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Frank Hovis

We Can't Live On £50K

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Generally the stupid cost of housing means this takes up a huge chunk, forcing both partners out to work and then triggering a big child care bill. I haven't read all of this but thought I would throw it at there.

None of them, at first reading, appear extravagant or reckless but the first family's four figure monthly utilities & council tax bill is jaw dropping. What are they doing?

http://www.dailymail.co.uk/femail/article-3759081/Why-families-earning-50-000-broke-end-month-figures-say-couldn-t-pay-unexpected-bill-500-four-explain-money-goes.html

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...just a push to increase wages, inflation and living costs......will only create greater social inequality.

There are plenty who own outright, and have a total household income of £100k gross.....must be lapping it up. ;)

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I'm going to look at that article, and the looks on their faces, every time I lament the fact that I didn't get married and have a family.

Christ on a bike look how miserable they look.

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Generally the stupid cost of housing means this takes up a huge chunk, forcing both partners out to work and then triggering a big child care bill. I haven't read all of this but thought I would throw it at there.

None of them, at first reading, appear extravagant or reckless but the first family's four figure monthly utilities & council tax bill is jaw dropping. What are they doing?

http://www.dailymail.co.uk/femail/article-3759081/Why-families-earning-50-000-broke-end-month-figures-say-couldn-t-pay-unexpected-bill-500-four-explain-money-goes.html

Quite, their utility bills should be less than half that. And if they shaved a hundred quid or so off their £500 per month grocery bill too, surely very easy to do, they'd be in surplus.

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Family 3 spend £20 a month on a rabbit.

That rabbit would make a lovely stew, reducing their grocery spend slightly for a month and cutting this monthly expenditure ongoing.

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I don't think that's the point.

We could go through all their expenditure and save money here and there. They don't need sky, don't need a rabbit, could each much cheaper, don't need a take away once a month etc

BUT They earn £50k+ . If they can't even realistically afford to have a small pet, what is the point in anyone trying to achieve that income?

If only people on much more can afford small luxuries, surely there should be virtually no chain restaurants and Sky should have gone out of business years ago?

Their obvious mistake was not getting a few BTL's whilst claiming tax credits.

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...just a push to increase wages, inflation and living costs......will only create greater social inequality.

There are plenty who own outright, and have a total household income of £100k gross.....must be lapping it up. ;)

Our family income is in the £100k bracket and we own our home outright. Hasn't always been the case and we managed to pay off our £120k mortgage on a combined salary of £50k raising two children within 5 years (£30k inheritance and £90k) and living within our means. Our costs haven't changed (school fees have now sucked up the mortgage overpayment, importantly our costs haven't changed and we could afford to take a substantial drop in income).

They are typical of every other mildly successful family who borrow to afford the lifestyle they deserve and not the one to which they belong too.

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Yes CunningPlan, that was my take. I wasn't ridiculing them. With the root evil being high house prices.

Sorry but I don't think these people make that point very well at all.

Couple 1 spend £500 per month on a four bed 'end of terrace' home. No more details are given, but £500 per month is a pretty low housing cost for a couple or even an individual.

Couple 2 spend £929 per month on a three bed terrace, but appear to have 50% equity in their property, not bad at all for a couple aged around the 40 mark. And £929 is not too bad.

Couple 3 rent for £1k per month, so fair point, they are a good example of the property issue

Couple 4 spend £570 per month on their 3 bed bungalow.

I'm not saying that the UK doesn't have a huge problem with housing, of course it does. But when you look at this data that's not what jumps out. When I look at the numbers the first thing I think is "children are expensive!"

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Our family income is in the £100k bracket and we own our home outright. Hasn't always been the case and we managed to pay off our £120k mortgage on a combined salary of £50k raising two children within 5 years (£30k inheritance and £90k) and living within our means. Our costs haven't changed (school fees have now sucked up the mortgage overpayment, importantly our costs haven't changed and we could afford to take a substantial drop in income).

They are typical of every other mildly successful family who borrow to afford the lifestyle they deserve and not the one to which they belong too.

School fees will cease, kids become adults.....there are very many living on a household income of less than £25k and live a good and prosperous life....success does not come in the form of what you earn or are given, it is what you do with what you have.

....going to private school does cost money but it does not make you successful. ;)

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Yes CunningPlan, that was my take. I wasn't ridiculing them. With the root evil being high house prices.

In these cases I would say it is more childcare that is killing them.

Take the couple living in Lightwater. £500 per month mortgage. They are lucky. If they were to rent, even a 3 bed end of terrace would cost them £700 per month more - http://www.rightmove.co.uk/property-to-rent/property-43319013.html

If they were looking to buy now, the cheapest I can find in the are is £389k - or £1,882 per month. http://www.rightmove.co.uk/property-for-sale/property-41357235.html

These families are actually the lucky ones!

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Generally the stupid cost of housing means this takes up a huge chunk, forcing both partners out to work and then triggering a big child care bill. I haven't read all of this but thought I would throw it at there.

None of them, at first reading, appear extravagant or reckless but the first family's four figure monthly utilities & council tax bill is jaw dropping. What are they doing?

http://www.dailymail.co.uk/femail/article-3759081/Why-families-earning-50-000-broke-end-month-figures-say-couldn-t-pay-unexpected-bill-500-four-explain-money-goes.html

How on earth are their utilities so high? Council tax can't be more than £345 a month over ten months (this is the band H rate for Windlesham, Lightwater & Bagshot). Even if we allocate an overly generous £100 each for water, insurance, phone & broadband and mobile phone (each) that gives us £850 which means they're spending £330 a month on gas and electricity!

edit: forgot to include water

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School fees will cease, kids become adults.....there are very many living on a household income of less than £25k and live a good and prosperous life....success does not come in the form of what you earn or are given, it is what you do with what you have.

....going to private school does cost money but it does not make you successful. ;)

The school they go to now has a good track record of turning out free thinkers and if that's all they take with them then all the hard work has been a success. I'd rather they be wisely unsuccessful than unwisely successful in much the same way I'm rather envious of those who can play a musical instrument, if you're in the gutter it's something to fall back on.

That said my wife is very good at developing real talent in the companies she works for and there are eternally grateful protégées moving up the ranks elsewhere. So if they want to be a success - doors will open.

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The only mistake all of these people made was having children. Without them they'd have loads of money.

Other than that ludicrous utilities cost It's the childcare that's the problem.My boy is looked after by his grandparents for nothing. So the message for combining kids and financial success is to be nice to your parents, don't move away from your home city, and have kids just as your parents retire.

Surely some of these couples would actually be better off if one of the parents gave up work, as that would remove childcare costs.

Wouldn't tax credits top then up enough to compensate for the lost income?

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The only mistake all of these people made was having children. Without them they'd have loads of money.

Yes. According to the fostering rules, I would get £385 per week to 'cover the cost' of my two.

That's £25k per year pre tax income to have the benefit of a 6'4" grunting teenager living in my fridge.

The answer is simple. Don't have your own kids. Look after someone else's. Sort of 'rent a kid' scheme but in reverse.

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The only mistake all of these people made was having children. Without them they'd have loads of money.

Loads of money, but they would have nothing.

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Generally the stupid cost of housing means this takes up a huge chunk, forcing both partners out to work and then triggering a big child care bill. I haven't read all of this but thought I would throw it at there.

None of them, at first reading, appear extravagant or reckless but the first family's four figure monthly utilities & council tax bill is jaw dropping. What are they doing?

http://www.dailymail.co.uk/femail/article-3759081/Why-families-earning-50-000-broke-end-month-figures-say-couldn-t-pay-unexpected-bill-500-four-explain-money-goes.html

600 a month on cars! Leasing presumably, rather than making do with an older car.

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The only mistake all of these people made was having children. Without them they'd have loads of money.

The other (redeemable) mistake they all made is that they all earn salaries on a national payscale and choose to live in a high cost of housing area. There is no financial premium in what they do for where they live.

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Generally the stupid cost of housing means this takes up a huge chunk, forcing both partners out to work and then triggering a big child care bill. I haven't read all of this but thought I would throw it at there.

None of them, at first reading, appear extravagant or reckless but the first family's four figure monthly utilities & council tax bill is jaw dropping. What are they doing?

http://www.dailymail.co.uk/femail/article-3759081/Why-families-earning-50-000-broke-end-month-figures-say-couldn-t-pay-unexpected-bill-500-four-explain-money-goes.html

UTILITY BILLS (including gas, electric, home phone, mobile phones, broadband, insurance and council tax): £1,180.

erm no I need that broken down.

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But I can save them a little bit:

Cancel this: ffs. How often do they have time to go?

CLUBS/GYM MEMBERSHIP/SWIMMING: £90 (£40 for Alex’s gym membership, £50 a month on yoga classes for Michelle).

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But I can save them a little bit:

Cancel this: ffs. How often do they have time to go?

CLUBS/GYM MEMBERSHIP/SWIMMING: £90 (£40 for Alex’s gym membership, £50 a month on yoga classes for Michelle).

.....aim to have as few a direct debit/standing orders as possible, review every amount.....then pay as you go. ;)

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How on earth are their utilities so high? Council tax can't be more than £345 a month over ten months (this is the band H rate for Windlesham, Lightwater & Bagshot). Even if we allocate an overly generous £100 each for water, insurance, phone & broadband and mobile phone (each) that gives us £850 which means they're spending £330 a month on gas and electricity!

edit: forgot to include water

Council Tax in that district for a Band D is 145 pounds a month. Looking at that house it is probably a C or at most a D.

http://www.surreyheath.gov.uk/residents/council-tax/band-charges-appeals#Bands

Thats 1035 going on electric, gas, water, broadband, phones and insurance.

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