Juan:'Could I ask you how much money you earn from working here? How much money you are paid in your salary?'
Peter:'Each year I earn about £70,000. But that is my gross salary. That is before the government removes taxes, the money the government takes from people to pay for its services. So after taxes have been removed, my net salary (the money that I obtain at the end) is about £54,000.'
Juan:'It's not a lot of money to live on in London!'
Peter:'Yes, I know. But I invested some money in the past. I bought some stocks and shares in companies. So, every year I earn another £6,000 from them. So my total income, the money I receive each year, is £60,000.'
Juan:'So, what do you do with your income? What do you spend it on?'
Peter:'I spend my money like most people, on food, bills, clothes, holidays etc... I also have some debts. I have credit cards, loans and a mortgage from the bank. I owe the bank a lot of money, money which I borrowed from them in the past to buy things. So, I repay £6,000 to the bank each year.'
Juan:'Do you save a lot of money? Put money into a bank account for the future?'
Peter:'Yes. I try to save £2,000 each month in the bank.'
Juan:'Do you have a car?'
Peter:'I can drive a car, but I don't own a car. With my income, it's too expensive to have a car in London. You have to buy the car and then you have to pay for petrol, parking, insurance etc... I can't afford to have a car in London.'