How Much Money Do You Need to Live Comfortably in the UK?

Living in the UK is generally costlier than in other countries. Factors like global domestic events, specific marketing conditions, and domestic economic policies are the prime reasons. These increase the cost of food, shelter, and energy. Moreover, the global economic recovery from COVID-19 increased demand for goods and services. It strained the supply chain, leading to inflation. It makes one think, “How much money do you need to live comfortably in the UK?” According to the above statistics, leading a happy life in the country requires a high income.

How much income is considered good for a single person in the UK?

For a single person, £35000/year (after tax) is a good salary in the UK. It allows one to meet basic living expenses, save money, and spend on wants. Alternatively, a good salary for a family of 4 lies between £40000-£70000/year.

The salary bar may vary according to the person’s age, experience, industry, location, and designation. Accordingly, an individual earning £2916 monthly is considered to have a good salary. So, if you ask if £2000 per month is good in 2024, yes, it is. However, individuals earning less than this may encounter serious cash issues. It could be not having money to counter urgent costs, bills, or payments.

If you struggle to meet your needs, given the minimal income and savings, don’t worry. You can check personal loans for bad credit with guaranteed approval online. It is ideal for individuals with low income but multiple bills to tackle. It is better to pay some than miss the entire lump sum.

You can use it to either bridge or settle small bills like overdrafts, utility bills, etc. Individuals with basic income may qualify. It just requires you to provide proof. You may get guaranteed approval only if you can provide one and meet basic affordability criteria.

Average income in different sectors for a comfortable living

As mentioned above, the salary may vary according to the industry. Here is the breakdown of popular industries and the average salary to live comfortably in the UK:

How much does housing cost on average in the UK?

Housing costs in the UK largely depend on the area, facilities, and city. For example, the average cost of renting a flat in London is £2081/month. It is costlier than the prices in the East Midlands (£1299). Similarly, the Northern part of England includes cities like Manchester, Leeds, Newcastle, and Liverpool. The northern part is more affordable than the southern part.

One must know the lowest housing costs, as it helps you pay low Council tax. For example, the standard house cost in Manchester is £246,000 as of February 2025. Similarly, the cheapest Council Tax in the UK is in the London Borough of Wandsworth.

How do basic expenses differ according to single and couple lifestyles?

Yes, areas can be one of the factors that dominate the cost of living. However, other aspects like the number of members, income, liabilities, area, facility, and house type also decide the cost.

To live comfortably in the UK as a single person, the cost of living may be £1500-£2000 per month. It translates into £18000-£20000/year for a single person.

The figure includes basic costs like:

By taking the maximum value, like 150 in the limit (£100-£150), you get the total basic living expenses in the UK.

How much do you need to live comfortably in the UK?

There is no one answer to this question. You can see from the above research and aspects that the amount may vary according to certain aspects. It depends on your circumstances, income, monthly expenses, debt, lifestyle goals, etc. The number of people in the house also determines the total money you need.

For example, if you have 3 children, your expenses will be higher than a family of two or a couple. Similarly, the expenses like groceries, rent, food, and clothing may increase. What you may spend in a month will be more than what the couple without children spends. Alternatively, unemployed individuals with no or little income may struggle to cover even basic payments.

In that case, you must downsize and look for part-time income. Check the government facilities that may help you with living costs. However, you may not always qualify. Financials may fall through the cracks, making it challenging to counter basic costs.

If you don’t see any hope, search for other ways. If you are on benefits or need a loan today from a direct lender, check unemployed loans. You may get one by providing a benefits payment slip. You can provide one even if you have yet to receive your first payment. It will help you get the cash for your urgent needs. Don’t worry; the loan will not affect your budget. However, choose the amount and repayment term according to what you can manage.

Thus, you can use the minimum income calculator in the UK to determine the approximate amount you must earn monthly for a comfortable living. It will help you know how much money you need to live comfortably in the UK.

For example, if you are single with no children, you can live comfortably on an income of 35000/year in the UK. Similarly, a child-free couple can live comfortably with a combined earnings of £59000/year in the UK marketplace.

Strategies to save money for a stress-free living

Money management can be overwhelming when you lack a decent income. However, it is possible to save money on a low income as well. It just requires you to understand the difference between essential and non-essential costs.

For example, you can skip aspects like weekend gateways. Alternatively, avoid spending more on aspects. If your kitchen requires repairs, don’t modify it. It will help you save money. The table below may help you understand ways to save money on life aspects.

However, you cannot do without rent payments. You need a shelter to live in. However, you can enjoy a weekend getaway after streamlining your income, debts, and savings. Here are some ways to save money for a comfortable living in the UK:

1. Develop a budget

It is the first step to getting on the journey of comfortable living.  Budgeting is the art of minimising unnecessary expenses and using savings wisely to invest for the future. It is after paying the important debts.

For example, you earn £45000 monthly, and your monthly critical expenses (rent, utility, transportation) amount to £25000. You can decide or divide the rest of £20000 into wants, savings, and investments.

Suppose you want to buy furniture costing £10000. Check whether you can buy it in instalments instead of paying upfront. It may prove cost-friendly, and you can invest £20000 into savings, an emergency fund, and retirement funds.  Decide the amount and save some for accidental payments.

2. Choose a bank account with high savings interest

It is one of the best ways to earn money without much effort. Determine the bank accounts providing better policies, facilities, and interest. Save a particular amount monthly. You can open a dedicated one apart from the one you use for expenses. It will secure your savings for the future. You may benefit from interest.

3. Explore investment opportunities

Unless you earn a good income in the UK, you cannot rationalise sound investments. It is because you would not be left with spare cash to do so. Therefore, focus on reducing unnecessary expenses and increasing income. You can either switch jobs or try part-time work. Next, evaluate less risky investments like retirement accounts, government bonds, property (REITS), etc. It may help you benefit from high returns on investments.

Bottom line

Thus, how much you need to live comfortably in the UK depends on your lifestyle. Consider aspects like- rent, income, lifestyle needs, debts, children, long-term goals, etc., and identify the ideal amount by using the minimum earning calculator. It would help you save money accordingly. Downsize unnecessary expenses and try to boost earnings.