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Cost of living

Community Veteran
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Cost of living

Watching the BBC News at lunchtime they were interviewing a woman who said the total annual income she and her partner earned was £ 45,000.

Ok the mortgage was around £600 a month so that's a fair dint into the annual figure but she claimed they could not save, have holidays and there was little food in the house.....cupboard was opened to show a few boxes and mainly empty shelves.

Is the problem that people are simply not spending money on appropriate things, by appropriate I mean essential rather than having the latest thing in fashion or choosing a less expensive item rather than the one with a well known brand name ?

Or am I being too critical ?

Smiley

30 REPLIES
jab1
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Re: Cost of living

It is very easy to empty a cupboard for a 'photo oputunity.Wink

John
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Re: Cost of living

assuming it's an equal split e.g it's not a single income and no pension contributions take home would be around 3000 for the pair.

approx 150 for utilities (gas / elec / water), 200 council tax and 600 mortgage that would leave 2250 disposable income a month.

ok there will be car / phones / broadband etc.. but you'd have thought they'd be able to save something.
Will Moderate For Thanks
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Re: Cost of living

£ 200 council tax?  Seems a bit steep. I only pay £140 for Adair Towers.

Now Zen, but a +Net residue.
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Re: Cost of living

Oh absolutely, I was being heavy with the estimates to prove the point. Ours is somewhere around the 140 mark too.
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alanf
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Re: Cost of living

Was that income gross or after tax / NI / pension contributions etc.?

Perhaps there was little food in the house because they ate out or had takeaways every day. That would make a dent in the amount left for savings.

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Re: Cost of living

I heard it in the background - I think he was full-time and she was part-time.

 

Is £600 a huge mortgage? Our rent is £600 pm and me and SWMBO manage on a lot less than £20,000 a year. Then again we haven't had a holiday for 4 years but the cupboards are rarely bare.

 

Like an earlier poster said; quite easy to empty cupboards to prove a point.

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Luzern
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Re: Cost of living

@AlaricAdair Neither the couple nor you say what band the property is in. Another missing factor is whether the area'is rates are high. I'd refrain from criticism of anyone for what is paid for council tax per se. People cannot always choose where they live. The map tells how rates vary.

More generally, there is often more to a story, good or bad, that would spoil the pithiness needed for a news item. 

One of my children works as a part-time professional manager in a LA sector, her partner a chartered land surveyor. They do afford holidays with their boys, mostly camping, or hostel. It suits their active life style, but I don't doubt that were his DIY skills not high, and they were high livers, they could afford so much.

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Minivanman
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Re: Cost of living

You could double that income and still draw the same conclusions.

I well recall reading an article in the Mirror years back about how three families with three distinct and different incomes could not 'manage' and y'know what, the third example on today's equivalent of a hundred grand a year really couldn't - not after paying school fees, the gardener, the maid, the pool cleaner, Cassandra's pony lessons and for that bi annual holiday in the Alps or wherever.

Sheesh.

 

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Community Veteran
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Re: Cost of living

It's all down to lifestyle. No I can't afford to jet around the world or buy the latest "green" hybrid.

I live within my means, a small fraction of the above, but all my cupboards are overflowing.

That couple must be simply living beyond their means as they are certainly what no one would call hard up or destitute.

Just no idea of managing their money.

Minivanman
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Re: Cost of living

Ditto and spot on!

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rongtw
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Re: Cost of living

I wish my income was £45000 Smiley   rather than my £8,700 and i have food in cupboard and freezer

 

 

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Jonpe
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Re: Cost of living

I remember back in the 1980s when student grants/loans were cut, a woman from Surrey was interviewed on the news and said something like, "It's very unfair, I think my husband only earns about £50,000 a year at the moment."  I, and I'm sure most other viewers, felt so sorry for her!Laugh

Minivanman
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Re: Cost of living

Interesting interview earlier where Jeremy Corbyn admitted earning more that £138,000 but indicated that he puts the money elsewhere. Maybe he donates it to a charitable cause - like the Labour Party. Wink

http://www.itv.com/news/2017-05-15/jeremy-corbyn-tells-itv-tonight-freedom-of-movement-will-end-with...

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Community Veteran
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Re: Cost of living

I'm presently getting under £4k a year, which just about covers the "cost of living", but given I don't have a mortgage, a fleet of cars to insure, tax & maintain, multiple holidays a year, kids, nannies, cleaners, pool boys and suchlike, I get by reasonably well, dunno how the £50k earners can say they're "struggling", they just don't know how to manage their money properly... Smiley