How much do you earn?
Discussion
mcg_ said:
That's true, I just went on holiday to impress my IG followers. Not to sit on a beach, read a book and eat/drink.
People do earn more than you think.
Yes and no. As someone lucky enough to be a top 0.5% - 1% earner I am only comfortable spending enough to provide what feels like a top 25% lifestyle at best. I’m not trying to willy wave or claim I’m hard done by or anything like that but what I see around the country in terms of consumption just doesn’t tie with what I hear about the income distribution. People do earn more than you think.
Leading me to conclude that either official figures are wrong and people earn a hell of a lot more than they declare, or that people are overspending versus their incomes.
NickCQ said:
Yes and no. As someone lucky enough to be a top 0.5% - 1% earner I am only comfortable spending enough to provide what feels like a top 25% lifestyle at best. I’m not trying to willy wave or claim I’m hard done by or anything like that but what I see around the country in terms of consumption just doesn’t tie with what I hear about the income distribution.
Leading me to conclude that either official figures are wrong and people earn a hell of a lot more than they declare, or that people are overspending versus their incomes.
Nothing is ever as it seems, I know people who look very wealthy until you scratch the surface, high loan to value interest only mortgages, 2x cars on leases or big finance payments, over £10k+ long term debt on credit cards that they plan to repay with the next bonus...except when bonus comes it pays for something else. £200k gross does not go far at all when you factor in the cost of living with a few luxuries such as holidays and kids at private school.Leading me to conclude that either official figures are wrong and people earn a hell of a lot more than they declare, or that people are overspending versus their incomes.
I pay £1000 per month for 1 daughter at a private school, that will rise a bit once she gets older, there are people there with 6 kids in the school.
NickCQ said:
Yes and no. As someone lucky enough to be a top 0.5% - 1% earner I am only comfortable spending enough to provide what feels like a top 25% lifestyle at best. I’m not trying to willy wave or claim I’m hard done by or anything like that but what I see around the country in terms of consumption just doesn’t tie with what I hear about the income distribution.
Leading me to conclude that either official figures are wrong and people earn a hell of a lot more than they declare, or that people are overspending versus their incomes.
Isn’t part of it being that the figures released by the HMRC/ONS/IFS are based on taxed income? So all of the company directors playing the system by taking their pay via dividends are skewing both the median income and giving a false impression of where the top few % point boundaries actually lie.Leading me to conclude that either official figures are wrong and people earn a hell of a lot more than they declare, or that people are overspending versus their incomes.
The figure I’ve found from HMRC says the 95th percentile in 2014-15 was £71,700. That doesn’t sound right or look right to me. The 99th was £162k.
I am able to put away around £1k a month after my dodgy south east mortgage and all spends are covered. It's decent for a 30yo bachelor.
It's a pity I always find a way to spend it on stuff though - new MacBook, new camera and lens and now looking at an Elise Supercharged.......
Only live once!
It's a pity I always find a way to spend it on stuff though - new MacBook, new camera and lens and now looking at an Elise Supercharged.......
Only live once!
djc206 said:
NickCQ said:
Yes and no. As someone lucky enough to be a top 0.5% - 1% earner I am only comfortable spending enough to provide what feels like a top 25% lifestyle at best. I’m not trying to willy wave or claim I’m hard done by or anything like that but what I see around the country in terms of consumption just doesn’t tie with what I hear about the income distribution.
Leading me to conclude that either official figures are wrong and people earn a hell of a lot more than they declare, or that people are overspending versus their incomes.
Isn’t part of it being that the figures released by the HMRC/ONS/IFS are based on taxed income? So all of the company directors playing the system by taking their pay via dividends are skewing both the median income and giving a false impression of where the top few % point boundaries actually lie.Leading me to conclude that either official figures are wrong and people earn a hell of a lot more than they declare, or that people are overspending versus their incomes.
The figure I’ve found from HMRC says the 95th percentile in 2014-15 was £71,700. That doesn’t sound right or look right to me. The 99th was £162k.
Caddyshack said:
No way is 162k really in the top 1%, absolutely nowhere near, £162k monthly based on average yearly income may be getting close but I doubt even that when you take in to account many board level directors and ceo's.
Well in fairness there are not a few hundred thousand board members or ceo’s in the country.£162k monthly? Don’t be daft you’ve gone way too far the other way. 1 in 100 people earning ~£2m per year? Er no.
djc206 said:
Well in fairness there are not a few hundred thousand board members or ceo’s in the country.
£162k monthly? Don’t be daft you’ve gone way too far the other way. 1 in 100 people earning ~£2m per year? Er no.
I guess when you look at how big 1% of the population is then no, I suppose not. I guess there is a huge gulf between top 0.99% and 0.5% and lower though as I have met a lot of people earning in excess of £100k per month and for quite a long time too.£162k monthly? Don’t be daft you’ve gone way too far the other way. 1 in 100 people earning ~£2m per year? Er no.
I bet there are a quite a large number of board members and ceo's in the U.K., the ftse 100 has 100 companies and each of those would have a CEO and a decent board, how many plc's are there in the U.K. Also drive around any big trading estate and look at the MD's cars of the decent limited companies.
Edited by Caddyshack on Saturday 23 December 21:22
swerni said:
Caddyshack said:
djc206 said:
NickCQ said:
Yes and no. As someone lucky enough to be a top 0.5% - 1% earner I am only comfortable spending enough to provide what feels like a top 25% lifestyle at best. I’m not trying to willy wave or claim I’m hard done by or anything like that but what I see around the country in terms of consumption just doesn’t tie with what I hear about the income distribution.
Leading me to conclude that either official figures are wrong and people earn a hell of a lot more than they declare, or that people are overspending versus their incomes.
Isn’t part of it being that the figures released by the HMRC/ONS/IFS are based on taxed income? So all of the company directors playing the system by taking their pay via dividends are skewing both the median income and giving a false impression of where the top few % point boundaries actually lie.Leading me to conclude that either official figures are wrong and people earn a hell of a lot more than they declare, or that people are overspending versus their incomes.
The figure I’ve found from HMRC says the 95th percentile in 2014-15 was £71,700. That doesn’t sound right or look right to me. The 99th was £162k.
32,000,000 workers in the Uk (roughly), 1% represents 320,000 people.
What the number doesn't show is the average earning of that 1% or the spread.
It doesn't differentiate between a sales rep on £180k or a CEO of a hedge-fund on £50m
Caddyshack said:
That's more what I was getting at, there are people earning £50m in 1 yr, they are the big guns...£160k /180k is chump change really in comparison to the big numbers.
There are so few people earning £50m they’re not worth counting. The average FTSE100 CEO earns less than £5m according to google.djc206 said:
There are so few people earning £50m they’re not worth counting. The average FTSE100 CEO earns less than £5m according to google.
Ok, by £5m is a whole heap more than £162k per yr, they are not living the same life so my point is "top1%" is a very wide gulf.This is one of those threads / post where I end up thinking...what am I trying to explain?
In summary £1-2mil a year is a lot, £160k per yr there will be many next door neighbours in average street earning that.
Anubis said:
DELETED: Comment made by a member who's account has been deleted.
Spot on. The amount of people that live beyond their means on credit is massive.
You can't tell me all these people can afford new 4X4s, Bentleys, Porsches, even the mundane
£50k Audi. £50k on a car is a lot of money - way more than what a lot of people would pay outright for it yet when
Im on the motorway I look around and there are loads of these types everywhere. Either I'm doing something wrong or they are
paying monthly payments - much like their brand new iPhones, TVs, subscriptions, hand bags, money for going out - and thats before
a mortgage and children.People love to brag but I bet if you took a look at peoples personal bank statements and contracts you'd be alarmed at how much is on credit.
I presume you purchased your house using your debit card?
Maybe I am mis guided by living in Surrey / Hants then? We arrange mortgages for people and £100k plus is bread and butter, maybe it is more localised than I thought but we work with people from Devon to Yorkshire and there seem like loads of this band of income.
I.t contractors, company directors, sales people, HR, developers, car sales, telecoms, Accountants, Solicitors, Doctors, Dentists, Recruitment, Marketing, Actors, TV personalities etc....
I.t contractors, company directors, sales people, HR, developers, car sales, telecoms, Accountants, Solicitors, Doctors, Dentists, Recruitment, Marketing, Actors, TV personalities etc....
Caddyshack said:
NickCQ said:
Yes and no. As someone lucky enough to be a top 0.5% - 1% earner I am only comfortable spending enough to provide what feels like a top 25% lifestyle at best. I’m not trying to willy wave or claim I’m hard done by or anything like that but what I see around the country in terms of consumption just doesn’t tie with what I hear about the income distribution.
Leading me to conclude that either official figures are wrong and people earn a hell of a lot more than they declare, or that people are overspending versus their incomes.
Nothing is ever as it seems, I know people who look very wealthy until you scratch the surface, high loan to value interest only mortgages, 2x cars on leases or big finance payments, over £10k+ long term debt on credit cards that they plan to repay with the next bonus...except when bonus comes it pays for something else. £200k gross does not go far at all when you factor in the cost of living with a few luxuries such as holidays and kids at private school.Leading me to conclude that either official figures are wrong and people earn a hell of a lot more than they declare, or that people are overspending versus their incomes.
I pay £1000 per month for 1 daughter at a private school, that will rise a bit once she gets older, there are people there with 6 kids in the school.
your estimate of their income in my opinion is low.
These sums make my eyes water; Civil servant dealing with animal health and welfare. Paid just under £26k(12 years service) without the government's pay cut, sorry I mean 1% pay cap I should be on £34k.
The agency I work for doesn't reward experience either which makes doing a worthwhile job quite sickening yet me and most of my colleagues do put the effort in and are loyal to the organisation.
These sums make my eyes water; Civil servant dealing with animal health and welfare. Paid just under £26k(12 years service) without the government's pay cut, sorry I mean 1% pay cap I should be on £34k.
The agency I work for doesn't reward experience either which makes doing a worthwhile job quite sickening yet me and most of my colleagues do put the effort in and are loyal to the organisation.
I'm 22 and currently took a position on £36k starting in January, the pension is 26.5% so I'm taking that into account. My girlfriend is 19 and she's earning £28k + 26.5% pension too. I don't really know how we compare to most young people in the UK but judging by our friends we seem to be doing well. I live in the North West so housing etc is cheaper than most of the UK.
I must add, we both still live at home. So banking £1k-ish each a month, then proceeding to spend it on cars. The rest goes on board, direct debits and general s
t.
I must add, we both still live at home. So banking £1k-ish each a month, then proceeding to spend it on cars. The rest goes on board, direct debits and general s
t.g3org3y said:
Colleague of mine is a part time GP, her husband is a Consultant Surgeon. He does a combination of NHS and private work. I'd estimate a combined gross income of ~ 160-180k. I understand they struggle to make ends meet every month and credit cards are definitely a necessity. Why? They currently have 5 children in private school!
Private schooling is one of those things that can tip the balance. I've recently decided against it for ours as we have 3. We have a good living but I think the commitment of having these typeof bills coming would potentially introduce worrying about money into life and we have worked quite hard to eradicate that aspect out. I've long been aware that there's a reason they call things like private education/huge houses/expensive cars are called "trappings" of wealth because when you start with all that stuff it's hard to escape it.
If you have decent disposable income and aren't chasing a lifestyle that's a tier or two above what you can realistically afford you'll be ok. If you want more go work for it. And cut your credit cards up.
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