What's a good income?

[firsttimecaller]

The census result showed that only about 5% of people earn over 100k, I found this surprising, I don't think 100k is enough particularly if it's only one person earning it an supporting a family. But I would consider it a good enough salary for NZ standards. Perhaps that's why people are so keen on investing, not enough money after taxes and expenses to really enjoy your money.

So I was just wondering what people in general think is a "good salary", regardless of what you do for a crust.

If anyone here is brave enough to share their net income per month, I'd be really interested to know what that is, and is that considered "good enough" for you? This could include income from rental properties and anything else you get money from.

[PC]

"Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery."

The number of dependants you have is a big factor.
Single student $150pw was awesome.
Married with 3 kids $1000pw OK.

[firsttimecaller]

Haha yea..I used to think I raked it in, got almost $180 a week on student allowance. Now I don't even know how I survived on that little.

This is a nice article about a couple who packed up the kids to live in France picking fruit on less than $200 a week: http://www.nzherald.co.nz/travel/new...ectid=11205077

[PC]

Just thinking about being an emergency nurse is enough to send one running off to France.
The really silly thing is that it doesn't pay to work too hard in NZ:

http://www.stuff.co.nz/stuff-nation/assignments/working-for-your-family/9776052/Hubbys-raise-made-us-150-wk-poorer

[speights boy]

^ Re that article.
Low wages are in many instances corporate welfare.

The taxpayer picks up the tab through benefits to the employee.
Corporations reap the profits through the low wages.

[PC]

And the profits go off to Australia!

Crazy tax laws.
What is "fair" about different taxes for different entities.
28% less expenses for corporates. 34.7%+GST for workers. 0% for Google.
Politician playing favourites. Grrrr.

[firsttimecaller]

From that article: "I work because I want to, but also because I have to - this is frowned upon by society"
Which society is she talking about? NZ 1960's?

Anyway it's a damn luxury to not have to work when you have kids, not saying it's easy being a stay at home mum, but imagine it's easier than being a working mum.

[firsttimecaller]

secondly, that guy is an idiot. He should just ask for the pay raise in the form of reimbursement for petrol or something.. obviously don't know the in's and out's of his employment but I'm sure there would be a way around it.

[speights boy]

firsttimecaller

So, you believe the taxpayer should continue to pick up the tab with middle class welfare ?

[firsttimecaller]

firsttimecaller

So, you believe the taxpayer should continue to pick up the tab with middle class welfare ?

No point playing the game fairly when everyone else is cheating.

[speights boy]

Thanks for clarifying your attitude.

Fortunately I believe you are very wrong.

[Davo36]

I think $100k is still an OK income because so many things have gotten cheaper like consumer goods, travel etc.

But of course it all depends on what your outgoings are. If you've got a huge mortgage, you need a lot just to pay that down.

[speights boy]

If you've got a huge mortgage, you need a lot just to pay that down.

All good if that happens.
Still a lot of middle class doing the opposite.

Diana Clement: The trouble with middle-income earners ...

"My gut feel is that the spending is often for toys," says Bawden.
He cites the example of a client who has done about four top-ups in the past 12 months. The client "needed" to upgrade his car and then the spa pool needed repair.

"Clearly he doesn't have the cash flow to provide for those things. You know they are not being really smart."
It's common, says Bawden, to have clients who top up their mortgage to pay off credit cards.
This is smart if they have changed their ways and won't keep spending. But mostly that isn't the case.

A homeowner who spends considerably more on an extension to get those extra bathrooms and bedrooms or more living space also believes that he or she will be repaid handsomely in capital gain.

Many of them would make the same capital gain by simply sitting on their homes in the current market, says Trafford. Most kitchen and bathroom renovations fall into this category.

"People are quite happy to talk about their weekend adventures, how much they spent or how much they drank, but when it comes to showing our friends our credit card balance or a recent payslip, that is such a no go area.
They won't say, "I can't afford to go out" to their friends. They put it on the credit card then find a way to pay for it later."

Although middle-income people might not need food parcels - although some do - not being able to keep up with the Joneses is hugely stressful for some people.

One reason why interest rates are being talked up.

[Bob Kane]

So I was just wondering what people in general think is a "good salary", regardless of what you do for a crust.

It's been suggested on PT by a wealthy man (Graeme?) that a good income is $3000 pw:
- $1000 for food
- $1000 for accommodation
- $1000 for travel

If you can get $3k pw of passive income then you don't need any more money.

[firsttimecaller]

"A homeowner who spends considerably more on an extension to get those extra bathrooms and bedrooms or more living space also believes that he or she will be repaid handsomely in capital gain.

Many of them would make the same capital gain by simply sitting on their homes in the current market, says Trafford. Most kitchen and bathroom renovations fall into this category."

The herald had an article about this too, there are particular renovations you can do that will definitely increase value such as weathertighting your home and improving indoor-outdoor flow.

The examples in Diana's comments sound more like general idiots than the typical middle income earner.
If a middle incomer wants to waste their money on superfluous items, as long as they can service the debt, what is the problem? It is in the low income areas that you see instant finance and other shark type loaning institutions popping up, ever listened to the ads on Mai FM? Mylayby or the multitude of other websites specifically targeting people who don't even have a spare $500 to buy a smart phone?
This is not a problem with just middle income earners, it's a problem with people in general.