Is 21k a Year a Bad Salary?

I ask this because I recently got into a debate with my mum and her friend over what is a good amount of money (they live in decent sized houses and can afford summer holidays and skiing each year so earn a fair bit).

I thought that 21K per year would be a decent salary and you could live of it without much trouble (all this is assuming you are single and no kids). They said that it was a bad salary and that if I was earning only that then I would be stuggling consantly will paying for essentials and would be skipping meals and having cold water because I couldn't afford it all.

I am really confused now, I have no experiance of anything like this as I still live at home, but satistics show so many people live of that much or less so it can't be that bad can it? Are they right, is 21k a bad salary to have?

21k a year is 1.4k a month after tax. Say you pay 400 a month for rent, 100 for all bills and mandatory expenditures, 75 a week for food and entertainment...that leaves 600 a month left for anything else. Say for example you have a car then minus another 200 or so, thats still 400 left a month. Over a year that almost 5k saved, with which you can do whatever, holidays, etc

Edit: 400 for a shared house, or a single place but not overly extravagant.
Or say 600 for rent, leaving you 200 a month, which is still 3.6k saved in a year

I'm talking about study as in developing yourself.

wages haven't risen in line with inflation, and the costs of living, and it could be argued as being a pay cut or a tax in itself. £28,560 - £21,000 (your income) refectects 73.5% from the amount that the money was worth ten years ago in comparison to today. http://www.thisismoney.co.uk/money/b...nged-1900.html

I'm agreeing with your mum and your friend, that yes it is a starting point, but that it isn't a great deal of money in the grand scheme of things to be spending extra money on stuff. sure you can 'exist' of that, but what about 'living', and rainy day money, pensions, deposits for stuff, and holidays, and a bit extra for other stuff. Its a good start in this poor economy of even getting a job- hopefully I have made my point clear that resting on your £21,000 laurels like your mum and her friend had mentioned is something that needs looking at.

Good math, but otherwise this seems like sound reasoning.



You're rather out of touch with reality.

does that mean the OP's mum and her friend are out of touch with reality too, as I agree with both of them. I think you may need to check your figures, and provide me with some evidence. Here's an inflation calculator to get you started. The rate of monetary inflation between 2000-2010 is 29.5%. And wages have increased on an average salary has only increased by 13.6%
http://www.thisismoney.co.uk/money/bills/article-1633409/Historic-inflation-calculator-value-money-changed-1900.html

20 March 2012 - Inflation falls to 3.4 per cent but wages still lag behind cost of living as families still face 'severe pressure'
http://www.dailymail.co.uk/news/article-2117929/Inflation-falls-3-4-wages-lag-cost-living-families-face-severe-pressure.html#ixzz1yorhLoxA

23 Nov 2011 -Average salary falls 3pc in face of high inflation
The average UK worker has seen their pay fall by more than 3pc in real terms since 2010 as the rate of inflation surges ahead of salary increases.
http://www.telegraph.co.uk/finance/economics/8909797/Average-salary-falls-3pc-in-face-of-high-inflation.html#

8 Nov 2011 - Pay rises 'to lag behind inflation'
UK workers will do slightly better than the rest of Europe in 2012, research says, but Unions say no recovery until real wages rise
http://www.guardian.co.uk/money/2011/nov/08/pay-below-inflation

18 April 2012 - Rise in inflation and slow wage growth raise new fears over economic recovery
Increase in consumer price index to 3.5%, coupled with data indicating that average pay rises are down to 1.1%, offsets better news about unemployment
http://www.guardian.co.uk/business/2012/apr/18/inflation-rise-slow-wage-growth-fears-recovery

I'm talking about study as in developing yourself.

wages haven't risen in line with inflation, and the costs of living, and it could be argued as being a pay cut or a tax in itself. £28,560 - £21,000 (your income) refectects 73.5% from the amount that the money was worth ten years ago in comparison to today. http://www.thisismoney.co.uk/money/b...nged-1900.html

I'm agreeing with your mum and your friend, that yes it is a starting point, but that it isn't a great deal of money in the grand scheme of things to be spending extra money on stuff. sure you can 'exist' of that, but what about 'living', and rainy day money, pensions, deposits for stuff, and holidays, and a bit extra for other stuff. Its a good start in this poor economy of even getting a job- hopefully I have made my point clear that resting on your £21,000 laurels like your mum and her friend had mentioned is something that needs looking at.

You have a job - A*, the economy is ****e, there's nothing you can do, your mum and her friend are right too, and you're stuck between a rock and a hard place. I may have read your post in a way that made it sound like your mum and her friend acted not so thrilled with your situation and it seemed to be written that you were temporarily okay with that, however you were not particularly bothered either way. That was something which they were concerned with. I don't have a clue what you're going to do, except keep doing what you're doing. Well done for even having a job

The point I'm trying to get across is that, there is always a way to start to make a shed load of money in tough times. Its like a complex math problem if you will. Why be involved in a £21,000 employment, when you could do proportionally less work earning a £210,000 or £2,100,000. Passionately think of how you can increase you're revenue streams or invent something, and your subconscious will find a way for you, without you consciously thinking about it. Pose the question to yourself before bed, and one morning or uneventful day, the idea will just, present itself... or you could just be happy with £21k

Not at all dear boy, its perfectly valid

oh great.. this thread has filled me right up with hope! After 6 years of uni and student debt ill be earning 21k/year. il also be 25 and want to think of getting my own place.. settling down/kids.. (il also be a doctor..)

Doctors earn a lot more than 21k a year, surely.

Exactly, and troll I am not.

I thought that 21K per year would be a decent salary and you could live of it without much trouble (all this is assuming you are single and no kids). They said that it was a bad salary and that if I was earning only that then I would be stuggling consantly will paying for essentials and would be skipping meals and having cold water because I couldn't afford it all.