Whether you are planning on moving to London in the near future or have been living in the big city for several years, there’s never an early enough time to think about cutting your living costs where possible. According to experts, you need to be earning approximately £40,000 per year in order to live comfortably in London which is of course, out of reach for many. In this blog, we’re going to look at some of the key ways you can live in London on a strict budget and get smart with your money.
- Know where to live
While many young professionals may envision themselves living in the more desirable areas of London, this, unfortunately, isn’t feasible on a standard income. Mayfair, Chelsea and Shoreditch may be your ideal locations but are likely to be out of reach of your budget. Therefore, aim to find a spot which is nearby to trendy areas but lower down the price bracket. Camberwell, Elephant and Castle and Walthamstow on the outskirts of the city are much cheaper, but still in close proximity to central London. However, do be aware that some of the cheaper areas have extremely high crime rates, therefore, it would be wise to talk to people from the area or local police officers to get a clearer oversight of the area.
Regardless of where you live in the country, it’s important to make the most of your savings as this will act as a buffer if you ever happen to fall into financial difficulty; yet this is even more crucial while living in London, with the cost of living being so high. You may wish to speak to a financial advisor on the best interest accounts for your savings, while another option would be to diversify savings by trading such as spread betting for the UK market.
- Shop online
We all love a bit of shopping from time to time. Although it may be convenient to pick up your groceries while on the daily commute to work in London, you’ll be spending a little bit extra on products sold in convenience stores such as Tesco Express and Metro than the rest of the UK. Although it is only a couple of pence here and there, the cost will soon add up. With this in mind, it would be best to shop online to refrain from paying over the odds on your groceries regularly.
Discovering ways to travel inexpensively in London can be difficult. Owning a car is expensive enough, but in London, you need to consider extortionate parking and congestion charges while working in the city, therefore wouldn’t be ideal on a long-term basis. There are, however, several other ways you can get around London, depending on what your budget allows.
You could opt to purchase a London Travel Card as opposed to a pay-as-you go Oyster, as it is a much cheaper option if you plan on using the buses and tubes regularly. You could even rent a bicycle or car share with others who are in your workplace or neighbourhood.
We hope this guide has given you some useful hints to take on board when it comes to living in London on a budget – good luck!