Is £90k a Good Salary in the UK in 2024?

How much is a salary of £90k worth in the UK? How does this salary compare to the average, and what lifestyle can you afford? This article will answer your questions.

£90k is a good salary in the UK. It is almost three times the average salary for most regions in the UK. In London, £90k is more than double the average salary.

How Does £90k Compare to the Average UK Salary?

The average salary in the UK ranges between £30,000 and £42,000, depending on the region. With £42,000, London is the most expensive region. With £90k, your salary is more than double what the average Londoner earns.

Elsewhere, the average salary is lower, ranging between £30,000 and £34,000, according to Statista. Your salary would be almost three times the average salary. The average salary by region is as follows:

• London: £42,000
• South East: £34,000
• Scotland: £33,000
• East: £33,000
• West Midlands: £32,000
• South West: £31,000
• North West: £31,000
• Wales: £31,000
• East Midlands: £30,000
• Yorkshire: £30,000
• Northern Ireland: £30,000
• North East: £30,000

Is £90k a Good Salary in London?

The average wage in London is £42,000. Thus, £90k per year is a great annual income in London. On this salary, you can rent in the city centre and should be able to make ends meet each month. Compared to the average, £90 is a high salary, even in London.

If you want to afford luxuries, you will have some limitations in London. Living in the city is expensive, and you can find a higher quality of life outside of London for the same salary.

How Much is £90k After Tax in the UK?

After taxes, you receive £61,250 per year. Per month, this would be £5104 and £1178 per week. Depending on your extra deductions or allowances, you may get a different amount.

For example, those paying back student loans will see less of their paycheck. You’ll likely also have pension contributions.

Salary	Yearly	Monthly	Weekly
Gross salary	£90,000	£7500	£1731
Income tax	£23,432	£1953	£451
National insurance contribution	£5318	£443	£102
Net salary	£61,250	£5104	£1178

Compare this with how much a salary of £80k is after tax.

How Much Can You Afford on a £90k Salary?

1. Renting

Housing costs are typically the biggest expense. In the UK, experts recommend not spending more than one-third of your salary on rent. Based on this, you can spend £1531 per month on rent.

With £1531, you can afford to rent a three-bedroom flat or a house in most areas of the UK. You can rent a small studio in the city centre in London. You can afford a bigger flat if you do not mind living in Zone 3 and beyond.

2. Buying a Property (Mortgage)

With a wage of £90k per year, you can get a mortgage of up to £405,000 in the UK. Depending on your credit score and other variables, you may get less than this.

Most places also require a minimum deposit of 10%, meaning you can buy a property up to £450,000. You can afford a more expensive property if you have a higher deposit.

The average price for a detached house is £495,804 in the UK. Thus, you can afford a home in the cheaper areas of the UK. In London, it will be hard for you to buy a house. However, you can buy a good-sized flat. In the most expensive areas of London, you can get a small studio.

3. Food

People spend on average £206 per month on food in the UK. On a salary of £90k, you should have enough to cover these costs. If you live responsibly, you should be able to eat well. You can also eat out several times a month.

4. Other Living Costs

The cost of living in the UK varies depending on the region. You should have enough income to comfortably cover utility bills, other housing expenses, and council tax.

On your salary, you can afford to be generous with your spending, even in London. You should have enough funds to go on holiday, eat out, and spend on leisure. Living in London, you can do the same, but you must make a budget.

5. Savings

Savings are important. They cover you in an emergency, enable you to buy more expensive items, and fund important life events.

You should be able to save money every month. In the UK, experts recommend saving at least 20% of your monthly income. This recommendation translates to £1020 on your salary.

Your emergency fund should cover at least three months of your living expenses. Once you have enough savings, you can invest some of your money to generate long-term wealth. It may be worth speaking to a financial advisor. Financial advice can help you set long-term financial goals.

6. Debt

If you have debts, you should prioritise repayments in your financial planning. On your salary, you should be able to dedicate funds from your budget towards debt management.

Can You Raise a Family on £90k?

Yes, you can raise a family on a salary of £90k. This salary is enough for a single earner with a family of four. You can afford a decent lifestyle for yourself and your family. You will have less spending power in London than elsewhere in the country.

Are You Rich if You Earn £90k per Year?

There is no clear-cut definition for what “being rich” is. It is typically associated with having a six-figure salary. Thus, if you are earning a salary of £90k per year, you may not qualify as rich.

This does not mean that you cannot be wealthy, though. Wealth measures your net worth. You can be wealthy if you save a lot or already have assets.

Is £90k a Good Salary in the UK? Summary

Overall, £90k per year is far above the UK’s average salary. In London, it is still more than twice the average. You can afford a decent quality of life with some luxury on this salary.

Buying a detached house is possible for you in many areas of the UK. You can live well in London, the UK’s most expensive place. You can buy a small flat or a studio in the more costly areas of the capital. If you live within your means, you should have financial security.

Read next about the lifestyle of someone earning a salary of £100k in the UK.

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