Day 362 - Daddy, Are We Poor?

Not that my children are particularly materialistic but they have asked this question on a number of occasions.

Let's examine the facts. We live in a fabulous house in one of the most desirable areas in one of the most desirable towns in England that has outstanding state schools. We have zero debt. In the past 12 months, Ellen has been on school trips to Poland and Germany, Ted has been to the Battlefields, both Ted and Alice have played club football home and away, we have been on a two week holiday to France and there is hot food on the table every night.

I took a 96% pay cut to start a new career in teaching, not including the free booze and boon doggles so there is no question that we have all felt the loss of disposable income. Cutting back has been easy and it's amazing how little you can actually live on if you are careful, thoughtful and have Mrs N running the books. We delineate clearly between living expenses  and 'capital' spend so that we live on what we earn while being able to splash out on the big items using our savings if we need to. I even persuaded Mrs N to let me buy a new bike this year.

On the income side, Mrs N has gone out to work 3 days a week, I am picking up £25 an hour from maths tutoring 2 or 3 times a week, Ellen is baby sitting and Ted has a paper round. We claim everything we can, adding up to a healthy income from tax credits and child benefit. There is something very real and satisfying about doing an hour's work and receiving £25 in cash at the end of it.

In 2027 I am entitled to a Diageo pension worth the same as I earn now, with various other pension pots maturing in subsequent years (subject to the whole thing not melting down in the meantime).

Do we have a significantly altered lifestyle from 2 years ago? Yes. Are we poor? No. Am I happy? Oh Yes. Is this just about me? Absolutely