Is 2.2k NET per month enough in London?

cashbackproblems

Hi

I have been offered a new job in Central London paying 2.2k per month after tax/loans etc, but was wondering if long term i could buy my own place/have a family and live a good life? Theres no other benefits like a company pension, bonuses etc and pay rises will be quite small e.g. 2-5% per yr.

I have worked in london before but was living with family and working for free so dont have an idea of costs etc.

Im 25yrs old and would look to get my own place in the next few yrs.

thanks

purplepardalis

If you lived in a house share or a studio flat then that should be enough to start saving. If you then want to buy in London you'll have to save for a long time!

browneyedbazzi

Do you have an idea of where in London you'd like to live?

What is your lifestyle like? (ie do you like to eat out, go on holidays, wear fashionable clothes)?

cashbackproblems

browneyedbazzi wrote: »

Do you have an idea of where in London you'd like to live?

What is your lifestyle like? (ie do you like to eat out, go on holidays, wear fashionable clothes)?

Almost definately North West London zone 4-6 e.g. Wembley, Harrow, Brent etc and commute in. Im quite low maintenance, maybe one night out per week, then other costs such as gym, cricket, etc. I think i could find somewhere for 500-700pm, 150 for tube, 200 food, 100 for gym/phone, 100 going out and 100 for misc.

InsideInsurance

It is certainly doable, there are people living on minimum wage in London.

Buying is expensive in the south east full stop so saving for a deposit will be challenging. Many people move out of London to buy and then commute in to get more for their money unless they are wanting to do joint purchase with a group of friends

Redbull

As long as you are a little careful with your money and have a savings plan, then that is definitely a salary you can live on and save money. There’s people in London with lower salaries than that with mortgages etc.

Once you’ve settled in and have been doing it for a while, there is nothing to stop you applying for other jobs to increase your salary. Never good to stay in the same job too long anyway.

What sort of property are you looking at? Because for 500pm you will probably be lucky to find a small studio, and that will probably not be near a tube station

smileylondongal

You can definitely do it and don't restrict yourself to London either - there are lots of affordable places that get you very quickly into London so long as you live close to a station. You can rent cheaply (house share would be ideal through gumtree or loot) and then save like a mad thing!

I know you're 25 and it's the last thing from your mind, but I am a bit concerned that there is no pension as most organisations do this these days. I'm speaking as someone now a lot older than you who took a job in the same boat and is now having to pay a huge percentage of pension contributions to 'catch up.' Sorry not completely relevant but it just caught my eye.

claire16c

You'll be fine I have friends in London who live a few hundred less than that. They do all share houses though, you need to earn quite a bit to live on your own. And once youre in the job for a while there is nothing to say you can't get an even better one.

hcb42

council tax and bills will be another £150ish I imagine.

Personally, I would find it a struggle on that income even in the Midlands on my own, but then I also try and save £400-600 and there is no way that would be achievable. But if you can still improve your salary over the coming years then it will be worth it.

princesslizzie

I take home just over 1200 a month and I struggle big time so I imagine 2200 will be doable. I also live in NW London - I live in a really lovely area 1 stop into zone 3, but in a flat share with no living room, and I pay the cheapest rent out of all of my friends. I am 24 and only started my career a year ago so it's probably different for me? I always, always go into my overdraft every month.

Oldernotwiser

£38K at age 25 is a pretty good salary and the salary increases you anticipate are very positive. However, if you want to save for a decent deposit you'll need to be more realistic with your household expenses, like food.

Fortunately, the areas you want to live are still reasonably priced; you can still buy a 2 bed flat in Brent for £150,000, as an example.