late 20's, yet I'm probably one of the few who has bought a place, or even had money saved up.

You can't go out 4 times a week, and save up £30-50k for a deposit, it doesn't compute.

Me and partner bought our first place at 25, I borrowed 5 grand from my parents, but in reality we didn't need to (we thought we did, and didn't want to lose the place!), I ended up giving most of it back to them as it wasn't required.

[NerveAgent]

okgo said:

People are scared or against making any sacrifice in order to save from what I see. Everyone I work with in my team earn over 50k, are all in their mid to late 20's, yet I'm probably one of the few who has bought a place, or even had money saved up.

You can't go out 4 times a week, and save up £30-50k for a deposit, it doesn't compute.

Me and partner bought our first place at 25, I borrowed 5 grand from my parents, but in reality we didn't need to (we thought we did, and didn't want to lose the place!), I ended up giving most of it back to them as it wasn't required.

It seems like being dressed head to toe in a couple of £100s worth of clobber, going out 3 times a week to expensive bars/restaurants and £400 on renting a car are seen as "essentials" these days.

[lukefreeman]

Generic "I get paid more than average wage, want to boast, and make people feel sorry for me" post.

Fixed costs are a £1k a month. Food/fuel not included.

Could easily live on minimum wage comfortabley, should we have too.

Don't need latest mobile phones, clothes, car, going out every night etc.