Originally Posted by
NickW
Assuming income of £25K per year, you will have a net take-home of about £1555 per month in the 2006/7 tax year.
If you live by yourself: you can probably get a tiny (think 150-200 sq ft) studio flat in Zone 3 for about £700pcm. You will pay about £65pcm in Council Tax, since you'll get the 25% discount for single occupancy.
You will need to budget at least £60pcm for utility bills, since you're almost bound to have electric heating/cooking. A BT telephone line costs a minimum of £11pcm, assuming you never make a call.
I assume you'll be working somewhere central (Zone 1), in which case you'll want/need a Travelcard Z1-Z3 which will cost you a minimum of £91pcm, assuming you pay up-front for the entire year.
Your minimum fixed costs are therefore about £950 per month, which leaves your entire discretionary budget for food, drink, entertainment (if you want a TV, the licence is £131.50 per year) and non-essential travel at about £600 per month, or about £20 per day. That's including no provision for saving at all (retirement or otherwise).
Buying a sandwich, a packet of chips and a soft drink can cost £5. Reckon on taking a packed lunch to work. A two-bedroom apartment in a middling part of London, or a one-bedroom in a nice area could easily eat your entire salary on rent alone.
I'm sure it can be done, but I wouldn't want to do it.
Personally, I needed a £25,000 increment on my salary to be able to maintain my lifestyle, moving from the South West to London.
Let's compare apples with apples. I do not know much about your situation but I would assume that if you are asking for a GBP25k increase in your salary to relocate you are not a recent graduate.
I have stayed with friends in London who are in similar situations as the OP (who seems to have disappeared) and while there abodes are far from palatial they are not as bad as your post makes out. Most of them live around Bayswater/Paddington and Kangaroo Valley (Earls Court) and they pay around GBP150/week all inclusive including internet. Sure you can't live like a king on that money but you can have a pretty decent experience, which is what living in a different city when your young is about.
The other thing to point out is that after a couple of years your salary can increase fairly quickly if your good at what you do, so there is a tradeoff which also needs to be factored in.
I would still say do it, mainly because I am myself (leaving on Tuesday) and think the experience I get there will be invaluable, aside from the fun I will also have.