The UK has seen relative wealth for decades. Although we are in a bit of a downturn right now, the level of wealth in the UK sits at almost £13 trillion.
Statistics from the office of National statistics state that the average salary for women and men combined in part-time and full-time employment is £29,000. For those working full-time, the figure is £35,423. So given so much wealth and just a solid average salary, how do the top earners make so much and keep so much money?
How much does the UK top 1% have?
In order to be in the top 1%, the figure that you actually require has fallen, according to HM Revenue and Customs. In 2016 to 2017, you would have needed to earn a pre-tax salary of around hundred and £166,000. Apart from operating the right type of personal and business accounts, here are some secrets of the top earners in the UK.
Profession is important
If you work in academia or medicine, positions you would expect to be valued in society, you aren’t likely to make that top 1%. Senior managers, consultants and hospitals and executives at the BBC do often make the 1% bracket. The majority of the rest of the people are entertainers, footballers, FTSE 250 for directors and bankers.
Stock option payments
There is a big presence of financial professionals and top executives in the top tier of earners. In recent times, more and more of this income has come as valuable stock options, rather than as a monthly payment. These stock options came because there was an old problem of making sure that people hired to run businesses really had an interest in the company.
Become great at whatever it is you do
Commitment to excellence – rather than being average – is one of the keys to reaching the top. In any industry, there are the top performers who tend to make the top 1%. If you live, breathe and have a massive passion for your profession, then those around you will be obsessed with you, and you will make a huge sum of money. The reality is that it is the ‘great,’ not the ‘good.’ that make the top 1% in most professions.
The top earners in the UK understand the compounding effect of investments. Many don’t turn to try to take all of their profit at once. Instead, they take dividends and reinvest them over a while to grow their wealth. By accumulating investments and reinvesting, you can do a lot of magic for your annual income.
Real estate investments
Becoming a millionaire real estate investor takes a lot of work, but the residual income makes it worthwhile. Property is not doing great right now, but it is sure to take off again in the future, as the UK market is so dependent on the property marketplace. There are ups and downs in real estate, but history has shown that investment in property has been profitable for millions of people.
To make the top 1% is beyond the reach of most people’s imaginations. However, it really is possible if you live with passion and earn in a place where you are making a difference. The majority of people who make the top 1% are in finance and consultancy. But in any industry, if you prove to be the best of the best, you will thrive and make a lot of money.