Friday, June 14, 2024

Is 100k a superb wage in London & the UK? How far does it get you?


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On this article, I’d love to debate whether or not 100k GBP is an efficient wage in London and the UK and the way far precisely does it get you.

Can you could have a luxurious life-style on 100k wage in London? Is 100k a superb family revenue in London? How far does 100k stretch within the UK? I’ll attempt to reply these and plenty of different questions on this article and supply examples of three totally different life and family combos: life on 100k in London alone, with a working accomplice and with a SAHP (keep at residence accomplice) and two youngsters.

Right here’s what you possibly can look forward to finding on this put up:

Is London a superb place to dwell when you’re a excessive earner?

When you’re a excessive earner or HENRY (excessive earner not wealthy but), London is a tremendously good place to dwell. It’s not shocking that a number of billionaires have their second (and typically even first) houses in London – the town has all of it. It has fantastic secure and leafy districts in shut proximity to Central London (Hampstead, Highgate, Fulham), a number of wonderful eating places, museums, theatres, live shows – you by no means get bored in London.

London could be irritating when you’re dwelling from wage to wage and don’t have any financial savings and household to depend on, nevertheless, when you’re a excessive earner, you possibly can benefit from the metropolis quite a bit!

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Jobs that pay 100K and extra in London

Regardless that London is an costly metropolis, there aren’t THAT many roles that pay 100k and extra. Common salaries in London are literally fairly reasonable, I composed a information to the common salaries in London by occupation and years of expertise, so when you’re curious, be happy to test it out right here!

Therefore, when you had been provided 100k GBP, it’s nice, congratulations! You may be a lot better off that a number of different Londoners. When you’re looking for a job in London that pays over 100k, it’s normally managerial jobs that pay a lot (e.g. Head of Folks, Director of Gross sales), senior tech jobs (Senior Product Supervisor, Senior Software program Developer), Authorized and Medical jobs and, in fact, Finance jobs (particularly those who pay a hefty fee).

How far does 100k GBP in London get you? Life-style you possibly can afford

London could be very costly metropolis. After all, a number of cities within the US (and even Canada) are a distinct league, however in Europe, London is among the many costliest cities and its property costs are among the many highest on the planet.

So, think about, you’ve been provided 100k wage in London. That’s, in fact, earlier than taxes, so let’s calculate, how a lot it is going to be after taxes. For wage calculations, I normally use this calculator because it means that you can add your pension contribution. Most firms, will subtract 3% out of your wage in your pension contribution, nevertheless, in order for you, you possibly can enhance it to five%. With 3% pension deductions, you’ll pay £250 a month to your pension pot.

After taxes, on a 100k wage within the UK, you can be left with £5437 GBP monthly. In London, that’s an excellent wage. Outdoors London, it’s a tremendous wage and you may dwell very comfortably.

Nevertheless, to estimate the extent of consolation you may need and think about all of the spending (and glued prices), let’s take a look at three totally different situations:

  • You reside alone and don’t have anybody relying on you (not even a pet)
  • You reside with a accomplice who additionally works full-time
  • You have got two youngsters, and your accomplice is a keep at residence mother or father

After all, everybody’s state of affairs is totally different, however on this article, I wished to particularly concentrate on these three situations, as they’re in all probability the commonest ones.

Empty Covent Garden, London. Covent Garden at sunset

Life-style 1: You earn 100k in London and dwell alone

Alright, let’s contemplate the primary life-style situation, the place you reside alone on 100k in London. As we talked about earlier than, your after-tax wage is round £5440 a month.

With this revenue, you possibly can dwell in a really good space. You’ll be able to hire a one-bedroom flat in a new-built home with a health club and swimming pool. It won’t be a mansion, however you possibly can positively dwell someplace in Canary Wharf or Canning City or White Metropolis / Ealing space. That may price round £2100-2500 a month plus payments (one other £300-350 a month on fuel, electrical energy and council tax). New builds normally are very properly insulated, so that you gained’t spend an excessive amount of on heating in winter, which is an enormous plus! If your home additionally has a health club and swimming pool, it can save you on a health club membership. These can go as much as £250 a month in London (luxurious ones like Third House), so it’s a superb saving!

Relying on what number of instances per week you’ll commute to the workplace, you possibly can spend between £80-200 a month on the underground. Nevertheless, when you’re fortunate sufficient to dwell near the workplace, you may cycle there and spend nothing on transport.

Now, let’s speak about meals! When you work from the workplace, you’ll, likely, eat your lunch exterior except your workplace is catered. Every lunch prices round £10-12 nowadays except it’s an affordable sandwich for £6-7. You’ll be able to simply spend £150-200 monthly on lunches when you come to the workplace quite a bit. Groceries will also be pricy. Nevertheless, the worth relies upon quite a bit on the place you store – some retailers like Aldi and Lidl are fairly inexpensive. Another ones (Waitrose and Entire Meals) are tremendous pricy. On common, a single individual can spend between £150 and £400 a month on groceries. When you like takeaways, add one other £150-300 to that.

Subscriptions (cellphone, Netflix, Spotify and so forth.) can price you a further £50 monthly.

Going out could be very pricy. Dinner for 2 in a classy restaurant with little or no alcohol prices round £80-120 in London (which is £40-60 per individual). Cocktails usually price £13 and extra. When you exit twice per week and as soon as per week for drinks, that may simply be one other £500 a month!

Going out, nevertheless, if not important. Let’s calculate how a lot you could have left after fastened prices (condo, payments, groceries) – round £1800-2200 – you possibly can spend that on going out, procuring, travelling and saving for the longer term!

Life-style and state of affairs 2: You reside with a accomplice who additionally works and earns a wage

On this situation, you make £100K, and you reside with a accomplice who additionally works. Let’s think about your accomplice earns round £50K. Your family revenue is now over £8,2K. This can be a very sturdy family revenue and I don’t assume you’ll battle in any respect. You’ll be able to hire a two-bedroom condo in a pleasant space. After all, your meals prices, going out prices and transport prices will enhance, however not that a lot, so you should have some huge cash left in your financial institution!

You’ll be able to journey quite a bit or get monetary savings to purchase your individual property!

Life-style 3: You have got two youngsters and your accomplice is a SATP

Lastly, let’s contemplate the ultimate situation – the one the place 100k is an efficient wage however your life gained’t be that snug. That will be the case when you could have two youngsters and a accomplice who doesn’t work.

£5440 will allow you to hire a three-bedroom home exterior the town centre – in zones 3, 4 or 5 or in a commuter city like St. Albans or Stevenage, for instance. You’ll pay round £2400-2500 a month for the home, however the payments will likely be fairly excessive – one other £400-500 a month (heating this home will likely be costly).

Your transport may also be dearer, particularly if you might want to use the trains. Trains within the UK are notoriously costly. It is advisable think about not less than £200-250 monthly on journey prices (except you work at home quite a bit). When you add Web, telephones, Netflix and different subscriptions, that’s one other £100 a month.

Your meals invoice will likely be round £500-600 a month except you’re tremendous savvy and know the place to save lots of quite a bit on meals.

That’s already circa £3800 monthly. You’ll have round £1600 a month left on all of the procuring, going out, college journeys and provides and touring, which isn’t that tight, however requires cautious planning.

Nevertheless, in case your accomplice begins working, you’ll in all probability must pay childcare, which prices some huge cash within the UK except your youngsters already go to highschool. On this case, your accomplice’s revenue will assist quite a bit!

As you possibly can see, £100K in London is a good wage for a household with two youngsters and a accomplice, who doesn’t work, nevertheless, it doesn’t stretch that far. Nevertheless, when you had been provided that and you reside exterior London, it’s truly a extremely good wage for a household of 4. You’ll spend not less than 30% much less on housing and transport and even going out will likely be cheaper!

Abstract: is 100k a superb wage in London and the UK?

I attempted to interrupt down the wage of 100k into fastened spendings primarily based on the present price of dwelling in London in 2023. Whereas 100k lets you could have a really snug life-style when you dwell alone and much more snug life-style when you mix your revenue along with your accomplice’s revenue. Nevertheless, when you help a household, 100k gained’t stretch too far and you’ll have to be very savvy to have a superb life-style on that wage in London. Nevertheless, in any situation, 100k is a tremendous wage exterior London!

Another posts you may discover fascinating:

Value of dwelling in London – how a lot do you might want to dwell in London

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