The cost of living in London is notoriously higher than in the rest of the UK, so we looked into the price of a monthly budget in the capital to find out what a decent salary in London looks like. Our budget was made for a single person to be financially stable while living in a flat-share or studio. The budget allows for spending on essentials, some discretionary spending, as well as saving 10% of monthly income.
London budget expenses: Overview
A single person living in London in a studio or a flat-share would need a gross salary of at least £37,000 to cover their everyday expenses and save a bit.
The cost of accommodation is estimated at £921 per month.
Utilities, council tax, subscriptions and transport add up to £498 per month.
Gym membership (£51), holidays (£176) and clothes shopping (£32) amount to £259 per month.
Groceries are estimated at £166 per month, whilst snacks and drinks for a month would cost £115.
How much do you need to earn to live in London?
According to the latest figures, a single person living in London in a studio or a flat-share would need a gross salary of £37,000 to cover their everyday expenses and save a bit.
The budget considers rent, utilities and much more, and, unsurprisingly, the cost of accommodation is nearly 40% of take-home pay. Utilities, council tax, subscriptions and transport make up 21% of the budget, adding up to £498.
Groceries and dining out stack up to over £300 a month. We estimated a weekly shop of £31, bringing monthly grocery costs to £166. Eating out for dinner once a week will amount to an estimated £173 over a month. This brings total food costs to £339 per month. However, we have also included some discretionary spending on snacks and drinks of around £115 per month. This includes alcohol, as well as coffee and tea.
Gym membership, holidays and clothes shopping amount to 11% of the monthly budget, with Brits spending around £2,115 on holidays per year on average. The average gym membership in the capital comes to £51, whilst the average estimated monthly expenditure on clothing is £32.
A salary of £37,000 is enough to live a financially stable life in the UK as a single person. Our budget finds that this salary is enough to live in London. Therefore, the rest of the UK should be accessible with this salary, given the cost of living in the capital.
It is important to remember that the budget was calculated assuming a person living in a flat-share or a studio. For a one-bedroom, the minimum budget might be higher both in London and the rest of the UK.
Is £70k a good salary in the UK?
A salary of £70,000 is enough to live a financially stable life in the UK as a single person and may be enough for a couple sharing one income, based on the area they live in. Given that the minimum financially stable budget in London is £37,000, a salary of £70,000 is more than enough to enjoy a comfortable lifestyle, even in the most expensive parts of the country as a single person.
Our budget of £37,000 was calculated based on one single adult living in a flat-share or a studio. This means 2 partners living on a shared income of £70,000 should be enough to live a financially stable life in the UK. However, in London, this budget might be slightly restrictive.
The budget uses the average price of goods in the capital from a variety of sources.
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UK Head of Communications T: +44 20 8191 8806
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Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife. See full bio
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