Is £24k a good salary in the UK (2024)

So, You just landed your first job at a paycheck of £24,000. You start to wonder – is 24k a good salary in the UK? You’ve heard horror stories about friends barely making it on a similar salary in expensive cities.

So, we will discuss “Is £24000 a year a good salary or not in the UK” and explore other factors that affect your finances.

Is 24000 a good salary in the UK

A salary of £24,000 per year is lower salary compared to the national average. But, if you are a recent graduate, then £24k is a good starting salary. However, £24,000 is a good salary or not depends on your lifestyle and location. If you go in with realistic expectations and budget well, you can live comfortably on that amount.In London, £24,000 would not go very far. However, in a smaller city, you can live with £24,000 salary.

Tax on 24k salary UK

You have to pay £3,656 tax on a £24,000 salary. Keep in mind that this calculation only depends on your salary. You have to pay around £2,284 in income tax and £1,372 in national insurance from your salary. Therefore, your take home pay is £20,344.

The Govt. provides tax-free allowances up to £12,570. Therefore, you don’t need to pay tax on 100% of your salary. You have to pay only tax on £11,430 salary. Calculate your own tax here.

Here is the breakdown view of a tax deduction on a £24,000 salary tax in the UK.

	Yearly	Monthly	Weekly	Daily	Hourly
Gross Salary	£24,000	£2,000	£462	£92	£12.31
Taxable Salary	£11,430	£953	£220	£44	£5.86
Income Tax	£2,284	£1,91	£44	£ 9	£1.17
National Insurance	£1,372	£114	£26	£ 5	£0.7
Take-Home pay	£20,344	£1,695	£391	£78	£10.43

How does 24k compare to the UK average salary?

Don’t let the salary number fool you! Your £24,000 can be just enough for a decent life place like the North East, where the average salary dips to £31,200. That’s your reality. But in London, your £28,000 feels like trying to climb Mount Everest in flip-flops. You can’t survive it. Location is the game-changer! Check out the table below for average salaries across UK regions in 2023. You might be surprised where you stand!

Location	Average Salary
United Kingdom	£34,963
London	£44,370
South East	£36,560
Scotland	£35,518
East	£34,833
South West	£33,450
North West	£33,036
West Midlands	£33,003
Northern Ireland	£32,879
Wales	£32,371
Yorkshire and The Humber	£31,920
East Midlands	£31,634
North East	£31,200

Is £24k a good salary for your age?

Hey, there 18-21-year-old! £24k might sound cool, but guess what? You’re not exactly rolling in dough compared to some other folks in the UK. Take the 40-somethings, for example – they’re raking in a median of £39,491 per year! So, your salary isn’t the highest, but hey, at least you’re not scraping by on ramen noodles. Check out the table below for the full picture – you might be surprised where you land!

Age Group	Annual Earnings
16-17	£9,969
18-21	£20,437
22-29	£29,120
30-39	£36,405
40-49	£39,491
50-59	£36,834
60+	£32,530

Can you live on 24,000 salary in the UK?

You can live with a 24,000 salary in the UK but you need to do a careful budgeting. 24k is a low salary compared to the average salary in the UK. It is a decent salary for a single person. For a big city like London, a 24k salary is not enough. London is a very expensive place to live. Therefore, you need earn extra income to live in London.

A 24,000 salary is not good for a family. In a family, the living cost is very high compared to a single person. Therefore, you need at least £50,000 per year to raise a family in the UK.

Budgeting on 24,000: Where Your Money Goes Each Month

Living on £24,000 a year in the UK means budgeting carefully and making your money go further. Here’s a rough breakdown of where your cash may go each month:

• Rent – Rent will be your biggest expense. If you’re single, consider a studio or sharing with a flatmate. Outside of London, a one-bed flat is doable. The rent will come around £300 to £500 per month.
• Council tax – The council tax usually comes around £100-£150 per month. The actual amount depends on where you live and the type of property.
• Utilities – Your utility bill comes to around £150-£200 per month. It includes gas, electricity, water and broadband.
• Food – For food, you have to pay around £200-£250 per month. For saving in food you can choose store sales, buy in bulk, meal plan and cook at home. You can also consider meat-free Mondays or becoming flexitarian. Eating out or getting takeaways regularly will cost you.
• Transportation – Driving can cost over £3,000 per year in fuel and insurance alone. Instead, use public transport, bike, or walk when possible. On public transport, the cost will come to around £500-£1,000 per year.
• Phone – Your phone bill is roughly come around £20-£30 per month. Choose a SIM-only deal and avoid expensive phones with long contracts.
• Leisure – Your social life doesn’t have to suffer. Take advantage of free museums and events. Meet friends for coffee or a drink rather than an enormous meal. Then the cost will come to around £100-£200  per month.
• Debt repayment – You can pay debt up to £500 per month. Pay off any high-interest debts like credit cards first before other expenses.
• Savings – Aim for saving £50-£200 per month. Even saving a small amount each month will help with unexpected costs and future goals.

With careful budgeting, you can gain financial freedom at £24,000 per year. Make a budget, track your spending, cut out excess costs and find ways to earn extra income.

How much monthly rent can I afford on a 24k salary?

On an annual salary of £24,000, you can afford up to £600 per month on rent. We calculate the rent amount on the basis of the 30% rule. It is a rule, where you can spend up to 30% of your annual income on rent. However, your actual rent price depends on your location and preferences. In cities like London, you may need to pay rent more than this.With right apporach, you can find affordable housing on an income of £24,000. With a 24k salary, you can afford a one-bedroom house or a single bed in a shared flat in most areas of the UK. The rent will vary between £300 to £700 per month.Remember, if you have a car payment or student loans, you must reduce your rent expenses. Otherwise, it will affect your financial freedom.

How much mortgage can I get on 24k salary?

You can get a mortgage on a £24,000 salary. It could be challenging, but it’s possible. You can get 4.5 times your annual salary as a mortgage. So you can get £108,000 as a mortgage on a £24,000 salary. But, if you have a lower deposit or poor credit score, the mortgage amount will be low.

In the UK, house prices have risen much faster than wages. So, with a £108,000 mortgage amount, finding a house is very tough. Therefore, you can consider some other options for your mortgage.

Shared ownership

With shared ownership, you buy a share of a property. It typically comes between 25-75% of the home’s value and pays rent on the remaining share. This allows you to get into homeownership sooner with a smaller mortgage amount. Many shared-ownership homes are available through housing associations.

Help to Buy

The government’s “Help to Buy” schemes offer equity loans to first-time buyers. In this scheme, the government lends you up to 20% (40% in London) of the property value. You only need a 5% deposit and a 75% mortgage. The equity loan is interest free for 5 years.

Alternative mortgage options

You can try alternative options if you hear ‘NO’ from mainstream mortgages. Like Guarantor mortgages or mortgages for self-employed or contract workers. Some lenders also offer mortgages for those with poor credit. These options often charge higher interest rates to offset the risk.

Tips for Living Well on £24,000 a Year

You can live comfortably with a 24k salary in the UK. You just need some creative budgeting for a better lifestyle. Here are some tips to make it work.

1. Prioritise your spending by focusing on essential expenses like housing, food, and transportation. You should find ways to cut costs on these essentials. Like meal planning, using public transportation, or downsizing to a smaller home.
2. Develop a spending plan to track your expenses. It can help you to understand your cash flow. Set limits for discretionary spending and look for expenses you can reduce. Also, automate your bills to avoid late fees.
3. Look for ways to supplement your income. You may want to consider a side gig to generate extra money for saving or paying off debt. Some options include freelancing, online surveys, or participating in the sharing economy.
4. Take advantage of free or low-cost entertainment. There are plenty of ways to enjoy your leisure time that don’t cost a lot. Check your local library for free events, explore free museums, or cook meals at home with friends.

Is 24k a good salary for a single person?

24k salary is a modest income for a single person in the UK. However, it is possible to live on this salary. But it needs careful budgeting for a comfortable lifestyle.

If you live in big cities like London, you may struggle to live on this salary. But in a different city, you can live comfortably on a 24k salary.

Conclusion

In the end, you have an actual view of living on a £24,000 salary per year. It’s not a high salary. But careful financial planning can help you live a comfortable lifestyle with this salary. It’s crucial for individuals to assess their own needs and aspirations when evaluating the adequacy of their salary.

You can also check

• Is 70k a good salary in the UK
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