This is how much you need to earn in London to be financially stable

This is how much you need to earn in London to be financially stable thumbnail

You don’t live in London because it’s cheap.

The tube alone costs a fortune, and every round you buy at the pub makes your eyes water.

But now, new research has revealed exactly how much money you need to earn to be financially stable in the capital.

The golden number? A whopping £37,000.

That’s around the average salary of a regional sales manager, nurse or firefighter, in case you were wondering.

That’s also over £2,000 more than the average UK salary (which stands at £34,963), and is above the official London ‘living wage’, which is £13.35 an hour (£4 an hour less than what experts estimate is an actual liveable wage in the city).

Money experts at Finder, who worked out the figure, also say that we should spend 40% of our salaries on rent, which for a £37,000 gross salary, would equate to about £921 per month.

For that, you’d be looking to rent a room in a house share, such as this double room in Clapham Common or this cosy balcony room in Walthamstow.

Finder calculated the suitable salary by working backwards – first creating a realistic budget for Londoners.

Their research found that utilities, council tax, subscriptions and transport would make up 21% of the budget, which they say adds up to around £498. And groceries would also be about £166 a month.

Budget for Londoners earning gross £37,000

Rent – £921

Transportation – £200

Groceries – £166

Utilities – £133

Council Tax – £63

Eating out – £173

Holidays – £176

Saving – £239

Health & Fitness – £51

Subscriptions – £102

Discretionary drinks & snacks – £115

Clothing – £32

Total – £2,371

However, being financially stable is very different to how much cash you need to be happy.

And it turns out, it’s going to cost you a whole lot more than £37,000. And we mean a lot more.

Research conducted in September last year found that you need a staggering £79,524 a year to be happy in London – which only the top 10% of earners in the capital make.

It’s not too late to make ‘budget’ your 2024 resolution…

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