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Title: I Earn £100,000 a Year, But Don’t Feel Rich – My Budget Breakdown Reveals Why
Despite earning an impressive £100,000 per year as a strategy consultant, 28-year-old Jack Kim does not consider himself wealthy. In fact, he’s had to make significant lifestyle changes to stay within his means.
In an exclusive interview with Daily Mail Online, Jack reveals that despite being in the top 10% of earners, he still struggles to afford the high cost of living in London. His salary may be substantial, but the financial burdens of living in one of the world’s most expensive cities leave him feeling anything but wealthy.
So, what exactly is Jack’s monthly budget breakdown? It appears that his £100,000 annual income translates to a staggering £6,000 monthly after tax. However, this sum is quickly gobbled up by various expenses.
The majority of his take-home pay goes towards the mortgage and council tax on the two-bedroom flat he shares with his partner, amounting to an eye-watering £2,630 per month. Additionally, he pays out £420 in bills, £250 on groceries, and a further £400 for socializing.
This leaves Jack with a mere £320 at the end of each month – roughly 5% of his entire income. It’s clear that, despite his impressive salary, he does not feel rich due to the crippling cost of living.
In an effort to adjust to these expenses, Jack has made significant lifestyle changes. He has swapped his former M&S grocery shopping for more affordable Sainsbury’s, and instead of frequenting luxurious gyms like Gymbox, he now opts for PureGym.
Travel-wise, Jack has traded in lavish holidays abroad for shorter European breaks and reduced the frequency at which they dine out, limiting it to just once a week. He also claims that he has no interest in luxury goods or expensive watches.
Jack’s budget breakdown highlights the stark reality of living in London: even for high-earning professionals like himself, affording the basics can be a struggle. As such, his mantra is to “live below one’s means,” cutting unnecessary expenses and staying mindful of his financial situation at all times.
It seems that Jack’s perspective on wealth is not unlike those of other HENRYs (high earners not rich yet). Those in this demographic often find themselves squeezed by rising living costs, higher mortgage rates, and lifestyle inflation.
Source: www.dailymail.co.uk
