If you’re someone that wants to live the London life but look to the future simultaneously, this article is tailormade for you. Although living and working in London is expensive, there are ways and means for you to cut costs and set money aside for a rainy day – or even to get on the property ladder or invest in a personal pension plan.
Although average salaries are significantly higher in the capital than elsewhere in the country, the cost of living is typically greater too. This means that how much you might spend elsewhere in the UK will almost certainly not go so far in London.
It’s a similar case with individuals and their savings goals, with their location and subsequent cost of living being the most important factor rather than arbitrary goals like attempting to become an ISA millionaire – something which may not be such a laudable goal in London compared with other parts of the country. Although tips to becoming an ISA millionaire are useful in educating you on the benefits of investing in a ‘tax-wrapped’ ISA for the future, we’ve got some other everyday innovative tips to keep more in your back pocket while living in the big smoke.
Apply railcard discounts
If you are living and working in London, you might not know that you can claim a third off off-peak travel using your railcard discount. If you are eligible for any of the railcard discounts available, you can save precious money on your travel on underground and overground routes.
Try and limit your public transport to off-peak times
Sticking with the travel theme, it’s also a good idea to be mindful of peak and off-peak travel times. Try and limit your peak travel and instead travel between 9.30am and 4pm or 7pm and 6.30am. This may be a challenge if you work in an office role that starts at 9am, but some employers may permit you to start later and leave the office before 4pm on the proviso that you make up the remaining hours at home remotely.
Apply for the single person council tax discount
If you live and rent alone in a flat or property, you are eligible for a 25% discount in your council tax bills. Even the lowest council tax bands can cost more than £1,000 a year, so this is a considerable saving in the long run. Simply enter your postcode on the official government website to facilitate this discount via your local council.
Set a monthly limit on the places you eat out
There’s no denying that London is one of the best places on the planet for fanatical foodies. With cuisines to suit all tastes and flavours, you’re quite literally spoilt for choice in the English capital. Dining out does come at a cost though, so it’s important to set yourself a limit for meals out each month. Once you hit that limit, focus on cooking healthily and on a budget at home instead.
Explore London on foot and ditch the gym membership in the process
London is so rarely explored on foot, but it’s very achievable if you’re prepared to put the time and exercise in. In fact, you could ditch the bus or tube and walk to work and subsequently cancel your gym membership. Many tube stations are closer to one another than you think, so you can certainly clock up the mileage and burn off the calories without eating too much into your daily routine.
Embrace the free entertainment on offer in London
There are many free attractions in the capital. It’s not all about West End tickets and rooftop bars. London life can be taken at your own pace too. In the warmer months, you can always explore the 3,000-plus parks in the city that are ideal for leisurely walks and picnics with friends and family. There are enough free museums in London to explore one per week too!
The London lifestyle doesn’t have to revolve around living from one paycheque to the next. With these simple steps, you can boost your bank account and build that much-needed safety net.
