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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 may 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 lots of different questions on this article and supply examples of three completely different existence and family combos: life on 100k in London alone, with a working companion and with a SAHP (keep at dwelling companion) and two youngsters.
Right here’s what you may look forward to finding on this submit:
Is London a very good place to stay if you happen to’re a excessive earner?
In case you’re a excessive earner or HENRY (excessive earner not wealthy but), London is a tremendously good place to stay. It’s not stunning that a lot of billionaires have their second (and typically even first) houses in London – town has all of it. It has fantastic protected and leafy districts in shut proximity to Central London (Hampstead, Highgate, Fulham), a lot of superb eating places, museums, theatres, concert events – you by no means get bored in London.
London might be irritating if you happen to’re dwelling from wage to wage and don’t have any financial savings and household to depend on, nonetheless, if you happen to’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
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 career and years of expertise, so if you happen to’re curious, be at liberty to test it out right here!
Therefore, if you happen to had been supplied 100k GBP, it’s nice, congratulations! You may be a lot better off that a lot of different Londoners. In case 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, in fact, 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. In fact, a lot of 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 will likely be after taxes. For wage calculations, I normally use this calculator because it lets you add your pension contribution. Most corporations, will subtract 3% out of your wage to your pension contribution, nonetheless, if you would 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 stay very comfortably.
Nevertheless, 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 completely 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 may have two youngsters, and your companion is a keep at dwelling guardian
In fact, everybody’s scenario is completely different, however on this article, I needed to particularly give attention to these three eventualities, as they’re in all probability the most typical ones.
Way of life 1: You earn 100k in London and stay alone
Alright, let’s contemplate 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 lease a one-bedroom flat in a new-built home with a gymnasium and swimming pool. It may not be a mansion, however you may 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 fuel, electrical energy and council tax). New builds normally are very effectively insulated, so that you gained’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 a very good saving!
Relying on what number of instances per week you’ll commute to the workplace, you may spend between £80-200 a month on the underground. Nevertheless, if you happen to’re fortunate sufficient to stay near the workplace, you may cycle there and spend nothing on transport.
Now, let’s discuss meals! In case you work from the workplace, you’ll, likely, eat your lunch exterior until your workplace is catered. Every lunch prices round £10-12 lately until it’s an inexpensive sandwich for £6-7. You possibly can simply spend £150-200 monthly on lunches if you happen to come to the workplace rather a lot. Groceries can be pricy. Nevertheless, the worth relies upon rather a lot on the place you store – some retailers like Aldi and Lidl are fairly reasonably priced. Another ones (Waitrose and Entire Meals) are tremendous pricy. On common, a single individual can spend between £150 and £400 a month on groceries. In case you like takeaways, add one other £150-300 to that.
Subscriptions (cellphone, Netflix, Spotify and so forth.) can value you an extra £50 monthly.
Going out might 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 individual). Cocktails typically value £13 and extra. In case 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 may have left after fastened prices (condo, 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 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. This can be a very robust family revenue and I don’t assume you’ll battle in any respect. You possibly can lease a two-bedroom condo in a pleasant space. In fact, 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 get monetary savings to purchase your personal property!
Way of life 3: You may have two youngsters and your companion is a SATP
Lastly, let’s contemplate the ultimate situation – the one the place 100k is an efficient wage however your life gained’t be that comfy. That might be the case when you may have two youngsters and a companion who doesn’t work.
£5440 will allow you to lease 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 might be fairly excessive – one other £400-500 a month (heating this home might be costly).
Your transport may even be dearer, particularly if that you must use the trains. Trains within the UK are notoriously costly. You want to consider a minimum of £200-250 monthly on journey prices (until you make money working from home rather a lot). In case 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 until 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, college journeys and provides and touring, which isn’t that tight, however requires cautious planning.
Nevertheless, in case your companion begins working, you’ll in all probability should pay childcare, which prices some huge cash within the UK until your youngsters already go to highschool. On this case, your companion’s revenue will assist rather a lot!
As you may see, £100K in London is an honest wage for a household with two youngsters and a companion, who doesn’t work, nonetheless, it doesn’t stretch that far. Nevertheless, if you happen to had 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 might 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 primarily based on the present value of dwelling in London in 2023. Whereas 100k lets you may have a really comfy life-style if you happen to stay alone and much more comfy life-style if you happen to mix your revenue along with your companion’s revenue. Nevertheless, if you happen to assist a household, 100k gained’t stretch too far and you’ll have to be very savvy to have a very good life-style on that wage in London. Nevertheless, in any situation, 100k is an incredible wage exterior London!
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Value of dwelling in London – how a lot do that you must stay in London