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    • Nathaniel Essex
    • By Nathaniel Essex 6th Jul 17, 5:31 PM
    • 30Posts
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    Nathaniel Essex
    What is a good salary?
    • #1
    • 6th Jul 17, 5:31 PM
    What is a good salary? 6th Jul 17 at 5:31 PM
    Been of a open topic and I know the answer will change depending on where people live etc. but would be interested to hear what you think is a good salary in general and what do you think is a good salary for you.

    I live in London and just from my experience, I think earning £30k is a good salary. Reason being, especially if you work in professional services, if you are getting paid less than that, you could most likely find an exact, similar or less demanding role that would pay you £30k. For me personally, as long as I am clearing £2,000 I am happy (so Around £36k). I have a job that pays more, but would happily swap it for a less demanding role and something I find more fulfilling. The extra salary for me is not worth the headache and stress.
Page 1
    • ringo_24601
    • By ringo_24601 6th Jul 17, 5:35 PM
    • 16,859 Posts
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    ringo_24601
    • #2
    • 6th Jul 17, 5:35 PM
    • #2
    • 6th Jul 17, 5:35 PM
    Single person, flat sharing in London 'good salary' is quite different to London 'person with a mortgage and a couple of kids' good salary.

    I'm counting my salary as good for my experience, since if I moved to one of the 'big 4' they'd hardly pay me any more. But I need to clear about £3k a month to cover the costs of my family and house. By the time I hit my 40s I want to be making £4k a month.

    Didn't you claim to be earning £50k on another thead? That's roughly £3k a month after tax

    Anyway - a good salary is one in which you have some money left over to do the stuff you want to do, whilst maintaining a lifestyle that you want.
    Last edited by ringo_24601; 06-07-2017 at 5:43 PM.
    • z1a
    • By z1a 6th Jul 17, 6:40 PM
    • 549 Posts
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    z1a
    • #3
    • 6th Jul 17, 6:40 PM
    • #3
    • 6th Jul 17, 6:40 PM
    For a labourer - £12k, for a barrister - £250k.
    • Gavin83
    • By Gavin83 6th Jul 17, 7:28 PM
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    Gavin83
    • #4
    • 6th Jul 17, 7:28 PM
    • #4
    • 6th Jul 17, 7:28 PM
    It depends entirely on the persons location and their age. A salary I'd consider good for a 20 year old is not a salary I'd consider good for a 50 year old.

    As a rough guide I've always gone by the theory that if you convert someone's age into thousands of pounds that is a reasonable wage. I'd suggest a good wage is 1.5x someone's age and an excellent wage is 2x someone's age. Above would apply to the London area.
    • moneyistooshorttomention
    • By moneyistooshorttomention 6th Jul 17, 7:40 PM
    • 13,124 Posts
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    moneyistooshorttomention
    • #5
    • 6th Jul 17, 7:40 PM
    • #5
    • 6th Jul 17, 7:40 PM
    I relate it to the national average salary.

    I believe that's currently around £28,000 pa.

    Therefore for me to describe a salary as good would mean being noticeably more than that. I would say £40,000 pa then upwards in that case.

    ....and yep....I'm retired now - but I never managed to earn even average salary. I was always on poor salary. I'd be lucky if I hit £20,000 pa if I were still working

    I often ponder what income level I would be prepared to work for now - bearing in mind I can manage now that I'm a pensioner. Not really quite sure - it varies. I would say it would have to be twice the Living Wage (meaning "The Living Wage" and not NMW misnamed "Living Wage").

    I tend to think "good" is an objective word and nothing to do with peoples own individual circumstances - though I clearly needed a rather higher salary as a single person than I would have done if I were married. Didn't have it - but, to have the same standard of living as a married person then that was the case.

    I would expect noticeably higher salary if I were in London though...
    ploughing my own furrow...

    They have lessons in schools these days on resisting peer pressure
    • keepcalmandstayoutofdebt
    • By keepcalmandstayoutofdebt 6th Jul 17, 8:38 PM
    • 2,769 Posts
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    keepcalmandstayoutofdebt
    • #6
    • 6th Jul 17, 8:38 PM
    • #6
    • 6th Jul 17, 8:38 PM
    Been of a open topic and I know the answer will change depending on where people live etc. but would be interested to hear what you think is a good salary in general and what do you think is a good salary for you.

    I live in London and just from my experience, I think earning £30k is a good salary. Reason being, especially if you work in professional services, if you are getting paid less than that, you could most likely find an exact, similar or less demanding role that would pay you £30k. For me personally, as long as I am clearing £2,000 I am happy (so Around £36k). I have a job that pays more, but would happily swap it for a less demanding role and something I find more fulfilling. The extra salary for me is not worth the headache and stress.
    Originally posted by Nathaniel Essex
    Aren't you in 'professional sales'? For all we know you could be referring to OTE salaries and the likes or be very confident when it comes to salary negotiations, there's some hope.

    I have a monotonous job, there are more Chiefs then there are Indians, I don't have to think much, pleasant surroundings, I'm on the leaderboard 4 out of 5 days on a bad week which might say something about the other Indians as much as it say's about me. (That even got put out there at a recent interview I can't say I'd ever recall someone putting it like that in past times but certainly seems more prevailing now)

    Only recently I went for another position at 1.5k more turning up at this place in middle of nowhere, in an undesirable barn setting down this one track road (should have realised then it was likely danger money!) working with just one other person in a rather active, take the initiative role.

    I consider myself a realistic type of person as much as possible but these two even similar sounding jobs titles were very different.

    I still remember when I turned down 23k+ and felt good (that had something to do with London weighting) (and perhaps because ha I simply didn't try it) but as I knew then I didn't like the sound of the target conversion required and seeing what I saw on the employer's wall it sure would have been like going uphill in custard with flippers on!
    Last edited by keepcalmandstayoutofdebt; 06-07-2017 at 8:39 PM. Reason: .
    "If you are caught in a rainstorm, once you accept that you'll receive a soaking, the only thing left to do is enjoy the walk"
    • Stu_N_
    • By Stu_N_ 7th Jul 17, 10:13 AM
    • 195 Posts
    • 111 Thanks
    Stu_N_
    • #7
    • 7th Jul 17, 10:13 AM
    • #7
    • 7th Jul 17, 10:13 AM
    I'm 31 now. The further on I've gotten in life, the more I've realised how relative this is! It depends so heavily on personal circumstances.

    If you told a 21 year old graduate who is earning £22k that you're on £35k, they may be impressed. But if they're in a flatshare and you're paying for a mortgage and childcare, chances are the graduate has more disposable income than you do! I certainly had to count the pennies less when I was a 24 year old singleton in a house share, compared to now, married and buying a house (my wife can't work full time due to health issues, which may have something to do with that though!).

    Broadly, I guess £30k+ (outside of London and the other more expensive parts of the country) counts as a good salary. At that level, if you manage your money well, you should not have any issues.
    • ruperts
    • By ruperts 7th Jul 17, 10:31 AM
    • 531 Posts
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    ruperts
    • #8
    • 7th Jul 17, 10:31 AM
    • #8
    • 7th Jul 17, 10:31 AM
    I think from most people's perspective a good salary is whatever they currently earn plus about 50%, and that applies whether they're earning £12k or £120k.

    Objectively I think all you can do is look at the wage ranges, adjust for age and location and put descriptions against percentile ranges. Something like

    0-20% - very poor
    20-40% - poor
    40-60% - average
    60-80% - good
    80-100% - very good

    So here 'good' would kick in once you reach the top 40% of all earners, so probably about £35k
    • Guest101
    • By Guest101 7th Jul 17, 10:37 AM
    • 14,625 Posts
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    Guest101
    • #9
    • 7th Jul 17, 10:37 AM
    • #9
    • 7th Jul 17, 10:37 AM
    In my area £20k+ is decent, £25k+ is good, £30k+ would be a top 10% or so.


    Obviously top 1% is much higher


    - I think family income is a better measure when you include the expenses of family life
    • trailingspouse
    • By trailingspouse 7th Jul 17, 10:51 AM
    • 2,109 Posts
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    trailingspouse
    It's all about disposable income. For a while my kids had more disposable income than I did...
    • andygb
    • By andygb 7th Jul 17, 12:47 PM
    • 11,523 Posts
    • 24,684 Thanks
    andygb
    When I was working up in London regularly, I was earning up to £36K, but when the time and costs of commuting were factored in, I reckon it was more like £32K.
    Now, living 35 miles from London and working locally, I think £28K is very good, but it is a pressured environment, and ten years ago the same job would have been paying £30K.
    Of course, now we are mortgage free, the money seems great, but the reality is that our circumstances have changed a lot.
    • Gavin83
    • By Gavin83 7th Jul 17, 1:31 PM
    • 4,442 Posts
    • 7,009 Thanks
    Gavin83
    I think from most people's perspective a good salary is whatever they currently earn plus about 50%, and that applies whether they're earning £12k or £120k.

    Objectively I think all you can do is look at the wage ranges, adjust for age and location and put descriptions against percentile ranges. Something like

    0-20% - very poor
    20-40% - poor
    40-60% - average
    60-80% - good
    80-100% - very good

    So here 'good' would kick in once you reach the top 40% of all earners, so probably about £35k
    Originally posted by ruperts
    I think £35k would put you a lot higher than that. There was a survey about this a few years back, I was earning about £36k(ish) and I remember it put me in the top 10% of earners in the UK. Something like 40% of earners were on minimum wage.

    People are answering two different questions here. It could roughly be broken down into "What's a good wage compared to the national average" and "What's a good wage for an individual to live on". The second clearly depends on someones personal circumstances, the first does not.
    • coffeehound
    • By coffeehound 7th Jul 17, 1:45 PM
    • 1,148 Posts
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    coffeehound
    I think £35k would put you a lot higher than that. There was a survey about this a few years back, I was earning about £36k(ish) and I remember it put me in the top 10% of earners in the UK. Something like 40% of earners were on minimum wage.
    Originally posted by Gavin83
    I wouldn't take such figures at face value since they don't reflect the true picture. E.g. there will be many contractors out there laundering their earnings through Limited companies who – on paper – pay themselves NMW, but will be on way higher real-world income.
    • TBagpuss
    • By TBagpuss 7th Jul 17, 1:59 PM
    • 5,775 Posts
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    TBagpuss
    There is an interesting calculator from the Institute of Fiscal Studies, here - https://www.ifs.org.uk/wheredoyoufitin/ £35K (gross) gives 'higher than 78% of the population)
    £35K net puts you in the top 11%
    £21K (the 'point at which repayment of student loans starts, for those earning the 'higher' salary as a graduate) puts you in the 47th percentile
    • TheDebtinator
    • By TheDebtinator 7th Jul 17, 2:29 PM
    • 230 Posts
    • 63 Thanks
    TheDebtinator
    There is an interesting calculator from the Institute of Fiscal Studies, here - https://www.ifs.org.uk/wheredoyoufitin/ £35K (gross) gives 'higher than 78% of the population)
    £35K net puts you in the top 11%
    £21K (the 'point at which repayment of student loans starts, for those earning the 'higher' salary as a graduate) puts you in the 47th percentile
    Originally posted by TBagpuss
    Based on that I aren't doing too bad, but then I wonder how I would compare if it took living area into consideration. I suspect I would be somewhere in the middle to lower half.
    • lincroft1710
    • By lincroft1710 7th Jul 17, 3:46 PM
    • 9,479 Posts
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    lincroft1710
    £100k+ pa.
    • Jaglad111
    • By Jaglad111 8th Jul 17, 5:22 AM
    • 52 Posts
    • 67 Thanks
    Jaglad111
    According to the link myself and wife have a greater disposible income than 97% of the uk population. However, without her I'd be in the top 2%. I also suspect i would be happier
    • FBaby
    • By FBaby 8th Jul 17, 6:38 AM
    • 15,705 Posts
    • 39,315 Thanks
    FBaby
    As pointed above, salary means nothing, it's disposable income that matters. I felt the richest when I earned the least! That's because at the time, I was a lodger and paid minimal rent (stayed with a wonderful woman who treated me like her daughter in her beautiful house!). I was single and only went out occasionally and didn't need a car as worked 10 minutes walk away and was next to good public transport. No debts, no large outgoings, once rent (incl. bills) were paid, I was able to put £500+ a month aside on a £13K salary.

    The poorest I've been was earning about £40K being a single mum of two young children. By the time pension was deducted, I'd paid the mortgage, nursery fees (I think I was only entitled to £50 a month tax credits), travel expenses, large repairs to the house, car cost etc... I was lucky to have £50 left at the end of the month.
    • GothicStirling
    • By GothicStirling 8th Jul 17, 7:40 AM
    • 928 Posts
    • 689 Thanks
    GothicStirling
    Its also lifestyle dependent. I have colleagues who earn more than me, but are living payday to payday, up to their noses in debt, and no savings. Whereas I, live well within my means, I have no debt (cut up my CCs in 2010), and have a savings pot. I've been in their position, and it isn't worth the misery. I'd rather have my life where I pay for holidays from savings rather than loans. Who cares if the car I go out for trips to the coast is a 2017 reg or a 2009? (well, not the kind of people I want to be friends with anyway).
    • Leo2020
    • By Leo2020 8th Jul 17, 7:46 AM
    • 877 Posts
    • 643 Thanks
    Leo2020
    Lots of factors affect what you think is a good wage. Living costs, stage of life, how much experience you have had in a role/similiar role, type of work, area you live in.

    Also personal experience of earnings has a big impact for me. Although I know 20k per annum is not a huge amount, when you look at average earnings, to me it seems a lot because I have never earned that or even close or been in a position where I could have progressed up to that with experience. 20k seems unattainable right now.
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