The British pound

Exactly. Right now it is right back where it was three years ago when i moved over in 2005 and at that time i was spending all USD's and i thought it was high then and that i was getting royally screwed over in the currency dept. 

Wow, is it?  That's interesting!  I moved over in 2005 too.  You think I'd know all this considering I work in finance. 

Doesn't the cost of living in the UK suck enough?

Wow, that's quite offensive to people in the UK.  Don't you have any empathy for them ?!?

My take on the cost of living is that it only seems high to an American who is still operating with, and from, the US dollar and thus having to keep the exchange rate in mind at all times.

When you mentally double every pound you have to spend, of course it's going to seem like the cost of living in the UK is outrageous. But it's really not once you are here and earning here and spending here, (aside from the universal woe of prices always rising, but that happens everywhere).

But what is overlooked, I think, is that, within the UK, to people living in the UK, and to people earning and spending and thinking in terms of only the Pound, it's actually exactly the same "cost of living" as the States, in terms of the value of items, the value of your earnings, and what you can buy with the unit of money you are talking about. Because, have you noticed a funny thing, that what it takes to earn, say, $500 dollars, and what that $500 can buy you in most of the United States, is actually the same for what it takes a person permanently living in the UK to earn or spend £500.

For example, taking a random item, I've noticed that a boombox I bought for the kitchen in the States, cost me about $50. Over here I was looking at the same kind of portable boomboxes, and they cost around.....£50! Now, to an American bringing their dollars over here, that's going to freak them out because in real terms that means $100 roughly. But think about it, to a Brit, living here, £50 is the same "feeling" to them as $50 dollars would be to an American in America buying the boombox I bought in America for...$50! I've noticed the same with other prices of things, and with earnings. It all actually has the same value, even in the numeric digits. I don't know if I'm the only one who thinks that is a strange numerical quirk, or maybe I'm just weird, lol. All I know is, it seems to me that the exchange rate, in effect, only makes a difference when one has to operate with it. (Which, I know, is still the situation for many here on this forum.)

This is all a longwinded way of saying, the cost of living in the UK is not bad when you stop converting to dollars, which will always cause a shock, and instead think of those pounds as having the same value when spent in situ by those in situ. Don't know if that makes sense as I know it sounds crazy, but...!

This is all a longwinded way of saying, the cost of living in the UK is not bad when you stop converting to dollars, which will always cause a shock, and instead think of those pounds as having the same value when spent in situ by those in situ. Don't know if that makes sense as I know it sounds crazy, but...!

Its how you have to think of it.  You have to think that £40 is $40, otherwise, you'll drive yourself mad. 

Its how you have to think of it.  You have to think that £40 is $40, otherwise, you'll drive yourself mad. 

Yes, that's it exactly! You really do have to think of a sticker price of £40 has the same meaning, the same feeling in a sense, as $40, otherwise you really will be going around for the rest of your time in the UK saying "They're asking 80 bucks for that!" No, they're really not, lol!

MM- that's exactly how I had to start thinking of it this summer while I was there or I'd be freaking out the entire time! lol At least I have another year to get used to it before i move. I only hope (for my own sake) that the exchange rate continues to improve during that time while I bring my $$ over....

Sorry to those for whom it is the suckitude, though!

Its how you have to think of it.  You have to think that £40 is $40, otherwise, you'll drive yourself mad. 

This is exactly what I plan on doing once we have moved, opened a bank in the UK and moved all of our money over.  We do not plan on keeping a Bank Account open in the US once we can move it all over.

I only responded to this post as I figured the OP was just opening a discussion of 'how do you feel right now about the way the dollar is going'.. Didn't know it would bring a full on attack.    

But anyway.. I'm over it and have moved on.. Have more important things to worry about as we are leaving in 26 days.. YEAH!!!   

First, I apologize for my outburst yesterday.  Emotionally, my life is in turmoil and my feelings are raw.  I picked the wrong way to vent frustration.  I still believe what I said, but it doesn't excuse the way I said somethings.

Secondly, I admit that I know naught about economics.  It slides off my brainpan like eggs on teflon.

Not to start a discussion on the "quality of life" but this is my situation.

I'm going to be doing a grad program, but I still need to find fulltime work to support myself.  It is very important for my sanity to have certain things - mainly, my own space (not just a room) where I can have my things my way.

I've got a BSc in Horticulture and a MS in Agronomy.  Most likely, I'm going to end up working as a skilled laborer while completing a MA program.  

From what I've seen, salaries in range from 13000-15000 pa.  After NHS, council taxes etc, utilities plus the cost of the flat, I'll be keeping less than half of what I make in a month.  Call it 500 pound dollars.

A similar position in the US would pay me 26000-30000K.  Lets say I opted out of health insurance and found a place for $550 a month.  I'd be keeping about 1/2, call it 1000 pound dollars.  Plus, it would be cheaper to own and operate a vehicle, so I'd have more mobility and options of where to live and work.  It would be tight, but I'd be able to feed, house myself and splash out on a few luxuries

I don't see how those two options are equal.  As far as I can tell, senario A could get really hairy and force me into a corner that I don't want to be in.

I get the concept of earn pounds spend pounds, but does the pound really go as far as the dollar?  Particularly for the blue collar working class?

I'm not afraid of belt-tightening or giving up some of my conveniences.  What scares me to death is the thought of being forced into some crap situation because I can't afford the basics of life.  Because if $1= 1 pound, 1000 is still 2x 500.  If $1 = 1 pound, I'm paying more for less between the US and the UK.

I would love it someone could convince me that my fears are unfounded.     Or at least a way of thinking about it that doesn't give me night terrors.  

Last night I dreamt that I was swimming alone in the North Sea with no land in sight, as the shadows grew in the depths.

But what is overlooked, I think, is that, within the UK, to people living in the UK, and to people earning and spending and thinking in terms of only the Pound, it's actually exactly the same "cost of living" as the States, in terms of the value of items, the value of your earnings, and what you can buy with the unit of money you are talking about. Because, have you noticed a funny thing, that what it takes to earn, say, $500 dollars, and what that $500 can buy you in most of the United States, is actually the same for what it takes a person permanently living in the UK to earn or spend £500.

For example, taking a random item, I've noticed that a boombox I bought for the kitchen in the States, cost me about $50. Over here I was looking at the same kind of portable boomboxes, and they cost around.....£50! Now, to an American bringing their dollars over here, that's going to freak them out because in real terms that means $100 roughly. But think about it, to a Brit, living here, £50 is the same "feeling" to them as $50 dollars would be to an American in America buying the boombox I bought in America for...$50! I've noticed the same with other prices of things, and with earnings. It all actually has the same value, even in the numeric digits. I don't know if I'm the only one who thinks that is a strange numerical quirk, or maybe I'm just weird, lol. All I know is, it seems to me that the exchange rate, in effect, only makes a difference when one has to operate with it. (Which, I know, is still the situation for many here on this forum.)

This is all a longwinded way of saying, the cost of living in the UK is not bad when you stop converting to dollars, which will always cause a shock, and instead think of those pounds as having the same value when spent in situ by those in situ. Don't know if that makes sense as I know it sounds crazy, but...!

Yes, but the problem is that you don't earn the same SALARY in pounds that you would have in dollars.  So someone who makes $50,000 in the US is not going to make the same 50k in dollars.  The cost of living in the UK is high compared to the US.  And it is higher compared to nearly every other place in the world, I believe (London is the city with the third highest cost of living in the world).

Yes, but the problem is that you don't earn the same SALARY in pounds that you would have in dollars.  So someone who makes $50,000 in the US is not going to make the same 50k in dollars.  The cost of living in the UK is high compared to the US.  And it is higher compared to nearly every other place in the world, I believe (London is the city with the third highest cost of living in the world).

Totally agreed.  I know that if I had my job in the US, I would have more cash left over at the end of the month.  The cost of living here is just a lot higher than when I came from in the States.  It just is what it is, and I don't see it changing anytime soon.  But most people do manage to afford the basics of life here, so I wouldn't panic just yet.

When I was a student in Manchester, I lived on the equivalent of a gross salary of £10,000 per year.  I hardly had any spare cash, but I always had enough to buy food and pay my bills (but I was a full time student so I didn't have to pay council tax, which helped.)

From what I've seen, salaries in range from 13000-15000 pa.  After NHS, council taxes etc, utilities plus the cost of the flat, I'll be keeping less than half of what I make in a month.  Call it 500 pound dollars.

A similar position in the US would pay me 26000-30000K.  Lets say I opted out of health insurance and found a place for $550 a month.  I'd be keeping about 1/2, call it 1000 pound dollars.  Plus, it would be cheaper to own and operate a vehicle, so I'd have more mobility and options of where to live and work.  It would be tight, but I'd be able to feed, house myself and splash out on a few luxuries

I don't see how those two options are equal.  As far as I can tell, senario A could get really hairy and force me into a corner that I don't want to be in.

I get the concept of earn pounds spend pounds, but does the pound really go as far as the dollar?  Particularly for the blue collar working class?

To be honest, it's really not equal. Now that I'm back in Bristol, I am only currently earning about £12,500 a year and after taxes, this equals about £830 per month. I can't afford to even get a flat anywhere because after rent (of a small room in a shared house or flat), bills, food, council tax, road tax, car insurance and petrol, I'd have about £50 per month left over for entertainment/clothes etc. - no shopping or movies or eating out for me... and I'm trying to save up enough money for either a car of my own or for a deposit on a house or a flat for the future! As a result, I won't be able to move out of my parents' house until I can get a job that pays a higher salary (I'm currently hoping to find something for between £20,000 and £25,000).

The main difference between the US and the UK, is that US salaries and cost of living allow people to have a decent amount of disposable income left over each month, but UK salaries are lower and cost of living is so much higher that there is usually very little disposable income at all - so you have to adjust your way of life to accommodate this, which can be hard for those who are used to eating out a lot, going to shows/the movies, and buying new clothes every week or so (my parents can only afford to do those things a few times a year).

If I had made the same salary in pounds that I used to make in dollars, I'd be one of the highest paid people in my entire department.  That includes the head of our entire UK practice.  Really, the cost of living is higher here than in the US.  It's a fact.

I think comparing cost of living between countries is not as straightforward as some think.  Obviously there are concerns when less money is being saved (or none at all!) and everyone has their own personal experiences to go on.

But even less money in your pocket or bank account at the end of the month isn't necessarily a conclusive argument that cost of living is higher.  For example, suppose next week you were hit by a bus (and survived) or striken by a terrible disease.  If you were treated by the NHS you wouldn't pay a penny at point of service, however you would pay through taxation, but this is arguably a lot less than having to pay for your recovery out of pocket.  Alternatively, if you were healthy to the day you die you would pay huge sums in insurance premiums over your life in the USA.

If you were able to save some money in the UK, it seems that opportunities to invest in very good tax free investments, for example like ISAs or even premium bonds, seem more prevalent than in the US.  That's a fairly simplistic view as I'm sure if you were a seasoned investor you could find good investment opportunities in either country.

Cultural, especially in places like London it's very hard to beat unless you were perhaps in a big US city but then places like New York and San Fransicso can almost approach London for costliness.  Not to mention easier access to other countries in Europe.

The job market in southeast England and London especially is generally very good, perhaps the job opportunities may not be nearly as good in many parts of the States.
Public transportation is by and large much better as well.

All of these things factor in.  Most people can't have their cake and eat it too so there are trade-offs for anywhere you live but all of these are factors in the cost of living.

A recent report said that the UK will have the largest population in Europe in the coming months surpassing Germany.  There must be a reason why so many people want to move here.

Let's stick to basic cities. 

There is a 2008 survey that "covers 143 cities across six continents and measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment. This survey is the world’s most comprehensive cost of living survey and is used to help multinational companies and governments determine compensation allowances for their expatriate employees."

In this survey, London ranks third and is the second most expensive city in Europe.  The top places are Moscow and Tokyo.  New York is 22nd on that list, and it is the only United States city to place in the top 50 in the world. 

Of course living in a rural village in Scotland might be cheaper than living in a penthouse in New York City.  But in general, the day to day cost of living in the UK is still higher than most places in the US.  There are many studies to back this up.

I think comparing cost of living between countries is not as straightforward as some think. 

Matt, I think what you're getting at is less of a cost of living issue and more of a quality of life issue, which I think is something a bit different.  Cost of living is more objective- if you transplanted my personal economic circumstances here to where I lived in the US, I would in fact have more disposable income there.  There's really no way to dispute that. Quality of life, however, is something truly subjective and the factors that impact it is different for everyone.