People earning £60k are not rich?

[Smudge]

Thank goodness you're around Mr. Smudge 

Simpatico

[Zingari]

Well in that case, buy me a couple of beers and you can have a look for yourself!!

Come off it Doc ! We all know that for a couple of beers you'd go all the way.

I've know you like haggling , but really , just because Smudge is advanced in years , there's no need to take advantage!!

[Dr The Singh]

I'd be happy to but it was that tinker Zingy who was interested

Lets do it!!!

[Dr The Singh]

 

Come off it Doc ! We all know that for a couple of beers you'd go all the way.

I've know you like haggling , but really , just because Smudge is advanced in years , there's no need to take advantage!!

 

So true!!  So when are we going for beers then????

[Captain...]

Being 'rich' isn't just about you're disposable income though is it?

 

For example, let's imagine a family:

 

- Income around £60-80k

- 1 two week foreign holiday a year

- 1-2 foreign mini breaks a year

- 1-2 domestic mini breaks a year

-  2 Cars

- Big Semi-detached house

- Spend loads of money on top notch food, entertainment and extras

 

OR have kids

 

Fixed that list for you.

 

Kids are fvcking expensive and will take up every bit of your disposable income and then some.

 

If you were single, confirmed bachelor type, you could live the playboy lifestyle on £60k

 

Rich is ultimately subjective for Ken £60k is Rich, for JontheHat not so much so.

 

Rich is also not defined by salary, you could earn £300k, but if you piss it all up the wall you're not rich, you could earn very little but have lots of assets, ultimately though £60k is a very good salary and nobody should complain when earning that much or more, but it doesn't mean money worries are over.

[BoneDog]

Anyone who earns 60k is definitely very well off. I'm pretty sure that the majority earn less than 20k.

 

Earning 60k a year is being rich I'm afraid.

[Zingari]

So true!!  So when are we going for beers then????

Hopefully one day I'll get to meet some of you splendid chaps for a glass of sherry or maybe a babycham  , but  I very rarely get to Leicester these days .   

[Alf Bentley]

I think the word "rich" is the problem here. People equate it to "millionnaire", "super-rich", "Abramovich" etc.

 

In UK terms, £60k is "comfortably off" or "comparatively rich" - even if you live in Surrey and have commitments.

 

Most stats put median household income at about £25k (that's us!), with the mean closer to £30k due to the average being dragged up by the super-rich like Abramovich. See stats below (which suggest that Jon the Hat is in the top 10%, but not the top 5% - tssk! must work harder, Jon!).

 

Of course, £60k will leave you less disposable income in Surrey than it would in Leicester, but most (not all) of that is due to higher house prices/mortgages. So, unless you lose out through repossession or downsizing/selling up during a housing market crash, you're just accruing wealth/capital instead of disposable income. Your profit & loss account isn't as good as someone on £60k in Leicester, but your balance sheet is much better. After 20-25 years, you may have an asset worth about £0.5m to £1m. You wouldn't ignore that if it was stashed in a savings account, would you?! 

 

Percentile points for income of individuals before tax (2012-13):

1%           5%        10%       25%      50%       75%       90%       95%        99%      Mean                        

£8,430 £9,690 £11,070 £14,500 £21,300 £33,300 £50,500 £68,500 £156,000 £29,900
 

 

Financially we just about get by, earning close to the median with 1 child but low housing costs. We manage to have some fun, but mainly have to do without expensive gadgets, foreign holidays - no personal pension, even (opted for life insurance instead, as it would have been financially crippling to fund a worthwhile pension).

 

I prefer to feel wealthy in "quality of life", not "standard of living", though....that's what I keep telling myself!

[Bryn]

seriously cant believe some of the responses on here, mainly those that do earn over £60k a year but yet are in debt??

 

my circumstances are:

 

am single, no kids

have had a mortgage for 17yrs, only 2 bed semi but still !!

run a 3 yr old car

have no debt other than the mortgage

have a decent savings pot

have never earned more than 16k a year in my life and am currently earning 1p above the minimum wage on a part time basis..........

never claimed any benefits or tax credits

 

so if i can do that...... how come what i class as high earners (25k +)  can't ???

 

Over £25k high earners !!!!!!

[Jon the Hat]

I didn't say I earned £60k did I? Your main home is not investment as such, you still need it whether it is worth £100k or £500k.

[Finnegan]

seriously cant believe some of the responses on here, mainly those that do earn over £60k a year but yet are in debt??

 

my circumstances are:

 

am single, no kids

have had a mortgage for 17yrs, only 2 bed semi but still !!

run a 3 yr old car

have no debt other than the mortgage

have a decent savings pot

have never earned more than 16k a year in my life and am currently earning 1p above the minimum wage on a part time basis..........

never claimed any benefits or tax credits

 

so if i can do that...... how come what i class as high earners (25k +)  can't ???

 

1. They have kids.

2. They live in London orbital commuter towns.

[ADK]

I don't tend to talk about money with people too much because it's often easy to offend people or to find other people offensive. I do think if I ever earn 60K a year though, that I will be more than comfortable financially. People can push the limits of their means at any income though. Wanting to send their children to an expensive private school or living in an upmarket area, buying new cars and going on expensive holidays.

 

Likewise its perfectly possible to live comfortably and enjoyably on a minimum wage salary.

[Smudge]

seriously cant believe some of the responses on here, mainly those that do earn over £60k a year but yet are in debt??

 

my circumstances are:

 

am single, no kids

have had a mortgage for 17yrs, only 2 bed semi but still !!

run a 3 yr old car

have no debt other than the mortgage

have a decent savings pot

have never earned more than 16k a year in my life and am currently earning 1p above the minimum wage on a part time basis..........

never claimed any benefits or tax credits

 

so if i can do that...... how come what i class as high earners (25k +)  can't ???

If I'd not married and had children, I'd be a lot wealthier but only financially.

 

In the end is that what life is all about? Well obviously it is for you

[Rincewind]

If someone on 60k overspends by £10 a week they will not notice the difference. If someone on minimum wage overspends by £10 they could be in financial difficulties within a couple of months.The amount needed  for someone on £60k to start to struggle would be a weeks income to someone lower down on the scale. But their priorities are different. One cuts down on a restaurant meal. The other buys from the discount section at Tescos. Both saves what they need to to survive.  Of course marital status and family would also have an affect.

 

Saying that over the last couple of years I started off struggling mainly because I was living as if I was still working.

I adjusted and found that while I was not better off socially I managed and found other cheaper ways to socialise.

I can now class myself as retired or semi and drawing PC which will increase my income slightly but I will continue to be financially aware of what I am spending. I am happy to do that. I won;t be jetting off to foreign climates twice a year but hey it's over rated anyway.I won't be able to afford weekly £100 restaurant meals but I might manage a Sunday lunch at Wetherspoons occasionally. Not so well presented but at least you get something that covers the plate.

[DANGEROUS TIGER]

Wish I had that sort of income, living here in the South East. My partner and my partner get around £25,000 per rear to live on, and it is a struggle. Prices compared to Leicester are ridiculously high, especially with rent of £610 per month.

[Rincewind]

Doesn't seem a lot when all the bills are included. They soon mount up Its amazing though what can be saved if needed.

[Alf Bentley]

Wish I had that sort of income, living here in the South East. My partner and my partner get around £25,000 per rear to live on, and it is a struggle. Prices compared to Leicester are ridiculously high, especially with rent of £610 per month.

 

Must be a pain in the arse... 

 

In all seriousness, I'm sure you're right: we're on a similar income, but in Leicester (cheaper) and we just about get by.

£25k in the SE would not be easy. Not as tough as on the dole (cue comments about scroungers), but tough enough...

[Alf Bentley]

For me being rich means you can afford a big detached house, private education for the kids, Wife doesn't have to work, nice holidays a couple of times a year, flying business class with the family, new car every year or two, and probably a weekend car in the garage, nice Aston Martin say.  Probably a holiday home in Cornwall, and trust funds set up for the kids.  Half a million or so in investments put aside for a rainy day.  To start from scratch an achieve that you need to be earning hundreds of thousands over an extended period, and probably hefty bonuses as well.  Some would call me a high earner, and I am certainly in the top 5%.  I live in a two bed semi, drive a 12 year old car, haven't had a foreign holiday in 3 years, and aside from my pension I don't have any savings, in fact I have credit card debts.  My wife only works part time at the moment (Maternity leave aside) and I do choose to pay for private school for my daughter.  I am not by any stretch of the imagination rich, and I earn considerably more than £60k a year.  I am fortunate no doubt, but a long way from rich.

 

I didn't say I earned £60k did I? Your main home is not investment as such, you still need it whether it is worth £100k or £500k.

 

I was about to apologise for misinterpreting your post, Jon, but either I'm misunderstanding something or you've had a typo as you said that you earned "considerably more than £60k a year"...

 

Certainly, your main home is not purely an investment, but most homeowners would take account of the value of their home in assessing their long-term financial situation. I suppose that wouldn't apply if you were confident that you never intended to move from your existing home, even when you were approaching retirement, children flown the nest etc,....

[Guest ttfn]

My partner and my partner get around £25,000 per rear to live on

Your step-son must be delighted.

[jamesmilner]

 £60, 000 a year would keep most people in a way most people couldn't/can't live at the present  . if i could ever earn that kind of money , i would feel rich , honest .

[Webbo]

Your step-son must be delighted.

I seen it.

[DANGEROUS TIGER]

Your step-son must be delighted.

Good spot.

[Rincewind]

I would be happy with 60K. It may even be too much for the lifestyle I lead.

[DANGEROUS TIGER]

I work in the NHS and there are pay scales: 1, 2, 3, 4, 5, 6, 7, 8a, 8b, 8c, 8d & 9. For all staff except Doctors and Cheif Execs.

Now bear in mind you'd be on a 9 if you were in charge of a Directorate I.e. cancer services, pathology, etc. In charge of hundreds of people with budgets in the hundreds of thousands of pounds. The only bands that are over £60k are 8d & 9.

And as the country's biggest employer, it shows that 60 is a very good wage (in the real non-London world).

But rich... depends, well off and rich are just too hard to describe.

mmTes

My partner been in it for years,first as a nurse. Had to take time out to look after her husband who died of cancer. Now on grade two in X Ray reception, on band two. Gets all the flack, and has to do overtime (when possible, to get a pretty poor wage anyway.

The cost of living down here is frightening. Hope to move to Leicester area when she retires in ten years.

I will in all likelihood be in my wooden overcoat by then.

[Monk]

Very interesting thread. There's definitely some differing opinion as to what constitutes rich. I suppose that depends on your circumstances.

My two cents is that a high income does not always equal wealth. You're wealthy when you can pay for your desired lifestyle with income from sources not tied directly to your time, or at least not 100% dependant on your time.

I earn six figures but don't consider myself wealthy. I'm debt free and have a nice lifestyle but don't have a huge pension pot and don't have a lot of investments

As someone else mentioned, you don't get rich working in a salaried job, with only a few exceptions.