Londoners Use These Budget Hacks to Save Money

Customary costs of living add-up no matter where you live, but Londoners face unique financial pressures. The city is one of the world’s most expensive places to live, so residents of the Capital are eager to cut spending, whenever possible. Fortunately for the cash-conscious Britons calling London home, there are a number of ways to shed unnecessary spending.

Study Outlines How Capital City Residents Spend Cash

A recent study conducted by Carphone Warehouse shines a spotlight on Britons spending habits – particularly Londoners facing the high cost of living in the Capital. According to responses gathered by the company, London’s residents are paying more attention to saving opportunities than they did even a few years ago.

To compile an accurate view of British consumers’ approach to spending, the study tracked 5000 participants, analysing their financial habits. With spending challenges around every corner, more than half of those surveyed indicated they actively pursue saving opportunities, which represents an increase, when compared to spending and saving trends monitored five years ago. In the Capital, for instance, the study confirmed at least half of those surveyed collect coupons for savings at the supermarket.

Pinching pennies at the market is nothing new, but Londoners are also using less conventional strategies to save money and reduce overall spending. Need a haircut? If you’re like almost one-quarter of those surveyed, a DIY haircut may be worth trying, in order to save money. Though cutting your own hair may seem like an extreme money saving measure, many London residents are taking even more dramatic steps to reduce costs. According to the study results, nearly one in five Londoners saves money by growing food at home. Capital residents are also saving money on drinks, with close to a quarter of the 5000 polled admitting that they only drink tap water when they go out, in an effort to spend less on beverages.

Londoners turn to a few different tactics to save money at the supermarket. In addition to the 56 per cent that admit collecting coupons, shoppers bring their own bags for discounts. And store reward cards help Capital shoppers further reduce their supermarket tallies. For deeper discounts, some committed London food shoppers only buy items that are on sale, particularly drastically reduced items and cheap buys from bargain bins. A surprising share of city dwellers currently grows some of its own food, in order to save cash. And perhaps the cleverest Londoners participating in the survey shared that they save money on food by eating at friends and family members houses.

Eating out is a big expense in the Capital, so frugal residents have found ways to avoid paying big city prices. Buying daily lunch, in particular, is more than some family food budgets can support, so cost-conscious workers pack a lunch, rather than buying pricey London midday meals. And when they do dine out, some of the London residents surveyed stick with tap water to keep the tab as low as possible.

When you live in London, the way you manage your wardrobe can have an impact on your bottom line. If you’re struggling with the price of new clothes, take-up mending the ones you already own. And whenever it is possible, reducing the frequency of clothes washing can help you save money at home. If you think like some of the study subjects, returning clothes after you’ve worn them could be another sly savings strategy to adopt.

Although many Londoners turn to credit cards for short-term financing, there are other alternatives available. To avoid adding to your card balance, you may prefer using a loan to fund your near-term financial need. It’s easy to explore loan options and compare lenders online. As long as you’re employed, expecting a paycheck soon, top providers are ready to offer terms you can work with – without credit checks.

Living costs quickly pile up, regardless of where you live. Though goods and services are not cheap in most cities, Londoners bear an added layer of expense. The Capital is among the most expensive urban centers in the world, so residents find creative ways to cut costs. If your London household needs budget relief, use these hacks to start saving money right away.

Paul graduated in 2001 with a degree in Finance. Since then he has gone on to work for several of the UK's most well-known financial institutions.

An avid blogger and a huge football fan, Paul is here to guide you through the ins and outs of personal finance and perhaps save you some money in the process!

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