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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 have got a luxurious way of life 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 children.
Right here’s what you’ll be able to anticipate finding on this submit:
Is London a very good place to dwell when you’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 dwell. It’s not shocking that plenty of billionaires have their second (and typically even first) houses in London – town has all of it. It has great secure and leafy districts in shut proximity to Central London (Hampstead, Highgate, Fulham), plenty of wonderful eating places, museums, theatres, concert events – 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, nonetheless, when you’re a excessive earner, you’ll be able to 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 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’ll be a lot better off that plenty of different Londoners. In case 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? Way of life you’ll be able to afford
London may be very costly metropolis. In fact, plenty of cities within the US (and even Canada) are a distinct 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, in fact, earlier than taxes, so let’s calculate, how a lot will probably 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 on your pension contribution, nonetheless, in order for you, you’ll be able to 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’ll be left with £5437 GBP monthly. In London, that’s an excellent wage. Exterior 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 stuck 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 companion who additionally works full-time
- You could have two children, and your companion is a keep at dwelling mother or father
In fact, everybody’s state of affairs is completely different, however on this article, I needed 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 dwell alone
Alright, let’s contemplate 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’ll be able to dwell in a really good space. You may lease a one-bedroom flat in a new-built home with a gymnasium and swimming pool. It won’t be a mansion, however you’ll be able to positively dwell someplace in Canary Wharf or Canning City or White Metropolis / Ealing space. That can price round £2100-2500 a month plus payments (one other £300-350 a month on fuel, electrical energy and council tax). New builds often are very effectively insulated, so that you received’t spend an excessive amount of on heating in winter, which is an enormous plus! If your own 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’ll be able to 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 case 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 rather a lot. Groceries may also be pricy. Nevertheless, the value relies upon rather a lot 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 case you like takeaways, add one other £150-300 to that.
Subscriptions (telephone, Netflix, Spotify and so forth.) can price you an extra £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 typically price £13 and extra. In case 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 have got left after mounted prices (condominium, payments, groceries) – round £1800-2200 – you’ll be able to 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 companion who additionally works and earns a wage
On this state of affairs, 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. It is a very robust family revenue and I don’t suppose you’ll battle 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’ll have some huge cash left in your financial institution!
You may journey rather a lot or lower your expenses to purchase your individual property!
Way of life 3: You could have two children and your companion is a SATP
Lastly, let’s contemplate the ultimate state of affairs – the one the place 100k is an efficient wage however your life received’t be that snug. That might be the case when you have got two children 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 shall be fairly excessive – one other £400-500 a month (heating this home shall be costly).
Your transport will even be costlier, particularly if it is advisable use the trains. Trains within the UK are notoriously costly. It’s essential think about at the least £200-250 monthly on journey prices (until you work at home rather a lot). In case you add Web, telephones, Netflix and different subscriptions, that’s one other £100 a month.
Your meals invoice shall 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 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 companion begins working, you’ll most likely must pay childcare, which prices some huge cash within the UK until your children already go to highschool. On this case, your companion’s revenue will assist rather a lot!
As you’ll be able to see, £100K in London is a good wage for a household with two children and a companion, who doesn’t work, nonetheless, it doesn’t stretch that far. Nevertheless, when you had been supplied 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 shall be cheaper!
Abstract: is 100k a very good wage in London and the UK?
I attempted to interrupt down the wage of 100k into mounted spendings based mostly on the present price of dwelling in London in 2023. Whereas 100k lets you have got a really snug way of life when you dwell alone and much more snug way of life when you mix your revenue along with your companion’s revenue. Nevertheless, when you assist a household, 100k received’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 state of affairs, 100k is an incredible wage exterior London!
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