6 Ways to Save Money Living in London - Broke in London

6 Ways to Save Money Living in London

Guest post by Peter Hanson

It’s widely known that London holds the title for the most expensive place to live in the UK. The average monthly rental cost for a 1-bed flat in central London is £1,880. Are you enamored by London life but not its price tag? Perhaps you’re in pursuit of innovative ways to save money and make every penny count.

1. Regularly Compare Service Provider Prices for the Best Deals

Keep a vigilant eye out for better deals from internet providers, phone networks, and TV service providers. Don’t settle for the status quo. Conduct routine checks for improved deals and allocate the money you save to a savings account where you can earn interest.

2. Collect Loose Change

If you often find your wallet or purse filled with spare change that you’re unsure what to do with, set it aside in a secure location. This reserve can come in handy for emergencies or can be deposited into a current account.

3. Factor in Commuting Costs When Choosing Where to Live

When seeking a new place to reside, exercise caution when opting for what might seem like a great deal if it significantly extends your daily commute. The average London commuter spends £64.19 monthly on commuting. This should be factored into your house-hunting calculations, along with other monthly expenses.

4. Monitor Your Expenditure

Sometimes the most effective method to alter spending habits is to first collect data on your current financial patterns. Certain online banking apps offer expenditure categorization features. If your app lacks this, explore the variety of budgeting apps available to help track your spending and uncover deals.

5. Travel During Off-Peak Hours

A wonderful way to save money on the tube is by traveling at off-peak times, typically after 9.30 am and before 4 pm on weekdays. In the morning and after work hours, the tube becomes incredibly busy, as commuters rush to their destinations. If you travel outside of these peak times, not only will you avoid the hectic rush, but you’ll also be charged a lower fare. 

Peak times, which are between 6:30-9:30 am and 4-7 pm on Monday to Friday (excluding bank holidays), usually come with higher fares. For those who often travel from slightly farther London zones, considering purchasing a Travelcard for unlimited access to all zones for a day, week, or month can also be a cost-effective option.

6. Embrace Walking

Reducing transport expenses can be as simple as decreasing your reliance on it. If your route involves multiple changes and the final leg is only a couple of tube stops away, consider walking. Though the cost difference may seem minor, the cumulative savings from consistently making this choice will accumulate.

7. Affordable Dining Out

Dining out can be a significant expense, especially in London where it’s often intertwined with socializing. Slash your dining expenses by experimenting with free trials of services like Tastecard or Gourmet Society. Check out vouchers on platforms like Groupon and VoucherCodes as well.

Living in London is a delicate juggling act between enjoyment, work, and fiscal prudence. Familiarizing yourself with effective money-saving strategies will make achieving both fun and work-related goals easier!