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Is 50k gbp a very good wage in London? Effectively, there is no such thing as a straightforward reply! On this article, I’ll share how a lot it prices to stay in London nowadays and what you possibly can actually afford on 50k in London by way of life-style.
So… think about. You’ve been provided 50K gbp a yr. Will you will have a cushty life-style in London on 50k? The reply is: relies upon. Whether or not you reside alone or have a household (and, after all, what wealthy means to you) – you should have a totally totally different stage of life in London.
Right here’s what you possibly can look forward to finding on this publish:
Which jobs pay 50K and extra in London?
There are many jobs that pay over 50K in London – as a result of the price of dwelling disaster, there was additionally a small enhance in salaries within the final yr, therefore among the jobs, that had been beforehand paid worse, are actually paid at round 50k per yr.
I composed an enormous information to the common salaries in London by career and years of expertise, so if you happen to’re curious, be at liberty to test it out right here! (Common wage in London in 2023 by career)
Will you be effectively off on a 50k wage in London? Way of life you possibly can afford on 50k in London
Should you’re questioning whether or not the 50K wage will make you effectively off in London, effectively, sadly not! London is an extremely costly metropolis. In actual fact, London is likely one of the costliest cities in Europe, and its property costs are among the many highest on this planet.
It doesn’t assist that plenty of wealthy folks from all around the globe come to London to stay completely or make it their second residence. If you end up uncovered to the form of locations these folks have a tendency to go to, you may get shocked! For the ultra-rich, it’s tremendous straightforward to spend your early wage in a day!
However anyway, let’s get again to the fact and discover the 50k yearly wage in London. How a lot is it monthly after taxes?
£50k a yr finally ends up (after paying all of the taxes and commonplace 3% pension contribution) being simply over £3,000 monthly. Which isn’t too unhealthy in any respect! For some other metropolis within the UK apart from London. Nonetheless, to grasp what sort of life-style you possibly can have on 50k wage in London, let’s take a look at 3 very totally different situations:
- You reside alone and don’t have any dependants
- You reside with a accomplice who additionally works full-time or part-time
- You might have a toddler, and your accomplice is a keep at residence dad or mum
In fact, there are numerous extra situations (e.g. you will have 1-10 children); you will have somebody who is determined by you and may’t work; you’re a single dad or mum, or your accomplice works and earns greater than you, nonetheless, I needed to particularly deal with these situations, as they’re most likely the commonest ones and offers you an understanding of what to anticipate from a life in London.
State of affairs 1: You’ve been provided 50K gbp in London, and you reside alone
Alright, let’s take into account the primary state of affairs. You might have a wage of 50K gbp in London, and you reside alone.
You make £3,069 after paying all of the taxes and three% pension contribution.
You possibly can undoubtedly afford a studio in a good space of London (verify my article about the very best locations to stay in London for younger professionals) or a room with an en-suite in a way more central space. You possibly can most likely afford a one-bedroom flat, however that will be round zones 4 and 5 and you’ll most likely find yourself spending fairly a bit on transport.
You’ll find a pleasant studio for £1,300-£1,700 relying on the realm and the scale of the studio. A room in a shared flat with an en-suite would price round £1,000-1250 relying on the situation. In fact, you may as well discover less expensive rooms and studios if you happen to actually wish to get monetary savings.
Don’t overlook in regards to the payments: electrical energy, fuel, Web and council tax – on common, it might be further £150-300 monthly (fuel and electrical energy price rather a lot in winter).
Most jobs observe a hybrid mannequin, which signifies that you received’t have to commute to the workplace day-after-day. On this case, you’ll most likely spend £100-130 on the underground. Nonetheless, if you happen to’re fortunate sufficient to stay near the workplace, you would possibly cycle and save fairly some huge cash each month.
Should you work from the workplace, you’ll, most likely, eat your lunch outdoors. You possibly can spend something from £120-250 a month on lunches.
Groceries can price you something from £150 to £400 monthly relying on what and the place you purchase. Some shops are dearer than the others (e.g. Waitrose, WholeFoods are fairly pricy).
Subscriptions (cellphone, Netflix, Spotify and many others.) can price you an extra £50 monthly.
In any case these spendings, yow will discover your self with round £1200 in your pocket if you happen to had been utilizing the decrease figures and simply £230 a month if you happen to had been utilizing greater figures within the ranges offered – left for anything: procuring, going out, travelling, garments!
That exhibits which you can’t have a bougie life-style on 50k wage in London – it’s essential compromise on one thing, e.g. deliver lunches from residence, hire a room or a less expensive studio and purchase groceries in a less expensive grocery store. Nonetheless, fortunately, even on 50k, you possibly can nonetheless afford your personal place (even when it’s a studio).
State of affairs 2: You reside with a accomplice who additionally works and earns a wage
On this state of affairs, you make £50K, and you reside with a accomplice who additionally works. Let’s think about your accomplice has a median wage – round £40K per yr. That’s further £2400 monthly after all of the taxes and contribution. So your mixed earnings is now over £5,4K.
On this case, you possibly can already afford a one-bedroom condo in zones 2-3 for £2000-2200 in month together with payments (council tax, electrical energy, fuel).
Your grocery invoice, nonetheless, will enhance and so will your transport prices. Nonetheless, after paying all of the payments and bills, you each shall be left with round £2.2K in your accounts (mixed) which you can spend on something you need like travelling, going out, procuring or just saving cash.
State of affairs 3: You’re the solely breadwinner in a household with one child
Lastly, let’s take into account a state of affairs the place 50K is barely sufficient to scrape by. That’s within the case once you’re the one breadwinner in a household with 1 child and your accomplice being a stay-at-home dad or mum.
On this case, you’ll most likely hire a really fundamental 2-bedroom flat in zones 3 – 6 of London or in a commuter city. You possibly can solely pay as much as £1400-1500 for hire (£1750 together with all of the payments). Nonetheless, your transport payments will enhance as a result of distance to the town centre except you’re employed close by – ensure that to price range not less than £200 monthly on journey prices (except you earn a living from home more often than not). Should you add Web, cellphone, Netflix and different subscriptions, that’s one other £70 a month.
Your meals invoice shall be round £350-500 a month.
That’s already £2500 monthly, which leaves you with simply £500 to spend on different purchases (from garments to high school expenses in your children), going out, saving and travelling.
As you possibly can see, £50K in London is sadly barely sufficient to outlive in case your accomplice doesn’t work and takes care of the kid. On this case, if you happen to can, attempt to discover a distant job that will can help you stay in one other metropolis and pay method much less for renting a property and transport!
Another posts you would possibly discover fascinating:
We purchased our home (first-time patrons in London)
Is London value it? Professionals and cons of life in London
Value of dwelling in London – how a lot do it’s essential stay in London