How Much Do You Need to Earn to be Rich in the UK - (Here's What The Data Says)

[@TobyNewbatt]

Just posted another video now that compares the US to the UK! Enjoy! How Much Do You Need to Earn to Be Rich in the US (vs. the UK) kzbin.info/www/bejne/rn7dZ2R_bNmWpaM

[@washingtonx1]

You keep saying a monthly "take-home figure" when you actually mean a monthly gross figure. That's not the take-home pay, it's the gross amount before taxes. That's kind of the whole point of your video, so you should fix it.

[@TobyNewbatt]

@@washingtonx1 it’s a mistake in the script. It’s all before tax as I stated at the beginning. Thanks for the comment and I hope you enjoyed the video 😎

[@jordansamuels2052]

Can you link the study you are reading please

[@TobyNewbatt]

@@jordansamuels2052 Not sure which one you are after - all data on wages is available on the ONS website you'll have to go digging. The 'study' on wealth you might be talking about is this one: warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/wp576.2021.pdf

[@jordansamuels2052]

@@TobyNewbatt thank you!!

[@TomWellyWells]

It’s simple, I will feel rich when work becomes a choice.

[@TobyNewbatt]

Thats a nice way to sum it up.

[@douglasherron7534]

That's called FU money.

[@anyexpat]

@@douglasherron7534 FU money is jumping in your own G650 and going to watch your sports team as the owner

[@douglasherron7534]

@@anyexpat Not true. FU money is when you can turn to your boss, tell him 'FU', and walk out the door without worrying about having to find a new job. What you are describing is filthy rich levels of money... you don't need that to say FU.

[@gluehoof573]

So my wife is rich...I'd better ask her for a loan.

[@TheBClark88]

My wife and I are both in the top 10% bracket and our combined annual income, including bonuses and share schemes is about 140-150k before tax. However we have no generational wealth (our parents all worked blue collar jobs) and while very comfortable we don’t live a life of luxury. We have a 10 year old car and a fairly modest 3 bed house. We live in the south east, over an hour from London, and our mortgage and childcare costs alone equate to an annual salary of £58k a year. I am incredibly grateful for our situation but salary isn’t the only metric for wealth.

[@TobyNewbatt]

Great comment Ben

[@ericshang7744]

We are in similar situation except we are not in UK and we don’t have children. The scary part is we don’t feel rich at all, the only enjoyment we have is going out for big breakfast on weekends.

[@ericshang7744]

@@anyexpat don’t get me started. The prices have increased so much, I once charged $2 extra just to get the eggs scrabbled.

[@RileyRedux]

Spot on! I am in a very good career, but all my peers in other careers have free rent at home and their parents are chipping in for their house deposits. I'd much rather be them.

[@anyexpat]

@@RileyRedux You may feel that now but when you do finally buy your own place it will be way more satisfying. Being given things seems great when you are younger, but trust me working and buying your own is always a better feeling

[@Unshou]

Just a quick correction. "Monthly Take Home Pay" typically refers to what you take home after tax and NI deductions. So an annual salary of £62,160 has a monthly take home pay of £3,759, not £5,180. The numbers you're using aren't wrong but referring to them as "Monthly Take Home Pay" might be confusing to some.

[@TobyNewbatt]

I know it was a mistake in the script with the word take home all figures a are gross before tax 👍👍

[@hkatsonga]

I was also confused by the inconsistency. Thanks for clarifying.

[@cashkitty3472]

He said before tax . I'm on £68 and monthly payments are over £5k

[@TobyNewbatt]

@@cashkitty3472 Yep its all before tax, mistake in the script when I used the word take-home! Sorry :)

[@00dude3]

Another issue is someone who is graduate on 62k will take home less than a non graduate on 62k due to student loan so that will also adjust the figures slightly

[@PeterCruz-un8iy]

In order to feel rich, I’d say the below: - owning a property - being able to cover food healthcare and basic holidays - have a car - have saving to prevent any debt, or in the event of emergency

[@RTMgi9]

I have all 4 but I'm in debt to pretty much all of them (finance and mortgage). I don't feel rich, I feel like I'm tied to my job to pay these off.

[@TortleTalk]

​@rtm1619 owning a property is different to a mortgage. A mortgage means you truly own nothing.

[@hamsterminator]

I don't think anyone ever feels rich. Even the wealthiest people covet what they have in order not to lose it. Besides that, once you get to the upper tax bracket the numbers don't really mean much anymore. I earn twice the "90%" figure here- but take home only 50% of that...

[@trzmaier]

Having a car only for elites these days? lmao

[@darkknight17]

This really isn't rich, this used to be normal and average if you were middle class. The ruling elite have screwed us all into thinking living in a garage studio flat or shoe box or normal or healthy.

[@shyhistorian]

"All of the figures are before the grubby taxman has gotten his groggy mits on your money." If there's anything that makes us unified as Brits, it's our disgust towards HMRC.

[@LunaNova1122]

My dad always told me growing up : A poor man that acts rich will always be poor and a rich man that acts poor will always be rich.

[@pocnit]

Wow he sure did talk a lot of nonsense.

[@JivanPal]

@@pocnit Where's the nonsense? If you're not talking about the poorest of the poor, but just the average Joe, it definitely rings true. I am constantly astounded by how much money people I know that earn on the order of £10k-£20k spend on tat, given that I, someone earning £50k, wouldn't be able to justify buying those things given the way that I run my budget.

[@paromita10]

💯true!

[@anyexpat]

@@JivanPal I like to watch old rap videos of rappers with bundles of cash then google to find out i am worth more than they are.

[@pocnit]

@@JivanPal I mean it's obvious to anyone with 2 brain cells that you'll never get rich by "acting poor". The real difference here is the extra £30k-£40k you make in salary. Ironically you could buy a new smartphone every year, wear only outlet-price brand clothes, eat out every weekend, lease a car and get a mortgage and still have more money than the £10k a year person even if they saved 100% of their salary. A person in the UK in 2023+ will never EVER get rich from savings on mundane things, that's complete nonsense and absolutely laughable. While someone already rich... i.e. inheritance, trust fund babies etc. can buy a million things a minute and barely make a dent in their wealth, if at all.

[@mtmachine13569]

I left my 55k a year job in London last year. I now live in the Philippines. I pay £100 a month in rent and spend a total of £400 a month. Living in a 3 bedroom house with my fiance . I work less than two hrs a day as a remote consultant(making 2k a month) and feel rich.

[@apc4884]

But you're geographically trapped. If the political climate changes, your life changes significantly.

[@yilmazh3127]

Well done man you’re winning 🎉

[@mtmachine13569]

@@apc4884 That applies to everyone everywhere. I can always come back to UK but most people in UK can't afford a month break from their direct debits.

[@pocnit]

​@@apc4884Meh most brits (and americans) don't even have £1000 for emergency bills. If your situation changes, you're fucked anyway.

[@apc4884]

@@pocnit most brits are on the housing ladder though. When you're in a country with a much smaller gdp, you're essentially off the housing ladder. It's all about net worth. Poor uk people have a higher net worth, albeit no disposable income. Could the OP move back to the UK to buy a house, probably not.

[@Nada-Mal]

For me, rich is: having enough passive income that said income covers all my living costs.

[@monikamoon14]

And I don't need a day job

[@gb5584]

Rich is being content with what you have in life

[@firmbutton6485]

Ridiculous. I have been through it all, from yts slave, unemployed, working behind a bar, in shops, and then trained as a nurse and am now doing well. Never have I never felt ok money wise. You are clearly of a ‘poor me’ generation.

[@camzy01]

Shocked how (relatively) attainable a top 10% income is, I'd have expected that figure to be at least £30k higher lol. UK's growth and wage stagnation has been appalling

[@ivermektin6874]

Don't forget they are keeping tax bands the same to benefit from any future salary inflation.

[@sender5804]

thats not top 10% of income, but top 10% of salary. I'm sure another 10% don't really need to work and can live from assets / investments

[@camzy01]

@@sender5804 valid distinction, and yep I wouldn’t be surprised at all if that was the case

[@kinggeoffrey3801]

I genuinely know people that earned 30-40k a year in the 80s. The skilled market has been stagnant for decades.

[@leonhenry4861]

@@kinggeoffrey3801exactly, I know people who earned 90k in the 90s. All retired nicely. Mean while 95% of workers today still can’t get that salary, absolute joke 😂

[@GeorgeKershawBMX]

Top 10% at £62K? That is scarily low. Would have expected that to be about double that!! Crazy to see these numbers when almost every other car on the road is only a few years old… some people must be making crazy financial decisions 😂😂

[@GeoffBuysCars]

This is such a great comment

[@JivanPal]

> some people must be making crazy financial decisions Indeed they are. The ease of access to credit is in large part responsible for that, but lack of financial education is another massive factor; if you can't run a budget, it won't be surprising to see you spending your funds recklessly.

[@dongmingzhu666]

Not really. I tell you what, many people are doing cash-in-hand jobs and pay little or no tax. People I know... plumbers, builders... they all take cash for their work. On paper they probably in the lowest bracket but they are driving expensive cars and living in million pound houses

[@GeorgeKershawBMX]

@@dongmingzhu666 possibly… but I would love to know how someone who doesn’t declare their income would be able to get a mortgage.

[@normanamey9828]

@@dongmingzhu666 and very easily identifiable by the tax inspectors that they are living above their declared income. House and cars gone after back tax, interest and fines. No better than a drug dealer or burglar living the same sort of lifestyle. If you declare shit money, live a shit money lifestyle and spend under the radar. Most cash in hand workers are not smart enough to not get caught. And ultimately they are screwing the country for everyone else, probably while moaning about how the NHS and schools are underfunded…..

[@midlifecarsis6420]

What this REALLY shows is how embarrassingly low incomes in the UK are.

[@stevegeek]

Agree. I managed some staff in Europe and some of the workers in Germany / Netherlands earned the same as me, when I was their manager! UK salaries are not that good, generally.

[@iancooksley1]

Someone on min wage in a full time job will get circa £21.5k per year......and the average in the UK is £26k. As a snapshot would appear something is wrong, but would suspect many factors are contributing to that ie immigration providing cheap labour, failure of our education system to educate rather than indoctrinate our children.

[@NomadJRG]

@iancooksley1 these figures are heavily skewed by part-time workers and the lack of information on dividend income for directors. Real figures would be around 25-50% higher for average full-time workers. So probably more like to be 50%: £40k, 10%, £90k, 5% £120k, 1% £260k.

[@ParksRec]

@@NomadJRG based on nothing more than your gut feeling lol

[@Dunk1970]

@@ParksRec According to the ONS, the median salary for a full time employee in April 2022 was £640 per week, which is £33.3k. Mean salaries are higher than Median, so his £40k guess will not be far off. Certainly closer to the mark than £26.3k.

[@MartynThomas1]

The difference between "income" and "wealth" is crucial. I've watched a few videos like this one and discovered that although I'm in the top few % of earners, I'm probably only just (or perhaps not even) in the top 35% by wealth and assets. I come from a pretty modest background and so although I sometimes feel rich, when I look at the house extensions, new cars and fancy holidays of the people on my road or at work, I often don't feel it. When a friend sold their 3 bed ex-council semi and bought a £2M+, 6 bed detached in the posh part of town, I realised that "inheritance" if far, far more important than salary.

[@selwynhammond4582]

I beg to differ. Having been given no start up or inheritance I started in mid 90s with income of £7k and progressed my career to be a higher earner today. I am now just in my 50s and in top 2% in terms of wealth according to this video. How was it possible? Learn to live well within your means and save 10% of salary on top of pension savings. Even on minimum wage a couple investing 10% of their income after 40 years will be in top 10% wealthy in the country.

[@conconmc]

Agreed

[@Jack-cs5pm]

@@selwynhammond4582 You mean top 2% in Taxpaying income, not wealth. People in the top 2% of wealth don't typically have to work much at all for their wealth, and it will continue to accumulate due to the nature of the economic system we all live by.

[@varsas10]

I certainly agree that a high monthly income does not mean you are rich, especially if that income only started recently and you don't already have a nice house etc. Anyone who has to work isn't rich in my opinion.

@@selwynhammond4582 Congrats on your success. Truly mean it. However, asset prices have grown handsomely in the past few decades, a trend that will be less likely in the coming years. Furthermore, living costs have grown significantly as % of after tax income in recent years.

[@fishslappr]

It's not what you earn. It's what you own. Wealth inequality is far higher than income inequality

[@fear_not]

Wow! These numbers are really surprising! I was on almost 40k in my last job (social services) and I definitely didn't feel rich but on the other hand, I managed to save 30k in few years and quit the job to travel for a year. I would probably feel rich if I could afford a mansion in London instead of a studio flat with 30 years mortgage.

[@julianweekes]

Friends and family that love me and whom I love. Health. And yes a sense of financial peace. Cheaper than one might think!

[@kiamick]

I'm in the top 10% which has really surprised me. I didn't feel rich before this video and I certainly don't feel any richer learning that. My bills don't feel any cheaper! All I feel now is incredibly sorry for those earning less than me with the same food/childcare/clothing/utility consumption requirements as me. It must be really hard to make those ends meet. ❤️

[@robolozoguy]

same here. i would never ever ever have thought i would be top 10%. we do not live in luxury. our bills are big. one car. i worry about everyone 60% and below.

[@ams4328]

what do you do ?

[@kiamick]

@@ams4328 HV electrical engineer

[@mattwu7884]

Same here too. I only feel I am just doing OK in this high inflation era. And it only get worse going forward.

[@ams4328]

@@kiamick nice !

[@Rob-cy8xc]

I live in Dubai and earn 150k a year after tax (I'm 38) I work in finance. the irony of money is the more you have the more you spend. I felt like I was better off 15 years ago on 25k before tax. Happiness is the key, money helps but in the end health and happiness is key

[@Rob-cy8xc]

@@Raulsta1985 I am a financial advisor so I would hope I have a rough idea. I pay school fees, nannies and sky high rent along with 2 members of staff. Like I said the more you earn the more you spend.

[@CROSSNSHOOT]

Dubai is the place to be. We do not get value for money in the UK losing 45% in tax

[@Rob-cy8xc]

@@Raulsta1985 with respect I have listened to your rubbish long enough. Your opinions are just that. I really couldn’t careless what you think, I have entertained you long enough . I’m sure you know nothing on the subject matter so I’ll take my chances cheers. People pay for my advice, I haven’t even asked for yours, that is the difference. My guess is you are sat in a basement somewhere, annoyed life hasn’t turned out how you wanted, so you think by writing pointless abstract comments online makes you look rounded and worldly. It doesn’t. If I can pull in 150k a year after tax at 38 I would argue I don’t need your advice and imagine you need mine.

[@semolinasemolina8327]

Yes, take your advice, my friend's dad died at 65 on the operating table of heart surgery. He barely saw his family growing up. Yes, he lead a big Big big life, like lots of different types of life, but my friend wished that he saw more of his dad x

[@semolinasemolina8327]

​@Smiley 😂❤ well, no, not really, because the more cash you are earning, the more you need to concentrate on more things, so you need to outsource services. Also you need to attend and circulate in more expensive professional circles. As a high provider, you are expected to support people with less. You also get less support such as discounts or financial support. (Because you don't need the financial support). For example, my family gets a gigantic 17k on benefits. That has a council tax discount too. If we mainstream schooled, the kids would get free school meals, prescriptions, holiday club and childcare support. In total, the amount I would need to earn as a scrounging single mum would be 35k after tax to run a car, pay in full for full time childcare etc. So basically teachers earn about 28k after tax - not enough to even support one child.

[@SHYBMX]

For me to feel rich. I want my mortgage to be fully paid off. When ever I have kids, they are all educated and have jobs, And finally able to retired and live off my investments

[@TobyNewbatt]

nice and simple, brill!

[@Activocirculante]

Rather than setting deadlines and amount levels, try setting performance and quality standards. That'll give you the chance to be happy Today rather than... Ever?

[@xyz5485]

Live in cheap countries in south east Asia. You can pay a worker £10 a day and that’s generous. You might be able to do that right now

[@SlackHoffman]

You’ll be lucky 🍀 even by the age of 70 😂

[@Biggus_Dickus_69]

​@S S B well done I'm sure it was so difficult for you to pay off a mortgage on a sub £100K home in the middle of nowhere 😂

[@rhysnolan6080]

He knows the difference between mean and median averages, unlike the media. You just earned a sub!

[@burieddreamer]

Indeed, and it's not hard to understand. I use median to calculate my average weight in a week. If I go on holidays and don't weight myself for a couple of days, I still have a good idea.

[@habzzz]

If only he knew the difference between gross and take home pay 🤦🏾‍♂️

[@Kaku24]

Feeling rich for me is to be able to save more than I have to spend and having no debt.

[@ytsys]

Nice video mate. Very informative. Unfortunately salaries in UK start to be a joke. I spoke recently with dude from Poland and it looks like the difference in salaries is getting really small but cost of living is higher in UK

[@matthewhook3375]

Median salaries in PL projected to be higher than UK by 2030 if current trends continue. And cost of living WAY lower.

[@luc1ferblack]

Being rich is not about how much you earn its about how much you spend. I met a BA who was on £700 a day was struggling because his wife wanted the big house nice cars etc. He was in payments up to his ears. I met an handyman who would spend 5k on each kid every Christmas. I also had a neighbour once who lived in a run down area but had 2 top of the range Mercs on finance on his drive so he could look cool. I love charity shops we both take home £2300 a month each and together we pay £1,400 for a mortgage. We have a big tv 2 games consoles and 2 laptops we barely use. we have a lot of free money because we don't like expensive restaurants and think designer clothes are a ripoff. You are only as wealthy as the lifestyle you pick

[@NawazKhan-ui6eo]

BA ?

[@noreplyzone-ef7uz]

Business Analyst

[@moneymanifestation9505]

I think you meant to say it's about how much you keep 😂when your frugal then yes you can be rich in no time. The problem is like you stated people by things they don't even need.

[@davideyres955]

Being rich is about how you plan for future finance. My friend has always had a plan of where he wants to be financially in future years. Took a lead out of his book and started investing.

[@GrooveTasticThang]

That isn’t the monthly take home as the tax increases exponentially including 62% between 100-125k - £200k brings 9k per month

[@acloserlook6133]

Terrible

[@richard1342]

Have only recently discovered you channel. Do like your videos. You have a good style and a very clear way of getting information across.

[@TobyNewbatt]

Thanks and welcome

[@TheGrinningSkull]

I recall the Twitch founder Justin Kan said he only noticed step changes at 2 levels in terms of happiness with money. 1. The ability to get whatever food you want when you want it. 2. The ability to travel wherever you want when you want to.

[@TobyNewbatt]

I really enjoy listening to Justin’s perspective. Such a cool dude

[@ricequackers]

"Truly rich" is when you can live off your assets without needing to work. A banker/trader/quant in the financial industry making £300k or so is ultimately in the same boat as the majority of the country - they have a nicer house, flashier car, more holidays and more funds to fall back on, but they still need to keep an eye on their high mortgage/childcare/education costs, and they'll be in trouble if they lose their job and don't find another one in time. It's the ones above them that are the properly wealthy.

[@MarkLikesCoffee860]

People earning £300k who are broke because their lifestyle also costs £300k are idiots. If they eventually got "above them" they'd still be broke. My lifestyle only costs me half of what I earn. I have more money than people who earn 10x more than me. It's not about how much you earn, it's about how sensible you are.

[@NazTheGreat]

Exactly !​@@MarkLikesCoffee860

[@nataliam9764]

This shows that salaries are complete crap in the UK.

[@accaeffe8032]

Yepp, 50% earns less than £26K a year, most likely earning the minimum wage.

[@scbond]

Somebody’s low down on the list 😂

[@Rabant777]

Struggled for years as a single parent, then at the age of 53 I paid off my mortgage at the same time as I achieved 2 successive promotions and my final child left university and became financially independent. To have the ability to what I want AND put aside a thousand pounds per month - I feel very fortunate and very well off - so I would say I'm rich now, but I don't want for much (haven't been on holiday since the 90s, and feel fortunate that I don't feel the pressure of FOMO).

[@MikeRox83]

Congratulations! Enjoy it, you've earned it. Don't ever let anyone make you feel guilty for it.

[@julianfp1952]

What would I need in order to feel rich? I'm 63 and I do feel rich now and by the metrics you presented in this video I am objectively rich. Despite now being retired I earn dramatically more than I did when I got my first job after university at age 21 and I have the money to do things I never dreamed of then or even 20 years later, yet the richest I have ever felt was when I was 21 and this is why. At university I spent my money on rent, food, beer, bus fares, records, stereo equipment and very occasionally a take-away meal as a treat but my budget was really stretched so getting a kebab from my local kebab shop even once a week was a stretch and being able to afford a takeaway twice a week was almost unimaginable. Then I got my first job and my salary (vs my university grant) went up about five-fold yet my lifestyle stayed the same so all of a sudden as that 21 year old I had almost unimaginable wealth. I could get a takeaway of my choice every night, go to the pub whenever I wanted, and still have enough money to buy every new album release that I wanted to get plus have money left over to upgrade my hi-fi and buy other gadgets. The issue here though is that the above can become a moving target. My lifestyle aspirations gradually grew to meet and then exceed the ability of my salary to meet those aspirations. I started lusting over bigger and more expensive amplifiers and speakers, I wanted a car. I wanted to start taking foreign holidays, etc. so those 2 takeaways a week that were once unobtainable got replaced by other stuff that was unobtainable and, since my salary no longer fully serviced my lifestyle aspirations, I stopped feeling rich. So my ultimate answer is that there is no single answer. If someone wishes for and gets a step-change in income they will probably feel very rich for a while but there is always the possibility that they will then re-calibrate their expectations such that those expectations again exceed their income. One of the secrets to happiness is probably to be able to avoid constantly re-calibrating one's expectations and be happy with what one has. I could never do that as a younger person trying to climb the career ladder but I can now. Perhaps that is why many people find a greater level of calmness and contentedness in later life (probably in that window before their health starts failing). So now finally I feel rich again, although not as insanely rich as I felt as a 21 year old, but this time that feeling is not going away because I am happy with what I have and do not strive for more.

[@meibing4912]

Think most people who are financially secure - not "rich" - in retirement are much more happy for other things in life than "things". That's probably why they also tend to be happier. I do worry that a lot of elderly people in the UK just like in the US will face hardship when they go on pension because they did not save enough. Feeling "safe" is worth a lot. Good luck!

[@srspower]

You make a very good point and since anyone earning more than 25K is in the top 1% of earners in the world we should all feel pretty rich in the west.

[@srspower]

@@meibing4912 you make a good point too, pensions are not going to be an option for most people if that's all they want to live on in the future. The world is facing demographic collapse in terms of there not being enough young people and too many old people. If we run out of people to make stuff the world will run out of stuff, what your bank account says will not matter much.

[@petercoakley5497]

Parkinson's law at work... Expenses increase in line with income. First step is awareness of what is happening, second is having the discipline to overcome it and create a proper plan for your money. I had the same thing going on, but realised the error of my ways 😅

[@Helifax19]

People always tend to "stretch the legs according to the coverlet" ^_^ So in short, you might never feel rich unless you get your habits in check ^_^ Then again, you can always feel rich if you target and budget your money/wealth etc accordingly. I am sure there is a big physiological topic on this :) But you basically nailed it ;)

[@stewartmacdonald601]

Erm.... At the start, when you were converting yearly salaries into monthly wages, you were saying take home, when I assume you meant top line. As for example, a salary of £84,600 would be a top line of £7,050. Not the take home, which would be closer to £4,843 per month. Assuming you paid tax in England, this drops to £4,651 in Scotland.

[@TobyNewbatt]

Yes i used the phrase take home when I specifically stated that all figures were gross, this is my mistake. All figures are gross as I said at the beginning

[@legendofthepeach]

I think a lot of people think £150k is a lot of cash but once you go through super tax and national insurance you’re losing 62% of it. Most likely around £8k a month. It’s good but it’s not crazy money.

[@fzriow]

The other issue of this is that this data is from PAYE employees, way more than 1% of the country earn more than 162k if you took directors taking dividends at 7% and 20% tax. Most directors on paper earn 12.5k a year and the rest is all dividends

[@legendofthepeach]

@@fzriow yeah if you want to earn proper money you are top of your own business. No ceiling and so many more benefits

[@mattcarpenter6986]

Over £50k per year N.I drops to 2% and 45% tax would be on earnings between £125,140 and £150,000 so its not quite that bad.

[@legendofthepeach]

@@mattcarpenter6986 no your effective tax rate can be as high as 62% once you start earning over £100k you start losing your first £12k of tax free allowance so for every pound you earn you’re losing 40% tax and every £2 you lose £1 of allowance. Effectively after about £100k-115k you actually earn no extra money per month

[@lospolloshenmanos2041]

@@legendofthepeach at £150k your effective tax rate would not be 62%. With just income tax and NI alone effective tax rate would be just over 40% at that amount. If you added undergrad repayment plan 1 (lower income threshold for payment than plan 2) and postgraduate student loans you could get to just under 53% effective tax rate at that income.

[@petermorris3665]

To me, being 'rich' is all about assets not salaried income because you can lose your job anytime. My Mum lives in London and a London Premier League footballer has bought 3 houses, for rental income, down her road alone!

[@neilcameron434]

100% rich people's income doesn't come from salary, and to a large extent the rich can choose to pay tax or not.

[@anthonydayspring9923]

Interesting vid. Thanks for creating. At the start of the vid you mentioned “Take home” however you referred to gross. Take home is post tax which is a very different number!!!!

[@mikesweeney651]

FANTASTIC VIDEO!!! Just subscribed to your channel. Rich for me means contentment with life 😊😊😊

[@rdyson]

Often overlooked is that many enter the top 1% earnings only briefly. Whilst I’m sure there’s some cushy jobs, most high paying roles are just too crushing to do them for decades. Part of the reason building wealth is harder than just landing a good job.

[@sophiehallwood9207]

I’d feel rich if I had the same surplus income that I had 5 years ago. Hindsight is a wonderful thing.

[@NomadJRG]

If I owned my own home mortgage free and was on a £150k salary without a student loan I would feel rich. Currently, I am on just over half that, still renting, and have an outstanding student loan. I feel comfortable but the last year or so has definitely been more expensive with the cost of living crisis. Can't wait to clear my student loan as it is such a huge chunk of my pay!

[@TobyNewbatt]

I remember once my student debt was cleared it was a great feeling! And I was lucky as it was £3k a year compared to todays £9k

[@rair_stories]

absolutely loved this video and I resonate with your definition of being rich. Subscribed!

[@GeoffBuysCars]

This is a superb video. Thank you.

[@TobyNewbatt]

Glad you liked it!

[@michaeldooley654]

To feel rich for me is to have "enough" spare money every month to do whatever my family want whenever they want. Financial freedom.

[@jlo3349]

To feel "rich", I think I would need: 1. [comparison] a group of close friends and family that do not encourage luxury spendings above my level of earnings 2. [sustainability] have complete financial freedom - i.e. my passive income > my regular expense 3. [flexibility] a good balanced life style that allows me to spend my money in ways that I enjoy and find meaningful 4. [stability] have multiple sources of income streams which are diversified and stable So basically near impossible...

[@JMEUTEUW]

The problem is the taxation in the UK. In Scotland, if you earn over £40k, you pay extra income tax. Imagine if you earned over £80k per year…. Then there is, NI, council tax, road tax, VAT…. And then your private pension is taxed…. It’s a never ending cycle of taxes and now very high bills.

[@ms-jw3oy]

This is exactly the problem. I earn £220k a year or more (sales) and my wife the same. We each pay £90k+ in tax a year, then we just bought a house that’s another £25k in stamp duty out of money we’ve already paid tax on. I bought a new car, as it’s over £40k I pay an extra £500 per year on top of the road tax for the first 5 years. Because we spend more we contribute more in VAT, fuel tax, alcohol tax, insurance tax etc etc.

[@JMEUTEUW]

@@ms-jw3oy and the government says we need to contribute more because we earn more…. The difference is I have worked very hard to get where I am with countless sacrifices and all I do is pay taxes

[@rodneyfungus8249]

@ms-jw3oy. and sadly most of the population think high earners like you should pay even more tax. When they say the government should do more to help with the cost of living crisis what they really mean is that people like you should give more money to them (via the taxman). I bet if they had your income and paid your levels of tax they’d soon think differently.

[@ms-jw3oy]

@@JMEUTEUW it's the media that annoys me more, creating the narrative that we need to tax the rich more and this focus on "the 1%". I have friends who sit there telling me how we need to tax high earners more (I don't think they realise my wife and I are top 1% earners), and I'm thinking "In a commission month I pay more tax in one month than your gross annual income". Now I understand I am in a very fortunate position where I have been able to work my way up to earn a lot of money while still relatively young, but I think people don't realise how much tax we pay. For example a lot of people don't realise that once you earn £125k you no longer get any tax free allowance.

[@richlee509]

​@@ms-jw3oy poor little boy x

[@marknutting4193]

Ultimately Dickens got it right with the Mr Micawber principle. Income 20 shillings, expenditure 19 shillings result happiness Income 20 shillings, expenditure 21 shillings result misery That holds true regardless of the amounts involved To feel rich you need to be in the former and avoid the later.

[@TobyNewbatt]

Yes I love this one Mark, heard that quote before :)

[@thanoskaranatsios9053]

Very well constructed video and very good presentation by the host! I would love wo see a comparison worldwide or just Europe!

[@spuriousGeek]

I think this video is very well considered. It turns out I'm actually in the top 1% of earners and happen to work in the insurance sector (at least right now). I even get lots of tax benefits because I am running my own business, but even after all that...I don't even feel 'middle class'; I definitely don't feel 'rich'. The only outstanding debt I have is my mortgage, but the cost of living in the UK right now is so crazy that I still worry about money. To most this might sound ridiculous but genuinely if you look at the cost of home ownership, childcare, energy bills, food prices, ridiculous taxes....it doesn't take long to eat through most of your take home pay. I think the points about assets are particularly interesting, the government bang on about building more and more...the reality is, there are already loads of houses, they are just owned by the 1%. If there was a simple law, you can own a single home (yes maybe this is unrealistic in some cases), problem solved and millions of people would be better off. It just wouldn't work in favour of those people that own lots of property.

[@Hypersonik]

Indeed. Have a look how much the Duke of Grosvener paid on his inheritance of £13billion of properties...

[@MM-ev1fg]

You are one of the only people I’ve seen comment about the fact there’s actually loads of houses but it’s the owners of those houses that are concentrated. I do actually need to look at the population vs property numbers but it feels like there’s enough housing.

[@Homesweethome-n9n]

​@Hypersonik you mean the Duke of Westminster. His sir name is grosvenor.

[@issey6103]

"I think the points about assets are particularly interesting, the government bang on about building more and more...the reality is, there are already loads of houses, they are just owned by the 1%." That sums things up perfectly. Its even worse that most are old council stock houses brought at discounted rates that are then let out at silly prices. Stop mortgage's on second homes or as say restrict people to one home and problem solved. That also solves the problem that coastal town face of high housing costs that locals cant afford as high earners buy them up and dont live there contributing nothing to the local economy.

[@Hypersonik]

@@Homesweethome-n9n Yes, my bad. Westminister. Yes, check him out. Stuck it all in a trust, paid zero inheritance tax. How can that be?

[@OldQueer]

Shocked at how well I'm doing relative to others on PAYE tbh. I SIPP everything above 50k and don't have a mortgage or other debt anymore, but I certainly don't feel that rich. Pretty frugal in my outgoings too so I'm left with a decent amount at the end of the month. I'm focused on wealth building rather than looking outwardly rich, so perhaps that's the disconnect for me. Quite sobering to watch

[@TobyNewbatt]

the data is so interesting isn't it. Maybe we all need to redefine what we mean by rich and appreciate what we have more. Sounds like you're very sensible and have it all worked out, great place to be keep it up!

[@OldQueer]

@@TobyNewbatt I used to work a job analysing financial products for retail purchases. Car finance etc. You'd be surprised how many folks earning sub 30k are spending 40% of their income on flash cars. Very easy to lose sight of "rich" when so many people look outwardly wealthy with big debts hanging over their heads.

[@AlanPeery]

Very interesting to see the wealth figures as well as the income figures.

[@lilytea3]

0:00: 💰 The video discusses the earnings required to be in the top 10% of taxpayers and the top 1% of earners in the UK. 3:07: 💰 The finance and insurance sector has the highest average earnings, followed by mining and quarrying, information and communication, energy production and supply, and professional scientific and technical fields. 6:12: ! Many people think others are better off, but it's a waste of money to keep up with them. 9:29: 📊 The video discusses the wealth of various individuals and families, with a focus on their ties to big businesses and their salaries compared to Premier League footballers. 11:57: 💰 The majority of wealth is held by the top 1%, skewing the averages for the rest of the top 10%. Recap by Tammy AI

[@jpevans01]

I agree - was expecting both 75% and 90% to be much higher!

[@deanwild4971]

I like the way you defined this as being in the top 10% of taxpayers. This is very different to being in the top 10% in terms of wealth.

[@darronsmall6321]

I would feel rich when I can afford to pay my bills, have 3 ballanced meals a day and be able to afford to go on holiday now and then

[@amyanear8277]

Rich to me is having enough money for experiences that make you feel alive. After a low income childhood, I felt rich when i was 18 earning 30k but now at 25 my perspective has changed hugely! I don't want a mortgage or a nice fancy car! I want to live!!! Right now I'm living in a campervan, paying no rent or bills, I'm saving every penny I can to quit my job and travel the world! I'm about a year away from being able to travel for around 5 years with no job! I won't have anything at the end of it, no job, no money, no house! But I will feel rich, full of experiences and seeing different cultures! You might die in 5 years, 10 years! Don't sacrifice your life now for just a potential nice retirement! Get out and live a little!

[@Longlostpuss]

You hit the nail on the head. 10I feel too many of these videos out there make you feel like you need to be rich to be relevant in life and you have to sacrifice all of your healthiest most energetic years to get there, but nobody talks about what happens if you do end up retiring at 50 but your body has completely broken down on you and you don't even have the health and energy to enjoy all the wealth and so called freedom you've accumulated.........

[@neolink8197]

I agree with you having travelled a lot myself but Ill be honest, Id be scared to do what you want for even a year. Sure the epxeriences would be amazing but Id be afraid to come back older and starting from zero again, you could die at any moment, but statistically most of us will live to our 70s. That being said, I am a man, and being a poor man is a terrible thing

[@DonJuanDM]

Being able to travel different countries to explore and talk to people from different origins is a very humbling experience. Understanding and accept other countries value, perspective and their point of view is a bless, it shows how our school education so irrelevant in life. The more I travel, the more I can join the dots. One thing for sure, the world is not what the media depict, right or wrong, friends or foes, they certainly have their very own agendas.

[@AnonymousPerson1]

I read on the official citizens advice from the uk government that you should spend around 30% of your salary on rent. That literally means the top 25% can’t even rent a proper house for themselves without it being unhealthy for their finances. Which is insane to think about.

[@tomnorton7817]

why else do you think we've moved into a society where most households require two incomes...

[@fayadbozan3321]

I am from Syria and I also live in Germany. High rents. Half of your salary pays the rent for the apartment. Your life has become difficult in their countries globally.😂

[@Turbonuts78]

The key is as you summed up. Once all of your essential bills are paid off each month, what room for freedom of being able to do what you want, where you want and when you want to have fun. That's rich to me!!

[@choose6058]

Being rich to me is having my own bases covered in terms of financial freedom, however morr importantly - having means to share the wealth in others, to be able to support and uplift communities. True riches always are to do with other people and the connections we make, lifes we touch throughout our brief visit of this lifetime

[@FortheLoveofAutomation]

The quickest way to jump into the top 1% is to work as a contractor i.e. £500-1,000+ per day (typically tech and project management type roles).

[@KolyaNickD]

This has now been clobbered with the IR35 tax changes.

[@FortheLoveofAutomation]

Hi​@@KolyaNickD. Most people I know put their rates up to offset the change. I'd still be quite happy earning £750 a day on PAYE through an umbrella company.

[@AdrianMcDaid]

​@@KolyaNickDI fall into this section. Your correct. My saving grace my long term contract is in South of Ireland

[@KolyaNickD]

@Adrian Mc well I finally got a contract back outside ir35 in belfast am pleased to say. Trying to get out of contracting though and do something completely different.

[@AdrianMcDaid]

@@KolyaNickD what you mean like real Job!

[@kimkaivanto2674]

Very interesting! At the 1:02 mark you say that the figures are gross, before taxation, and then subsequently you refer to the monthly sums as 'take-home' amounts -- but 'take-home' usually refers to net-of-tax amounts.

[@TobyNewbatt]

Yes sorry Kim, everything is before tax and I used the word take home because I am a muppet :P - my bad! Thank you for watching.

[@bobcat0217]

I'm pretty sure 'take home' means net of national insurance contributions as well as tax. In other words the amount that actually hits your bank account.

[@lJonnyPl]

This was eye opening. Thank you for this

[@BrokenDucks17]

I worked in a factory doing 7 days a week non stop on overtime i was getting £1026 a week - £300 tax roughly i came out with £700 a week i felt rich on this wage . I know people that dont get £1000 a month so i was grateful for what i had and tried to be careful with the money and not waste it . But the meaning rich to me is not a wage its a mindset , being able to preserve money and save it . I saved £15,000 i had no bills due to living with my brother and no Debt i have this rule now where £10k is me broke , its my £0 mark in my head . I dont waste money on liability’s like cars or mortgages + scotland is cheap rent for a new 3 bed house which we have on a housing scheme is £480 a month which is nothing when the house income total is £8000 a month

[@ivermektin6874]

I earn 60k and don't feel rich. I am not short of money and can't afford a property on my own but can afford plenty of other non-essentials I don't really care for. I think these figures show just how suppressed wages are in the UK for so many people. But that doesn't surprise anyone familiar with the class system that is alive and well today in the UK.

[@STANLEYDMX]

That’s a big problem in the UK, being unable to buy a property for yourself and having to be forced to buy with someone who you may or may not end up being with in the future.

[@ivermektin6874]

@@STANLEYDMX Family system is completely fractured in England because of it.

[@Ozmeister17]

As someone who sneaks into the top 10% of earners, as well as my partner who earns similar, we can comfortably live within our means, raising two children, we live in a nice house for our area, have a holiday abroad every year etc, it’s easy to feel comfortable. I was raised by a single parent in a council house and will never inherit anything, neither will my partner. I was always the poorest kid in the school growing up, holes in my clothes and my toes would literally grow through the end of my shoes before I’d get a new pair. I had 3 holidays as a kid and one of those we were in a tent. This does give me an appreciation for what I now have and my motivation has always been to provide my children with more than I had growing up. There’s such a huge advantage accrued via the lottery of where you’re born and who your family is. Some people inherit so much. A colleague of mine has literally been off work with anxiety caused because he only inherited £100k from his grandfather when he thought it would be a lot more. Absolutely inconceivable to me, but I actually relish the concept that everything that I leave my children will be a result of my hard work alone. Everything I will ever achieve will be a result of my own endeavour and that’s it. I actually like that. (Although admittedly if I did have an unknown distant relative pass and leave me their fortune I wouldn’t turn it down)

[@spiritzen]

Can totally relate, from the council estate to whatever the ‘10%’ means. We know the value of nothing and the blessings of anything.

[@iplaywaytoomuch]

Same. Everytime they drone out that phrase "you pay tax when you earn it and then they tax you on it again when you die" I just think: surely its fairer to tax good fortune than someone's blood, sweat and tears (hard work).

[@paulm2467]

Me too, I am just above the 5% line, I came from the same council house background but I’m a blue collar worker in a very specialised industry and I spend as much time training as working nowadays. I get great satisfaction from our good lives and the great start that I’ve given to my kids, (My oldest son has just graduated in a STEM subject, the first of my family to get a degree).

[@Ozmeister17]

@@paulm2467 Amazing, congratulations to your Son. STEM is something I will always encourage my children to take an interest in. It’s amazing how many toys are marketed as STEM toys and how early things like coding classes and things are available

[@paulm2467]

@@Ozmeister17 thanks man, it sounds like you and your family are on the right path, good luck with everything, I hope your kids do well, they have a great example in you and your attitude.

[@the_islandstacker]

Based on the figures quoted makes me realise that I am higher in the chain than I thought. But to feel rich would be great to be mortgage free therefore being able to use that money in order to do the things I really care about and enjoy.

[@PeterCruz-un8iy]

Fantastic video. You presented this topic perfectly

[@TobyNewbatt]

Thanks Peter appreciate this!

[@Tobsterleung]

Love the way you illustrate the data! Good job!

[@TobyNewbatt]

Cheers Toby! What a great name 😎

[@xrich_]

It's very dependent on where you live, earning 65k in London is likely about the same as earning 35k in Bristol when you account for everyone's biggest expenses, rent/mortgage.

[@rupsurfer]

bristol is also expensive as fuck. if you said cardiff instead of bristol id agree

[@hmartinspliff]

They're are laughing all the way to the bank. 0:08 The crooks in Congress are laughing too, cha-ching $$$

[@chillian12]

Rich is when I can step into a restaurant or walk around the supermarket and not look at the price tags when ordering/buying stuff.

[@KolyaNickD]

Very accurate I think

[@AdrianBooth1]

I’d say that’s comfortable, rich is when you do that with cars, boats, business flights etc

[@X_85]

My husband and I are both in the top 5% but the hell we have gone through to get here goes unnoticed. Both immigrants that arrived in the UK in 2004 with £250 in each of our pockets, we worked 12 hours a day, 6 days a week and lived off of 50 pence per day (back when you could get a toad in a hole for that much at Safeway). We walked 6 miles to work and back each day, rain, snow. Never took a single benefit, never been unemployed (not even for a day), not one single sick day in 20 years. We fought day in, day out, had to constantly prove ourselves, defend ourselves, and in a few months we will have paid off a 30 year mortgage in 10 years. If you were to see us in the street, you would never guess that we had means. We dress in unbranded clothes, drive a 2014 car, do not go out and spunk our cash when all our friends are out and about, but it is our choice to do this.

[@TobyNewbatt]

Thank you and welcome!

[@ilikelampshades6]

All for the taxman to take you to the cleaners. Earning that much money today requires even more sacrifice but the reward is a much smaller/ average house. Would you go through all of that again today if the reward for all of that effort was a tiny little terraced house that is 1000x inflated in price?

[@X_85]

@35627819028353729-4984653 That's a very fair comment and most likely something that very few people think about. The more you earn, the more you get taxed, and the lesser your own returns are. When you get to the 40-45% tax rate, things like getting a bonus should be exciting, but pretty much every penny goes to tax if paid with your normal salary. You therefore pretty much only end up with your monthly salary amount before tax. It does hurt seeing this, especially if it's not always clear where your tax is going to. Thinking back, I truly do not know how I managed to stick it out, but honestly, I would not want to go through it again. My friends have wild memories of places they've been, concerts they've attended, life experience which I do not to a great extent. We go on one holiday a year, nothing lavish but we have something to show for it whereas our friends do not. They're living, we're working, I think they have the better deal, but I have never had the courage to take my foot off the gas. I always think about getting old and not being put in a government run home as I think that scares the life out of me the most.

[@steveetches6013]

@@X_85 - No one ever says on their death bed, "I wish I'd spend more time in the office". If you measure the wealth of your life by the numbers on a spreadsheet, you are missing a significant part of the equation I feel. Sure money and financial wealth is important, more there is more to life than just money.

[@stevem-h3562]

@@steveetches6013 THIS ^^^^^^^

[@michaelosullivan6921]

Just found the channel, what an insightful video into the perspective of what 'rich' is to someone.

[@TobyNewbatt]

Thanks! Was a fun video to make and such an interesting topic

[@CharakaHerath]

Being rich for me is not needing to ask the price of anything, knowing it won't matter as long as I want what's on offer.

[@justinehayward2553]

I'm a trained teacher and I earn almost twice the amount you stated (the top 1%). I also pay 14.5 in taxes. I gave up on the UK a few years ago and moved away. The best thing I ever did.

[@leeroy110]

Where do you teach that you can make that much? And what subject? If you don't mind me asking.

[@RearViEwmirror-3]

Are u teaching breaking bad stuff? Lol

[@pic101]

Seems like Justine can’t answer these questions.

[@HannahLouiseYT]

I don’t earn top 1% but would be around top 5% teaching abroad and owning my own business on the side. Top 1% if still in the classroom is impressive

[@rustywolv]

I’d feel ‘rich’ when I don’t have any debts and I can choose the hours I work.

[@BIG2hats]

I work in tech sales and the sad reality is that there are plenty of young people in my office that earn £100k+ and still live like a broke student (okay, maybe with a few more steak dinners…) but they definitely don’t have the luxury lifestyle you might think someone on that kind of money lives.

[@Nobumblegumforyou]

What tech are you selling? I'm also in tech sales on way less.

[@rufdymond]

Well it’s all about what they do with their money - I’ve met quite a few people in my life who earn £75,000 plus but are still broke. I learned long ago that earning a large salary doesn’t make you rich, it’s the assets you accumulate…property, shares, businesses etc.

[@liammacaodha4783]

Biggest thing that any investor does is start comparing. Pick your own goals which are unique to your own situation and research how to achieve them.

[@tusharroy6712]

Excellent video and analysis, thanks

[@Ahturro]

Feeling rich for me is to have a healthy family around, some food in fridge and a roof above head.

[@deanwilson7031]

Very true health and family is everything

[@yossiyaari3760]

It would be interesting to look at high income spread out geographically.

[@quokkapirquish6825]

It’s what you can save rather than how much you earn. I know someone who can only just scrape by on his salary of £120k in London - his mortgage is £4k month and he has a child at private school. He literally struggles from month to month

[@James-yl3kk]

He can't afford private school, why bother?

[@morpheus9137]

@@James-yl3kk Maybe his kids not good in a knife fight?

[@quokkapirquish6825]

@@James-yl3kk Have you seen the local schools in London?

[@James-yl3kk]

@@quokkapirquish6825 move to the suburbs like normal people. I live 25 miles away and there's no stabbing.

[@richardsinger01]

Absolutely right. Anyone working in a sector with national pay scales (medical, education, civil service, local government etc) will be well off in some areas and relatively impoverished in others. Having said that, anyone paying private school fees and then claiming poverty has no sympathy from me.

[@usmanakhtar6110]

The actual income figure doesn't mean much without undertstanding outgoings. Genuinely being 'rich' is the person who is debt free, mortgage free (inhertence from their parents!) and no outstanding payments like cars. Those people are truly rich.

[@ReNeGaDeM321]

Love how the thumbnail leaves out Scotland and Northern Ireland from the UK , smart

[@TobyNewbatt]

It doesn’t if you look closer you can see where the lines of colour hit Scotland and NI, also my text covers up some too. Did you watch the video and what did you think about it?

[@ReNeGaDeM321]

@@TobyNewbatt nah I didn't watch it, your face annoys me

[@BulletPointFitnessPodcast]

To feel rich I would need enough passive income from cashflow assets to not work, and then enough on top to use to affect the world positively

[@levantos]

A very interesting video indeed. Didn't use my education, had no help from my parents or anybody else. Managed to get to the top 1% on my own through mostly my salary. Quite shocked how low the other brackets were there, I thought it would be higher. I'll be honest I've only recently come to this position but had to learn that you've really got to avoid trying to raise your costs with your income. The allusion of wealth isn't worth it but we're all being forced into treading that fine line whether we like it or not.

[@UKGeezer]

Rich to me just means being able pay my bills and feed myself without having to worry about it, and have enough left over to invest/save a bit and treat myself now and again. As long as I'm not struggling financially, then I consider myself rich.

[@silenttekkerz1]

💯

[@Dr.Sheffield]

Thanks for your great efforts ✌️

[@delbroox]

I come from a family that struggled a lot, despite my mother’s efforts. Poverty taught some great values. Today I am in the top 25% according to this video, and I hope to grow further in the coming years, but I don’t spend much and don’t buy fancy stuff, still whenever I can afford even the smallest thing it gives me a satisfaction that lasts and I think it makes me feel much richer than most really rich people would feel buying a big fancy new car or similar…

[@SayhellotoJJ]

I am genuinely surprised at how low the median income is. And even net wealth sounds painfully low when we talk about the 1% it’s often coupled with the narrative of a billionaire, hardly anywhere close to £5.1m.

[@vid8442]

I'm at around 50k at the moment, but my coworkers who earn that if not more are struggling, while i can buy whatever i want, so i guess it's down to how you deal with the money.

[@kylethompson1379]

This is lower than I expected. I'm in the top 5%, and I live with a partner who is in the top 75%, but I don't feel rich at all. Maybe because I live in London. Another reason may be that I received basically no parent support after 18 y/o, so had to dig out from a difficult position over the last 15 years. I think that having someone get you a house in your 20s, support during uni, etc goes a LONG way to putting you on a good footing.

[@Longlostpuss]

Of course, inheritance has always been the #1 1UP on the path to wealth.

[@justjackman]

Yeah you need to do a video specifically for London because it can’t be compared to the rest of the uk

[@mwendemakove810]

Incredibly surprised by the numbers. At the start of this year (2024), I got a strong urge to tighten my spending so I can start building wealth I live a lifestyle way below my peers on the same salary - I.e., live in run down place, barely eat out, barely buy things I don’t need To my surprise, I’ve been able to save 50%+ of income by only spending on necessities. I don’t spend money just because it is available - I have to have a reason and plan a month in advance to avoid impulse buys! I’m happy that I’m focusing on building wealth and not a flashy lifestyle💯

[@WashingtonAli1]

What a video!! subscribed!

[@owennoad-watson2820]

I'm 24; Ive been in work since 16 and yet I personally only know a few people that reach the UK average- my best paying job was on 14-19 an hour doing back-breaking (metaphorically) work in a warehouse and that was dependant on overtime and yet id be lucky to reach 1800 a month before tax. Reaching that average mark in most cases NEEDS either study or training with years of experience and for most physical jobs, requires going independent. The mental stress of which is simply insane for someone like me

[@kevinsyd2012]

You said it, "study or training" is needed and vastly underrated by too many in the UK. My wife is a Band 8 nurse and earns £67,064 basic, and close to £71,000 with overtime and unsocial hours. She earns more than me as an insurance broker.

[@green1880]

Your wife earns more than you? Isn’t that a bit emasculating?

[@kevinsyd2012]

@@green1880 Don't give a damn who earns the money. We are a couple of skilled professionals (no kids yet) bringing in £120k-130k a year so life is pretty good. What cost of living crisis?

[@daveaglasgow]

It really depends, if you live alone or as a couple. You may have a large mortgage/rent or debt or no mortgage/rent or debt. Where you live is also a huge factor.

[@TobyNewbatt]

Yep indeed so many factors go into this

[@sdavis7096]

For me to feel rich it would mean being mortgage free.

[@payyans87]

You’ll feel rich when your heart is content with what you have.

[@aisha.m]

For myself personally, the day I will feel rich is when I no longer have a student loan. The original 37k loan is currently a 40k balance and thanks to interest, it keeps snowballing… For context, I went to uni from 2012-2016 and part of the cohort when the fees increased to 9k a year. The monthly repayments have never touched the actual balance. I don’t know anyone who has actually managed to clear their student loan. Everyone has a blasé attitude that it’ll get written off eventually, but the debt continues to weigh heavy on me. Glad the algorithm brought me here, this was eye-opening. Thank you. Subscribed!

[@aisha.m]

@@OutoftheEchoChamber Impressed that you have managed to clear your loan! I’ve made voluntary overpayments which stopped the balance from growing… until rates increase and now approx £200 interest is being added to the balance each month. I downloaded the statement for the last financial year and my repayments are now only shaving off the interest - which is making me feel defeated. It seems like large lump sum repayments will be the only way to stop the interest from spiralling and growing the loan balance further.

[@chico1287]

Great vid and lots of eye opening insights into the UK wage classes and what get you into top tiers - thanks Toby. Being Well off/ Rich to me is having no debt with at least 1k to 1.5k per month free disposable income after bills.

[@zen1752]

More coming in than going out is the definition of rich in my book.

[@shintsu01]

My advice is to keep your monthly spending the same even if you increase your income. This way you will automatically save more money able to buy a house stock and have the feeling you are rich. If you increase your spend with your increase of income, you basely have a problem if that income falls or disappear. I think that's the main problem with people that had high income are now poor. and i don't know if i would like to experience a big drop in quality of live suddenly.

[@johnworeilly4051]

Also, it is worth keeping the UK in perspective, compared to the rest of the world. Reference the Credit Suisse Global Wealth Report, latest edition is 2022, which shows that near enough 1% of the world has a total wealth of approx US$ 1 million, which includes property, financial AND personal pension (I.e. NOT including State pension). According to that report, 2.8 million people in the UK are in that position, and 26.5 million adults have wealth in the top 10% of the world.

[@jaitsim2556]

Brilliant clear video 👍🏽

[@DeSousm]

This is such a tough subject to tackle and i think you have done it pretty well. I'm 32 and earn 80k a year. I DO NOT feel rich. Ive got a partner who works partime because we have a 2 year old and the cost of childcare is more than if she was to work as an insurance broker. I work in London which is probably why my salary is high but i have to live within a trains ride to work there. So this means high house prices, high commuting costs and a general high cost of living.

[@jackoh991]

Is that perception though? I consider rich if you don't have to count the pennies to both heat the home and feed everyone.

[@zirconblue2]

Similar position to me. Between me and the Mrs we bring home circa 130k / year. But, we're both paying huge amounts of tax. 40% income, 9% Student loan and 2% NI. Then take off pension and a monumental mortgage and most of that money is gone. Car maintenance and DIY around the home, no crazy expensive Hobies and pretty careful with money. I would say we're comfortable, but still would never be able to afford a brand new Kia let alone a brand new BMW 😂

[@DC3Refom]

​@@jackoh991 well said and he should exactly should be grateful for what he has there people struggling to afford and pay gas and electricity