Would you be happy on 40k per year as your final salary?

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Reply 40

1732757

Of course not...

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Reply 41

VannR

Original post by poohat

And yes, £40k in the south east is poverty - this is literally what minimum wage workers end up with after you take benefit payments into account (minimum wage = £12k net salary + £6k tax credits if you have 2 kids + £9k housing benefit = £27k net income = £40k gross salary)

Can confirm. The 15% remark just shows how few people live well in London, to be honest.

Reply 42

poohat

Original post by TurboCretin

So your dad takes home about £33k per year? Does your mum work? It seems questionable that he can support a wife and two kids all with 'luxurious' cars and a mortgage on a house presumably worth over £300k (and all the rest) alone. Unless you're missing out some crucial info it doesn't sound like your family is living within its means...

Most families managed that in the past, it isn't particularly unusual. They will have bought the house before the mid-90s housing boom for a very small amount of money (probably around 2-3x his salary at the time) - their prosperity largely comes from the last 15 years of house price rises.

Most people who are 50+ today enjoyed a fairly easy life since living costs were so low. The mistake is thinking that young people today can do the same - they can't. Someone earning £40k is unlikely to ever be able to afford a £300k house.

Reply 43

ladybec

I'd be happy with half as much, but maybe that's just my upbringing talking...
Yeah, I don't like the sound of kids either. :/

Reply 44

username1331498

Original post by ladybec

I'd be happy with half as much, but maybe that's just my upbringing talking...
Yeah, I don't like the sound of kids either. :/

You'd be happy with 20k per year?

Reply 45

hamza3256

If that's the only option, then save up some money and start a business in the future.

Reply 46

frigg113

Original post by Noble.

I don't necessarily. Although I do have a summer internship that pays, pro-rata, more than 40k and a permanent job offer next year that pays more. For what I'm looking to go into (IB/Trading) that salary isn't ridiculous for someone at the end of their career.

I'm a third year maths student. Career wise, quant-trading most likely.

goodluck on that without a phd. And youre not going to get real quant figures at a quant startup.

Reply 47

poohat

Original post by EatAndRevise

You'd be happy with 20k per year?

Assuming a family with kids and a single earner, there is very little difference between £20k/year and £40k/year - about £3-4k at most.

Reply 48

simbasdragon

I think what you'd be happy with is entirely down to how you were brought up. Somebody brought up in a higher income household would likely notice a loss in standard of living if they had a lower income themselves, whereas it would be less noticable for people brought up in a lower income household.

My parent's joint income is around 110k and so unless my partner had a signficantly higher than 40k my standard of living would likely drop.

Reply 49

EllieC130

Considering I'm failrly minimilist I reckon I could live on it fairly happily.

Reply 50

Noble.

Original post by frigg113

goodluck on that without a phd. And youre not going to get real quant figures at a quant startup.

It's one of the reasons I'm not particularly seeking quant roles (and, to be honest, I'd much rather be on one of the more quantitative trading desks than be a quant/strat). That said, at the start up I have an offer from, everyone else has a PhD and I managed to get to the final round with MS to be a Strat, so while it's much harder getting a decent Quant gig from an undergrad (and I question how interesting the work given to a Quant straight out of undergrad vs. a PhD will be), it isn't impossible.

Reply 51

poohat

Getting a good quant job without a phd is very rare but not impossible - if you had (e.g.) a distinction in Part III you could probably do it.

Reply 52

Commercial Paper

Original post by lewif002

There are overtime opportunities

No company car or equivalent perks..

£800 bonus per year at Christmas

£40,000 flat rate. Monday-Friday 8-4.30. On call one week out of 5 but obviously if called in overtime applies at 1.4x for weekdays and 2x for weekends.

Would this be enough for you to settle down? Or how much are you really aiming for as your final salary? This 40k situation is achieved after working at the company for 8-10 years so would be achieved around the age of 30 and then could be at 40k until you retire, with a decent - ish private & public pension.

What's your thoughts?

Posted from TSR Mobile

No, for the following reasons:

1. It's difficult where I live to get a mortgage on that salary for a family-sized house - unless the significant other contributes a good salary? Even then, it'd be a struggle.

2. In 30 years time, inflation will have eradicated the value of that salary and it will not stretch far at all.

3. I want to be financially comfortable, and not have to wake up worrying about it. I don't think that salary alone would be sufficient to achieve that once you add in kids, holidays, mortgage etc.

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Reply 53

TurboCretin

Original post by poohat

You're right - I didn't really apply my brain there. As you say, though, it'd be ludicrous to base your expectations on what the older generation did.

Reply 54

ladybec

Original post by EatAndRevise

You'd be happy with 20k per year?

Yes, considering I come from a household on less than that.
Besides, I really don't want a family.

Reply 55

falloutboyyy

Well as a salary for your first job if it were then yes really good great

But as your final salary until u retire well I wouldn't espexially in terms of inflation in like ten years twenty years etc

Also your ambition and likely future prospects depends on your background, education and uni.

However
Take it you could always get another job later on?

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(edited 8 years ago)

Reply 56

KingStannis

Well, i'd bite your hand off. That's a high salary.

Reply 57

username738914

Nope.

My dad's max salary was £140k (as a senior engineer) combined with my mom's salary our max household income was ~£180k. That was enough to send 3 kids through private primary education - he passed away, sadly, when I got to secondary school.

My goal is to surpass that and break into the higher 6 figures (with luck 7 figures) in order to provide the same opportunities I had as a kid to my future family.

I'd class that as a very respectable early career salary. If one goes into banking, consulting, law or tech (silicon valley firms) that can be achieved straight out of undergrad.

Ideally, in the late stages of my career I'll be a tech entrepreneur with a net worth rather than a salary to worry about.

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(edited 8 years ago)

Reply 58

username1177050

Well it's all about perspective and future career paths. Personally I would like to reach around about that level for my graduate job (law)