Please forgive me if this seems ignorant, I’m trying to understand better: I read your previous Anon Ask where they laid out some of their financial goals (I.E. 50k in 5 years). Those figures seemed kind of low. I live in California so maybe I’m just used to different salary expectations, but is England less expensive than US? For example, earning say $70k in CA is pretty average I think, but would $70k in England take you a lot further? I think London is very expensive though. Just curious how “average” salaries/cost of living compare. Thank you.
Yeah, top 1% in the UK is ~£100k and top 1% in the US is ~$600k (probably higher in CA). Obviously there's going to be skew issues in there but it gives you a sense -- there's a huge salary difference, the same job in London will pay you about 1/3 less than in the US (obvi varies by company and sector). And taxes are much higher here, so take home is a lot less.
That said, eating out / bars are a lot cheaper + there's no tipping - when I go home, I find eating out in Chicago usually comes to like double what I expect to spend at a similar restaurant in London (ex-exchange rate, so like if I would expect a meal to cost me £40, it costs $80). Rent is expensive in London but not more so than in NY or SanFran. Getting around is okay, the tube is like ~£7 for a round trip and it's very unusual to own a car (in London). And obviously travel to most places is way more affordable. There are also certain things that are just tons more expensive in the US (cars, if you have one, are like 3x the cost in the US. Same with weddings).
But generally people get by on less - this is anecdotal but compared to my friends in the US, I seem to spend a lower % of my disposable (post rent and bills) income on 'stuff' and more on experiences (travel, eating out, etc). But honestly, I don't think lifestyle is very different, my friends in the US who earn, in nominal terms, quite a bit more than me, seem to be living very similar lifestyles - I think a good chunk of the difference goes to student loans, car payments, health insurance, medical expenses, etc. Or maybe they're all just saving loads more than me lol.