How much money do you need to live comfortably in the UK? (2024)

FAQs

How much money do you need to live comfortably in the UK? ›

In 2023, we have calculated that a single person needs to earn £29,500 to have an acceptable standard of living, up from £25,000 in 2022. A couple with two children need to earn £50,000, compared to £44,500 in 2022.

Updated on 16 April, 2024

The average cost of living in UK as a family of four is around $3,135(£2,268) without house rent. As a single person or student, the estimated living expenses in UK is $900(£651) without rent.

On the lower scale of yes, as if it's for a single person or a couple both earning that amount, probably ok , but one wage earner with children probably not these days. It looks a lot to us but London rents are so high then throw in all the expenses that go with children. So probably need a bit more.

Notwithstanding the struggles of Jeremy Hunt's constituent, £100,000 a year in the UK is, by any possible objective measure, a high income. The median for working-age households across the country is estimated to be just above £35,000, and anything higher than £81,357 puts you in the top 5%.

General living expenses for a decent living standard vary. It depends on lifestyle and personal preferences. However, to be comfortable you can expect to spend £1,500-£2,000 per month of your net income. This figure includes basic costs such as rent or mortgage payments, utility bills, and council tax.

Both nations have a cost of living that varies greatly depending on where you live. However, you can expect that there will be a higher cost of living in the US than the UK. Data shows that the cost of living is 0.49% lower in the UK than the US. This difference is even greater in cities that are expensive to live in.

“It is people earning between £30,000-£60,000 a year, depending on the type of household, people who you would expect to be doing OK,” he said. “Being on a middle income does not make people secure.

On a £100,000 salary, your take home pay will be £67,803.40 after tax and National Insurance. This equates to £5,650.28 per month and £1,303.91 per week. If you work 5 days per week, this is £260.78 per day, or £32.60 per hour at 40 hours per week.

However, according to the Office for National Statistics (ONS), the average salary in the UK is £33,000 per year. So with a salary of 50K, you can afford a comfortable lifestyle in most parts of the UK.

According to the latest figures, the average salary in UK per month is £1,950 or £29,600 per year. As of 2022, the gross minimum salary in the United Kingdom is £15.65 per hour.

What salary is upper class UK? ›

Moving into 2024 here's how it stands:

The median income was £565 per week or £29,380 per year. Anyone making more than that per year (and this is net, not gross) is in the top 50% of earners in the UK. The top 5% earn £7,251 per month or more. That's shockingly only £87,012 per year.

In October 2023 the top one percent of earners in the United Kingdom received an average pay of 15,082 British pounds per month, compared with the bottom 10 percent of earners who earned 755 pounds.

According to the U.S. Census, only 15.3% of American households make more than $100,000 annually. A $100,000 salary can yield a monthly income of $8,333.33, a biweekly paycheck of $3,846.15, a weekly income of $1,923.08, and a daily income of $384.62 based on 260 working days per year.

The most common way to use the 40-30-20-10 rule is to assign 40% of your income — after taxes — to necessities such as food and housing, 30% to discretionary spending, 20% to savings or paying off debt and 10% to charitable giving or meeting financial goals.

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

If you have a large amount of debt that you need to pay off, you can modify your percentage-based budget and follow the 60/20/20 rule. Put 60% of your income towards your needs (including debts), 20% towards your wants, and 20% towards your savings.

The cost of living in UK per month for a family of four in UK is $3,135 (£2,268) without rent and for students in UK is $900 (£651) without rent. Check the table below to know about the monthly cost given in Great Britain Pound and Indian Rupees to estimate and manage your finances.

If you consider that people earning £2,500 to £3,000 gross per month (which equates to a gross salary of around £40K per annum) are thought to be getting a decent wage, then yes. Those earning a gross salary of £3,300 to £4,000 per month, are on a good salary by UK standards.

On the other hand, if you're a graduate or new to the workforce, £25,000 is actually a pretty good starting salary, given that the average graduate salary is £24,000. The most important thing is working out what a comfortable life looks like to you.