Is £200k enough to live on?

Le_Chuck

macman wrote: »

Try reading the original post-those were the parameters the OP set.
You might well be able to live on £7K pa, but Tarontis suggested that his dad lived on £2K pa-somewhat less.

I did & my point still stands.

Why mention the bit about living on £2k, I didn't as I know that can't be done

macman

Because that was what I was responding to.

Le_Chuck

macman wrote: »

Because that was what I was responding to.

2nd paragraph yes, 1st paragraph (which I was responding to), wasn't. It was on about the OP & the £200k. Hence the highlighting.

xtac

Thanks for all the interesting discussion on this subject, I had all but given up on it since originally posting 4 months ago!

I like the ideas, though moving to bulgaria seems a bit extreme!

food + other essentials are about £100 a month + something for driving costs.

Assume the person has a number of inexpensive interests (mixture of academic and non-academic) so shouldn't get too bored. Bits of work might also come the person's way, as someone else said, to provide additional small income.

I suppose buying a small house/flat in a less expensive part of the country and renting out a room would provide a source of income (though I guess how much income would depend upon which part of the country). Perhaps allow up to 70k for that (for a bit more space).

For the remainder, perhaps purchase property up to 130k and look for a 10% rental yield, though that is something that would need to be carefully researched (i.e. what parts of the country are best for buy-to-let). However the difficulties and practicalities of doing that might mean alternative investments would be preferable, about which an independant financial advisor should be able to advise (should look for investments that are inflation-proof).

The situation described in the original post is hyperthetical, but one which might occur at some point in the next 2 years should redundancy loom.

malivinroy

If your saving is 200k, I think it's more than enough.

GotNo£

I suppose a big factor in all this is when you plan on departing this life.

For me, I could live on 200k easily.

Dave_Harris_2

I could live a good life with 200k.

macman

The point of this was, can I live off the income from £200K?
Obviously anyone can live off the capital for a few years.

GotNo£

macman wrote: »

The point of this was, can I live off the income from £200K?
Obviously anyone can live off the capital for a few years.

Easily.

5% of that is £10,000 and I regularly live off way less than that, as do some others........probably.

Also, it takes money to make money, if you're savy (why is that not a word?) you could do all kinds of things.

redpin_2

if your not working, i dont think you pay tax? so those savings accounts providing 4.08% for 2 years etc will give you that tax free