When it comes to money, of course, the best principle is ‘the more the better’. At the same time, it’s not necessary to be a millionaire to secure a comfortable life for yourself and your family in the UK. How much money does one need for that? Depends on the individual and their wants and needs. In case you got a new job offer with a salary of £60,000 per year and are wondering if it is worth accepting, you’re welcome to read our article. Here we answer the question ‘Is £60k a year good salary in the UK?’ and discuss how it compares to other salaries across the country.
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The most objective answer to our question will be ‘Depends on where you are located and what your aspirations and lifestyle goals are.’ Let’s have a closer look at each of these two factors.
As in any other country, there is a distinct variation in salary and expenses depending on a region in the UK. If talking about mandatory payments such as income tax or National Insurance Contributions, they are relatively the same across the country, with some subtle differences. The factors that matter when deciding if £60k salary is a very good salary in the UK are:
According to Expatistan and Numbeo, the average monthly costs of living in the UK in 2023 stands at:
Another factor that can help to decide on the issue is the current lifestyle preferences and future goals of a person. Let’s explore some of them.
If you want to ensure a comfortable living with £60k salary for yourself, you should work on effective financial planning. Careful income management includes addressing basic expenses, discretionary spending, and savings. By regularly doing so, you can achieve both short-term stability and long-term financial goals.
So what does budget management look like? Let’s break it down:
Essential expenses are recurring costs that an individual has to cover in the first place to maintain a basic standard of a more or less comfortable life. Of course, every person has their own understanding of a ‘comfortable life’, however, there are the most typical ones:
Should you manage to cover all the essential expenses and still have some money to spare, the answer to the question ‘Is £60k a good salary?’ will be ‘Yes’. In fact, it’s extremely important to be able to afford something more than just covering your living costs. As a famous proverb says, ‘All work and no play makes Jack a dull boy’ – a chance to unwind and recharge is key to your mental health, well-being, and further achievements.
In case your £60k salary makes you live from hand to mouth, we do recommend reflecting upon the possible options to change something in your life. It may be both being more reasonable regarding your spendings or considering a new more high-paying job. Feel free to ask a financial advisor for help – you can get a few valuable insights that will change your financial situation for the better.
Whether £60k is a decent amount for you or not, you should familiarise yourself with potential financial challenges that may occur. Here are some ideas to consider:
Another way to find out if a £60K salary is a good salary in the UK is to look at it from the point of view of the industry standards. Considering such factors as the position, the company’s location, and benefits the company offers besides the salary will help you identify if £60,000 per year is an acceptable amount for you or not.
First, research what minimum, average, and maximum salaries your industry in your area offers. Second, objectively evaluate your qualifications, experience, and expertise to understand what salary you can expect. Third, consult with your industry peers to determine what others in similar roles earn. Consider the size of the company: larger companies tend to offer higher salaries. Finally, check online job boards with relevant vacancies. Remember that job titles may vary from company to company, so for more accurate selection, it’s better to focus on responsibilities.
Even if you are happy with the £60k salary today, tomorrow everything can change. As we’ve mentioned, nobody is immune to economic recession or inflation. It’s always a good idea to strive for better positions and higher salaries for the sake of your own good. Therefore, besides deciding how good the £60k salary is, consider what prospects for career development and salary growth your job provides.
Last but not least, not everything is about material needs. If your £60k salary is your take-home salary, and the company also offers a solid benefits package, it may be a really good deal. Some companies cover gym or education costs, give employee discounts, make generous pension or retirement plan contributions, and organise free wellness programs or exceptional team-building events. This may be a nice addition to your entertainment or wellness activities outside of work and help you save a good bit of money.
