Exactly how much money should you be earning if you live in the UK? What is the ‘ideal’ salary? Well, according to a recent research study from Raisin UK, it’ll take a salary of around £33,800 to make you feel happy and content in 2021. Ignore the old saying “money can’t buy you happiness” because it turns out money actually might be able to buy you happiness!
This interesting article explores the ideal number people would love to win on the lottery. Asking over 1,000 people in the UK. The answers ranging from £6 million to a whopping £25 million. Personally, i think £1 million would be more than enough as our spending habits are so low. What would your ideal winning amount be?
However, this of course will depend hugely on your circumstances. I don’t think some research can really tell you how much money you need to be happy, or is the ideal amount. This research won’t know your living situation. Whether you love to spend money, or are frugal with your earnings.
Income Protection
One great thing you can do to make sure your salary is protected is to take out some form of income protection. Of course, you hope it something you never actually have to use, but it’s a good thing to have just incase. Say for example, you’re ill for a long time, having income protection means your wages are protected and your essential bills are covered.
Whether you work for yourself, or are employed, income protection is something you should look into to help cover the hard earned money you do make. I’ve been self employed for over 7 years now and something like this is great to give you comfort knowing that if something did happen, i won’t be left with bills to pay and no way to pay them.
So, what is the idea average salary in the UK?
Where Your Live
Firstly, the ideal amount of money you need to live comfortably completely depends on your situation. Where you live, how much money you spend. If you have other people to look after as well as yourself…etc.
For example, if you live in London, the ideal amount of money you’ll need to earn will be much higher than that of someone who lives outside the city. It’s thought you would need a whooping £40k a year to live comfortably in London. Whereas if you live in Hereford, the average salary you’d need is just under £30k a year.
This figure would also change depending on whether you live in a house, or a flat. If you rent or pay a mortgage.
Your Family Situation
Of course, again the amount of money you would need to live a comfortable lifestyle depends on whether or not you have a family to look after. For someone with a family of 4 to look after, living in London, the above figure could easily be doubled. Whereas if it’s just you, you might not even need the £40k a year.
If it’s just you, and you live a frugal lifestyle, you may not need much more than the cost of your bills. It’s almost impossible to gauge how much money a person will need as it varies so much from each individual.
Spending Habits
Another aspect to take in to consideration is your spending habits. If you love to go out shopping, or have expensive taste, then you’ll likely need a much bigger UK salary to allow for this.
However, if you don’t spend money that often, or like to hunt for a bargain, or buy second hand clothes in a charity shop, you’re ideal salary could be much lower.
Most people will find they live within their means, whatever this amount might be. For example, say you earn £2k a month, after bills, food shopping and treating yourself here and there, it’s likely you won’t have much, if any leftover. This is also likely for someone who earns £5k a month. You get used to what you earn and often spend what you can see you have.
Your Lifestyle
Your choice of lifestyle also has a huge impact on the amount of money you need to earn to live comfortably. Yes, money can help ease the stresses of daily life, but these stresses depend on your lifestyle. Many people live to work, wanting to earn as much as possible so they can live a lavish lifestyle. Working all hours of the day and night to afford a luxury lifestyle.
However, those who prefer to work to live might only want to earn enough to be happy. The standard 9-5 hour job, with little stress and lots more time for spending with family and friends. Yes, they won’t have as much money to spend on luxury items, but their happiness might be found in the little things in life instead.
My Thoughts
This is firmly where i stand these days. My husband and i earn a good amount of money but work isn’t everything. We have a great work – life balance and have very few stresses in our everyday lives. Yes, we won’t ever have the huge house, with acres of land, but that isn’t what happiness looks like for us. plus, being just the two of us we don’t need a big house. We go on fantastic holidays every year – San Francisco, Las Vegas, Boston, Spain…etc. We both have new cars and gym memberships and don’t skimp on trips around the country.
I’ve never felt the urge to work all hours of the day because ‘stuff’ and ‘things’ aren’t a priority. In fact my husband turned down a huge promotion at work because he didn’t want the added stress. This would have been an extra £3k a month for us – but money isn’t everything, and we didn’t need it.
Yes money can help ease stress, but it can also increase stress as well. Finding what works for you is how you’ll know what the ideal average salary for you living in the UK is.
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