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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’ve gotten a luxurious life-style on 100k wage in London? Is 100k family revenue 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 completely different life and family mixtures: life on 100k in London alone, with a working associate and with a SAHP (keep at residence associate) and two children.
Right here’s what you may anticipate finding on this put up:
Is London place to dwell in the event 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 dwell. It’s not stunning that a lot of billionaires have their second (and generally even first) properties 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 lot of superb eating places, museums, theatres, live shows – you by no means get bored in London.
London could be irritating in the event you’re residing from wage to wage and don’t have any financial savings and household to depend on, nonetheless, in the event you’re a excessive earner, you may benefit from the metropolis rather a lot!
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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 reasonable, I composed a information to the typical 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 provided 100k GBP, it’s nice, congratulations! You may be significantly 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 Folks, Director of Gross sales), senior tech jobs (Senior Product Supervisor, Senior Software program Developer), Authorized and Medical jobs and, after all, Finance jobs (particularly those who pay a hefty fee).
How far does 100k GBP in London get you? Way of life you may afford
London could 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 most costly cities and its property costs are among the many highest on this planet.
So, think about, you’ve been provided 100k wage in London. That’s, after all, earlier than taxes, so let’s calculate, how a lot will probably 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 on your pension contribution, nonetheless, if you’d like, 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 can be left with £5437 GBP monthly. In London, that’s an excellent wage. Outdoors London, it’s an incredible wage and you may dwell very comfortably.
Nonetheless, to estimate the extent of consolation you might need and think about all of the spending (and glued prices), let’s take a look at three completely different situations:
- You reside alone and don’t have anybody relying on you (not even a pet)
- You reside with a associate who additionally works full-time
- You may have two children, and your associate is a keep at residence father or mother
After all, everybody’s scenario is completely different, however on this article, I wished to particularly concentrate on these three situations, as they’re most likely the most typical ones.
Way of life 1: You earn 100k in London and dwell alone
Alright, let’s take into account the primary life-style state of affairs, 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 dwell in a really good space. You possibly can lease a one-bedroom flat in a new-built home with a gymnasium and swimming pool. It won’t be a mansion, however you may undoubtedly dwell 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 properly insulated, so that you received’t spend an excessive amount of on heating in winter, which is an enormous plus! If your 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 House), so it’s 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, in the event you’re fortunate sufficient to dwell near the workplace, you may cycle there and spend nothing on transport.
Now, let’s speak about meals! In the event 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 possibly can simply spend £150-200 monthly on lunches in the event you come to the workplace rather a lot. Groceries can be pricy. Nonetheless, the worth relies upon rather a lot 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 individual can spend between £150 and £400 a month on groceries. In the event you like takeaways, add one other £150-300 to that.
Subscriptions (telephone, Netflix, Spotify and many others.) can value you a further £50 monthly.
Going out could 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 individual). 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, nonetheless, if not important. Let’s calculate how a lot you’ve gotten left after fastened prices (residence, payments, groceries) – round £1800-2200 – you may spend that on going out, buying, travelling and saving for the long run!
Way of life and scenario 2: You reside with a associate who additionally works and earns a wage
On this state of affairs, you make £100K, and you reside with a associate who additionally works. Let’s think about your associate 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 battle in any respect. You possibly can lease a two-bedroom residence 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 rather a lot or lower your expenses to purchase your individual property!
Way of life 3: You may have two children and your associate is a SATP
Lastly, let’s take into account the ultimate state of affairs – the one the place 100k is an efficient wage however your life received’t be that snug. That will be the case when you’ve gotten two children and a associate who doesn’t work.
£5440 will allow you to lease 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 might be fairly excessive – one other £400-500 a month (heating this home might be costly).
Your transport will even be costlier, particularly if that you must use the trains. Trains within the UK are notoriously costly. That you must think about at the least £200-250 monthly on journey prices (except you work at home rather a lot). In the event you add Web, telephones, Netflix and different subscriptions, that’s one other £100 a month.
Your meals invoice might be round £500-600 a month except you’re tremendous savvy and know the place to avoid wasting rather a lot on meals.
That’s already circa £3800 monthly. You’ll 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.
Nonetheless, in case your associate begins working, you’ll most likely must pay childcare, which prices some huge cash within the UK except your children already go to high school. On this case, your associate’s revenue will assist rather a lot!
As you may see, £100K in London is a good wage for a household with two children and a associate, who doesn’t work, nonetheless, it doesn’t stretch that far. Nonetheless, in the event you have been provided that and you reside exterior London, it’s really a extremely good wage for a household of 4. You’ll spend at the least 30% much less on housing and transport and even going out might be cheaper!
Abstract: is 100k wage in London and the UK?
I attempted to interrupt down the wage of 100k into fastened spendings primarily based on the present value of residing in London in 2023. Whereas 100k lets you’ve gotten a really snug life-style in the event you dwell alone and much more snug life-style in the event you mix your revenue along with your associate’s revenue. Nonetheless, in the event you assist a household, 100k received’t stretch too far and you’ll have to be very savvy to have life-style on that wage in London. Nonetheless, in any state of affairs, 100k is an incredible wage exterior London!
Another posts you may discover attention-grabbing:
Price of residing in London – how a lot do that you must dwell in London
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