As a contractor do you sometimes lose perspective when it comes to money?!

[rootsnall]

started with credit card debts of approaching £25K.

had a holiday to florida for £5K

< shakes head >

[Robinho]

What I'm saying is, on 70K gross with a decent size mortgage and kids you'd be doing very well to save 15K a year. You'd have to be living on <30K net a year. You are doing OK but you can't 'lose perspective' which was the point of the original post. It's good money but you aren't rich !

70oddk gross is in the top 3% of incomes.

You're definitely rich... unless you spend all your money, like you are outlining in this post.

Indeed if i win the lottery, and spend all of my winnings on a yacht, i too, will not be able to "lose perspective".

[MyUserName]

Been back contracting 2 years come May. Same as you need about £3K per month. Mrs works but only gets £900/month so need another £2K.

In that time, started with credit card debts of approaching £25K. Now down to £5K or so (on low balance transfer so no rush). Also, spent £6K on garage conversion, had a holiday to florida for £5K. Currently got about 9 months money saved up (i.e. £18K)

So within two years you have had 20k + 5k + 6k along with saving 18k and expenses of 2kx24.

A total of 97k which means taking home an approximate average of 4k a month?
That does not sound too severe - I wonder where my money has gone??

[formant]

70k gross is in the top 2% of household incomes, let alone individual incomes.

You're definitely rich... unless you spend all your money, like you are outlining in this post.

Indeed if i win the lottery, and spend all of my winnings on a yacht, i too, will not be able to "lose perspective".

The thought that a 70k household income makes anyone rich is what's to blame for higher rate and additional rate tax bands and child benefit cuts to penalise those smart enough to wait until they could actually afford kids. And I thought you were the conservative here...

We're on over 90k when I work full time (but I won't until the summer), in the meantime it's closer to 75k. That's great when there's just one child, a reasonable mortgage, and no childcare expenses, but when there's 3 kids, more than one not yet school-aged, and a ridiculous mortgage (not due to a ridiculous house, but due to life circumstances pushing you into a 5.99% low-deposit deal not too long ago) - it's a good income, but it doesn't make you rich.

I grew up an only child with parents making closer to 200k (albeit Euros, so more like 165k). Despite a modest lifestyle, yeah, that's probably rich, particularly in a country with practically free childcare, so by default much lower monthly outgoings. Having a 32k arranged overdraft that you'll never need to dip into, mortgage paid off before 40, and several holidays abroad every year, never anything less than 5 stars - that's a very different lifestyle to the one I have now.

Wealth or 'being rich' is about a bit more than just income. Individual circumstance far beyond spending habits play quite a big part.

On the upside, my tulipity mortgage is up for renewal in a few months, which is likely to free up 400-500 quid per month. Wahey!

[psychocandy]

< shakes head >

Cos you dont like Florida or spending £5K? :-)

[psychocandy]

So within two years you have had 20k + 5k + 6k along with saving 18k and expenses of 2kx24.

A total of 97k which means taking home an approximate average of 4k a month?
That does not sound too severe - I wonder where my money has gone??

Never thought about it like that but yeah. Actually taking home 4.5 - 5K?

Where the rest gone? :-)

[formant]

Never thought about it like that but yeah. Actually taking home 4.5 - 5K?

Where the rest gone? :-)

You had a life. Congratulations.

I'd find it a bit depressing if I could actually account for all of my spending.

[eek]

You had a life. Congratulations.

I'd find it a bit depressing if I could actually account for all of my spending.

I can. Well the monthly current account bank statement does.

[formant]

I can. Well the monthly current account bank statement does.

Ok, I hardly ever pay cash for anything, so I probably could, too. But I don't want to know in that much detail. I'm happy if it all adds up overall.

[Kelstar]

When I started out my tactic was to, as quick as I could:

1. Be debt free
2. Save 12 months warchest
3. Upgrade my banger is it is at the embarrassing stage
4. Keep bills below £1.5k a month

19 months in - all done

No matter what the rate no.4 is really important for me. My aim is to have financial freedom, not increase my financial commitments. Years of student debt and worrying, its so nice to not be in that position anymore.