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On this article, I might 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 way of life on 100k wage in London? Is 100k an excellent family earnings in London? How far does 100k stretch within the UK? I’ll attempt to reply these and lots 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 dwelling companion) and two children.
Right here’s what you possibly can look forward to finding on this submit:
Is London an excellent place to stay in the event you’re a excessive earner?
If you happen to’re a excessive earner or HENRY (excessive earner not wealthy but), London is a tremendously good place to stay. It’s not shocking that plenty of billionaires have their second (and typically even first) houses in London – town has all of it. It has great secure and leafy districts in shut proximity to Central London (Hampstead, Highgate, Fulham), plenty of wonderful eating places, museums, theatres, live shows – you by no means get bored in London.
London will be irritating in the event you’re residing from wage to wage and don’t have any financial savings and household to depend on, nevertheless, in the event you’re a excessive earner, you possibly can benefit from the metropolis lots!
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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 average, I composed a information to the common salaries in London by occupation and years of expertise, so in the event you’re curious, be happy to test it out right here!
Therefore, in the event you have been supplied 100k GBP, it’s nice, congratulations! You can be a lot better off that plenty of different Londoners. If you happen to’re looking for a job in London that pays over 100k, it’s often 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, in fact, Finance jobs (particularly people who pay a hefty fee).
How far does 100k GBP in London get you? Way of life you possibly can afford
London could be very costly metropolis. In fact, plenty of cities within the US (and even Canada) are a unique 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, in fact, earlier than taxes, so let’s calculate, how a lot it will likely be after taxes. For wage calculations, I often use this calculator because it permits you to add your pension contribution. Most firms, will subtract 3% out of your wage on your pension contribution, nevertheless, if you’d like, 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 per 30 days. In London, that’s an excellent wage. Exterior London, it’s a tremendous wage and you may stay very comfortably.
Nevertheless, to estimate the extent of consolation you may need and think about all of the spending (and stuck prices), let’s take a look at three totally different eventualities:
- 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 two children, and your companion is a keep at dwelling guardian
In fact, everybody’s scenario is totally different, however on this article, I needed to particularly give attention to these three eventualities, as they’re most likely the most typical ones.
Way of life 1: You earn 100k in London and stay alone
Alright, let’s contemplate the primary way of life 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 earnings, you possibly can stay in a really good space. You’ll be able to hire a one-bedroom flat in a new-built home with a gymnasium and swimming pool. It won’t be a mansion, however you possibly can undoubtedly stay 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 often are very nicely insulated, so that you received’t spend an excessive amount of on heating in winter, which is a giant plus! If your own home additionally has a gymnasium and swimming pool, it can save you on a gymnasium membership. These can go as much as £250 a month in London (luxurious ones like Third Area), so it’s an excellent saving!
Relying on what number of occasions per week you’ll commute to the workplace, you possibly can spend between £80-200 a month on the underground. Nevertheless, in the event you’re fortunate sufficient to stay near the workplace, you may cycle there and spend nothing on transport.
Now, let’s speak about meals! If you happen to work from the workplace, you’ll, most likely, eat your lunch exterior until your workplace is catered. Every lunch prices round £10-12 as of late until it’s an affordable sandwich for £6-7. You’ll be able to simply spend £150-200 per 30 days on lunches in the event you come to the workplace lots. Groceries can be pricy. Nevertheless, the worth relies upon lots on the place you store – some outlets like Aldi and Lidl are fairly reasonably priced. Another ones (Waitrose and Entire Meals) are tremendous pricy. On common, a single particular person can spend between £150 and £400 a month on groceries. If you happen to like takeaways, add one other £150-300 to that.
Subscriptions (telephone, Netflix, Spotify and so forth.) can price you a further £50 per 30 days.
Going out will 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 price £13 and extra. If you happen to 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 mounted prices (residence, payments, groceries) – round £1800-2200 – you possibly can spend that on going out, buying, travelling and saving for the longer term!
Way of life and scenario 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 earnings is now over £8,2K. This can be a very sturdy family earnings and I don’t assume you’ll battle in any respect. You’ll be able to hire a two-bedroom residence in a pleasant space. In fact, 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 lots or get monetary savings to purchase your individual property!
Way of life 3: You’ve two children and your companion is a SATP
Lastly, let’s contemplate the ultimate situation – the one the place 100k is an effective wage however your life received’t be that snug. That may 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 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 even be costlier, particularly if it’s essential use the trains. Trains within the UK are notoriously costly. It’s worthwhile to think about a minimum of £200-250 per 30 days on journey prices (until you earn a living from home lots). If you happen to 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 lots on meals.
That’s already circa £3800 per 30 days. You should have round £1600 a month left on all of the buying, going out, faculty journeys and provides and touring, which isn’t that tight, however requires cautious planning.
Nevertheless, in case your companion begins working, you’ll most likely should pay childcare, which prices some huge cash within the UK until your children already go to highschool. On this case, your companion’s earnings will assist lots!
As you possibly can see, £100K in London is a good wage for a household with two children and a companion, who doesn’t work, nevertheless, it doesn’t stretch that far. Nevertheless, in the event you have been supplied that and you reside exterior London, it’s really a extremely good wage for a household of 4. You’ll spend a minimum of 30% much less on housing and transport and even going out shall be cheaper!
Abstract: is 100k an excellent wage in London and the UK?
I attempted to interrupt down the wage of 100k into mounted spendings primarily based on the present price of residing in London in 2023. Whereas 100k lets you might have a really snug way of life in the event you stay alone and much more snug way of life in the event you mix your earnings together with your companion’s earnings. Nevertheless, in the event you assist a household, 100k received’t stretch too far and you’ll have to be very savvy to have an excellent way of life on that wage in London. Nevertheless, in any situation, 100k is a tremendous wage exterior London!
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