How Much Do You Need to Earn to be Rich in the UK - What the Data Says

In this video I talk about what the average salary is in the UK, and what puts you in the top 10% and top 1% of earners. I also cover which industries pay the most and the least. Plus, we talk about what it means to be rich and to be wealthy.
The data in this video is from the Office of National Statistics and the Sunday Times Rich List.

TIMESTAMPS:
00:00 - Introduction
00:32 - The data
03:11 - Being rich vs wealthy
05:42 - Living below your means
06:55 - Passive income
08:14 - Final thoughts

WHO AM I:
I'm Kiran, a qualified Accountant and experienced tax professional living in the UK. I make videos about finance, tax and investing.

MY FILMING GEAR:

DISCLAIMER:
This content, and the ideas presented in it, are for education and entertainment purposes only. Kiran does not provide tax or investment advice. The information presented does not consider the financial circumstances of any investor, and therefore may not be suitable for all investors.
Although Kiran is an Accountant, no Accountant-Client relationship is established with the viewer in any way.

[ConvinceMeAudio]

simple and succinctly put.
bean rich is bloody expensive.
When your wealthy, money stops confining you.

[rajjoshi]

A good video Kiran, i also didnt think top 10% of earners was what it was. Thanks for the great advice.
Also request for another video, can you please explain how to open a ltd for property letting and the pros and cons?

[annawong]

Great content. I work in insurance on a salary of £82k with an annual 12.5% bonus but I live below my means saving and investing almost 50% of my net pay. I think it's key to save for your future and retirement

[qed]

Very perceptive Ms Kaur - Thank you for explaining so well

[eddiebotello]

What’s the average salary in Portugal, how much the 20% make compared to the 10%

[MENSA.lady]

My definition of rich, having £1 more than you know how to spend.

[melike]

POOR people buy liabilities Rich people but assets.

[davidgillham]

Health is wealth first and foremost, but having more financial wealth defines how free you are in this capitalist society and certainly opens up opportunities and freedoms.

[ninjaninja]

You said you have friends that earn about 65k and they think they are average. I bet your friends are in London. London is a different league compared to the rest of the UK. Top 10% salary in UK is 65k but the top 10% salary in London is 79k which is a much bigger jump.

[FormerCityFinancier]

£180k with an 8% pension contribution is around £8, 300 / month.

Allowing for a mortgage and associated living costs. A person earning this is unlikely to bank more than a few thousand / month.

Let me be clear. It is near IMPOSSIBLE to get rich from a salary. Also, don't forget that those earning the most are usually within a decade or so of retirement.

Do what I did. Start a business. Good luck everyone!

[stevegeek]

My salary is zero now….I retired last year! 🤣
When I was working, I saved and invested hard which allowed me to retire early. I drive a 12 year old car, live in a modest end of terrace house and don’t go on exotic holidays, but I enjoy a simple life.

[gilcarag]

That 10% median salary number is really surprising.

[vivekchedambaram]

Should we reduce our expenses? I mean being frugal is the only way?

[davidlee]

When you give a figure for the top 10% at 64k is that the median of the top 10% band or the lowest level in the top 10%. Put another way, what salary puts you in the top 10%. Wonderful videos by the way. Excellent 👍

[ashharryman]

These conversations and data points on salary are nice, but you really need the Mean, Median AND Mode in order to draw a fair comparison for things like salary and house price in the UK.
I have still NEVER seen data, nor any youtuber within the finance world check the Mode average for these stats. I would be extremely interested to see them and I think that would set your already brilliant channel further apart from others in terms of going the extra mile.

[Spirituallyguideme]

I’m looking making money working harder and increasing income, but I’m not giving my car up, my business is based on travelling and I want nice car so not giving up my Audi

[gatekeeperboxing]

The people who earn more don't believe they are rich, which is partially down to being in denial and also because alot of the people in their social circle earn similar, so they believe they are on a median salary. I have earned from 7k up to just under 40k throughout my career. I always thought a median salary was around 20k, I always thought of anyone earning 50k or more as well off.

[TheNorthernGunner]

Just come across this, Great video Kiran. Really well explained!

[ImpartialDebater]

How difficult it is to become an account? Or assistant accountant?