Is 60k A Good Salary In The UK?

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.

£60,000 is an excellent salary and is above the median wage for the UK and London. Whether or not 60k is a good salary for you personally will depend on your current financial and living situation.

If you live in London, you could expect £60,000 to go quite a long way but compared with places in the North which are often cheaper, £60,000 will go even further.

Is 60k a good salary?

A 60k salary is above the nation’s average for a full-time employee. The average UK salary for full-time workers in London in 2022, according to Statista, was £41,866, compared with £29,521 in North East England.

£60,000 tends to be given to those in a senior management position meaning you will need the experience to warrant that salary. Most people will naturally start much lower when starting out so you may be in for a journey working your way up to 60k.

What is 60k after tax?

Right, so you could have landed a 60k salary. Nice work! But how does it break down?

This net wage is calculated based on you being younger than 65 with no student loan, pension deductions or benefits.

Gross income of £60k per year equals:

£28.84 per hour
£230.77 per day
£1,153.85 per week
£2,300.70 bi-weekly
£5,000.00 per month

Estimated Net Income after income tax and national insurance contributions

£21.08 per hour
£168.65 per day
£843.26 per week
£1,686.52 bi-weekly
£3,654.14 per month

Earning 60k a year also means the tax on your bonus falls into the higher-paying tax bracket.

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Can you live off a 60k salary?

The short answer is yes; you can comfortably live off 60k. By any means, it’s not a tiny amount, although it’s how you use it that matters most.

Many variables are in play, such as location, family size, household income, debt and monthly expenses. This is unique to each person; therefore, we must stress that only you will know if you can live off 60k.

If you’ve been on a higher salary and are taking a pay cut, you’re accustomed to a particular lifestyle meaning your outgoings may be much higher. In this case, you may not be able live off £60,000 and would need to rearrange your finances to suit your new salary.

Compared the US for the same roles, generally, salaries in the US are higher, and UK salaries are lower for some reason, but not considerably.

How much rent can I afford on a 60k salary?

Renting is challenging as it depends a lot on other expenses. Knowing how much rent you can afford will keep you on budget and allow you to manoeuvre your finances.

You will also need to consider household bills on top like council tax, gas and electricity too.

Remember things like the internet, mobile phone, insurance and transport bills. It all adds up, so it’s essential to budget for these costs before you work out your available cash for rent.

Usually, it’s around 30-40% of your salary for rent. Try to keep this as low as possible. If you have debt, then I would reduce this accordingly but operating within this bracket leaves you some cash left over.

If you look at a 60k salary monthly, after tax, this bracket is around £1100-£1300. If you’re in London, or a major UK city, you’d be lucky to get more than one bedroom flat but sharing would give you more comprehensive options.

In the North of England, this will go a lot further and, in some places, can even get you a three-bedroom house.

Can I buy a house with a 60k salary?

Yes, you could easily buy a house with a 60k salary. According to onlinemortgage.co.uk, you could afford somewhere between £260,000 – £330,000 if you have a 10% house deposit.

In the UK, your mortgage affordability is usually calculated at x5 your yearly income before tax. Your affordability would increase if you added someone like your partner, friend or sibling to a joint mortgage.

It’s important to note that if you’re freelance, this amount could change as lenders are less favourable to people who work for themselves or own businesses. You will often need 24 months’ worth of tax returns to prove you can pay your mortgage back.

Depending on where you buy £330,000 can go quite a long way.

In London, you’d need to look around the outskirts to get a one-bedroom flat, but if you’re looking in more rural areas, this could turn into a two-bedroom house very quickly. London is expensive!

Tips for how to live off a 60k salary

Sometimes we need to make it work, and if 60k is your salary, then that’s what you have to do. This section looks for tips to help you stretch your paycheque further.

Budget

We know budgeting sucks, but even on a 60k salary, you should be doing one! If you don’t, you’re playing the dark, and while that may work for some for most, it doesn’t!

Understanding your outgoings allows you to assess your current financial situation and plan ahead for more significant purchases or life decisions.

You can find seriously great budgeting and saving apps that can help.

Take your financial planning to the next level with our Ultimate Financial Planner – just £14.99.

Create a bulletproof budget with categories for income, expenses, debts, development and more.

Pay off Debt

If you’re earning £60,000 a year, you should be looking to clear any debts you may have. A budget comes in handy here as you can allocate money towards debt.

Targeting any high-interest debt first is vital to reduce your interest payments faster. Money given in interest is money you could have used elsewhere.

Many of us pay the minimum balance, and whilst this is contributing, you’re often just paying back the interest. The key here is to overpay where you can and get on top of it. You’ll feel a million times better if you do!

Consider investing

If you’ve never invested, it should be on your radar. Making money work for you is the fastest way to get ahead, and you do this by investing it.

Sure there are risks, but if you invest for the long term, many of those risks are mitigated. The stock market is built to rise over time, so you will get results if you pick well and follow a tried and tested strategy.

If you want to avoid learning about investing, let apps like Moneyfarm and Wealthify do the hard work for you.

These brands are called robo-advisors and are designed to take care of everything for you with algorithms that create portfolios tailored to each individual. They’re brilliant bits of kit.

Use credit cards correctly

Using credit cards correctly is something I could go on about all day. I pay them down immediately – don’t wait. That’s the trap they lure you in, and suddenly you are stuck paying down the interest every month. Don’t do this!

Try not to maximize all the credit you take out. Agencies like Experian and Equifax will encourage you to keep under 30% of your total credit card balance.

Doing this shows you’re responsible with debt and can clear it if you need to. It can also help improve your credit score.

My tip is to buy something on your credit card every month. Have a regular bill that you pay, like a phone contract or household bill. As soon as it comes out, pay the debt off that day. This will help maintain and even increase your credit score.

A balance transfer card can help stop any high interest you may be paying. You can find interest-free ones, but be careful to check out the transfer fees in advance.

Grow your savings

Savings are part of every financial strategy. I want to make sure I have a safety net, and this is something you should consider especially earning £60k a year.

Building yourself an emergency fund is a great place to start, and most people say this should be six months’ worth of pay, but three months is a great place to start.

To help me, I use a round-up feature with my bank to help me put money aside. This takes any purchase and puts the loose change away for me.

For example, if I spend £2.20 on a coffee, my bank rounds up the purchase to £3.00, placing the 80p into a savings pot for me.

FAQs

Is 60k a year middle class?

60k a year would see you as middle class in all areas of the UK, and it is an above-average wage that allows you to live comfortably. No official amount makes you into a class, but £60,000 a year is considered an excellent wage.

What areas are the cheapest to live in on a 60k salary?

Yorkshire
Cotswolds
Norfolk
Devon
Nottinghamshire

Is a 60k salary good for a single person?

If you’re single and have relatively no debt, 60k is an excellent salary. This will allow you to pay your rent and still have enough left to enjoy time with friends and family, invest and put money away.

Conclusion

So, Is 60k a good salary in the UK? We’ve established that it depends on where you live, your financial situation and many other variables.

You can easily make 60k work even in the capital, but it can become challenging if you’re supporting a large family.

Remember if you’re struggling with cash you could always consider a salary advance.

This could be a better, cheaper way to get hold of some of your cash. Beware though don’t get caught in a spiral as it could lead to more debt.

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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.