London has a notoriety of being a “not so affordable” city to reside in. While, recently, the city has slightly gone down in its ranking in the list of the most expensive cities in the world, paying for basic commodities in London can still be difficult for some residents.
So, it’s crucial to sort out your finances and know how to save money when you’re living in London. Here are some no-nonsense tips that you should follow if you want to begin your money-saving journey.
1. Plan a Budget
Having a solid budget plan allows you to assess how much you spend monthly (or weekly) and have overall control over your finances. Today, you can find mobile apps that help you make a budget and analyze the outcome of your budgeting.
Moreover, if you want an old-school way of assessing your spending habits, you can keep a diary in which you write down the items you spend your money on for a week or a month. In this way, you can pinpoint the items that aren’t that important and focus more on the much-needed expenses.
Side Note: Despite making a budget, sometimes you’re faced with a financial emergency where you need to borrow money. In such a case, you need to check for the best short term loans online like WorldPaydayLoan.com for backup. Since it’s easy to apply, you can obtain the cash fast.
2. Save Loose Change
If you’re like some people who don’t see the value of loose coins, it’s time to change your mindset. They can be a small amount, but if you gather them up, they can enable you to buy a valuable thing or afford an essential expense in the future.
So, don’t just throw away or idly spend those loose change in your purse or pocket. Recognize their value and save them up.
3. Open a Savings Account
Setting up a regular savings account can earn interest on your money. Although the interest is rather small, it’s better than nothing. It’s crucial to know the different types of savings accounts before you open one. Opening a savings account- whatever type it is – is the first step to living a financially stable life.
4. Curb Your Vices
Do you have a smoking habit or alcohol problem? Of course, it’s not easy to quit these vices, but there are great benefits if you curb or stop such bad habits. One advantage of quitting your vices is, of course, good health.
Then, there’s also a financial benefit since you won’t have to spend your money on things that can do damage to your body. Imagine how much money you’ll save if you curb or quit these unhealthy habits.
Staying away from alcohol or cigarettes is indeed a win-win situation. There are some resources on the internet and books to help you on this journey. You can also join support groups for that purpose.
5. Change Your Transport Habits
Transporting around the city of London can cost you a lot without you even knowing it. Since paying for transportation can now be done through a contactless card, it’s easy to lose track of your transportation spending.
Do you want to save money, right? Then, you should change your transport habits. If the destination can be reached by biking or walking, do it. You can save a significant amount of money in the long run if you bike or walk instead of taking taxis. Plus, it’s beneficial for your health!
6. Shop Around for Utility Providers
Utility bills take a significant part of your monthly earnings. Calculate the total average cost of your phone, internet, or energy bills, and you’ll know what I’m talking about.
Of course, I’m not saying that you have to cut these utilities to save money. But, you can save money if you switch utility providers.
Yes, there are phone, internet, and electric providers that charge more than other suppliers. Thus, you have to shop around and look for utility providers that offer an affordable service. This is an excellent way if you want to save money while living in London.
7. Avoid Eating at Expensive Restaurants
Eating at posh restaurants eats up a considerable part of your budget. If you’re committed to saving your most precious earnings, you can cook your meals at home or eat at restaurants that are not expensive but still offer delicious food.
8. Learn How to Haggle
Haggling is an essential skill that can help you save money. While haggling can’t be done everywhere, you can do it when buying a car, paying for stuff in a local market, or entering into a contract (e.g. gym membership or renting an apartment).
Takeaway
An average single person is likely to spend £794 per month (excluding rent). Whilst it is comparably higher than other cities in Europe, London has a lot to offer. Career advancement, quality of life, great food, diverse culture, a safe place to live in, who would not want to fall in love with this place?
Though living in London can be quite expensive, it doesn’t mean that it’s impossible to get through the high cost of living in this city. One way to survive is learning how to save money and make a budget.
One should not go beyond their means. Do some research, do careful budgeting and compromise some of the activities that your budget might not allow you to. Take note of the money-saving tips above for that purpose.
