Apparently I 'need' to earn my age!

mr_eddy

So my team at my workplace were invited to a BS 'what the future holds' workshop, Basically we got a load of free invites because we did some work for the organisers. A few of us went along because it got us out the house/office.

Anyway in a nutshell it was largely pointless but one point that seemingly everyone (apart from a few of us) was nodding too was this notion of earning your age and how its critical to success.

I personally find this odd, I earn £24k a year (as does my missus) and I am nearer 40 than 30 , Granted I live in the midlands so our mortgage for our 3 bed semi is £612 (total that is , not my share) but still where do people get this idea that you have to be on £40k a year at 40 otherwise you will die of starvation!

Granted I do not have a all-consuming gambling addiction or a wardrobe full of Rapha kit but even still I don't scrimp, I eat well (read: too much) , have netflix and amazon prime, nice mid-level bike and a 21 plate car on the drive (granted its a lease) and until Covid kicked us in the nuts I also had 2 nice hols a year - Once to a nice 4/5 star hotel in Greece or Italy and Once a year to Centre Parcs.

We have a 2 year old daughter as well and between us we manage to pay for nursery every week and she doesn't go there dressed in bin bags either.

I suppose its what you spend not what you earn but still I find it rather toxic that many people think its the end of the world if they don't hit that mark.

Maybe I am just lucky having lower living costs?

pblakeney

mr_eddy said:

...but still where do people get this idea that you have to be on £40k a year at 40 otherwise you will die of starvation!
...

Which people?
It is a new concept on me. Does a 65 year old have to be on £65k? Stupid.

mr_eddy

It seems like a common trope in business , I have heard it a few times that its a good 'rule' to earn your age. Its probably not as common as my brain thinks it is!

mr_eddy

With my sensible hat on clearly the more pressing issue is not how much you earn rather how much you spend. I have known people that spend more on their car finance/lease then they do on their mortgage - Madness!

rick_chasey

As long as your pension is also being looked after, or you will be comfortable on your state pension, then it's fine.

You can always earn more, and you don't need to be told what the benefits are for earning more.

Ben6899

Seems like a completely arbitrary relationship to me. Bonkers!

veronese68

I need to be a lot younger than I am then

daniel_b

Yep that is toss isn't it - and even if it was viable as an equation, it can only be so for so long, as salaries change, and living costs alter as well.

Coincidentally it is something I used to want to try and hit, maybe 15-20 years ago, but then I guess it was easier back then as I was younger for one thing

mr_eddy

I suppose it comes down to how realistic your goals are. I started my pension late and I have some old debt to clear (old story an old 'friend' screwed me over) so I don't ever expect to have a big private pension. For me a realistic goal is to be mortgage free and have a small private pension or even just state pension and to keep riding (as long as the legs still work).

I have absolutely zero desire to have a Porsche and a holiday villa in Portugal or 5 holidays a year.

If you have no mortgage to pay and you spend your days cycling round the local byways and villages then I think state pension can work fine.

My nan lived off state pension and never seemed to want for anything but that was because she was happy with gardening and going on the train to the seaside.

Some people want to have 2 Mercs on the drive and 3 holidays to Thailand every year plus weekend breaks every month. Each to their own I suppose but not my goal.

MattFalle

earn your age?

what bollox.

your life seems quite groovy tbh.

daniel_b

Yes very true - I don't buy expensive cars, or spend many thousands on holidays, but I do spend a bit on bicycles and kit.

Long term I used to (and still do) dream of moving to France in later days potentially before retirement and cycle plenty, but of course that's now an awful lot more difficult than it once would have been.

First.Aspect

To put it in context this glib calculation was the same 20 years ago and doesn't seem to have gone up with inflation.

OP, ignore it and instead explain to me where the hell all my money is going.

Pross

Never heard of it, it really doesn't hold water as I would argue that past a certain age your cost of living goes down (I'm hopefully starting to reach that point).

First.Aspect

Pross said:

Never heard of it, it really doesn't hold water as I would argue that past a certain age your cost of living goes down (I'm hopefully starting to reach that point).

Nope. Sorry.

surrey_commuter

mr_eddy said:

So my team at my workplace were invited to a BS 'what the future holds' workshop, Basically we got a load of free invites because we did some work for the organisers. A few of us went along because it got us out the house/office.

Anyway in a nutshell it was largely pointless but one point that seemingly everyone (apart from a few of us) was nodding too was this notion of earning your age and how its critical to success.

I personally find this odd, I earn £24k a year (as does my missus) and I am nearer 40 than 30 , Granted I live in the midlands so our mortgage for our 3 bed semi is £612 (total that is , not my share) but still where do people get this idea that you have to be on £40k a year at 40 otherwise you will die of starvation!

Granted I do not have a all-consuming gambling addiction or a wardrobe full of Rapha kit but even still I don't scrimp, I eat well (read: too much) , have netflix and amazon prime, nice mid-level bike and a 21 plate car on the drive (granted its a lease) and until Covid kicked us in the nuts I also had 2 nice hols a year - Once to a nice 4/5 star hotel in Greece or Italy and Once a year to Centre Parcs.

We have a 2 year old daughter as well and between us we manage to pay for nursery every week and she doesn't go there dressed in bin bags either.

I suppose its what you spend not what you earn but still I find it rather toxic that many people think its the end of the world if they don't hit that mark.

Maybe I am just lucky having lower living costs?

Everybody else has already told you it is rubbish so here is a number to cheer you up if you were the sole earner you would need to earn approx £52k a year to have the same net household income.

photonic69

Does this mean I’ll be eternally youthful???

First.Aspect

Or that other people are prematurely ageing?

ddraver

Bollox in all important ways, and less and less likely for Millenials I'd guess.

I'd say that it probably assumes a few less 'progressive' things about Mrs Eddy too.

SC's point is valid for single, romantically challenged nomads like me though.

Before global economics and politics respectively ruined two of my careers though, I wasn't far off...

surrey_commuter

ddraver said:

Bollox in all important ways, and less and less likely for Millenials I'd guess.

I'd say that it probably assumes a few less 'progressive' things about Mrs Eddy too.

SC's point is valid for single, romantically challenged nomads like me though.

Before global economics and politics respectively ruined two of my careers though, I wasn't far off...

The counterpoint to the traditional millennial moaning is that it was a lot harder 20-30 years ago

capt_slog

Sounds similar to a another BS business model.

I used to work for a little 'company' that was inside a Uni. It employed 5 of us, and we were doing okay, or so we thought. According to the overseers, we were not doing well because we were not making year on year growth, and so from their point of view we were making a loss.

I can sort of see what they mean, but as I pointed out to my manager at the time...
If a one-man business runs for all that one man's life, keeps a roof over his head and raises his family, I would call that a success. But because it didn't grow, they call it a failure?

First.Aspect

capt_slog said:

Sounds similar to a another BS business model.

I used to work for a little 'company' that was inside a Uni. It employed 5 of us, and we were doing okay, or so we thought. According to the overseers, we were not doing well because we were not making year on year growth, and so from their point of view we were making a loss.

I can sort of see what they mean, but as I pointed out to my manager at the time...
If a one-man business runs for all that one man's life, keeps a roof over his head and raises his family, I would call that a success. But because it didn't grow, they call it a failure?

University business advice = oxymoron.

Pross

Presumably this 'formula' is only relevant to today as it doesn't allow for inflation. I doubt many 30 year olds were earning £30k in 1980.

surrey_commuter

Pross said:

Presumably this 'formula' is only relevant to today as it doesn't allow for inflation. I doubt many 30 year olds were earning £30k in 1980.

They are Boomers so life was easier

Jezyboy

Seems an odd marker to be honest. Neither particularly aspirational, but beyond what you'd need to have a modest existence in many parts of the country.

Would be a pretty poor salary for a 20 something professional in London though.

Dorset_Boy

surrey_commuter said:

Pross said:

Presumably this 'formula' is only relevant to today as it doesn't allow for inflation. I doubt many 30 year olds were earning £30k in 1980.

They are Boomers so life was easier according to Rick