Hi all,
I am looking for the advice on London budgeting, and the majority of other threads was focused on the Analyst/Associate situations whereas we are already in our mid-30s.
Our situation is as follows (currently evaluating a potential offer trying to figure out whether this move makes sense or not):
- Offer would be senior VP/Director level in a CorpDev team of the company in the energy industry
- Moving from the EU with the spouse plus a 6 month old kid plus a dog
- Initially only I will be working
- Likely mostly in-office working (no WFH), plus quite a bit of international travel
- Proximity to nature is very important to us (to the extent possible in London, of course)
What should we budget for to live a good life / what sort of package should I ask for? Which areas of London would you recommend given the above?
Many thanks!
Not in your shoes but I thought the below blog post might offer some inspiration or a reality check of sorts
https://bankeronfire.com/how-to-be-poor-on-250k-per-year
One thing I can say, you'd be surprised with how green London can feel thanks to it's many parks. In addition, depending on the location of your offices and working hours, there may be little reason to live in central London - would look at outskirts with good connectivity so that you're closer to the woods but equally it doesn't take you an hr to do something in the center
Thanks a lot! This is very helpful and I think we will be looking at a similar budget, of course with the exception of buy vs. rent.
Zoopla has a travel time search (bit hard to find, it's normally in the footer of the page) where you can put in an address and select a 15-30-45 minute travel-time by car/walk/public transport and it will map out all locations (and places to rent within those locations) that fit the criteria. Quite useful and decently accurate. There might be other sites that do similar, just without the rent part.
Hey there,
Based on the most helpful WSO content, here's a rough breakdown of what you might expect in terms of budgeting for a family of three in London:
Rent: For a family-friendly area with proximity to nature, you might want to consider places like Richmond or Greenwich. These areas have large parks and are quite family-friendly. For a 2-3 bedroom flat in these areas, you might be looking at around £2,000 - £2,500 per month.
Childcare: If you're considering a nursery for your 6-month-old, costs can vary widely but you might budget around £1,000 - £1,500 per month.
Food and Household Expenses: This can also vary widely depending on your lifestyle, but a rough estimate might be around £800 - £1,000 per month.
Utilities and Council Tax: This might come to around £200 - £300 per month.
Transport: If you're mostly travelling within zones 1-2, a monthly travelcard is £138.70. However, if you're travelling more widely or considering a car, costs will be higher.
Miscellaneous/Entertainment: This will depend greatly on your lifestyle, but you might budget around £500 per month as a starting point.
In terms of the package you should ask for, you'd want to ensure that it comfortably covers these costs, plus any additional ones you might anticipate (e.g. private school fees, regular travel back to the EU, etc.).
Remember, London can be an expensive city, but it also offers a lot in terms of culture, diversity, and opportunities. It's a fantastic place to live and work, and I'm sure you'll love it here!
Hope this helps, and best of luck with your decision!
Sources: Q&A: London REPE MF Associate, London Rent / Living Arrangements 2019, Where to live in London?, Why are the salaries in London so low?
Aim high, especially in London. That 40% tax rate above 100k, pension tapering, hidden taxes everywhere, etc really add up.
Do you have certain requirements? Do you know how much your wife could make?
Well, my only requirements are the ability to be in the nature quickly and safe, clean neighborhood. All hobbies in our family are sports-related so no need to splurge on going out etc. But of course a new bike is not going to buy itself...
I suppose the package I'd be looking at is going to be around GBP 250-300k p.a., is that market-aligned for 7 years of experience? The wife can transfer (she works for a financial institution with the large office in London), will likely be around GBP 100k if I had to guess (we didn't really check that yet as she's going to be out of workforce for another year or so).
Considering the total comps you indicated (assuming your spouse will work soon), I think you can afford all the social life you desire (regular dining out, shopping, leisure, international holidays and decent pension savings). However, if you are not on an expatriate contract and you plan to stay for many years, I feel the two biggest outflows you need to factor in are
1) Accommodation. You probably need at least a 3-bedroom flat/house (potentially four if both of you WFH or family continues grow). Central London (anything within zone 2 and in a posh area such as Fulham/Hyde Park/South Kensington/Holland Park) will be very expensive for that size of property. If you could travel 45-60mins (Clapham Common, Kingston, Wandsworth, Richmond, Hampstead, Islington, and Wimbledon are all nice areas with loads of bankers, lawyers, traders and corp execs), the monthly rental costs about GBP4000 for a decent property but definitely not luxurious. East/Southeast London have many modern flats for GBP2500-3500 but are not really children-friendly (culture is another topic but simply for a lack of childcare provisions). If you consider buying, GBP1.0-1.5mn for an entry-level property for the above regions mentioned but probably needs GBP1.5-2.0m for anything decent or if incl some budget for a renovation. Then you need to consider expenses for the mortgage with a reasonable LTV. True local Brits (know this from friends and colleagues) are open to commuting for 1.5 hours from Bedfordshire, Surrey, Sussex or longer (I mean door-to-door time) which could make it cheaper by maybe 30%%. That's another topic but I assume you want to enjoy London, at least for the first few of years.
2) Education. Probably not a popular topic here. Nursery usually costs GBP 90-100 per day full day (8am to 6pm) and there are very limited subsidies in the UK (basically negligble if you earn above GBP100k per year). That's GBP20-25k a year. Private school fees (all in) cost about 20-25k for primary school stage and 25-30k for secondary school stage. A state school (aka a public school for anyone that is outside the UK) is free but you need pay a premium to either rent or buy a property within that school admission zone (called "catchment area"). If you only plan to have one child, this is not a big concern. If you plan to have 2-3 kids down the road, this is potentially the biggest cash outflow for the foreseeable future.
Tax burden in London is high (vs. HK/Singapore/Middle East). GBP100k is probably the current survival level for a single white collar professional. The marginal tax for any comps above GBP100k feels like 45-50%. So in reality, renting a half-decent big property costs you GBP70-80k before-tax and each child costs you GBP40-50k before-tax, whether it is nursery/private school unless you send them to a state school. The annual tax free pension allowance starts to taper from GBP260k and it nearly disappears once you earn GBP360k. I guess GBP300-500k household income will definitely make you live a comfortable life but still need to budget well.
Hope it helps
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