You must have heard a lot of sayings about what money can’t do. You can’t take cash with you; money won’t buy you love; money can’t buy happiness; the best things in life are free, or not.
Well, that could be true to some extent but doesn’t take away the fact that you need money to be able to live. What if you had happiness and cash on top? Never thought about that, have you?
You need money to pay for necessities, to take care of your family, to pay bills and more so to live not just any kind of life but live satisfactorily. So, what can a salary of 70000 after tax do for you? Can you live satisfactory while earning 70000 after tax in the UK?
The notion of “comfort” varies from one person to the other. What you refer to comfort could be another person’s low life. I’ll give you the general aspect of things just to have an idea of living in the UK – the power of numbers, remember?
The Ideal Salary for Living a Comfortable Life in The UK
The average yearly salary (national) in the UK is approximately £27000 a year. This seems like some good money there, but this is before national insurance deduction and tax.
Many Brits feel that £2,000 a month after tax is a good salary for a comfortable life. This figure translates to £24,000 a year after tax.
Some individuals feel like they can still manage to lead a decent life on minimum wage. However, if you would like to eat quality food, go on at least one vacation every year, go out from time to time, and live alone in some rented studio or flat, you should earn more than £22,800 a year (£1,900 monthly) after tax.
Most professionals will earn some good salaries in big cities such as London. However, the cost of living in these big cities could hurt your budget. If you don’t have to live in a bustling city, you could probably a small town that is much affordable.
The Cost of Living
For you to understand the cost of living, let take two scenarios. Let’s compare a person living in London and another living in Manchester.
In London, you will need around £750 a month for upkeep while in Manchester somewhere around £590 will work out just fine. This will translate to approximately £9,000 and £7100 a year for London and Manchester, respectively. Please note that we are only talking of your upkeep (expenses), rent excluded—food, public transport, entertainment, you name them.
For a student, you can take advantage of discounts and further cut down on your cost. £550 a month for a student in London will just be fine. In Manchester, £430 will work out well.
A family of four people in London will require around £2700 every month for their expenses while in Manchester it will require £2,100 monthly. This translates to £32,600 a year for costs and £25,300 in London and Manchester, respectively.
From the figures, Manchester is the cheaper alternative.
Some of the affordable places to live in the UK include:
On the other hand, some of the most expensive cities include:
When moving to the UK, one of your biggest concerns should be about house rent. London is expensive, and the closer you are to the city, the more the rent is jaw-dropping.
For instance, a one-bedroom apartment in the city center in London is about £1,600 a month, and outside the city center around £1,000. A home will cost about £3,000 around the city center and about £1,900 outside.
In Manchester, a one-bedroom apartment around the city center will cost £700 a month, and £500 outside.
Well, the numbers don’t lie.
70000 After-Tax UK: The Final Verdict
The big question was: can you live comfortably while earning £70000 after tax? Well, for me, you can live very comfortably.
Okay, let me break down £70000 for you just to have an idea of the kind of money we are talking about.
Your gross income will be £70000 a year or £5,833.33, £1,346.15, £269.23 monthly, weekly and daily respectively.
Your taxable income will be £57,500. This translates to £4,791.67, £1,105.77, £221.15 monthly, weekly, and daily respectively.
You will pay a tax of £15,500 yearly. That is about £1,291.67, £298.08, £59.62 monthly, weekly and daily respectively.
The national insurance will deduct a sum of £5,260 every year. That translates to about £438.33, £101.5, £20.23 monthly, weekly and daily, respectively.
Your take-home will be £49,240 annually or £4,103.33 every month, or £946.92 weekly or £189.38 daily.
With this kind of money, you can live a comfortable life, can’t you?