How to spend it

[Caddyshack]

SCEtoAUX said:

Start a Pistonheads version of Only Fans.

People pay a few hundred quid to see some powerfully built company director dominate the stairs and hammer sausages into a lawn.

Edited by SCEtoAUX on Sunday 30th May 12:31

I think you may be on to something….it’s a knock out or gladiator type show where Directors have to complete the domination of the stairs before the sausage hammer and the winner bums the dogs of the losers.

[raceboy]

m3jappa said:

Is the median disposable income per household really 30k?

Sounds way too much.

I would have thought more like 5-10k.

I guess it depends what is meant by ‘disposable’ income, I tend to define that as what’s left after all the bills have been paid, probably car bills, all ‘monthly’ out goings, basically what’s left for coke and hookers, if so £30k is very high, a lot don’t have that BEFORE bills never mind after.

[Caddyshack]

raceboy said:

m3jappa said:

Is the median disposable income per household really 30k?

Sounds way too much.

I would have thought more like 5-10k.

I guess it depends what is meant by ‘disposable’ income, I tend to define that as what’s left after all the bills have been paid, probably car bills, all ‘monthly’ out goings, basically what’s left for coke and hookers, if so £30k is very high, a lot don’t have that BEFORE bills never mind after.

Surely coke and hookers is under essential spending, like food and frozen sausages?

[Earthdweller]

Caddyshack said:

raceboy said:

m3jappa said:

Is the median disposable income per household really 30k?

Sounds way too much.

I would have thought more like 5-10k.

I guess it depends what is meant by ‘disposable’ income, I tend to define that as what’s left after all the bills have been paid, probably car bills, all ‘monthly’ out goings, basically what’s left for coke and hookers, if so £30k is very high, a lot don’t have that BEFORE bills never mind after.

Surely coke and hookers is under essential spending, like food and frozen sausages?

I thought the definition was in effect what you are left after Tax .. that you can actually spend as you wish ?

So £30k between two working adults isn’t “that”
Much once you subtract basic living costs before any discretionary spending

5-10k ... of blow it on anything money seems quite a lot for a family on the median

[m3jappa]

Yes i thought disposable income was money left after all living costs and essential outgoings. so to have 30k after all of that would mean some substantial income, unless you didn't have a mortgage, car finance etc.

[glennjamin]

Buy Aston Martin join the member's club and travel around doing there events..

[Esceptico]

m3jappa said:

Yes i thought disposable income was money left after all living costs and essential outgoings. so to have 30k after all of that would mean some substantial income, unless you didn't have a mortgage, car finance etc.

Disposable income is not money to spend on cars and hookers! It means post tax income - for most people that are wage slaves, just what they get in their pay packet after PAYE. So £30k has to fund rent/mortgage, food, clothes, cars, utilities, acquisition of assets eg furniture, eating out, holidays, insurance, etc.

Private school fees are around £15k to £20 per annum and lots of rich people will blow £10k on a holiday. Does highlight the gap between the haves and have nots in the U.K.

[m3jappa]

Esceptico said:

Disposable income is not money to spend on cars and hookers! It means post tax income - for most people that are wage slaves, just what they get in their pay packet after PAYE. So £30k has to fund rent/mortgage, food, clothes, cars, utilities, acquisition of assets eg furniture, eating out, holidays, insurance, etc.

Private school fees are around £15k to £20 per annum and lots of rich people will blow £10k on a holiday. Does highlight the gap between the haves and have nots in the U.K.

Ah well that makes more sense then and you learn something new every day

[raceboy]

m3jappa said:

Ah well that makes more sense then and you learn something new every day

My too, apparently Discretionary Income is the drugs and hookers money

[TheJimi]

Esceptico said:

m3jappa said:

Yes i thought disposable income was money left after all living costs and essential outgoings. so to have 30k after all of that would mean some substantial income, unless you didn't have a mortgage, car finance etc.

Disposable income is not money to spend on cars and hookers! It means post tax income - for most people that are wage slaves, just what they get in their pay packet after PAYE. So £30k has to fund rent/mortgage, food, clothes, cars, utilities, acquisition of assets eg furniture, eating out, holidays, insurance, etc.

Private school fees are around £15k to £20 per annum and lots of rich people will blow £10k on a holiday. Does highlight the gap between the haves and have nots in the U.K.

I've never seen the concept of disposable income described as simply post tax income.

I've always understood it to be what is left after all bills & commitments are paid.

[Shnozz]

TheJimi said:

Esceptico said:

m3jappa said:

Yes i thought disposable income was money left after all living costs and essential outgoings. so to have 30k after all of that would mean some substantial income, unless you didn't have a mortgage, car finance etc.

Disposable income is not money to spend on cars and hookers! It means post tax income - for most people that are wage slaves, just what they get in their pay packet after PAYE. So £30k has to fund rent/mortgage, food, clothes, cars, utilities, acquisition of assets eg furniture, eating out, holidays, insurance, etc.

Private school fees are around £15k to £20 per annum and lots of rich people will blow £10k on a holiday. Does highlight the gap between the haves and have nots in the U.K.

I've never seen the concept of disposable income described as simply post tax income.

I've always understood it to be what is left after all bills & commitments are paid.

Also my understanding of the term disposable income.

[Bill]

Shnozz said:

Also my understanding of the term disposable income.

+1

I've never heard discretionary income used at all.

[Caddyshack]

Bill said:

Shnozz said:

Also my understanding of the term disposable income.

+1

I've never heard discretionary income used at all.

Yes, I take it as the amount that you have the "choice" to spend, non disposable is leaving your account whether you like it or not.

[red_slr]

From ONS

[quote]
6. Glossary
Disposable income

Disposable income is the amount of money that households have available for spending and saving after direct taxes (such as Income Tax and Council Tax) have been accounted for. It includes earnings from employment, private pensions and investments, as well as cash benefits provided by the state.

[/quote]

Currently sits at £30,800. (household)

Discretionary income which is often quoted as disposable income is IIRC closer to 10k a year.

[Mezger]

diametric123 said:

OP

I’m slightly ahead of you (cue haters to start hating...) but my thoughts:

- obviously if this is your sole source of wealth you need to work out if you want recurring income or happy to just spend it all

- if you want income then your choices are capital markets, investment property or a trading business

- Personally I do all three because it gives me maximum opportunity to still work but with near 100% control of my time

- depending on where you live (I’m in London) then a town place and a country / overseas place will easily consume half the capital

- after that I’m a big fan of experiences over assets

- respecting PH I would suggest 2-3 toys is more than enough, as the logistics gets complex after that. My end-game is to have just one car for each purpose (touring, going fast, Classic etc)

- travel is our big thing: have a list of 25 things to do over time and working our way through it

Just quickly for the haters - I grew up with zero money - I stopped judging and started learning from more successful people early on and it worked well for me

OP - fundamentally recognise the gift you’ve created for yourself and wake every day with a smile!

It's a shame we have to preface these comments with mention of haters.
From my pov, stories like yours are inspiring and something to learn from.

[Pit Pony]

I'm a little pissed off the OP hasn't contacted me via private message to discuss the delivery of his Monaro which he's buying for me to borrow on a long term test.

Strange that. People with money wanting to hold onto it.

[NickCQ]

The other resource for people in this position is FatFIRE (https://www.reddit.com/r/fatFIRE/)
It's quite skewed to the US (lots of post-IPO Silicon Valley tech guys), but there is interesting discussion of what to spend on, what kind of lifestyle can be supported at different wealth levels, and how to keep yourself & your brain occupied without "work" in the traditional sense.

[TheJimi]

Mezger said:

diametric123 said:

OP

I’m slightly ahead of you (cue haters to start hating...) but my thoughts:

- obviously if this is your sole source of wealth you need to work out if you want recurring income or happy to just spend it all

- if you want income then your choices are capital markets, investment property or a trading business

- Personally I do all three because it gives me maximum opportunity to still work but with near 100% control of my time

- depending on where you live (I’m in London) then a town place and a country / overseas place will easily consume half the capital

- after that I’m a big fan of experiences over assets

- respecting PH I would suggest 2-3 toys is more than enough, as the logistics gets complex after that. My end-game is to have just one car for each purpose (touring, going fast, Classic etc)

- travel is our big thing: have a list of 25 things to do over time and working our way through it

Just quickly for the haters - I grew up with zero money - I stopped judging and started learning from more successful people early on and it worked well for me

OP - fundamentally recognise the gift you’ve created for yourself and wake every day with a smile!

It's a shame we have to preface these comments with mention of haters.
From my pov, stories like yours are inspiring and something to learn from.

With the exception of a couple of stupid comments, nothing in this thread has driven the need for that preface.

[MrJuice]

It's probably from experience of previous threads

I, too, salute these big hitters. They've clearly employed people along the way and hopefully provided fun and fulfilment for their employees as well as themselves.

My friend is doing big things in the restaurant food supply industry. Specifically fine dining. He seems to be having loads of fun, as are his staff and they're making bucket loads of money too. Good luck to them.

[diametric123]

With pleasure I need to take back my comments on 'haters'

For those of you that mentioned it may have been triggered by some other forum topics, you are absolutely right - I got a lot of people commenting negatively about my sharing of some experiences and it made me a little touchy on the subject!

Anyway, enough of this distraction - it should all be about the OP and his exciting life choices ahead!