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

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

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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 may have a luxurious way of life on 100k wage in London? Is 100k a very good family earnings 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 combos: life on 100k in London alone, with a working associate and with a SAHP (keep at house associate) and two youngsters.

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

Is London a very good place to stay in the event you’re a excessive earner?

Should 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 numerous billionaires have their second (and generally even first) houses in London – town has all of it. It has fantastic secure and leafy districts in shut proximity to Central London (Hampstead, Highgate, Fulham), numerous superb eating places, museums, theatres, concert events – you by no means get bored in London.

London will be irritating in the event you’re dwelling 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 possibly can benefit from the metropolis rather a lot!

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Jobs that pay 100K and extra in London

Although 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 typical salaries in London by occupation and years of expertise, so in the event you’re curious, be at liberty 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 numerous different Londoners. Should you’re looking for a job in London that pays over 100k, it’s often 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, numerous cities within the US (and even Canada) are a unique league, however in Europe, London is among the many most costly cities and its property costs are among the many highest on the planet.

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 is going to be after taxes. For wage calculations, I often use this calculator because it means that you can add your pension contribution. Most corporations, will subtract 3% out of your wage in your pension contribution, nonetheless, if you’d like, you possibly can 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 a tremendous wage and you’ll stay very comfortably.

Nevertheless, to estimate the extent of consolation you might need and consider all of the spending (and glued prices), let’s have 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 associate who additionally works full-time
  • You have got two youngsters, and your associate is a keep at house father or mother

After all, everybody’s scenario is totally different, however on this article, I needed to particularly concentrate on these three eventualities, as they’re in all probability the commonest ones.

Empty Covent Garden, London. Covent Garden at sunsetEmpty Covent Garden, London. Covent Garden at sunset

Life-style 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 may hire a one-bedroom flat in a new-built home with a fitness center and swimming pool. It won’t be a mansion, however you possibly can positively 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 often are very properly insulated, so that you gained’t spend an excessive amount of on heating in winter, which is a giant plus! If your own home additionally has a fitness center and swimming pool, it can save you on a fitness center 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 instances 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! Should you work from the workplace, you’ll, most likely, eat your lunch exterior except your workplace is catered. Every lunch prices round £10-12 as of late except it’s an affordable sandwich for £6-7. You may simply spend £150-200 monthly on lunches in the event you come to the workplace rather a lot. Groceries may also be pricy. Nevertheless, the value relies upon rather a lot on the place you store – some outlets 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. Should you like takeaways, add one other £150-300 to that.

Subscriptions (telephone, Netflix, Spotify and so forth.) can value you an extra £50 monthly.

Going out will 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 particular person). Cocktails usually value £13 and extra. Should you exit twice per week and as soon as per 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 may have left after fastened prices (condominium, payments, groceries) – round £1800-2200 – you possibly can spend that on going out, purchasing, travelling and saving for the long run!

Life-style and scenario 2: You reside with a associate who additionally works and earns a wage

On this situation, you make £100K, and you reside with a associate who additionally works. Let’s think about your associate earns round £50K. Your family earnings is now over £8,2K. This can be a very robust family earnings and I don’t assume you’ll wrestle in any respect. You may 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 may journey rather a lot or get monetary savings to purchase your personal property!

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

Lastly, let’s contemplate the ultimate situation – the one the place 100k is an effective wage however your life gained’t be that comfy. That may be the case when you may have two youngsters and a associate 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 can be fairly excessive – one other £400-500 a month (heating this home can be costly).

Your transport may even be costlier, particularly if it’s worthwhile to use the trains. Trains within the UK are notoriously costly. It’s good to consider at the least £200-250 monthly on journey prices (except you earn a living from home rather a lot). Should you add Web, telephones, Netflix and different subscriptions, that’s one other £100 a month.

Your meals invoice can be round £500-600 a month except you’re tremendous savvy and know the place to save lots of rather a lot on meals.

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

Nevertheless, in case your associate begins working, you’ll in all probability should pay childcare, which prices some huge cash within the UK except your youngsters already go to high school. On this case, your associate’s earnings will assist rather a lot!

As you possibly can see, £100K in London is an honest wage for a household with two youngsters and a associate, who doesn’t work, nonetheless, it doesn’t stretch that far. Nevertheless, in the event you have been supplied that and you reside exterior London, it’s truly a very good wage for a household of 4. You’ll spend at the least 30% much less on housing and transport and even going out can 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 dwelling in London in 2023. Whereas 100k lets you may have a really comfy way of life in the event you stay alone and much more comfy way of life in the event you mix your earnings together with your associate’s earnings. Nevertheless, in the event you help a household, 100k gained’t stretch too far and you’ll have to be very savvy to have a very good way of life on that wage in London. Nevertheless, in any situation, 100k is a tremendous wage exterior London!

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