How I Budget My £40k Salary in London 2022
ฝัง
- เผยแพร่เมื่อ 22 ส.ค. 2022
- Here is a total breakdown of how I budget my £40k salary living in London.
Please note this is made for educational purposes only, I am not a financial advisor and this is just what works for me! And also I'm quite nervous to share my salary so please be kind, whether you think it's high/low is subjective. Thank you!
Follow my budget challenge on Tiktok for my daily spends:-
/ mischapann
Sign up for a free Monzo card and we both get £5 after you make your first purchase:-
join.monzo.com/c/0whp7x4
Find me online:
Instagram: mischapanne...
Vinted: www.vinted.co.uk/member/62110...
Sub count: 363 - แนวปฏิบัติและการใช้ชีวิต
![แม่กลองสองใจ - ซีแกรม โตเกียว มิวสิค [ OFFICIAL MUSIC VIDEO ]](http://i.ytimg.com/vi/GSQfVjcr_f4/mqdefault.jpg)
I've only just reached over 40k salary after having over 10 years experience in my field and a degree... I switched careers and took a bit of a risk so I'm on a fixed term contract. I felt like this was a super amazing salary but finding it harder to budget with all the expenses going up and up. I'm a Homeowner (due to having help from family) but am single and have two dogs so cover 100% of everything. I am on the line pretty much every month. I honestly don't know how it is possible for anyone to live without worry especially those earning the "average" or less. Anyways after that ramble, I found this video very relatable and gave me a few ideas 😊
Yes it is surprising how quickly you get used to a salary jump isn’t it 😂I can imagine it must be hard being responsible for everything! Definitely helps, even just mentally to share the load. But also means that you own 100% of everything yourself which is super empowering 💪🏼💪🏼💪🏼 and thank you for watching! ☺️☺️
Hello. I have been looking at salary websites, and I have been getting inconsistent results. How much do you think actuaries earn there, I am think of relocating once I qualify
How on earth been under 40k for 10 years that’s brazy
@@osirisofthesouth2853 haha woah what a lovely comment! I've worked hard and jumped my salary for every job move, not every industry/career path takes you to earning over 100k. You shouldn't judge based on your own experience because everyone else has their own too. Plus whilst London may have bigger salaries and the North slightly less so but the cost of living differs across the UK. I have a happy, fulfilled very fortunate life and salary is NOT the factor that should be judged.
Not everybody is IT or lawyer. @@osirisofthesouth2853
Great video Mischa! It is good to be both honest and vulnerable about incomes and finance. Looking forward to more videos :)
Thank you Amy! that means a lot :)
Thank you for being open, this helps me a lot! Looking to move out from home in the coming months. You sounded very nervous haha thank you 😊
I found your budgeting totally relatable… thank you for sharing!! New subbie here ❤
Thank you again! 🥰🥰 and thank you for subscribing!
Love this, so informative ! Thank you xx
Thank you so much for your comment! It really means a lot! Xx
Thank you for Your transparency 👏🏽👏🏽
Thank you for sharing. This knowledge is very helpful. Considering moving to the UK from Australia.
Thank you! Exciting move!!
I love your transparency. Torally subscribed
Thank you so much! :)
Love this!! You're amazing for sharing this
Thank you so much! 🥰
Hey,
I’ve come from TikTok!
I’ve literally just started the video and I just wanted to say, it’s literally your money. If you wanted to spend every penny on drinks or clothes or whatever, like you earned it!! No judgement from me whatsoever 🥰❤️ x
Ahh thank you so much! What a lovely comment. 🥰🥰 xxx
This is helpful and RELATABLE for once. Thank you. Xxx
I didn’t come from tiktok I was literally googling how to budget salary uk
As a 30y/0
Ah thank you so much, what a lovely comment. I definitely think salary transparency is so important! 😊 xx
Glad found your channel! 🎉
I know this video is a few months old, so you may not see this but, THANK YOU SO MUCH for being open and honest about salary and how you budget in London. I'm a student originally from South London but go to uni in Liverpool. I'm going to graduate soon and I wanted an idea of what the cost of living is like rn and how much money I would need to not be struggling/not need to love back in with parents after uni. I've mainly been searching reddit forum, which I know is not a good source of information but I used them anyways 😅, but so many people were saying to be able to live in London you'd need to make upwards of 70K 😕 which I know is definitely not true since I know people who live in London for much less than that and are happy. Anyways, I'm just rambling now but thank you so much for your video it was really helpful :)
Thank you for your lovely comment!
Yes, it is totally possible to live in London for less than 70k! You will need to be realistic RE housing, and most likely live in a house share with other people your own age, or if you are in a couple then you can rent that way realistically.
The people saying 70k probably rent their own flat by themselves etc
Good luck with the end of Uni and your big move :)
Wow, this is amazing. TH-cam recommended to me this video and I'm currently working as a Finance Assistant and applying for Assistant Management Accountant role 😂 I think I'm gonna stay here for longer :D I love my Monzo, helped me to keep track of money I need irregularly for things like quarterly bills and unexpected expenses, so I'm not worried when they occur.
Wow the algorithm really knows us! 😂 are you planning to study CIMA too? X
@@mischapannell I’ve just started AAT level 4, I’m kind of divided here, I can’t decide between ACCA/CIMA, luckily still have a bit of time to think about it 😄
Great video hun😊 new subbie here🙌🏻
You remind me of my life 10 years.. I was living in Surrey, studying for ACCA and spending too much on holidays😅
Great video, just subscribed
Thank you Philip! :) lots more personal finance content upcoming!
You made the right decision to switch jobs and take a pay cut. I look forward to seeing your £200 a month challenge.
100%, no job is worth your mental health!
Definitely everyone should have a open communication about Money. More Money Education the better people will be. Accounting is pretty hard. Assistance Accounting in this day age is not enough even for London. I do love spreadsheets. ❤️ and Budgetting. ✨️ I won't have credit card as I do not like being a slave to the credit card system. The America trip was a good move because just incase something happens you can use your card. Definitely you need to add more revenue streams so that you get to do what you want to do.
Thanks for sharing!!!
No worries! I love having a nose into other peoples budgets too!
You're saving quite a lot. Well done.
London is such an expensive place to live. 40k would be ok anywhere else.
Single people are the worst hit as they don’t have the ability to split costs.
100% it’s much harder to live as a single person in London! All my single friends live in house shares of at least 3 people
Great video! 😁 also, Is the guitar a Martin?
Haha thank you! And no it’s an Eastwood? If that means anything! Not sure. My dad bought it for me! And I mostly play very basic Dylan songs reading the chords from his big song book 😂
@@mischapannell ah nice 👍 I’m a bit of a guitar nerd so just thought I’d ask 😂 those books are great I have a few chord books also 😁
Thanks for the work. Think Global ... Act local. It is realy important.
The salaries that you all get in the UK are INSANE, I am surprised how people still didn't break the country down to pieces out of rage. London is not even THAT expensive when you compare with other international hubs comparable to London, NYC, Singapore, Tokyo etc they are pretty much at the same level or even more expensive than London, the most appalling problem in London are the salaries by far
I agree in London but in other parts of the country things are way cheaper and it's really not that bad. I live in the north and house prices are a fraction of what they are in London. Honestly I wonder how or why anyone lives in London
salaries are good or bad in your opinion? Don't get it.
@@Bogna1 they're miserable!
like everywhere else - depends on profession. In which country, in your opinion, you have decent salaries regardless profession?@@jeanfarmacia
@@Bogna1 here in Germany the salaries are considerably higher even when the cost of living even in the more expensive areas is much lower than in London. most of the super global cities like the ones I mentioned above will have generally much much better salaries than London too. maybe if you live is smaller places in the UK the salary/cost of living ratio is not that bad but it is absurd for London.
Hi, Thanks this is insightful, can I ask the amount paid to you, is this minus your pension and student loan and the payment is what you receive? I am going to be in similar situation and trying to figure all out. Thanks
Yes, the amount on my spreadsheet what I actually get in my bank account, after all tax, NI, student loans and £100 pension contribution. ☺️
@@mischapannell thanks, really helpful. Hood luck with your exam also.
Nice budgeting, I wanted to ask a question, me and my wife have been offered 60000 each in Southampton. Do u think its a good salary? House rent in Southampton will be 900 approximately. How much do you think we can save? We are from India.
Damn thats bloody 👍🏿
That’s exceptional. More than enough for a great life, especially in a city like Southampton
Definitely! especially living in Southampton :)
120k household income for Southampton is very good, would be equivalent to around 200k in London. I know you only posted to brag and don't really care, but income of £120k for soton you can live like kings and employ very cheap labour for your domestic work as there is lot of human trafficking there as it's a port city and they come in from there.
For assistant MA, those workbooks are pretty messy
I see no food in the spreadsheet. Don't you think is consistent enough to appear in the list?
That’s part of my Monzo money. That’s my spending money for the month for groceries and anything else I want
Shocking how low salaries are in UK when compared to California. And yet you manage well
Living costs are lower with the exception of London I think
Out of 40000 per year you're getting 2230PM take home salary, what will be mine if I am getting 65000 per year? Also do we get tax refund (to some extent) at the end of the year after showing documents and filing tax returns?
Also what about groceries and eating and social leasure expense? Where did you cover those?
Those are all covered in the money I put in Monzo. £500. But since having my first baby my expenses have increased, I’ll make an update soon! Also you can use a salary calculator to estimate your take home in £65k. Depends on a few things like student loads etc!
@@mischapannell Thanks and all the best for your new journey as a mother!
I think you are getting underpaid for 40k
Especially for London
Wow! No offence but why do you take home such a smaller amount in comparison to your 40k salary? Are you contributing a lot to your pension or is it other deductions? I know you said you have a large student loan balance but that shouldn’t matter as deductions are based on income and not balance. Just curious! Thanks 💕
Yes I do max pension contribution. And I pay a small amount in dental insurance.
(Literally like £10 lol) And then 2x student loans xx
£2230 is indeed what £40k gets you in take home pay after student loan, NI, income tax and pension :)
@@amyhaldane9231 That is wild! What is even the point with those crazy ass deductions 🤯🥴
@@leahmcdermott4189 it’s called adult life in the UK Leah.
@@cheekychipolata I’m an adult and I’m from the UK, so obviously I’m aware. I asked as she could have been contributing a lot to her pension. You don’t know unless you ask. Chill 🥴
i don't think it's possible to live in London on £40k, i earn £54k I don't go out, drink, smoke, drugs, hardly socialise, don't buy expensive clothes, no junk food, etc, etc and I still cannot live...!
I mean I do live in London on 40k but I split rent with my partner. I have friends that live here on less and live in house shares. Do you rent alone?
i have a 1 bed which i purchased through shared ownership my monthly costs for housing is 1250 p/th plus i save 100 a month in a slush fund. i do live alone the remaining 2k of my monthly salary goes on a car and who knows...?@@mischapannell
@@mischapannell It really depends on what you mean by "in London". The difference between zone 6 and zone 1 is so huge, £54k could be anywhere from easily enough to genuinely not enough, even in a reasonable flat share.
You should move out of London, I would feel borderline rich on £54k. That's almost twice my salary and I already live pretty comfortably on my own.
yes but not in london i prefer london to anywhere else in UK. @@maJastoL
Hi Mischa... Have you looked into getting a Lifetime ISA to buy a house? Your money will be locked in but you can put more into the account (up to £4000 per year) and get a 25% bonus for it the next month.
I managed to get a help to buy ISA before the lifetime ISA’s replaced them. That’s the £200 I put in a month, as that’s the max monthly contribution for a help to buy. When you buy your first home the government tops it up 25%, you can save up to 12k and they will top up to 15k, so they give you 3k. But yes defo recommend a LISA if you don’t already have a help to buy!
@@mischapannell you can have both at the same time but you can only get the bonus from just one of them. I have had my help to buy and lifetime isa together (mainly because at the time my help to buy isa had more interest). But towards the end of this year i transferred the help to buy isa into a cash isa and continued topping up the lifetime isa.
If you can save more lifetime isa is the way to go.
@@noelsebz90 Tbh we plan to buy within the next year so wouldn’t work for LISA, and I liked to have the money accessible without withdrawal penalty. But interesting for anyone else reading!
@@mischapannell Yes you're right accessibility is one of the biggest perks of the help to buy isa. Also another thing is that the help to buy scheme will end in March next year.
Because of this, for people who wont be buying in the next year or so, its advisable to start up a LISA as soon as you can with just the minimum £1 and add to it later on when you can afford to. 😊
How do you feel about the UK government taxing all side-hustles from 2024?
I mean currently you are supposed to pay tax once you earn over a certain amount, are they taking away the £1000 allowance? X
What bout food expenses?
That’s in my ‘Monzo’ top up. That’s all my spending money for the month :)
How does a 40k salary work out at 2k per month net? We’re being taxed out the ass.
Haha yes that and 2x student loan contributions
you should replace that xbox one with xbox series x
I am CIMA qualified and i earn less than 30K in the midlands, No way I need a new job.
I guess expenses are lower too though! But yes you should defo be on more than 30k I’d say!
Lol imagine having to budget on £40k, London is crazy...
40K per month or per annual?
Bruv is this question for real ?40K per month would be insane
if she earned 40k a month what would she be doing wasted her time flogging these videos on yt for pennies..? she would be living the living on £9,230k per week.
😂🤦♂️crazy that you need to ask that question
Do things like Netflix fall under want or need lol
Hahah I think just one singular one could count as a need…then any other subscriptions a want?
40k a year ago must've been really nice, right now though how's that 40k a year feeling? Lol
Good tip for westerns. Don't have PETS!
Save you easily £100 a month. Don't be a typical westerner with a dog / cats. Be different.
Focus on urself, ur relationship, kids and family. Humans are the most important thing and also humans cause us the most problems. :) cheer up. Enjoy life.
I’m confused you only take home 2300 I earn 28k and I take home £1900
The more money you earn, the more tax you pay (I think 40k is the next tax bracket up, I may be wrong). Plus, this lady has quite high student loans too, which can take out £200-350 a month
Yeh tax, NI and student loans. There’s an online calculator you can use to see approx values for take home salary. And yeh anything over £37,700 is taxed at 40% rate not 20%. (Only the proportion of income that is over the £37,700 mind)
@@mischapannell the 40% (higher rate of tax) is 50,271
ur take home seems low for salary. What % goes to pension
40 is the new 30😂
You could be on £100k a year working full-time for a law firm but still be broke because you don't know what budgeting, forecasting and investing means as you live paycheck-to-paycheck and happily enjoy splashing your payslip on holidays, fine dining, gifts, alcohol and other non-essentials. I'm not implying you can't enjoy life and spend the money you've earned as you're an adult and have every right to, but there's a reason why so many people in this generation won't even think twice about upgrading to the newest iPhone, MacBook and ordering takeaway every night but still complain endlessly about cost of living, high rents and low salaries (yes, these are major issues that affect everyone too, but have they considered their own financial literacy?)
Defo a problem for a lot of people. Something I keep in mind everytime I get a payrise is life style creep
40k in london u have to share rooms , its pathetic no way , thats not life
Some people would agree! And they move out of London lol most people don’t share rooms though, just share houses
tl;dr
I steal and murder to survive
😂😂😂😂😂
Bruhhh. 40k salary, you don't need a budget
Everyone needs a budget!
I just started a job for 40k annually as well, although not in London. I quickly learnt it is not as much money as I had thought
The salary amount is irrelevant, imo. I was on £22k and didn’t manage my money at all. I had more than enough to cover my outgoings so didn’t really think about what I was spending. If I had managed it, I might have noticed exactly how much I wasting and took action to stop it. I might be in a better place now as I’m earning more but have nothing left from my full time salary as I have more bills to pay.
@@debomcd7 Did anyone ask??
@@paramtapkaushal2292 No one asked for you to be rude either but that didn’t stop you.
This is misleading, you are splitting your bills with your partner.
Lol how is it misleading? I’m describing how I budget my salary. And that’s exactly what the video does. Where did I state I live alone and pay rent alone? If I didn’t have a partner I would live in a house share and would be paying about the same for a room.
Mischa I do the same, transfer money to monzo to use for my monthly spending
It’s so handy to keep it separate!
U basically have no money..
U have debt....
Student loans, credit cards...etc
Ur not financially savy...your one paycheck away from bankruptcy.
I’m guessing you are American. Most people in the UK have student loans and they aren’t as extreme as america. I don’t have credit card debt. It’s paid off in full each month, I never spend more than the cash I have in my current account. I do this to get avios points. I also have savings and investments.
there is 2x incomes in the household, the student loans in the UK are not as brutal as in USA the interest on them is negligible, i didn't have loans when i was at uni as i worked from 13 and saved 6 years before i went but i know people who had them and they don't even view them as debt or prioritised as having to be paid back.
Your putting 32 into Crypto? Hahaha lol never gonna make it.
That’s not how the spreadsheet works. This spreadsheet I didn’t put any money into crypto. I’ve just had a baby and wanted to prioritise cash savings.
Also ‘never make it’ ….. make it as what exactly? 😂
I want meet with u