Why You're Not Earning More
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- Опубликовано: 14 июл 2024
- Who doesn’t want to know if they’re doing better than the person next door? In this episode we talk with Timi Merriman-Johnson, author, creator and founder of Mr MoneyJar, a financial education charity, to get under the bonnet of wealth gaps - wages, gender, ethnicity - and to lay out some key steps to help you climb the ladder.
This episode was recorded in October 2023. The data we reference may have changed.
Damo's video (What Salary Puts You In The Top 10%) is here: • What Salary Puts You I... .
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This is not financial advice. The reason it’s not financial advice is because it’s not tailored to you. We explain the principles of building wealth but if you want personalised advice, it’s worth speaking to a financial advisor. As with everything financial, please do your own research. We really encourage that because no one cares more about your money than you and if you learn the basics then it will change your life.
Chapters:
00:00-00:40 - Intro
00:40-05:02 - What is the average wage in the UK?
05:02-10:38 - How to earn more money
10:38-11:20 - Manual ad
11:20-14:08 - How the Gender Pay Gap affects you
14:08-20:01 - The economic value of raising a child
20:01-21:36 - Sensate ad
21:36-25:19 - How the Ethnicity Pay Gap affects you
25:19-29:39 - The Wealth Gap
29:39-35:00 - How to reduce pay gaps
35:00-40:20 - The single biggest tax raise since the 1970s
40:20-45:40 - Who is in charge, and does it matter?
45:40-47:44 - How Warren Buffett got his wealth
Excellent chat. Back in the early 80's I applied for a job & years later over a lunchtime pint I was told that I only got it because I was white. Suddenly I felt a cheat as I'm a believer in equal opportunities & meritocracy.
Fast forward 20 years later at another company. I was thought to be favourite for the position as I've been there 12 years & covered for my bosses many times in their absence. Before the interview, my boss's, boss pulled me over in the Corridor & told me sorry you won't be getting the job as they were under pressure from the Boardroom to increase diversity. The winning candidate was someone I trained. I felt undervalued & left soon afterwards.
It is discrimination in both cases. The only fair solution is for companies to hire/promote according to the quality of the candidate (but I am under no illusion that this will happen any time soon).
Wow, love your pod and watch every episode, but Timi has been your best guest so far. You all tackled those subjects, as Timi said, with grace and aplomb, well played!
Another banger. Well done chaps! As a white, middle-class man, I felt Damien's discomfort tackling some of those meaty issues 😅 but it's important for us to have these conversations in public.
Well done Timi, you came across really well. You're clearly very thoughtful and considerate 🙌👏
Wasn't expecting all of that. SO good to hear an open, balanced conversation about race/gender etc without tribalists jumping in and using cherry picked stats to back up a lazy point of view. This is how all conversations need to go if we actually want to get anywhere and move forward.
I'd never heard of Timi but I'm going to look him up now and see what else he has to say.
Thanks for exploring this topic Damien.
My investment journey started because I thought that was the only way I could make money, due to my stammer.
Whilst my fears weren't wholly true, in respect to getting a job, I have felt I've been overlooked for roles or positions as a result of my stammer.
Evidence shows that people like myself are, on average, paid 9-10% less than my fluent peers.
It is getting better, but neurodiverse people are still inherently disadvantaged.
We really need an episode of the pod cast of just the two of you interviewing each other a bit more because hearing that T has been involved in everything from selling investment wine to venture capital is blowing my mind right now !!
I have been watching pretty much all your content but this podcast and the guests were quite interesting , the way you bounce off each other was very refreshing.
Loved this episode, open and difficult conversations which we rarely hear but need to hear. Enjoyed the conversations and replies from your guest. I think customs since Brexit sucks...However the UK has surpassed Germany and France in terms of GDP growth since the pandemic...So food for thought.
I am a 40 year old male and was offered a chemist position yesterday. They offered me 24k. A skilled position at £205 above the minimum wage.
These companies should be ashamed of themselves. Embarrassing.
This country is done.
Always look forward to this. Average down in Cornwall is quite low but house prices quite high.
Salary is also down to employer. As a fully qualified NHS nurse my flat rate (after tax/excluding weekends and nights) is £1800. Im a relationship manager for business banking and now my take home is £2700 per month after tax. Now other banks pay upwards of £3500 per month.
Fantastic podcast, keep up the amazing work 👍
Great episode. Really enjoyed it and good to see you having those conversations, even if it did make you feel uncomfortable Damien. They need to be had for change to happen but equally for those changes not to go too far either way.
Thank you! We think it's really important to have these conversations too!
Great conversation guys really enjoyed
Loved everything you've discussed in this one. A lot of people support families abroad whilst living the absolute basic life in the UK. I tell my children you've got to be better and work harder. Really wish the best for all of humanity, there's enough land, money and food to go around.
Incredibly interesting discussion! As a white straight male who works for one of the UKs largest companies I’m definitely seeing career opportunities being limited in favour of minorities either gender or race wise. My generation (born in the 70s) seems to be the one paying most of the price for the levelling up.
How are they being limited?
@@bbuzz1687not being promoted, overlooked in favour of someone else who is less experienced but who "ticks the boxes".
Amazing conversation. Well done.
Thank you!
Brilliant chat. Thank you.
so at 27:40 talking about money being sent overseas to family, does this not have a negative effect on the UK economy overall. I would like to see the stats (although probably will never get to) on this and how it does affect the overall wealth of lower earners who are caught in this family lifestyle.
Well, what can I say, a very well laid out topic and well worth my time watching. thanks guys and to your guest.
Absolutely it's a negative effect. Remittance removes money from the UK economy, meaning that migrant workers contribute less than their British counterparts on the same salary.
Luckily I'm now too old to be stopped but classics have been: Stopped walking out of my parents house carrying my saxophone when I was already late on my way to a band practice... Stopped because I was late for work and basically sprinting. Stopped walking home back from a club and being asked "Where are your drugs?" (it was late but I wasn't 😂)
Excellent podcast!
I love that you touched on issues between gender despite being a table of men. I have always said even though men cant relate it is important for them to stand against unequal rights for women. I will always use my voice for equality. I am a white female, so whilst I have never experienced racism the way I see it is my voice is still needed!
I guess what I am saying is everyone needs to use their voice regardless of what advantages or disadvantages they were born with and im so pleased to be viewing content that aligns with this ❤
I nearly died last year; mostly self inflicted second lockdown was a psychological pain to say the least. I am currently being screwed by the benefits system because I tried to play the game so I am cash poor but I have my health and sanity. I enjoy the education but I dislike the paper itself so don't judge myself on it !!
Women get paid less than a man doing the exact same job for many reasons. The main one is maternity leave. If a woman has a child and goes on leave for a year, and in that time her male counterpart works hard and gets a raise or promotion - how on earth can you either deny the man his promotion or raise OR just give the woman a promotion/raise when she hasn't been doing any work for 9-12 months. Other reasons for women getting less than their male counterparts is that men are much more likely to actually ask for a raise. Men also tend to go the extra mile at work, such as doing extra hours or taking on more responsibility without being asked to do so.
There's no way to fix this without penalising men, which is even more unfair due to the reasons above.
You actually forgot the Government’s number 1 priority, security. Without that the economy cannot function. Great episode.
Another great podcast. Really thought provoking.
However one of my surprise takeaways was that your 6' 3"!
How tall is T? 7' 3"? 😂😂😂
Honestly on gender pay gap, if women were so much cheaper for the same output we'd all hire only women for all work as it would be economically beneficial to do so. There is so much to do with women taking time off work to see take care of their family instead of men that is responsible.
Entire sectors such as care, nursing, cleaning and education are systemically designed to employ mostly women. Salaries in these sectors are notoriously low... so while your argument has some merit, there is also some institutional design that does mostly employ women.
@@user-ws5tu6wu6tagreed. Take nursery practitioners for example, it's almost 100% women and it's one of the lowest paid sectors despite the fact our economy depends on nurseries to allow women like myself to get back to work. Theres a ceiling to how much nursery practitioners can get paid though in line with the wages of the women who send their children to nursery. If it gets to a point where my daily nursery fees are almost the same or even higher than my daily wage then there's little point in sending them to nursery. Similarly with care homes. Privitisation of caring sectors which are almost entirely female dominated essentially results in a wage penalty.
They can't argue with that logic. If the mission of businesses is to maximize profits then they'd stop hiring men and save 10-20% or whatever figure they say women are underpaid and would be making a killing. Funny how the gender pay gap isn't brought up in the adult film industry, modelling industry and any other industry in which women outearn men due to demand.
@@user-ws5tu6wu6tbut a male teacher or nurse would earn the same lol they are on pay scales in the public sector. Still not evidence of a like for like gender pay gap, which does not exist.
This is as stupid as saying why don't companies just hire illegal workers for less money
god i love this podcast - and im very picky about peoples accents and attitude when doing these. this is great! amazing guests too.
The Gender pay gap has far too many variables that account for the disparity, you cannot just throw out a 15% figure and say there, look there is a pay gap ... It's not fair.
Men (on the whole) are interested in things and tend to go into industry, engineering and construction - paid more, more overtime and bonuses
Women (n the whole) are interested in people so lean towards the caring, nursing, HR, Clerical etc.... which pay less.
There are some outliers, say women CEOS etc or male nurses.....
Men tend to work longer hours
More women is part time jobs
Men will take on more dangerous jobs such as working on oil rigs, demolition, etc.... which pay more
We have mentioned the maternity leave element.
It is illegal to pay people differently doing the same role..... The GPG term has widely been debunked in many studies
There is the argument that the reason why certain sectors pay less is that they are generally dominated by women. For example, when teaching was a male dominated profession it was apparently better paid than it is now, when it attracts a larger proportion of women. And coding was a apparently a comparatively poorly paid job in the early days of computing, when it was seen as a women's job. Whereas now it is dominated by men, and thus better paid.
Hi Guys
Great podcast. Interesting to listen to the younger generation discussing these issues.
Just one piece of information I would ask for clarification on.
Your guest mentioned that women were not allowed to open bank accounts in the UK until 1975.
My wife went to University in October 1971 and opened a bank account to pay her student grant into.
Thank you!
Our guest was referring to the fact that it wasn't until the Sex Discrimination Act was passed in 1975, that banks were legally required to allow women to open a bank account in their own name.
Thanks for the reply. I didn't pick up that reference to the SDA from the podcast. Makes sense. The actual reality for young pre University students was different. The banks were keen to gather prospective new customers starting their careers. I could imagine a married woman having family responsibilities encountering a different scenario.
@@MakingMoneyPodcast
Just fyi someone whos in the telecomms industry
and for a big name there a lot of action going on right now fibre is being expanded all over the uk it is happening just takes time next 5 years everyone will have a minimum 1-10gbps
fyi national average currently is 69.7mbps The minimum will be 20x faster as a baseline
An Openreach technician told me within 2 years. I'll believe it when I see it. How are they going to get fibre into blocks of flats?
@pedazodetorpedo they run a main fibre from bottom to top and branch off usually on every odd number floor and theyll be a termination block in the riser cupboard. But i will say flats are usually a lot longer to do but the government has set a date for switch over to full fibre. Reasoning is covid was a wake up call to the gouvernment how reliable/unreliable/fast all the current providers are.
And no one company can monopolise it for anti competition law
hope it helps
I think the UK is so finished, if you are under 35 leave the UK, the weather is terrible, tax is so high and its so expensive. I have done it myself would highly recommend.
But where is there to emigrate to?
Get starlink?
Come on T. Everyone knows MJ is the GOAT 🐐
So basically all these moaning Londoners just need to get a work from home job and move to Leicester or Blackpool and they can live like kings, simple. Great video as per Damo.
Or Thailand or Cyprus etc etc
If your looking for a hair transplant Damien mate I can get you discount off if you mention my name the place is in Manchester I got mine done a year ago best decision I’ve made
Just because there are 20% ethnic and 80% white why would that reflect in a board of directors? It should not. What percentage of the 20% have the skills/knowledge etc to even be considered for those jobs. It's just not realistic to expect. As an example the other way (I just googled this haha) 43% of the premier league is black, now I know a lot of players are not from the UK but that shouldn't really make a difference, they are obviously better players and so got the job. I have never heard anyone say there are too many black players in the league etc..
Well a lot of it has to do with perception, and the people making the decisions, there is undoubtedly bias when it comes to race, class (still a thing in the U.K.) sex etc. As someone from an ethnic minority I know for a fact, that I was often paid less than my peers - I will caveat this with saying I was good, really good at my job (Software Engineer). It was not until I started working for myself that I really began to get paid what I was worth.
With regards to arbitrary percentages on boards for women, ethnic minorities etc I and many people like me simply don’t want this because the inference here is that we are only worthy of being in such positions as part of a quota. This is insulting, during my career I felt I could hold my own against anyone, and my track record proves that. However there is also no doubt that in the U.K. these high level positions are often blocked to certain groups. All I ever wanted was to be treated fairly!
Two of my best friends both left the U.K. for America, one went onto run his own chemical engineering lab in California and the other went on to become one of the most respected young executives of his time, sitting on the boards of some of the worlds largest companies - they are both adamant that would not have been achievable had they stayed here. I was also offered a position in the states back in the 90s which I did not take up. It is a detriment to this country that such talented people have to go overseas to fulfil their potential - it makes this country poorer in every way.
Even on minimum wage, 40 hours a week, 10% for retirement, £145 ish a month. 23-65 at 10% into index funds- £1.1 million.
ANYONE can become a millionaire.
Personally, working in the Merchant Navy- fully sponsored training, tax free profession, works time for time - I think some need to make more appropriate “sacrifices” to get where they really want.
Doing this career has allowed me to invest £80k in index funds before hitting 30. That’s in stocks and shares ISAs.
I don’t want the government to control the age I get my pension or how much I get taxed on it.
The options to better your financial future are there, you just need to do the research and make the choices to get there.
The vast majority of the public have no idea how/why/what/where to invest though. In fairness the workplace pensions should work out pretty well if people choose the right fund and not the default. Thats 8% every month but obviously the fees are a little high but its a company match so free money. It needs to be taught in schools its that simple, most people may stumble on investing when they start earning more money perhaps in their 30s but then they need to play catchup if they want a sizeable pot.
@@usefulrandom1855 It's true most people dont know anything other than the default fund . Some pension funds like l&g give choices now, rather than the much disliked default . Alot like Vanguard . Buffet's 90/10 allocation works for me . With a hefty cash buffer for the crashes . :)
For people who make minimum wage, saving from 23 is not very realistic, and also saving for 42 years straight while making minimum wage its not that simple. Assuming 10% returns on average for the next 42 years also doesnt sound very probable (just taking the best years of SP500 and assume that everyone will get these returns in the future regardless of whats happening in their lifes and in the global economy, is again not realistic). But even if it happens, 42 years of inflation would make the 1.1 million to be something like 300k in todays money. You do understand that not everyone can be a millionaire, this wealth should come from somewhere. Of course in 42 years people on average would live much better than how we live today, due to advances in technology etc but how much better they will be would depend on the advancement in technology and not on how much they save/invest. Investing will just help you take part (gain something) from this advancement, but even if everyone started investing today, this doesnt mean that magically everyone would be much better of in the future, it doesnt work like this.
@@usefulrandom1855 is that a valid excuse not knowing? Google can provide you with the answers to almost anything. It certainly should be taught in schools, but it won’t be. They need a working population that pays taxes.
@@jimipeta very pessimistic perspective. But that can be true. I’d add that this is worst case scenario on minimum wage for 42 years- that’s unlikely to happen. 10% is the average return. Call inflation 3%. 7% growth is better than none. But doing nothing isn’t the way to go here. And relying on a government to make things better isn’t going to help either. Maybe everyone can’t. Maybe that’s better for the few. However, I will make it. That I know. And I guess that’s all that matters