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:
If you’re earning £80k a year in the UK, your salary is well above the national average.
Still, you may be wondering if it’s a good enough salary to suit your lifestyle while still saving to meet your financial goals.
£80k can be a perfect salary, as long as you know how to budget (and spend) wisely.
Whether you’re just entering the job market, or you’ve been in it for a few years, it’s hard to gauge what the average salary should be.
Plus, it’s even more challenging to tell what a good salary is. But is 80k a good salary in the UK?
In this article, I’ll go over how far a salary of £80k will go, and how to utilise it to your benefit to ensure you’re living comfortably!
Table of Contents
Is 80k a good salary in the UK?
According to Statista, the national median income in the UK in 2022 was £33,000 for a full-time position among workers who pay income tax.Â
This means that a salary of £80k is far above the nation’s median salary. So it stands to reason that you can live quite comfortably and still have money to put away for the future.
As you can imagine, £80k a year isn’t an entry-level salary. Earning this amount requires an upper-management position or years of experience.Â
It also means you fall into the top 5% of all income tax-payers.
Unfortunately, if you expect to earn that much money as soon as you finish university, you may be disappointed.
While some university degrees allow you to step into well-paying jobs that top the national average, an annual salary of £80k is usually a goal you’ll have to set yourself to achieve.
It’s definitely an attainable goal, and you might reach it long before others. Still, it will require effort, hard work, and planning.
Podcast Episode - Rachel Harris
Join us for an episode with Rachel Harris, award winning business owner with a people first approach.
We discuss how to get out of toxic workplaces, interview tips, increasing your salary, what makes a good boss and so much more.
Hit the play button just below or for links to Spotify and Apple click Rachel’s name just above.
Breaking down an 80k salary
So what does an £80k salary actually look like? Sure, it’s a large number and way above the national average, but how does it look when it’s broken down?
Well, I’ve done the maths for you, so you don’t need to break a sweat.
These figures have been calculated with the following assumptions:
- You are younger than 65
- You have no student loan
- You have no pension deductions or benefits
A gross income of £80k a year means you’re earning:
- £38.46 per hour
- £307.69 per day
- £1,538.46 per week
- £3,076.92 every two weeks
- £6,666.67 per month
Your estimated net income after tax and national insurance contributions will be:
- £42.65 per hour
- £213.27 per day
- £1,066.34 per week
- £2,132.68 every two weeks
- £4,620.81 per month
- £55,449.68 per year
UK Salary Calculator
Results:
Can you live off an 80k salary?
Living off an £80k salary is relatively easy. There are always variables and factors to consider, but £80k puts you in the top percentage of earners in the UK.
When considering how well you can live, you should look at rent, how many dependents you have, monthly repayments, and day-to-day expenses.
These variables are important for determining how well you can live off this salary.
While most people may consider this a high salary, only you can determine whether you can live well with an income of £80k.
How much rent can you afford on an 80k salary?
The typical rule for renting is to budget around a third of your monthly salary. Rent prices can change significantly depending on your area.
For instance, living in London, you might pay the same rent as somebody living outside London in a much bigger house.
In fact, someone earning minimum wage could rent the same size apartment as you outside of the city.
So, not only do you need to consider the location of your rental, but you also have to consider other expenses.
If you don’t mind sharing your space, it can halve your rental cost, let you live close to work, and reduce your travel costs at the same time.
This way, even though your average income stays the same, you get to enjoy the perks of your fantastic salary more
Can I buy a house with an 80k salary?
It’s definitely possible to buy a house in the UK with an £80k salary.Â
However, whether it’s possible to buy a house will also depend on factors like your credit score, current debts, the location of the house, and your eligibility for a mortgage.
House prices may vary across the UK, with some being much more affordable than others.Â
So before you determine whether you can buy a house on your salary, you’ll need to scout the location you want to move to.
Typically, lenders require a deposit between 5% and 20% of the property’s value.Â
The more money you are able to put down, the easier it will be to be approved for a mortgage. The amount you’re able to put down will depend on your current expenses.
Match with a mortgage advisor that suits your unique financial goals, and when you do, Unbiased donates to the Samaritans.
Tips for how to live off an 80k salary
If you want to know how to live comfortably off an £80k salary, you’ll want to pay attention to our top tips for stretching your income:
Budget
Although a salary of £80k puts you in the top percentage of earners, budgeting is essential to making your money last.
By understanding where your money is being allocated monthly (debts, repayments, and other expenses like bills), you’ll be able to budget more efficiently.
Budgeting your money can also help you to save up for long-term goals like buying a house or investing in stocks, bonds, and other assets.
Pay off debt
Debt is a nasty word that nobody likes to hear. But on a salary of £80k, you can easily whittle down any outstanding debts you may have, while still having enough spare income to live comfortably.
You don’t want to carry your debt around with you for too long. So you should try to include debt repayment in your budget.
Remember, the more you pay off per month, the quicker you can get rid of the debt monkey on your back.
Consider investing
Once your budget is set and you have paid off your debts, you may wonder what to do with any spare cash.
Investing is a great option if you’re earning £80k a year, and can help you reach any future financial goals.
Before you start investing, it may be a good idea to seek out financial advice to minimise your risk and secure better investments.
Still, if you invest in several assets, you could be looking at a fantastic return in the long term.
Stop waiting and start investing with the best UK investing apps on the market right now.
We've covered all levels with expert managed and DIY options available.
FAQs
Is 80k enough in London?
£80k is enough to live off in London. However, it’s important to remember that your money won’t take you as far as it would living in areas outside of London.
While you may be able to afford a single-bedroom flat in the heart of the city, you could just as easily afford a three-bedroom house in a smaller residential area.
Is 80k a good salary for a single person?
£80k is a great salary for a single person and is enough to cover an entire household – provided you know how to budget your money correctly!
As a single person, you should have enough money to cover your rent or mortgage, your debts and expenses, and still have money left over to invest or have fun with.
Final Thoughts
Whether a person’s salary is enough to live comfortably depends on a variety of factors. These may include your location, lifestyle, and current living expenses.
I hope this guide has given you a better understanding of whether £80k is a good salary – and how to spend it wisely if you’re lucky enough to be taking home these earnings!
More like this
- Is 20k a good salary?
- Is 25k a good salary?
- Is 30k a good salary?
- Is 35k a good salary?
- Is 40k a good salary?
- Is 45k a good salary?
- Is 50k a good salary?
- Is 55k a good salary?
- Is 60k a good salary?
- Is 65k a good salary?
- Is 70k a good salary?
- Is 75k a good salary?
- Is 90k a good salary?
- Is 100k a good salary?
- Why are US salaries better than the UK?
Share on social media
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.
