How much do you think a household income needs to be, for a family of 4 to live comfortably in the UK now?

[racingheart]

Just wondering as I've been offered some dream work at lower than current pay. Trying to work out how much DH and I between us will need to earn to live happily, without fretting about the necessities. I'd like us to have a holiday every year, but that aside, we aren't very materialistic.

It's a bit of a subjective thing tbh.
We would be considered poor compared to many on here, joint income less than 20'000 per year and are a family of 4.

Really? Should I measure this piece of string too?

I define it the way you've just defined it, Joyful. Without any worry ever about the basics. Comfortable means you always have money for food, bills and the inevitable stuff that breaks down, plus a little over for an annual holiday and a family day out a few times a year.

Do you think £45-50k income, from two people (so bigger tax breaks than one person on higher income) would be workable in the South East? Our mortgage isn't huge.

Entirely depends on housing costs and how much childcare you need for your children.

Cross-posted with you, Fanny. Your income doesn't sound easy to live on in UK.

If your mortgage isn't huge (ie less than £500 a month) then you would be ok on that.

That sounds promising, Joyful. I'm just trying to work out how much income DH would need to bring in to make up the shortfall if I take this job. Maybe it doesn't need to be as high as I thought.

We worked out £30k would give us enough to cover extras & an annual holiday etc but our housing costs are low, think that's the key point really.

It's disposable income that's key, not gross. Take your net take-home minus your mortgage, council tax, insurance and other regular monthly bills. Deduct a reasonable monthly amount for groceries, petrol, clothes etc. Then factor in annual big spends like holidays, Christmas, household maintenance. If you can still put away a few hundred a month in a savings account then I'd regard that as 'comfortable'

You're right, Cognito. It's the disposable income that makes a difference. I haven't properly worked out yet how the tax will effect two lower incomes, as we could well be better off due to the tax breaks, even though we technically will be earning less.

racingheart We have a low mortgage, council tax has been frozen last few years, prescriptions etc are free and we get tax credits, we do ok really, not struggling at the minute.
We have made a few sacrifices so I can be at home during the week while the kids are small. Totally worth it though.

I agree about it being worth it to be at home while DC are small. I did that too, and am glad I did. Not for everyone, but if it is, then no amount of money equates to it.

Once they get to school and want to join every club under the sun, you need a job though, just to cover the cost.

Racingheart if you ask me, I think £45-50k is bare minimum in the SE. But ofc it depends how much equity you have in your house already? If you have mostly paid it off your mortgage payment is probably quite small. Amongst my workmates, many are paying around £1500 pcm, and you'd struggle with £45k on that. But some of te older ones are down to £300 a month. It's a whole different world really once you factor housing in.

I agree about the housing costs issue. My mortgage is huge, that alone takes me out of the comfortable into the struggling bracket. Can just about meet all bills but cannot save anything, so no holidays (unless my mum takes us!) or money put aside for emergencies.

Therefore the answer to the question will depend almost exclusively on what portion of your income is taken up by housing. Is the 'safe' figure no more than 30%?

Many many many families live on less than 45-50k in the south east quite happily, Depends on what you're used to, how big your house is etc. For example a family supported by one working teacher/nurse/policeman etc will be on a lot less than that.

As long as both your incomes are going to be over £8,100 you will pay at least £2,500 less tax and NI.

You can use an online tax calculator to work out how much your earnings are, perhaps somebody would like to link to a good one.

racingheart, this is a pure number crunching exercise. Without knowing how much you pay on expenses (with mortgage and childcare being the big ticket items), it is impossible to come to sensible figure.

Get your figures together and your calculator out. No point asking us!