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On this article, I’d 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 got a luxurious life-style on 100k wage in London? Is 100k a great family earnings 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 accomplice and with a SAHP (keep at residence accomplice) and two children.
Right here’s what you possibly can look forward to finding on this publish:
Is London a great place to reside 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 reside. It’s not shocking that numerous billionaires have their second (and generally even first) properties in London – the town has all of it. It has great protected and leafy districts in shut proximity to Central London (Hampstead, Highgate, Fulham), numerous wonderful eating places, museums, theatres, live shows – you by no means get bored in London.
London may 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 loads!
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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 reasonable, I composed a information to the typical salaries in London by career and years of expertise, so when you’re curious, be happy to test it out right here!
Therefore, when you had been supplied 100k GBP, it’s nice, congratulations! You can be a lot better off that numerous 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 people who pay a hefty fee).
How far does 100k GBP in London get you? Way of life you possibly can afford
London could be very costly metropolis. In fact, 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 earth.
So, think about, you’ve been supplied 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 normally use this calculator because it permits you to add your pension contribution. Most firms, will subtract 3% out of your wage to your pension contribution, nevertheless, if you would 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. Exterior London, it’s a tremendous wage and you may reside very comfortably.
Nonetheless, 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 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 may have two children, and your accomplice is a keep at residence dad or mum
In fact, everybody’s state of affairs is completely different, however on this article, I wished to particularly deal with these three situations, as they’re most likely the commonest ones.
Way of life 1: You earn 100k in London and reside alone
Alright, let’s think about 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 earnings, you possibly can reside in a really good space. You may lease a one-bedroom flat in a new-built home with a health club and swimming pool. It won’t be a mansion, however you possibly can undoubtedly reside 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 normally are very nicely insulated, so that you received’t spend an excessive amount of on heating in winter, which is a giant 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 a great 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. Nonetheless, when you’re fortunate sufficient to reside 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, most likely, eat your lunch exterior until your workplace is catered. Every lunch prices round £10-12 nowadays until it’s an inexpensive sandwich for £6-7. You may simply spend £150-200 monthly on lunches when you come to the workplace loads. Groceries can be pricy. Nonetheless, the value relies upon loads on the place you store – some retailers like Aldi and Lidl are fairly reasonably priced. 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 (cellphone, Netflix, Spotify and so on.) can value you a further £50 monthly.
Going out may 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 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, nevertheless, if not important. Let’s calculate how a lot you’ve got 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!
Way of life 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 earnings is now over £8,2K. This can be a very sturdy family earnings and I don’t assume you’ll wrestle in any respect. You may lease a two-bedroom condominium 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 may journey loads or get monetary savings to purchase your personal property!
Way of life 3: You may have two children 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 comfy. That may be the case when you’ve got two children and a accomplice 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 will likely be fairly excessive – one other £400-500 a month (heating this home will likely be costly).
Your transport can even be dearer, particularly if that you must use the trains. Trains within the UK are notoriously costly. It is advisable to consider a minimum of £200-250 monthly on journey prices (until you make money working from home loads). 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 avoid wasting loads on meals.
That’s already circa £3800 monthly. You’ll have round £1600 a month left on all of the purchasing, going out, college journeys and provides and touring, which isn’t that tight, however requires cautious planning.
Nonetheless, in case your accomplice begins working, you’ll most likely must pay childcare, which prices some huge cash within the UK until your children already go to high school. On this case, your accomplice’s earnings will assist loads!
As you possibly can see, £100K in London is an honest wage for a household with two children and a accomplice, who doesn’t work, nevertheless, it doesn’t stretch that far. Nonetheless, when you had been supplied that and you reside exterior London, it’s truly a very 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 a great 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’ve got a really comfy life-style when you reside alone and much more comfy life-style when you mix your earnings together with your accomplice’s earnings. Nonetheless, when you help a household, 100k received’t stretch too far and you’ll have to be very savvy to have a great life-style on that wage in London. Nonetheless, in any state of affairs, 100k is a tremendous wage exterior London!
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