'I'm 28-years-old and earning £100,000 a year - but I'm not rich'

Daily Mirror

2 days ago

Jack Kim, 28, from East London, says despite earning £100k-a-year he isn't rich. He says he has to make changes to his lifestyle due to the cost-of-living crisis
A man who earns £100,000 a year says he has been hit by the cost of living crisis despite his eye-watering salary.
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Strategy consultant Jack Kim, from East London, says he doesn't see his six-figure salary, once he has stumped up money for tax and bills. The 28-year-old, who owns a home with his partner, has shared a breakdown of his outgoings.
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Jack lives in a two-bedroom property which he purchased for £550,000. He says their monthly mortgage payment and council tax is tough.
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The 28-year-old denies that he is rich and says his income puts him firmly in the HENRY bracket. HENRYs are young people in the UK's top 10 per cent of earners who say they are left with little at the end of the month after bills, taxes and lifestyle inflation.
Jack claims he's had to adjust his lifestyle due to the cost-of-living - ditching their weekly M&S shop for Sainsbury's, having to reduce luxury holidays in Asia for European mini breaks, and opting for Pure Gym instead of the more expensive Gymbox. "Even though I'm on a six-figure salary, I don't feel rich at all," he said.
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"Everyone knows living in London is extremely expensive. It comes to four main things - higher tax rate for people on six-figure salaries, higher living costs, lifestyle inflation and debt. As income rises, so does your lifestyle. I don't wear flashy, high-end clothes or own expensive watches, I opt for high street brands like Uniqlo.
"We try and live below our means by limiting eating out to once a week at a good quality restaurant. Other than a drink at special occasions like weddings, I don't drink alcohol, which is very expensive. We feel the cost of living just like anyone else. I don't feel upper-middle class."
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After graduating from the London School of Economics with a bachelor's and master's degree in management in 2019 - which cost £99,000 in tuition fees - Jack began his career as a strategy consultant on a £21,000 salary. He quickly progressed to £45,000 and began saving for a £82,000 deposit to buy a own property with his partner.
"We collectively needed roughly £82,000 for a deposit, and we did that in two years with some help from our parents," Jack said. "It meant we stopped eating out and primarily cooked at home. During that time, it was Covid which did help because it meant we weren't spending as much or travelling at all."
In December 2021, Jack and his partner were able to get on the property ladder and purchased the two-bedroom property they live in now. Jack said: "Being on a combined income helped us for sure, but alongside our own drive and determination.
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"I can only imagine how hard it is for young people to get on the property ladder now. Especially if they're single and doing it alone. Affordability and the goalpost for a mortgage have changed - even in the last four years. It's not affordable to get a mortgage these days - unless you have generational wealth.
"Growing up, my family and I were considered a lower-income family. From the ages of seven to eight, my mum, dad, brother and I lived in a studio flat in Seoul, South Korea. Since gaining my education and career in London, I'd say as a whole, my family are middle class. But we certainly don't feel it in the grand scheme of things.
"I don't have an expensive watch or a car. No luxury yacht or Monaco, St Moritz holidays like my friends who are bankers. Consulting is an industry where you can see fast income growth. Even though my income has increased, our lifestyle hasn't changed that much."
Monthly outgoings
Mortgage and council tax: £2,630
Utilities: £450
Groceries: £250
Transport: £100
Savings/ investments: £1,500
Subscriptions: £100
Socialising: £400