You can read a lot of different opinions about living in the UK or abroad in general. Some good, some bad but in overall if we decide to move somewhere else, we do it to have a better live. At least in financial terms. If you are not from UK but from any other country which economy is weaker and you are earning much less there, then read this post to find out why I think it is far easier to live here. If you are British, consider yourself very lucky and find 5 minutes to read through this text. It might be interesting for you too.
Living in the UK – why it’s so much better financially
As I’m Polish I base my point of view on living in Poland since I was born. Let’s assume the following scenario. You earn in Poland 3500 PLN (725 GBP, after taxes) and 2000 GBP (after taxes). From my observations difficulty level of achieving such earnings in both these countries is similar. What happens when you save a lot and you don’t touch half of salary every month? In Poland you save 360 GBP while in UK you save 1000 GBP. Just count by yourself how much you can have on your account every month while not spending 70% of your earning every month! 1000 GBP = 5000 PLN x 12 month —> 60 000 PLN every year. You need 17 years to have 1 000 000 PLN = 200 000 GBP which is quite significant amount, isn’t it? If you plan to buy a flat/house in Poland or in Eastern Europe, working for 15 years in UK may help you to retire much faster! Of course you can invest all the money you earn every month and have much more after 15 years. Please read my article about compound interest to understand its power.
Power of currency exchange rates
If you ask me why I recalculate between Poland/UK and you think that it does not make sense because in UK everything is much more expensive and that there is generally a different life there and it is “unrealistic” I will definitely not agree with you. What’s more, I think that while in UK saving 50% of income is very simple, in Poland it may be much more difficult. Why? 2000 pounds is (on a par) 57% of 3500 PLN. In UK for 1 GBP you can buy at least 40% more than for 1 PLN in Poland. I am talking about the purchasing power of money here. If you count it quickly, I’m talking about 3 times more expensive life here in UK, which is a VERY pessimistic variant. If you do not use the same attractions/services as in Poland (cinema, pubs, hairdresser, dentist, etc.), then I am ready to say that the purchasing power of 1 currency unit in the UK grows up to 60-70% compared to 1 currency unit in Poland!
Retire early?
After I moved to UK, I truly understood the power of living in the UK. The country with strong currency/currency with huge purchasing power. Uncertain situation with Brexit weakened GBP. Therefore from historical point of view it’s much more likely that its value will grow rather then go down. What will happen then if you decide to retire and move to one of the cheapest countries in the world? Pounds on your account there will have more purchasing power than you can imagine.
Other cashbacks and refer a friend rewards
13 easy ways to save money for anybody! What are yours?
Please keep on mind that I’m NOT a financial adviser and you shouldn’t treat above post as any kind of financial advice. This is just my blog where I share my knowledge but I can be wrong while doing so! Also please remember that any financial decision you will make might affect your finances either positively or negatively. Your capital is always at risk when you invest. You should always read T&C (Terms and Conditions) to make sure you know all the rules.