Is 950,000 - 1,000,000 SEK Before Tax Enough for a Couple and One Kid in Stockholm?
Congratulations! That is definitely a good salary, and yes, that is enough even if you are the only one working! Your salary is well beyond what you need to raise your children and live comfortably in Stockholm.
Stockholm: High Living Costs
While Stockholm prices are higher compared to the rest of Sweden, they are still not as exorbitant as in other cities like Oslo or London. Your salary is certainly more than enough to support your family life and provide a good standard of living in Stockholm.
Family Budget and Lifestyle
Your family would likely end up in the upper 10% of income earners, and even those in the 50th percentile can live quite decently. Unless you have very expensive habits, there shouldn’t be any significant issues. The only potential caveat is housing costs.
Accommodation Costs
The cost of renting a first-hand apartment in Stockholm is reasonably affordable, but securing a long-term lease might be difficult. For second-hand apartments, rental costs can be very high. If you plan to purchase a home, borrowing money without a solid bank history in Sweden could be challenging. I recommend securing a short-term accommodation solution and then immediately discussing loan requirements with local banks to facilitate a smoother transition to homeownership.
For a small 40-50 square meter apartment 20-30 minutes from the city center, you might need to allocate around 350,000 SEK in cash and 18 million SEK in the form of a loan. This financial commitment is significant, but strategic planning and support from local banks can make it more manageable.
Monthly Expenses and Tax Considerations
Given that you work on a yearly salary, the amount of 950,000 SEK is equivalent to approximately 96,000 euros or 118,000 Canadian dollars. After accounting for taxes (around a quarter of your wage), you would still have a substantial amount to cover living expenses.
About 6,000 euros a month should suffice even after accounting for rent, especially considering the potential tax refunds you might receive if you return to your home country after a year. Many families in the Nordic region tend to spend more time outdoors, engaging in activities such as walking, biking, and skiing, while spending less on dining out and entertainment. Clothing might be more expensive, but it is of generally better quality, and families usually opt for durable, high-quality winter clothing and boots that last longer and stay warm.
Transport Costs and Lifestyle Adjustments
Stockholm has an excellent public transportation system, making owning a car unnecessary and potentially saving you a good portion of your budget. The city’s transport costs are considerably lower than in some other major cities. This can provide more flexibility and additional funds for other necessities and leisure activities.
By planning your finances wisely and adjusting to the local lifestyle, you can comfortably make 950,000 - 1,000,000 SEK before tax last quite well in Stockholm. With strategic planning and support from local financial institutions, you can secure a comfortable future for you and your family.