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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’ve gotten a luxurious way of life on 100k wage in London? Is 100k an excellent family revenue 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 accomplice and with a SAHP (keep at house accomplice) and two youngsters.
Right here’s what you possibly can look forward to finding on this submit:
Is London an excellent place to dwell when 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 shocking that numerous billionaires have their second (and typically even first) properties in London – town has all of it. It has great secure and leafy districts in shut proximity to Central London (Hampstead, Highgate, Fulham), numerous superb eating places, museums, theatres, live shows – you by no means get bored in London.
London might be irritating when you’re dwelling from wage to wage and don’t have any financial savings and household to depend on, nevertheless, when 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
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 common salaries in London by occupation and years of expertise, so when you’re curious, be at liberty to test it out right here!
Therefore, when you have been provided 100k GBP, it’s nice, congratulations! You’ll be significantly better off that numerous different Londoners. In the event 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 Individuals, 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? Life-style you possibly can afford
London could be very costly metropolis. After all, numerous 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 the earth.
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 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, nevertheless, if you would 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 may be left with £5437 GBP per 30 days. In London, that’s an excellent wage. Outdoors London, it’s an incredible wage and you’ll dwell very comfortably.
Nevertheless, to estimate the extent of consolation you might need and think about all of the spending (and glued prices), let’s have a look at three totally different situations:
- You reside alone and don’t have anybody relying on you (not even a pet)
- You reside with a accomplice who additionally works full-time
- You will have two youngsters, and your accomplice is a keep at house mum or dad
After all, everybody’s state of affairs is totally different, however on this article, I needed to particularly deal with these three situations, as they’re in all probability the commonest ones.
Life-style 1: You earn 100k in London and dwell alone
Alright, let’s think about the primary way of life 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 possibly can dwell in a really good space. You possibly can lease a one-bedroom flat in a new-built home with a health club and swimming pool. It may not be a mansion, however you possibly can undoubtedly dwell someplace in Canary Wharf or Canning City or White Metropolis / Ealing space. That may 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 received’t spend an excessive amount of on heating in winter, which is an enormous plus! If your home additionally has a health club and swimming pool, it can save you on a health club membership. These can go as much as £250 a month in London (luxurious ones like Third House), 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, when you’re fortunate sufficient to dwell near the workplace, you would possibly 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 outdoors until your workplace is catered. Every lunch prices round £10-12 as of late until it’s an inexpensive sandwich for £6-7. You possibly can simply spend £150-200 per 30 days on lunches when you 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 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 so on.) can value you an extra £50 per 30 days.
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 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, nevertheless, if not important. Let’s calculate how a lot you’ve gotten left after mounted prices (condominium, payments, groceries) – round £1800-2200 – you possibly can spend that on going out, procuring, travelling and saving for the long run!
Life-style and state of affairs 2: You reside with a accomplice who additionally works and earns a wage
On this state of affairs, you make £100K, and you reside with a accomplice who additionally works. Let’s think about your accomplice earns round £50K. Your family revenue is now over £8,2K. It is a very robust family revenue and I don’t assume you’ll battle in any respect. You possibly can lease a two-bedroom condominium in a pleasant space. After all, your meals prices, going out prices and transport prices will enhance, however not that a lot, so you’ll have some huge cash left in your financial institution!
You possibly can journey rather a lot or lower your expenses to purchase your personal property!
Life-style 3: You will have two youngsters and your accomplice is a SATP
Lastly, let’s think about the ultimate state of affairs – the one the place 100k is an effective wage however your life received’t be that snug. That might be the case when you’ve gotten two youngsters and a accomplice who doesn’t work.
£5440 will allow you to lease a three-bedroom home outdoors 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 will likely be fairly excessive – one other £400-500 a month (heating this home will likely be costly).
Your transport may also be dearer, particularly if that you must use the trains. Trains within the UK are notoriously costly. It’s good to think about a minimum of £200-250 per 30 days on journey prices (until you do business from 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 will likely be round £500-600 a month until you’re tremendous savvy and know the place to save lots of rather a lot on meals.
That’s already circa £3800 per 30 days. You should have round £1600 a month left on all of the procuring, going out, college journeys and provides and touring, which isn’t that tight, however requires cautious planning.
Nevertheless, in case your accomplice begins working, you’ll in all probability need to pay childcare, which prices some huge cash within the UK until your youngsters already go to high school. On this case, your accomplice’s revenue will assist rather a lot!
As you possibly can see, £100K in London is a good wage for a household with two youngsters and a accomplice, who doesn’t work, nevertheless, it doesn’t stretch that far. Nevertheless, when you have been provided that and you reside outdoors London, it’s truly 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 will likely 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 value of dwelling in London in 2023. Whereas 100k lets you’ve gotten a really snug way of life when you dwell alone and much more snug way of life when you mix your revenue together with your accomplice’s revenue. Nevertheless, when 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 state of affairs, 100k is an incredible wage outdoors London!
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