Enough to survive?

Gweilo86 · 05-06-2010, 04:42 AM

Hi all,

It looks like I may be moving to HK in the immediate future, and I was hoping you might be able to give me some insight as to what my standard of living might be like.

I would be earning 20k per month, and I would be working in central 12+ hours a day, so need accomodation that is close by. I'm happy to eat local when not in social situations that dictate otherwise, and I don't expect I will have much time for many nights on the town.

Knowing this:

What do you think my budget for accomodation, bills, food, entertainment etc should look like?

What do you think would be the absolute maximum I could allocate towards rent on a 20k salary, without being bored and going hungry?

(I have been looking at cheaper serviced apartments (w studios etc.) and flatshares so far... seems that it may be possible to find reasonable accomodation for under 9k. Is this rare?)

Any idea of my tax liabilities? How much of that 20k is mine?

I'm not expecting to live like a king, but I have concerns that taking this job might be financially crippling.

All thoughts welcomed,

Thanks

Beanieskis · 05-06-2010, 08:18 AM

You can live on that, but it will be tight. Try looking for flats somewhere like Kennedy Town.

12 hours a day? That sounds tough for 20k per month!! Is that a basic salary, will you be getting bonuses on top?

WMDS · 05-06-2010, 08:43 AM

You might need to dip into your savings in the first month because in HK if you rent a flat you may need to pay 2 months rent in advance, 1 month deposit then 2 weeks commission for estate agent. Plus you have to provide deposits for various utility companies. 9K rent is more than reasonable, I would look at Jordan cos I viewed flats for 8k for 500sq one/two bedroom flats and its only a few stops from Central.

PDLM · 05-06-2010, 12:39 PM

For tax see here: Salaries Tax Computation
Assuming that you are single and have no other allowances or deductions except MPF (see below) then your total tax for the year would be $8,400. But tax is paid annually here, not deducted from salary, so you need the discipline to save for the bill.

In addition you would need to pay HK$1K/month in MPF (and your employer will also pay $1K/month); you might be able to get out of this for the first year, but since that means you would lose $12K of employer contributions to your fund you might decide you don't want to).

So overall your effective net pay would be $18,300 / month.
(And $2,000 per month would be going into your MPF fund)

Banana Pancakes · 05-06-2010, 12:53 PM

Gweilo,
I won't lie to ya ... that's going to be a tight squeeze, but financial discipline will get you through. Do you plan on putting aside money for savings as well? From my experience, I live and spend pretty frugally as I am not exactly raking a CEO-type salary and manage to get by spend 17.5k a month - 9k for the rent, 8.5k for groceries, utilities, internet, cell phone, student loan repayment, and additional expenditures. You will probably have to eat in more than you eat out, and spending hundreds of dollars in LKF each weekend probably won't help your cause. Still, I'm managing on 17k, and I think local people manage to live on less, so you surely can do so as well.
Hope this helps ... good luck.

PDLM · 05-06-2010, 01:20 PM

Originally Posted by Banana Pancakes:

I think local people manage to live on less, so you surely can do so as well.

Indeed - the majority of households in Hong Kong have less than HK$20,000 total household income per month, so for a single person it should be no major problem.

Henry Young · 06-06-2010, 07:54 AM

$20K is sufficient with savings too. First of all, working 12 hr+ is normal here. People value hardwork and in any case there are people who wish to devote hours towards their careers in their self-actualisation if not to outbeat you. In my past caeer in bank, I used to work 13+ hrs and thinking while on buses. In my present work as property agents, I work also 12 hrs+ and irregular too to serve my customers best. If you work 12 hrs, you dont have much time to drink or dine outside and save money too.
Secondly, you can get decent accomodiation at $7.5K (brand new decor though unfurnished) 2x1 for gross floor area 470 sq ft or $8K for 550 sq ft 2x1. Very reasonable - in Yaumatei. There are always good bargains. I can recommend some reasonable units to you.
With $12K left, you can live comfortably - food, clothing, etc wont cost you too much - if you eat local (for example, local lunch about $30 while lunch for expat here costs you $70+ and when you add up the increases for 30 days a month, you are paying a fortune out) make you own food whenever possible, you can save $4000+ or so. If you live reasonably - thrifty to yourself, generous to others and depending on the number of outings or nights you spend, you can save money. For myself, if I were an expat, with $12K left and living like a local, I figure I could save $5-7K.

feel free to let me know how I can help. Henry Young

Gweilo86 · 06-06-2010, 07:57 PM

Thanks everyone for all your replies.

I will be back in touch once I am closer to planning the move!

Thanks again.

UK/HKboy · 07-06-2010, 01:05 PM

i started on 13k and now not yet on 20k, but im coping well enough...

be sensible and disciplined and you will be fine. you won't be eating at fancy restaurants every night and treating your table to Moet at the weekends.

Iv never paid more than 5k in rent and as some people have mentioned, you can get a decent small studio in Kennedy Town, North Point/Quarry Bay area, or even the nearby stations into Kowloon for around 5k-6k.

As you are working 12 hours a day, there isnt much need for a large, plush pad. You can always upgrade next year when you get a pay rise and have a better idea of what you are looking for.