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On this article, I’d love to debate whether or not 100k GBP is an effective wage in London and the UK and the way far precisely does it get you.
Can you might have a luxurious life-style on 100k wage in London? Is 100k a very good 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 existence and family mixtures: life on 100k in London alone, with a working companion and with a SAHP (keep at house companion) and two children.
Right here’s what you may look forward to finding on this submit:
Is London a very good place to stay when you’re a excessive earner?
In the event you’re a excessive earner or HENRY (excessive earner not wealthy but), London is a tremendously good place to stay. It’s not shocking that a lot of billionaires have their second (and typically even first) houses in London – the town has all of it. It has fantastic protected and leafy districts in shut proximity to Central London (Hampstead, Highgate, Fulham), a lot of wonderful eating places, museums, theatres, concert events – you by no means get bored in London.
London might be irritating when you’re residing from wage to wage and don’t have any financial savings and household to depend on, nevertheless, when you’re a excessive earner, you may benefit from the metropolis loads!
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Jobs that pay 100K and extra in London
Despite the fact that London is an costly metropolis, there aren’t THAT many roles that pay 100k and extra. Common salaries in London are literally fairly average, 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 supplied 100k GBP, it’s nice, congratulations! You can be a lot better off that a lot of different Londoners. In the event 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 Individuals, Director of Gross sales), senior tech jobs (Senior Product Supervisor, Senior Software program Developer), Authorized and Medical jobs and, after all, Finance jobs (particularly people who pay a hefty fee).
How far does 100k GBP in London get you? Way of life you may afford
London may be very costly metropolis. After all, a lot of cities within the US (and even Canada) are a special league, however in Europe, London is among the many costliest cities and its property costs are among the many highest on the earth.
So, think about, you’ve been supplied 100k wage in London. That’s, after all, 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 lets you add your pension contribution. Most firms, will subtract 3% out of your wage in your pension contribution, nevertheless, if you need, you may improve 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 may be left with £5437 GBP per 30 days. In London, that’s an excellent wage. Outdoors London, it’s an incredible wage and you may stay very comfortably.
Nonetheless, to estimate the extent of consolation you might need and consider 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 companion who additionally works full-time
- You’ve got two children, and your companion is a keep at house father or mother
After all, everybody’s state of affairs is totally different, however on this article, I needed to particularly deal with these three situations, as they’re in all probability the commonest ones.
Way of life 1: You earn 100k in London and stay alone
Alright, let’s take into account 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 may stay in a really good space. You possibly can 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 may undoubtedly stay someplace in Canary Wharf or Canning City or White Metropolis / Ealing space. That can value round £2100-2500 a month plus payments (one other £300-350 a month on gasoline, electrical energy and council tax). New builds normally are very nicely insulated, so that you received’t spend an excessive amount of on heating in winter, which is an enormous plus! If your own 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 Area), so it’s a very good saving!
Relying on what number of occasions per week you’ll commute to the workplace, you may spend between £80-200 a month on the underground. Nonetheless, when you’re fortunate sufficient to stay near the workplace, you may cycle there and spend nothing on transport.
Now, let’s discuss meals! In the event you work from the workplace, you’ll, likely, eat your lunch exterior until your workplace is catered. Every lunch prices round £10-12 as of late until it’s an inexpensive sandwich for £6-7. You possibly can simply spend £150-200 per 30 days on lunches when you come to the workplace loads. Groceries will also be pricy. Nonetheless, the value relies upon loads on the place you store – some retailers like Aldi and Lidl are fairly inexpensive. Another ones (Waitrose and Complete Meals) are tremendous pricy. On common, a single particular person can spend between £150 and £400 a month on groceries. In the event you like takeaways, add one other £150-300 to that.
Subscriptions (cellphone, Netflix, Spotify and many others.) can value you a further £50 per 30 days.
Going out might be very pricy. Dinner for 2 in a stylish restaurant with little or no alcohol prices round £80-120 in London (which is £40-60 per particular person). Cocktails usually value £13 and extra. In the event you exit twice every week and as soon as every 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 might have left after fastened prices (condominium, payments, groceries) – round £1800-2200 – you may spend that on going out, purchasing, travelling and saving for the longer term!
Way of life and state of affairs 2: You reside with a companion who additionally works and earns a wage
On this situation, you make £100K, and you reside with a companion who additionally works. Let’s think about your companion earns round £50K. Your family revenue is now over £8,2K. It is a very robust family revenue and I don’t suppose you’ll wrestle in any respect. You possibly can hire a two-bedroom condominium in a pleasant space. After all, your meals prices, going out prices and transport prices will improve, however not that a lot, so you should have some huge cash left in your financial institution!
You possibly can journey loads or get monetary savings to purchase your individual property!
Way of life 3: You’ve got two children and your companion is a SATP
Lastly, let’s take into account the ultimate situation – the one the place 100k is an effective wage however your life received’t be that snug. That might be the case when you might have two children and a companion 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 shall be fairly excessive – one other £400-500 a month (heating this home shall be costly).
Your transport may also be costlier, particularly if you have to use the trains. Trains within the UK are notoriously costly. You have to consider no less than £200-250 per 30 days on journey prices (until you earn a living from home loads). In the event you add Web, telephones, Netflix and different subscriptions, that’s one other £100 a month.
Your meals invoice shall be round £500-600 a month until you’re tremendous savvy and know the place to avoid wasting loads on meals.
That’s already circa £3800 per 30 days. You should have round £1600 a month left on all of the purchasing, going out, college journeys and provides and touring, which isn’t that tight, however requires cautious planning.
Nonetheless, in case your companion begins working, you’ll in all probability need to pay childcare, which prices some huge cash within the UK until your children already go to highschool. On this case, your companion’s revenue will assist loads!
As you may see, £100K in London is an honest wage for a household with two children and a companion, who doesn’t work, nevertheless, it doesn’t stretch that far. Nonetheless, when you had been supplied that and you reside exterior London, it’s truly a extremely good wage for a household of 4. You’ll spend no less than 30% much less on housing and transport and even going out shall be cheaper!
Abstract: is 100k a very good wage in London and the UK?
I attempted to interrupt down the wage of 100k into fastened spendings based mostly on the present value of residing in London in 2023. Whereas 100k lets you might have a really snug life-style when you stay alone and much more snug life-style when you mix your revenue together with your companion’s revenue. Nonetheless, when you assist a household, 100k received’t stretch too far and you’ll have to be very savvy to have a very good life-style on that wage in London. Nonetheless, in any situation, 100k is an incredible wage exterior London!
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Price of residing in London – how a lot do you have to stay in London
