Income for a good lifestyle?

[sarshe]

Hi there,
I know this is a weird question, but can anyone let me know whether a 75k household income would be enough for a family of 4 to live on comfortably and afford a few luxuries in the UK (not London)? Kids will be in state schooling, not private.
Many thanks!

Why do you ask? Are you living elsewhere?

Yes

we manage it (in the south east) but we have to pay for full time childcare so fewer luxuries these days.

Yes, we're being relocated to SE UK for work in '11 - I'm just trying to get a handle on whether we're going to be able to manage on DHs proposed salary (my income is from freelance work so will be unreliable, esp. in the first year). Thanks for your responses.

I guess it depends on your idea of 'luxury' we have a household income of about 80k and live in South East. We have fresh, good food, a couple of nice bottles of wine a week, 1 holiday a year, two cars, enough money to replace things that get worn out... however we rent and definately cant afford to buy. I wouldnt say it was a luxurious lifestyle, however we are comfortable. But I know people who would consider it relative poverty as well as people who would consider it a fortune!

We do pay maintenance for my DPs DD so that does account for why we dont have some of the luxuries.

Yes, you will be comfortable - the weekly shop will be no problem - you can run one new but standard car, have a week or two in a 4 or (out of school hols) 5 star hotel and a weekend or two away, plus clothes from the high street. You can have a cleaner once a week, gym membership. So a lot of things that are considered to be luxuries for the majority of the population.

If you want swanky hotels, fast cars and designer clothes, you'll struggle on 75k.

Where are you now? And where in the UK will you be? Makes a big difference to the cost of living and the lifestyle/expectations of those around you.

Cool, thanks md.
Thanks again - It's a tricky subject, I know, as like md says it's so subjective, but these responses give me a pretty good basic steer.

Kids would break the fast car, get us kicked out of the swanky hotel and ruin the designer clothes, I'm sure! ;)
We're in NZ at the moment, heading to Herts, so aware housing will be at a premium.

Herts is South East/London catchment, so pricey. There will be quite a bit of wealth around you, so you are likely to be Mr & Mrs middle income there. Whereas further away from S/East and other big cities, you'd be pretty close to the top of the pile in income terms.

Cheers alfabetty :)

It depends how much you pay for living accommodation and your commuting costs.

We live near out workplace and have very low housing costs because our small mortgage was taken out long ago. We live very happily on a joint income of £65,000, out of which we also pay school fees.

We don't go out for meals, take-aways are treats and the children wear clothes from the supermarket (really good value - love Sainsbury's!) but we can afford books, CDs, two cars, a holiday, days out for the children ...

The average full-time earnings in UK in 2009 were £27,600 per annum for a man (less for a woman) so you will be very much above the average with your income.

There are cheaper and more expensive areas of Hertfordshire. Look for housing in the Stevenage, Hemel Hempstead or Royston areas, you will get excellent value for money and your £75k will go a long way. Aim for St Albans, Harpenden or Rickmansworth and it's almost central London prices.

Can recommend a website like www.upmystreet.com to get a good impression of a particular area, compare house prices, access to amenities and judge living costs.

It really depends on housing - will you have a mortgage or renting? How much housing costs eat up your income defines how well you live IME.

Is this an international assignment? If so then get them to include the following:

1 - Housing allowance - approx 50% of the rent for a house similiar to the one you currently live in (make sure it is in a good school district).
2 - Pension provision for both of you
3 - flights home twice a year
4 - expat health insurance
5 - School fees - my DH's employer pays for private tutoring up to the age of 10 and then private day school until 18.

If your husband isn't a British national he won't have to pay National Insurance for the first two years.