# 40k/year enough for family of 3



## TJW123 (Jan 22, 2011)

HI, first off hello to all!

I have been offered a job in LIttle Chalfont and was wondering if 40k pounds per annum is enough for me, my wife and baby to live comfortably? I don't mind living outside of London, i.e. somewhere on the Chiltern train line towards Aylesbury, etc. Obviously LIttle Chalfont is out of the question 

Rent is still about 1-1.2k/month however. My net will be 2460/month.

Being American, and my wife German, we would need money to travel a bit, visiting relatives, etc. 

We eat in, we use our home cinema mostly for entertainment, is it realistic to live outside of London with this salary and be able to save money with a normal lifestyle?

The salary is considerably less that what my wife and I make together, she is on maternity leave for another 2 1/2 years however, so my wife will not be working for now.

Thanks in advance,

TJW


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## jojo (Sep 20, 2007)

On top of your rent, you'll have to pay bills for electricity, gas, water, council tax, food and travel?....I'm not sure how much that will all cost you and its impossible to judge. But you should just about be ok???? I guess you have to try it and see. I dont think you'll struggle, but then again I think you'll have to be careful

Jo xxx


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## pink_kelly (Jan 22, 2011)

I think you should just be okay. You won't have a lot of disposable income though.

Here is a rough list of my outgoings (per month) for a 2 bedroom house, to give you an idea.

Rent: £550 (I live in Manchester -but as you say expect to pay up to £1200 for London area / south, this is the only cost that varies significantly on area)
Council Tax: £100
Energy (gas and electric): Average of £60 - £70 per month
Petrol / Diesel: I pay around £100 a month on petrol (with an average of 8,000 miles per year)
Food: £250 for 2 people
Water: £30
Internet / Phone landline: £20
Mobile phone: £35


Other costs:

TV Licience: £145.50 for the year
Car insurance: £350 for the year (this obviously varies person to person and the size and type of vehicle)
Car tax: £150 per year
Car MOT: £40 plus any work that may need doing
House insurance £150 per year


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## bunty16 (Sep 26, 2009)

jojo said:


> On top of your rent, you'll have to pay bills for electricity, gas, water, council tax, food and travel?....I'm not sure how much that will all cost you and its impossible to judge. But you should just about be ok???? I guess you have to try it and see. I dont think you'll struggle, but then again I think you'll have to be careful
> 
> Jo xxx


That is an adequate amount to live comfortably with everyday needs, but unsure if it will cover many luxuries like flights. Smoking and drinking is expensive, eating out, petrol etc., but healthy competition with supermarkets, Asda being the cheapest, then Tesco, Morrisons, to the more expensive Sainsbury's and Waitrose. Very cheap shops, but like europe they only sell what they can buy in, such as Lidl. For the very careful person there are pound shops in most towns now, sometimes branded goods at a fraction of the price, and if you look carefully good quality stuff. We have markets where you can buy good cheaply, and usually the best place to buy your fruit and veg. Clothes again have lots of competition, unfortunately, vat just been increased. Food will probably be the biggest expense. When looking for property, look at the council tax banding which makes a lot of difference, You can save a fortune by shopping around.


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## TJW123 (Jan 22, 2011)

Thanks for the fast replies! I am struggling with the decision...I am not keen on moving my family there and being stuck in a rut. Looks like living would be OK, but visiting relatives is a big must for my wife and I. Lots of things to take into consideration!

Cheers,
TJW


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## TJW123 (Jan 22, 2011)

After doing research, I have indeed found that 40K/Year for a family of three as a single income household is not enough. 

Basic living expenses in London (well outside of London actually)for us would add up to about 2100-2400 pounds per month, which basically leaves no headroom for flights, travel, leisure, holidays, emergencies or savings. I have decided to ask for 52k/year or not take the job. I hope this helps someone else in the future.
The expenses can be nitpicked and you can live very frugally, but basically on that salary, you would be living check to check.
Cheers,


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## aeryun2005 (Sep 2, 2010)

TJW123 said:


> After doing research, I have indeed found that 40K/Year for a family of three as a single income household is not enough.
> 
> Basic living expenses in London (well outside of London actually)for us would add up to about 2100-2400 pounds per month, which basically leaves no headroom for flights, travel, leisure, holidays, emergencies or savings. I have decided to ask for 52k/year or not take the job. I hope this helps someone else in the future.
> The expenses can be nitpicked and you can live very frugally, but basically on that salary, you would be living check to check.
> Cheers,


I have a question. How does someone get over a year of maternity leave?? What does she do!?

Aeryun


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## TJW123 (Jan 22, 2011)

aeryun2005 said:


> I have a question. How does someone get over a year of maternity leave?? What does she do!?
> 
> Aeryun


She is a high-school (Gymnasium) teacher in Germany. In Germany, the couple gets 14 months paid at 67% of income to split as they choose (i.e. one takes all 14 months, both take 7, or one 11 and the other 3 etc...as long as the sum does not exceed 14 months)

Aftter those 14 months and up to three years is unpaid. But she is guaranteed her job when she gets back. That is why this opportunity sounded so good for the short term. But I would urge those considering the move there to consider all the taxes and costs... Here is a list of forecasted expenses living on the Chiltern line outside of London based on a 3 bedroom semi-detached house. Well outside of the city-centre. You can of course find rent for less, but this seemed fair based on our needs.

EDIT- It doesn't seem to want to upload my excel file...


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## andmac (Nov 9, 2010)

To be fair, with the costs of travel in the UK, I used to struggle on £35k a year with just myself, Fiancee and daughter to look after. We lived in North Wales, but I worked in London, Warwick and Leicester mostly.
The money can be good, but the expenses can be horrific! 
We were by no means extravagant either. It's just day to day expenses can be crippling in the UK.


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## bob_bob (Jan 5, 2011)

London = expensive. £40k is OK but not great for what you want to do, that said look at Ryanair or easyjet for budget flights to Europe which can be very cheap if you book in advance; you should get flights to Germany for about 150 bucks return.


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