Sammie Ellard-King
I’m Sammie, a money expert and business owner passionate about helping you take control of your wallet. My mission with Up the Gains is to create a safe space to help improve your finances, cut your costs and make you feel good while doing it.
Quickfire Roundup:
£45k is considered an above-average salary in the UK and should be more than enough to live on if you’re savvy with your money.
However, you may struggle if you have dependents or live in an expensive part of the country. Budgeting can help you account for your day-to-day and monthly living expenses.
£45,000 is an excellent salary and should be more than enough to support you and your family. However, whether 45k is a good salary depends on where you live.
For example, while 45k is only slightly above the median income for a full-time worker in London, it is considered an above-average wage outside of the capital where living costs are considerably lower.
If you are wondering if 45k is a good salary in the UK, continue reading as I break it down.
Table of Contents
Is 45k A Good Salary In The UK?
In short, yes. According to national statistics from Statista, 45k is £12,000 above the national median for an employee in full-time employment in the UK which, as of 2022, is £33,000.
It is also £3,134 higher than the median earnings of a full-time average salary in London (£41,866) and £15,479 higher than the annual wage of the average person based in the North East of England (£29,521).
45k is the norm for mid to lower-level management positions and aircraft pilots in first officer roles. It is usually achieved through several years of on-the-job experience.
But with 4% of graduates earning average salaries of £45,000 and £47,999, it is possible to achieve this kind of wage sooner.
Breaking Down A 45k Salary
So you’ve bagged yourself a £45k job, but how does this money break down by hour, day, week, and month? And how does tax affect this?
It is worth noting that the following net wage has been calculated based on you being under 65 with no student loans, pension contributions, or benefits.
Gross salary (before tax) of £45k per year equals:
- £21.63 per hour
- £173.08 per day
- £865.38 per week
- £1,875 bi-weekly
- £3,750 per month
Estimated net income after you pay Income Tax and National Insurance contributions:
- £16.65 per hour
- £133.17 per day
- £665.85 per week
- £1,331.7 bi-weekly
- £2,885.34 per month
It is also worth taking into account that bonuses are taxed in the same way but just added to your monthly paycheck.
So, if you receive a bonus, you must check your personal allowance and be aware that your tax bracket could change at this point.
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Can You Live Off 45k?
In short, yes. Most people should have no problem living a comfortable life on 45k.
However, this depends on several factors such as where you live, who you live with, your total income, the cost of living crisis, and the size of your home, just to name a few.
Because of this, only you will know whether you can live a comfortable life on 45k.
How Much Rent Can I Afford With A 45k Salary?
45k is more than enough to rent a property but, again, this depends on your living costs and where you want to live. You must also factor household and utility bills into the equation which can sometimes equal more than your rent.
Before you sign a rental agreement, you must determine how much you can realistically afford to pay toward rent.
On average, you should spend no more than 30% and 40% of your monthly income on rent. This should leave you with enough cash left over to spend or save.
On average annual earnings of 45k, you should be taking home around £2,852 a month after tax. With this in mind, you should be aiming to pay between £855.60 and £1,140.80 a month on rent.
But while this is more than enough for a one or two-bedroom flat in the North East of England, your options will be limited in major cities in the South East like London.
Can I Afford A House With A 45k Salary?
Yes, you should have no problem affording a house with a 45k salary as long as you have saved a decent deposit.
Most lenders would consider letting you borrow around £202,500. This figure is based on 4.5 times your total household income which is the formula most mortgage providers use.
If you live with a partner, you can also apply for a joint mortgage which can increase the amount you will be able to borrow.
Tips For Living Off A 45k Salary
While 45k seems like a decent salary on paper, bills, transport, and food can see it dwindle away before your eyes. Here are some tips to help make your money stretch further:
Budget
I know you’ve probably heard it a million times but that’s because it works! Budgeting can help you keep track of your finances and prepare for those all-too-common financial emergencies.
It might sound difficult or like it would take up too much of your time but this couldn’t be further from the truth.Â
These days, there are hundreds of budgeting apps designed to do the hard work for you, all you need to do is enter your income and outgoings.
Pay off debt
I know it’s easier said than done but paying off debt really can make a difference to the amount of disposable income you have to spend on whatever you wish.
While it may seem like it, I promise it isn’t rocket science. You should always pay off high-interest and priority debts first. This includes mortgage repayments, rent arrears, National Insurance, and utility bills.
Save, save, save
45k is more than enough to cover your essentials and boost your savings account for a rainy day or your pension. So why do so many people forget to do it?
It can be easy to assume that you’ll never need to touch your emergency savings account but if you were to suddenly lose your job or experience a medical emergency, three months’ worth of income could be the difference between you making ends meet and falling into debt.
If you have a pension pot, this is also worth topping up.
FAQs
Is 45k considered middle class in the UK?
45k is generally considered to be a solid wage that would allow you to live comfortably and is considered middle-class in most areas of the UK.
Can you live in London on a 45k salary?
45k is usually considered the minimum average income you would need to be able to live comfortably as a single person in London.
Is 45k enough for a single person?
45k is an excellent salary for a single person and should give you enough financial freedom to afford essentials and luxuries.
Conclusion
While 45k is a good salary in the UK, it depends on where you live and what your outgoings look like.
While it is more than enough to support yourself, you may struggle if you have a large family or live in a city with a higher cost of living.
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Disclaimer: Content on this page is for informational purposes and does not constitute financial advice. Always do your own research before making a financially related decision.
