Making it in the UK today feels tougher and more expensive than ever before.
The economic landscape is challenging, the cost of living is rising, and many people feel the system is stacked against them.
Many are so fed up that they've left or are considering leaving the UK. Some don't want to leave or can't, and need a way to make it.
The same economic challenges apply to other countries like Canada, Australia, the US, and a lot of countries in Europe etc.
Yet, despite these hurdles, it’s still possible to build a life of financial freedom and personal fulfilment in the UK.
With the right mindset, habits, skill set, and strategies, you can successfully navigate this environment.
In this comprehensive guide, I’ll walk you through a step-by-step process to help you make it in the UK.
I'll draw from my experience of having achieved financial freedom in the UK.
Plus, experience as a chartered accountant, former CFO, financial coach, business coach, and Sunday Times bestselling author of Financial Joy.
I’ll share practical advice, insights, and strategies that can empower you to thrive even when it feels impossible.
♻️Take a moment to comment with your thoughts and share this post on WhatsApp, etc, with others who need it.
📝 What Does “Making It” Mean To You?
Before we jump in, it is important to be clear on a few questions:
- What do you really want out of life? And what does “making it” truly mean to you?
- Are you prepared to be open-minded and get out of your way?
- Do you accept that you must make painful sacrifices to achieve it?
Pause for a moment, reflect on write down some thoughts.
Without doing this, you'd just be reading and wouldn't have anything to apply the learning to.
🌍 1. Understanding the Current UK Landscape
To begin, it’s crucial to understand the economic and social landscape of the UK today.
The UK economy is currently quite flat, with projections indicating a decline in GDP this year and only gradual improvement expected over the coming years.
Inflation remains stubbornly high (in reality), growth is stagnant, and the economy is experiencing a form of stagflation—a combination of inflation and low growth.
People are feeling the pinch.
Energy bills are soaring, food costs remain high, council tax is increasing, and homeownership is becoming a distant dream for many.
Rents in major cities are sky-high, making it even harder for people to climb onto the property ladder.
The job market is also undergoing rapid change, largely driven by automation and artificial intelligence (AI).
While AI promises to reshape the future of work, many people have yet to see the benefits; instead, uncertainty and job insecurity are rising.
It often feels like opportunities are disappearing, but I believe they are not gone—they are simply moving.
To make it in the UK, you need to be ready to move and shift with the times to seize these evolving opportunities.
Moreover, the general mindset in the UK can sometimes feel negative or scarcity-driven.
While not everyone feels this way, it’s important to consciously balance this by fostering a positive, abundance-focused mentality.
This mental shift is essential for long-term success and resilience.
Recommended: You've Been Trained To Be Poor (10 Shocking Money Traps!)
💡 2. Live Below Your Means but Think Above Them
This might sound like an obvious piece of advice, but it’s one of the most critical foundations of financial success in the UK.
Living below your means means spending less than you earn, but thinking above your means means aiming higher—planning, strategising, and building a buffer for the future.
Let me illustrate with an example:
- Tom earns £40,000 per year but spends £38,000.
- Sarah earns £30,000 but spends only £25,000.
Who do you think will be wealthier five years from now, assuming they invest the difference?
The answer is Sarah, every time.
Even though she earns less, her disciplined spending and the margin she creates between income and expenses build freedom and wealth over time.
The key action here is to audit your expenses carefully.
Be intentional about your spending, focus on value rather than status symbols, and cut out unnecessary status-driven expenses.
This approach helps you control your money rather than letting lifestyle inflation eat up your gains as your income rises.
This “zero lifestyle inflation” rule means as your income grows, your lifestyle spending should remain roughly the same.
This discipline will be even more important as economic pressures continue and systems become more challenging worldwide, not just in the UK.
💻 3. Get a Side Income and Make It Digital
Relying on a single income source is increasingly risky in today’s uncertain job market.
You might have a job one day and be facing redundancy the next.
Data from Finder shows that nearly two in five Brits (39%) now have at least one side hustle to supplement their income.
On average, people earn around £914 per month from side hustles, with younger generations leading the way: 60% of Gen Z and 58% of Millennials are involved in some form of side income.
The types of side hustles vary widely, but five popular categories stand out:
- Selling old or refurbished items: You can find these around your home or buy and refurbish them to sell for profit.
- Creating content: Running YouTube channels, blogs, TikTok accounts, newsletters, and more.
- Creating and selling products: Handmade goods on platforms like Etsy.
- Secondary part-time jobs: Driving for Uber, working in retail or hospitality, etc.
- Manual labour: Various hands-on jobs or services.
Many creators are even producing faceless content using AI voiceovers and stock footage, which allows them to generate income without revealing their identity.
Alongside building a side income, it’s essential to build a personal or professional brand.
In a digital-first economy, attention is leverage—people need to know who you are and what value you bring.
Whether you’re employed, self-employed, or entrepreneurial, your reputation and visibility can open doors to new opportunities.
LinkedIn is a must for professionals, but other platforms like TikTok, YouTube, and Instagram also offer avenues to showcase your expertise and build a following.
Your personal brand acts as a hedge against job loss or career changes by creating alternative income streams and opportunities.
For example, if you’re an accountant, sharing tax tips on TikTok or YouTube can help you attract clients and establish credibility.
The key is to be consistent and authentic in your content and interactions.
💷 4. Use Tax-Efficient Accounts to Build Wealth
One of the smartest ways to make it in the UK is to keep more of what you earn by using tax-efficient accounts.
These legal tools allow you to grow your money without losing large chunks to taxes.
Here are the key accounts everyone should know about:
- Individual Savings Accounts (ISAs)
Every adult in the UK has an annual ISA allowance of £20,000, which resets every tax year (6th April to 5th April).
Couples can combine their allowances for a total of £40,000.
Stocks and Shares ISAs let you invest in the stock market without paying tax on dividends or capital gains.
This is a powerful way to build wealth over time, especially if you invest in globally diversified index funds or ETFs (Exchange Traded Funds).
Don’t let market uncertainties deter you.
Investing is a long-term game, and spreading your investments globally helps reduce risk.
- Lifetime ISA (LISA)
For those aged 18 to 39, a Lifetime ISA allows you to save up to £4,000 per year, with the government adding a 25% bonus (up to £1,000 annually).
The funds can be used to buy your first home or saved for retirement (accessible at age 60).
- Junior ISA
If you have children or plan to, Junior ISAs are a fantastic way to start building wealth for their future.
You can invest up to £9,000 per year tax-free on behalf of your child.
Teaching children financial literacy and investing skills early helps break cycles of financial illiteracy.
- Pensions
Pensions offer tax relief on contributions, making them one of the most tax-efficient ways to save for retirement.
However, the state pension age is rising, and pensions have limited accessibility and flexibility.
Only 25% of pension funds are tax-free, and recent changes mean pensions are now included in inheritance tax calculations.
Depending on your goals—whether early retirement or later life security—you’ll want to prioritise different accounts.
Our book Financial Joy covers this in detail (pages 288 to 292), helping you decide the best investment order for your circumstances.
Recommended: The Complete Guide to Pensions
💷 5. Starting a Micro Limited Company
Running a micro limited company as a side hustle can help you earn extra income while building wealth.
You can contribute up to £60,000 per year per person into a pension from your company, which is tax-deductible.
You can also pay yourself dividends, which are taxed more efficiently than salary.
Additionally, you can employ your spouse or teenage children in your business to distribute income legally within your household, keeping wealth circulating among family members.
Recommended: How to Pay Yourself Tax Efficiently From Your Business
🔄 Why Diversification Is Vital
Diversification is a fundamental investing principle.
While stock markets may fluctuate, especially with current global trade tensions and tariffs, diversifying your investments across asset classes and geographies can protect your wealth.
For example:
- Gold is often considered a doomsday investment, preserving value, though it doesn’t generate income.
- Property investments, including flipping, HMOs, commercial real estate, or international properties, offer alternative income streams and capital appreciation.
During a recent trip to East Africa, I met investors from the US exploring international property investments and Airbnb opportunities.
We also have some friends who gradually invested in 4 x Airbnb properties in Kingston, Jamaica.
This kind of diversification spreads risk and can provide stable income even when one market is turbulent.
⛰️ 6. Avoid Tax Cliff Edges and Keep Your Benefits
The UK tax system contains several “cliff edges” where earning just over a certain threshold causes you to lose benefits or allowances abruptly.
These cliffs can discourage people from increasing their income and hurt productivity.
Here are some key cliff edges:
- Child Benefit: Starts to reduce if you or your partner earns over £60,000, and stops entirely at £80,000.
- Personal Allowance: Lost gradually if your income exceeds £100,000, disappearing completely around £125,140, resulting in an effective tax rate of 60% at that level.
- Free Childcare Hours: Eligibility for 30 hours free childcare is lost if one parent earns over £100,000.
The solution to avoiding these cliffs is salary sacrifice, where you reduce your gross salary by contributing more to your pension or other benefits, effectively lowering taxable income to keep your allowances intact.
For example, if you earn £70,000 but want to keep full child benefit, you might sacrifice £10,000 into your pension to reduce taxable income to £60,000.
However, salary sacrifice isn’t always feasible if your lifestyle costs are already high.
The structure of these cliffs can discourage ambition, causing people to cap their earnings and limit career progression, which ultimately harms UK productivity and economic growth.
🏠 7. Renting or Owning: Make It Work for You
Owning your home outright has huge benefits, including no rent payments in retirement and exemption from capital gains tax on your main residence.
We paid off our mortgage in 7 years, which was challenging but rewarding, freeing our income for investing and experiences like travel.
Recommended: How We Paid Off Our Mortgage In 7 Years
However, not everyone can own a home, and for many, it feels out of reach.
If you’re renting, there are strategies to make it work for you:
- House Hacking: Rent out a room (with permission) to reduce your housing costs.
- Co-living: Share housing and bills with friends or others to save money.
- Geo-Arbitrage: Consider living in lower-cost areas like Yorkshire, Wales, or Scotland while earning a salary from a higher-cost city like London.
It's worth pointing out that moving to areas that are not ethnically diverse can be a challenge for people of colour due to potential racism.
So while these approaches require imagination and flexibility, especially with the trend back to office-based work, they also require some bravery.
You might need to switch jobs or create your own opportunities through side hustles or businesses to maintain this balance.
Most importantly, save the difference you’re able to cut from housing costs and invest it to build wealth over time.
🤝 8. Build a Network That Opens Doors
Having the right network can be a game-changer.
One introduction can lead to a higher-paying job, a new client, a speaking opportunity, or a business partnership.
Many jobs and opportunities in the UK never get advertised publicly and are accessed through private networks and relationships.
Here’s how to start building your network:
- Attend free local business or startup events (check Eventbrite).
- Use LinkedIn to connect with and learn from people who inspire you.
- Volunteer for causes that align with your goals to meet like-minded people.
- Join online communities focused on your interests or career.
We run the Financial Joy Academy, a supportive community where members (called Dream Makers) work towards financial and business goals together.
We offer a daily Lunch Time Club, over 70 classes, a tailored step-by-step Success Path, in-person networking, accountability partnerships and mindset coaching to help members grow, etc.
📚 9. Learn Fast and Learn for Free
There is a wealth of free learning resources available today, including YouTube, Coursera, FutureLearn, Skillshare, podcasts, audiobooks, and local libraries.
However, consuming content passively won’t change your life.
Every time you learn something new, ask yourself: What is my next best step? What action will I take in the next 24 hours to move forward?
This might be consulting a financial adviser, reviewing your budget, starting a side hustle, or simply discussing your goals with your partner.
Knowledge alone is not enough; action is essential.
Balance free learning with access to paid services or communities that provide accountability and deeper engagement.
This combination can accelerate your progress.
🌏 10. Consider a Hybrid Life
Finally, consider designing a hybrid lifestyle that blends the benefits of living in the UK with the freedom to explore and experience new environments.
I’m currently in East Africa with my wife, experiencing Kenyan culture, something I wouldn’t have done without intentional life design.
Travel and changing your environment can refresh your mindset, spark creativity, and improve your overall quality of life. It’s about living fully, not just surviving.
We plan our travel carefully, saving in advance and using points and companion vouchers to keep costs low.
We use this specific card to collect Avios points for travel.
Over the years, we’ve visited 35 countries, gradually increasing the time we spend abroad each year.
Making it in the UK doesn’t mean you have to be confined to one place or a single way of living.
You can create a life that suits your dreams, whether that means regular travel, remote work, or a different lifestyle balance.
While the UK has its frustrations, it also offers incredible benefits like citizenship freedoms, access to nature, culture, and major cities.
By shifting your mindset from scarcity to abundance and taking deliberate steps, you can create a life you love.
Conclusion
Making it in the UK might feel impossible at times, but it’s far from unattainable.
A lot of us require a shift from a victim mentality to a fighting mentality to make it. Let the fighter in but don't lose your soul on the journey.
By understanding the current landscape, living below your means (driven by the right money habits), diversifying income, investing tax-efficiently, avoiding tax cliffs, building strong networks, committing to continual learning, and designing a hybrid life, you can create the future you desire.
Remember, success is a combination of mindset, habits, knowledge, and action.
Start with small steps today, and over time, you’ll build momentum toward financial freedom and personal joy.
As always, be thankful and seek joy in all things. Your journey to making it in the UK and beyond starts now.
More resources to help you with how to make it:
- Get Coached By Me 1-to-1. No BS. Only Results.
- Work Smarter, Not Harder (8 Wealth Strategies To Start Today)
- 10 Things I Quit To Regain My Freedoms.
❓ Frequently Asked Questions (FAQ)
Is it really possible to make it in the UK despite the economic challenges?
Yes.
While the UK economy and job market face challenges…
With the right mindset, financial habits, and strategies like living below your means, building side incomes, and investing tax-efficiently, you can still build wealth and a fulfilling life.
What are some practical ways to create additional income in the UK?
Popular side hustles include selling refurbished goods, creating content on platforms like YouTube, Instagram or TikTok, leveraging AI, selling handmade products, part-time jobs, and offering services like tutoring or coaching.
Building a personal brand online can also open up new opportunities.
How can I use tax-efficient accounts to grow my wealth?
Utilise ISAS (Individual Savings Accounts), Lifetime ISAs, Junior ISAs for children, and pensions to invest and save money tax-free or with tax advantages.
Starting a micro limited company can also offer additional tax benefits.
What are tax cliff edges, and how do they affect me?
Tax cliff edges are income thresholds where you start losing benefits like child benefit or personal allowances.
Crossing these cliffs can result in high effective tax rates and loss of benefits. Salary sacrifice into pensions can help manage income to stay below these cliffs.
Is owning a home essential to making it in the UK?
Owning a home has clear advantages, including no rent in retirement and capital gains tax exemption on your main residence.
However, if owning isn’t feasible, strategies like house hacking, co-living, and geo-arbitrage can help renters save and invest effectively.
Why is building a network important?
The right network can open doors to job opportunities, clients, partnerships, and advice that are not publicly advertised.
Attending events, engaging online, volunteering, and joining communities can help you build valuable connections.
How can I keep learning without spending a lot of money?
Take advantage of free resources like The Humble Penny blog, YouTube, online courses, podcasts, and libraries.
The key is to apply what you learn by taking consistent action.
Joining affordable paid communities like Financial Joy Academy that offer accountability and a tailored step-by-step Success Path can further accelerate your progress.
What is a hybrid life, and how can it help me?
A hybrid life combines living in the UK with spending time abroad or in different environments.
It refreshes your mindset, broadens your experiences, and can improve your overall well-being. Careful planning and saving make this lifestyle achievable.
Leave a Reply Cancel reply