Guest post by Anna Nilsen
Are you an American expat living in London? You’re in for a treat. The city has a vibrant economy, tolerant culture, and many attractions. It is no surprise that London has so many expats from all around the world.
However, living in London is costly, especially if you prefer the popular areas. Here are a few tips for living in the big city without spending too much.
1. Ditch Your Car
If you live in London, you don’t need your car. While it may seem strange, you’ll realize that many people in London don’t own cars even though they can afford them. Owning a car in London doesn’t make financial sense.
You’ll need to deal with expenses like vehicle insurance, MOT, and vehicle tax. In addition, driving in London can be hectic. If you’ll be going to the city center often, you also have to deal with congestion charges. The parking charges are unbelievable, and you will likely struggle to find a parking space.
The UK has some of the highest fuel prices in the world. Public transportation systems like trains, tubes, airplanes, buses, and ferries could save you money. Avoid using your car whenever possible.
2. Save for Financial Security
It is never too early to start saving, especially if you’re an expat. Create an emergency fund without a minimum balance. This is one of the most convenient ways of building your savings.
Everyone wants to live a comfortable life. However, this dream can be challenging. It would help if you prepared for it. The earlier you start saving, the sooner you can attain your financial security goals.
It would be best to save in both brokerage and liquid savings accounts. A brokerage account empowers you for future investments. On the other hand, a savings account gives you access to cash in the event of an emergency.
3. Use an Online Bank Account in the USA That Allows Free Foreign Transactions
If you are careful, you may save a lot of your money on online bank transactions. Consider using an online account that allows you to make free foreign transactions. You can set this account up even when out of the United States. You can get your US bank account within 24 hours.
Sofi banking may be great for making transactions as an expat. The benefits of Sofi online bank accounts include the following:
- No account fees
- Fee-free overdraft coverage
- Up to two-day early paycheck
4. Paying Your Bills
Many American expats living in London struggle with household bills, especially in winter. Keeping warm can get more expensive than you think. The energy cost is high even though the energy market is getting competitive.
The same applies to every other monthly bill. You can save money by comparing prices. Ensure you get great deals for your household insurance, broadband, and mobile phone charges. Use price comparison sites to get the best deals and save your money.
5. Eat Cheaper
London has fantastic cuisine. If you are a foodie who enjoys eating out, there is much to explore. However, eating at London restaurants and cafes can be expensive.
Most restaurants have great deals at lunchtime and early in the evening. Plan around these times if you hope to save some money. Check out restaurant websites for discount codes and vouchers. Many high-street chains use competitive discounts to attract customers. Always check the website before visiting.
Some discount retailers and supermarkets have great deals as well. Consider buying reasonably-priced foods and cooking at home.
Although London can get expensive, there are ways to live your best life while saving money. Take advantage of the above tips and save money while you live in The Big Smoke.
