As one of the most expensive cities in the world, there is no doubt that living in London can get awfully expensive. Therefore, you need to have a clear plan in place of how it is going to work for you. Otherwise, you can easily find yourself getting in over your head. Here are a few money management tips to help you manage living in the nation’s capital.
Make a Budget
When you are living in an expensive city like London, it is more than likely that a big percentage of your monthly salary is going on housing costs. While these are unavoidable, it is the other areas that you need to manage, and a budget will help you to do this effectively. For example, you may be able to save on household bills by comparing your costs and finding a cheaper provider. Also, you may find that your daily trip to Starbucks is adding up, and it is more financially prudent to invest in a coffee machine.
Get a Side Hustle
London is a city that is built on opportunity, and it is one that offers a wide range of ways to make money. So, aside from your regular job, you could also seek out other ways to make money on the side. Perhaps you could set up a small business or engage in some freelance work. There are more opportunities than ever before to work from home and earn a little extra money to help subsidize your budget, thanks to the rapid expansion of internet provision.
Have a Plan B
From time to time, it is inevitable that life is going to throw you a curveball or two. By having a plan B, you will be ready for whatever is waiting around the corner. For example, you could look to save an emergency fund, which you can dip into as and when needed. Alternatively, you could get a fast loan if you require one. While you may not need your plan B right at this moment, it is nice to know that you have it in your back pocket.
Make the Most of Cheap or Free Activities
While the cost of living in London may be hugely expensive, there are also plenty of free activities that you can enjoy along the way. For example, there are plenty of parks all over the place – and a selection of fantastic walks that encompass everything that the city has to offer. Also, many of the museums allow for free entry. As a major creative hub, in normal times, there are plenty of exhibitions and other events that you can attend for free or at little upfront cost.
Use a Financial App
There are plenty of apps available these days that can help you to manage your money when you are living on a tight budget. It is certainly worth making the most of these to help you in your quest for financial stability while living in an expensive city such as London.
Looking for more tips? See Money on your Mind: Stop Financial Stress