(edit title) Salary Vs Cost of living How does anyone make enough? Options

[summo]

As an economist I can verify that data source is correct. Sweden, next to Norway, has the highest priced food in Europe, very expensive utilities and services and one of the h ... (show full quote)

As an economist I can verify that data source is correct. Sweden, next to Norway, has the highest priced food in Europe, very expensive utilities and services and one of the highest income taxes in the world. Salaries are lowest here and have been stagnant for years. Unlike many countries incentives in the workplace do not exist. ... (hide full quote)

I presume or hope that this is not your field of expertise! Food I would say on the whole is average, but you get what you pay for. Utilities are not cheap and services again you get what you pay for and much of europe is going up in price. In terms of being more energy efficient and moving as far away from fossil fuel energy Sweden is way a ahead, so they are to a degree more future proof. Wages around the globe have ground to a halt in the past 2-3 years, but then property prices outside the 3 main cities haven't move much so it's barely noticeable.

I would say you could take a 25% cut in salary from the UK to Sweden and have a like for like rise in standard of living.

[Localer]

I presume or hope that this is not your field of expertise! Food I would say on the whole is average, but you get what you pay for. Utilities are not cheap and services a ... (show full quote)

I presume or hope that this is not your field of expertise! Food I would say on the whole is average, but you get what you pay for. Utilities are not cheap and services again you get what you pay for and much of europe is going up in price. In terms of being more energy efficient and moving as far away from fossil fuel energy Sweden is way a ahead, so they are to a degree more future proof. Wages around the globe have ground to a halt in the past 2-3 years, but then property prices outside the 3 main cities haven't move much so it's barely noticeable.

I would say you could take a 25% cut in salary from the UK to Sweden and have a like for like rise in standard of living. ... (hide full quote)

when i compared the salary in the UK and then in Sweden, i find the salary is much lower in the UK, in some certain areas like IT. Others like hourly wage is about £7.5 GBP per hour which equivalent to 80 SEK, where in Sweden hourly wage is about 100 SEK to 120 SEK.

Most people takes pay cut because they couldn't find the jobs they wanted and have to accept what even comes along.

The only thing that is expensive in UK is only Housing in big cities, but not the small cities or outskirts

[summo]

when i compared the salary in the UK and then in Sweden, i find the salary is much lower in the UK, in some certain areas like IT. Others like hourly wage is about £7.5 GBP pe ... (show full quote)

when i compared the salary in the UK and then in Sweden, i find the salary is much lower in the UK, in some certain areas like IT. Others like hourly wage is about £7.5 GBP per hour which equivalent to 80 SEK, where in Sweden hourly wage is about 100 SEK to 120 SEK.

Most people takes pay cut because they couldn't find the jobs they wanted and have to accept what even comes along.

The only thing that is expensive in UK is only Housing in big cities, but not the small cities or outskirts ... (hide full quote)

I think you may have mis-read me, I didn't mean that folk took poorer paid work, but that you could take a pay cut and at least maintain an equal quality of life, because of things like lower child care cost.

Many things cost more in the UK, car insurance where you insure the person not the car, mobile and broadband(business package even on <5mb) is not cheap, petrol and diesel is marginally cheaper in Sweden. Housing is more and not just the big cities, rurally it may looker cheaper than the cities, but compared to the average salaries and the type of employment available, it is no different to the likes of the more expensive cities. This is especially so for anywhere slightly touristy(devon, cornwall, cumbria, yorkshire, cotswolds...) where folk buying second homes have pushed prices beyond the reach of local wages.

The UK benefits from greater competition so there are more companies selling products, example being electronics or build materials, where as in Sweden with lower local population, you might only have 1 or 2 suppliers within 50km, often further. In the UK one company owns B&Q and Screwfix, covering a massive percentage of the home and trade DIY market, you just don't get that kind of scale in Sweden. But, they still sell swedish timber Vilda and the like!

In the UK companies like amazon, tesco, and the like push prices down by volume, rarely good for the producer though and whilst sweden looks like it costs more, its smaller economy certainly appears more stable and sustainable.

I think the trick is to get past the 2 week holiday mentality, always comparing things to what they would have cost back 'home' or tracking the exchange rate and just compare cost to what you have in the bank.

[gplusa]

Exactly. Pulling out selected costs to support a generalised statement is a losing battle. I think we all do that when we first arrive. It took me maybe a year before I stopped looking at "back home" incomes and prices. That never tells the full story of the economy of a lifestyle.

Way too many variables to compare countries.

[Essingen]

Because when I look at the job I do (translator) it seems that if I'm lucky I can get 250,000 sek in salary per year, of which about 1/3 will be taken in tax, and I'll need to pay 120,000 in rent...what does that leave to live on?

Your figures are about correct. Translation is, as you know, badly paid and you will have trouble getting SEK 250,000 a year freelancing unless you can bring your customer stock with you.

[wanderer9]

Most interesting is the Swedes have one of the highest standards of living in the world. So this Salary vs Cost of Living works well here. Swedes have the highest number of go ... (show full quote)

Most interesting is the Swedes have one of the highest standards of living in the world. So this Salary vs Cost of Living works well here. Swedes have the highest number of golfers per capita in the world! They have the highest number of "vacation homes" and the 2nd highest number of boats per person. If not living in their summer homes for 4-5 weeks, they are traveling to other places. So it is not like Salary vs Cost of Living is so bad that everyone is on the verge of poverty. ... (hide full quote)

I agree with the above. We discussed this during one of our Christmas break forest walks. We have a reduced income today compared to what we were earning overseas, we live in ... (show full quote)

I agree with the above. We discussed this during one of our Christmas break forest walks. We have a reduced income today compared to what we were earning overseas, we live in what the rest of the world says is an expensive country, and yet we have a higher standard of living and a greater disposable income than we've ever had. Can't quite figure out why it is that we're able to do more in Sweden for less. Not that I'm complaining, mind. ... (hide full quote)

I'd like to pick up on this topic again as I am interested, yet still confused...
And also, please excuse my ignorance, I do not have a lot of experience of Sweden, I am just a casual observer.

As quoted, it is apparant that Swedes maintain a good standard of living, and this is visible when you visit the country - nice cars, nice clothes, nice hairstyles etc.
however, many people on these forums say jobs are hard to come by (admittedly this is more applicable to immigrants and non-swedish speakers), taxes are high, average salaries are nothing special and the cost of living is very high as well. So, something doesn't add up! Am I missing something? Do Swedish people have a lot of family wealth that is inherited and passed down perhaps?
Thanks

[byke]

I think the main thing for people who have jobs here and are settled is their value of "quality" is allot different from other countries.

I dont think there is more money, more so less services and temptation to spend.

For me, while I hate the boredom ... I like the security of living in place which isnt over run by criminals and young adults walking the streets looking for trouble.

[gplusa]

There is an element of inherited weath. Particularly when it comes to property. Many people live in homes that were lived in by their parents, and most summer cabins have been in the family name for many years.

Leaving money to the kids seems to be a bit of an obsession amongst Swedes. I'm not a big fan of that, myself. I figure that paying for all their expenses for 20 years, university fees, and so forth, is inheritance enough. I intend to spend my illgotten gains.

[Bender B Rodriquez]

Leaving money to the kids seems to be a bit of an obsession amongst Swedes. I'm not a big fan of that, myself. I figure that paying for all their expenses for 20 years, un ... (show full quote)

Leaving money to the kids seems to be a bit of an obsession amongst Swedes. I'm not a big fan of that, myself. I figure that paying for all their expenses for 20 years, university fees, and so forth, is inheritance enough. I intend to spend my illgotten gains. ... (hide full quote)

I would not say leaving money to the kids is an obsession at all. Swedes just like to spend their gains on stuff that can be easily be inherited, like summer houses, boats, etc...

[gplusa]

Most of the eldery Swedish couples I know (and admittedly it's not a huge circle) seem to quite be worried about squirreling away enough cash to leave to their 40+ year old "kids". On top of the family home and summer cabin. And that the kids seem to expect that money will come as some sort of right. When my parents retired we told them to spend every cent that they had on enjoying their retirement. So long as they left enough money for us to bury them, we figured they had earnt the right to enjoy life and didn't owe us anything.

I had to help drag my Swedish mother in law down to the furniture store with her savings account to buy a new comfy chair for herself. When you're 85 years old, you don't need a savings account. And if the 'kids' haven't learnt to look after themselves by now, then they never will.

Maybe inheritance is standard in most countries. It's just not something I'm used to, and not something that I can really find an argument for.

[Streja]

In the UK people are obsessed with paying off their mortgages quicly before they die so their kids can get the house.



people=the ones I know

[Swedesmith]

I'm with you, gplusa. While I love my kids dearly, I figure my duty is to nurture them through childhood, and then let them get on their own lives.

Oh, and hope they don't put me in the nursing home when I get old.

[California Girl 3]

As quoted, it is apparant that Swedes maintain a good standard of living, and this is visible when you visit the country - nice cars, nice clothes, nice hairstyles etc. howeve ... (show full quote)

As quoted, it is apparant that Swedes maintain a good standard of living, and this is visible when you visit the country - nice cars, nice clothes, nice hairstyles etc.
however, many people on these forums say jobs are hard to come by (admittedly this is more applicable to immigrants and non-swedish speakers), taxes are high, average salaries are nothing special and the cost of living is very high as well. So, something doesn't add up! Am I missing something? Do Swedish people have a lot of family wealth that is inherited and passed down perhaps?
Thanks ... (hide full quote)

In addition to the help people get from parents, I think part of it is also that the vast majority of families have two incomes; very few depend on one income. The net result is that one gets two "medium" earners in the family who are not particularly highly taxed, rather than one "high" income earner who is much more heavily taxed. In many ways, it makes a lot more sense in Sweden to consider total household income rather than an individual income when looking at income vs. cost of living. Also, that second household income does not come at a heavy cost for childcare, which is practically negligible for most (we paid something like 1800 kr per month for full time care for two kids on a quite comfortable household income). I know that in the U.K. and Germany, paying for childcare can practically wipe out the second income.

The other thing I always find rather interesting, though, is the complaints about high taxes. For many (if not most) total taxes top out at about 32% (it varies a bit from Kommun to Kommun). Members of my family earning similar salaries in the U.S. pay about the same percent or even somewhat more, once state, federal, local, Social Security etc. has been factored in. Then they have to pay a hefty co-pay for health insurance on top of that (assuming they even get health insurance through work, that is). The end result is not much difference in terms of take-home pay.

[Swedesmith]

I have also noticed a lot of Swedes who work two jobs, one they pay taxes on and the other black (under the table).

[Willy]

I had to help drag my Swedish mother in law down to the furniture store with her savings account to buy a new comfy chair for herself. When you're 85 years old, you don ... (show full quote)

I had to help drag my Swedish mother in law down to the furniture store with her savings account to buy a new comfy chair for herself. When you're 85 years old, you don't need a savings account. And if the 'kids' haven't learnt to look after themselves by now, then they never will. ... (hide full quote)

That's my grandparent generation, so I know it rather well. No matter their own standing in society, they all personally came into contact with the poverty that existed really up to the 50s/60s. They were young adults when the world war was raging just around the corner. That saving-for-a-rainy-day mentality is deeply ingrained with them. At the same time, they gained from the tremendous post-war economic development. In the end you get seniors with money they don't want to spend. Be sure, when the post-war generations hit that age, they will spend every penny on comfy chairs!

The other thing I always find rather interesting, though, is the complaints about high taxes. For many (if not most) total taxes top out at about 32% (it varies a bit from Ko ... (show full quote)

The other thing I always find rather interesting, though, is the complaints about high taxes. For many (if not most) total taxes top out at about 32% (it varies a bit from Kommun to Kommun). Members of my family earning similar salaries in the U.S. pay about the same percent or even somewhat more, once state, federal, local, Social Security etc. has been factored in. Then they have to pay a hefty co-pay for health insurance on top of that (assuming they even get health insurance through work, that is). The end result is not much difference in terms of take-home pay. ... (hide full quote)

Don't forget the jobskatteavdrag (tax deductions on work income). On a monthly income of 30k, the effective tax rate is less than 25% now.