How To Budget Properly When Moving To London

How to Choose Housing That Fits Your London Budget

Moving to London is exciting. It is a city filled with opportunities, personal and professional. But while it’s tempting to get lost in the city's energy, it’s crucial to be realistic about the costs. As you search for apartments to rent in London and plan your big move, you'll quickly realise that getting settled here can be a financial challenge.

But don’t worry - getting a handle on your finances is entirely possible with some careful planning and a few practical steps. Here’s how you can start budgeting smartly for life in the capital.

Choosing Your Housing

Your choice of housing will make or break your budget. Rent in London can be eye-watering, especially if you want to live close to the action in central areas. It's tempting to stretch your budget for a trendy flat, but this decision could leave you feeling financially stretched in other areas. Instead, focus on what you need rather than what you want. Think about how much space you genuinely need, and prioritise a location that’s not only convenient but affordable.

Factor in additional costs, such as council tax and service charges, which may not always be included in the advertised rent.

Avoid Public Transport

You’ll probably be relying on public transport, but the cost of it can quickly add up. Tube journey fares can easily go over £2, and those fares can be unpredictable, especially if you’re travelling at peak times. Consider alternatives like cycling or walking, which can save you money while offering health benefits too.

Pro Tips:

· Try getting an Oyster card or contactless payment options, which will save you money compared to buying paper tickets.

· Alternatively, car-sharing services like Zipcar could provide the flexibility of having a vehicle without the high costs of owning one.

Weekly Shop

Avoid relying too much on convenience foods or dining out, as these tend to add up quickly. Instead, stick to a routine of planning your meals and buying ingredients in bulk when possible. Head to local markets for fresh produce, where you’ll often find better prices compared to supermarkets. And don’t forget about discount stores, they’re dotted around London and can offer affordable, high-quality food.

You might also want to explore apps that offer discounts on food nearing its expiry date or use loyalty cards to accumulate points for future savings.

Tracking Your Expenses

Without understanding where your money is going, it’s easy to overspend without realising it. Start by reviewing your bank statements and keeping track of your spending for a couple of months. This will give you a clear picture of where your money goes each week and identify areas to cut back.

Budgeting apps can help you categorise your spending and set limits for different categories, such as entertainment and food. These tools are particularly useful if you're new to managing finances, as they can automatically update and track your expenses.