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Is £100k a year really that much of a salary nowadays? Watch

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    (Original post by HarryDn)
    what should i say to the girl i dun goofed when I met her with on Saturday?
    "Can I re-roll?"
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    (Original post by Profesh)
    "Can I re-roll?"
    Srs

    "is 100k poverty time?"
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    (Original post by will2348)
    you'll be horrified at how a salary like that effectively goes nowhere, even worse if you decide to have kids.

    I have to disagree here.

    Most people don't earn anywhere near £100k and have a fantastic life.
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    (Original post by will2348)
    £100,000 salary is a very good salary under the following conditions:
    - You own a house
    - You live outside London & the South East

    Otherwise, you'll be horrified at how a salary like that effectively goes nowhere, even worse if you decide to have kids.

    Unfortunately £100,000 salary would only get you an exceptionally small and modest house in London and the South East.

    I worked out recently where I live in Surrey I'd need to earn a minimum £55,000 a year to get a mortgage for an entry level property (1 bedroom). So you can imagine how much you have to earn for a family home - it's well into six figures.

    Problem is, what jobs pay that outside that area? You also have to remember that after tax, £100,000 is more like less than £65,000.

    However, according to statistics it does place you in the top 2-3% of earners in the country and solidly in the top 1% globally.

    If someone said to me they earn £100,000 I'd think good for you but I wouldn't consider them well off or rich, far from it. I know people in London who genuinely struggle with a family on that salary and it scares me.
    great answer, + repped

    By going nowhere else where do you mean not being enough to get a house with then?

    And do those people have it as a combined salary or 1 earner?
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    (Original post by Balloon Baboon)
    I have to disagree here.

    Most people don't earn anywhere near £100k and have a fantastic life.
    ...Because they already have a mortgage/house and don't pay extortionate rents.

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    (Original post by will2348)
    ...Because they already have a mortgage/house and don't pay extortionate rents.

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    £100k outside London you're laughing. I pay £400 a month for my martgage and that's on a 4 bedroom house.

    London is just overpriced. Shame really as I love London.
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    London to 'outsiders'.

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    London to 'Londonners'

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    OP, come off it. £100k is by no means an average salary in any country, or in any city, anywhere on planet Earth.
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    (Original post by VannR)
    London to 'outsiders'.



    London to 'Londonners'



    OP, come off it. £100k is by no means an average salary in any country, or in any city, anywhere on planet Earth.
    what do you earn?
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    (Original post by HarryDn)
    what do you earn?
    I'm an A-Level student; not that it really has any effect on the reality of average salaries in London, though.
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    Eh it's better than being butty boss down at Subway at 35 eh? LOL
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    (Original post by HarryDn)
    great answer, + repped

    By going nowhere else where do you mean not being enough to get a house with then?

    And do those people have it as a combined salary or 1 earner?
    I mean, sure on £100,000 you can rent somewhere reasonable (not as much as you'd expect though).

    Problem with London is, even a three bedroom house costs about £500,000 so as a first time buyer you'd need a deposit of at least £50,000 (hence why most people move out and commute and thus trains are horrendously overcrowded in certain places at certain times).

    People I know have it as a combined salary. I'm aware one certain American bank recently in London was forced to increase salaries because their employees were complaining about housing costs - not sure whether they were genuine or just wanted a higher salary though, haha.

    Let's be real, house prices have gone up 20% in London, salaries have not.

    On £100,000, once you've got a mortgage paid off (or mostly) you suddenly find a dramatic increase in your disposable income. In London, it's normal for over 40% of your salary to go in housing costs, at least from my experience; depends on circumstances.

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    (Original post by VannR)
    I'm an A-Level student; not that it really has any effect on the reality of average salaries in London, though.
    Thought so.
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    As a single guy in the South East, living alone in a flat, my outgoings were around 800 a month before food in a modest flat in Canterbury. That's pretty standard here, I can only imagine it being at least 1.5x that for an okay area of London.

    Some basic maths:
    At 35k a year, you get 2,200 a month after tax
    Take away 800 rent/bills
    Take away 150 food/sundries
    Take away 100 clothes
    Take away 150 petrol/mot/tax/servicing for a modest commute in a frugal vehicle

    You're left with 1,000 a month. Which is a decent disposable income. Oh except that the average price of a pint is 4.50. A meal in an average (non chain, but not fine dining) restaurant is 30-35 for two courses. Cinema, bowling, snooker etc all work out to around 8 quid per hour.

    If you scale that up to having 2-3 kids, living in London and paying a 2,000-2,500 a month mortgage or rent, paying 250 on clothes, 500 on food/sundries and then adding the extra charges of living in the capital, you are left with a much lower proportion of your wage disposable.

    I think it's a good wage, but dependent on the area you live in, it's by no means amazing. If I earned 100k and had the same circumstances as I do now, I'd be chuffed. Flip the circumstances and the money, not so much.
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    (Original post by HarryDn)
    Thought so.
    What do you earn, Harry?
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    (Original post by HarryDn)
    Thought so.

    How old are you by the way?
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    (Original post by will2348)
    I mean, sure on £100,000 you can rent somewhere reasonable (not as much as you'd expect though).

    Problem with London is, even a three bedroom house costs about £500,000 so as a first time buyer you'd need a deposit of at least £50,000 (hence why most people move out and commute and thus trains are horrendously overcrowded in certain places at certain times).

    People I know have it as a combined salary. I'm aware one certain American bank recently in London was forced to increase salaries because their employees were complaining about housing costs - not sure whether they were genuine or just wanted a higher salary though, haha.

    Let's be real, house prices have gone up 20% in London, salaries have not.

    On £100,000, once you've got a mortgage paid off (or mostly) you suddenly find a dramatic increase in your disposable income. In London, it's normal for over 40% of your salary to go in housing costs, at least from my experience; depends on circumstances.

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    To add, if you move outside of London, even only a little bit you then get thrashed with horrendous transport costs (car insurance is also much higher here).

    For example, Zone 1-6 Season ticket I believe is around £3,000 I think? It's a lot whatever it is, haha. That's a 25 minute journey on a semi-fast train.

    Recent train fare increases:

    - Off-Peak Kids Zone 1-6: 50% increase.
    - Off-Peak Adult Zone 1-6: 35% increase.

    Thankfully, they had mercy and only increased on-peak by 2.5%.

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    OP, what's your salary/job ?


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    (Original post by HarryDn)
    To upper middle class Londoners is it excellent?
    It's good salary then; maybe excellent was a bit of an overstatement on my part.
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    It's not necessarily a lot in London as you still wouldn't be able to buy a nice house but it is everywhere else.
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    (Original post by Balloon Baboon)
    I have to disagree here.

    Most people don't earn anywhere near £100k and have a fantastic life.
    once you have kids it doesn't go far, my dad earns over 100k and I don't consider myself rich (don't go to private school ect)
 
 
 
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