How do Londoners save money?
Saving money and London are two sets of words that don’t usually get strung together in the same sentence.
London is a city that’s known for its high costs of living and yet, many Londoners have always found a way to bring out the thriftiest (and most creative) sides of themselves.
The median annual salary in London is ￡34,473 but many people (especially young people) live well below this.
After totaling up due rent and bills that need to be paid with remaining pay packets going to food and monthly necessities, there doesn’t seem to be much left over for saving.
So how are Londoners getting by, especially amidst all of the economic turmoil rocking the world?
A new study conducted by Carphone Warehouse (which has recently obtained a new energy saving tool), surveyed 5000 participants to observe their spending habits and found that more than half (56%) of Brits consciously implement saving methods with more consistency compared to five years ago.
Some of the saving techniques used wouldn’t necessarily be considered conventional.
Apart from simple money-saving hacks like collecting coupons for discounts on shopping and cutting their own hair instead of going to the barber shop, Londoners are also surprisingly self-sustainable with almost a fifth (19.24%) actually growing their own food to save money.
Whenever they did go out to eat, a quarter (23.5%) confessed to only drinking tap water!
Efficiency is apparently trending right now, with Londoners taking their own bags to the supermarkets, utilising reward cards and collecting coupons.
The most common money-saving methods adopted by Londoners include a long list of innovative ways to avoid overspending. It seems that people are very aware of the accumulative advantages of practicing small yet consistent saving habits. Employees have begun taking packed lunches into work instead of opting for the nearest eatery to fill their tummies.
Instead of turning on the heater whenever it gets a little too cold, people have resorted to wearing extra clothes. When holidays or birthday parties rear their heads around the corner, Londoners seem to prefer re-wrapping gifts received from others and passing these forward instead of spending on brand new presents.
Ripped or worn clothes are sewn back together for continued use or employed for other purposes. Picking up free newspapers rather than paying for them, only shopping for items on sale, charging phones or laptops at work instead of at home, buying from reduced food or bargain bins and eating at friends’ or relatives’ houses are just some of the numerous ways in which Londoners are able to save a few bucks here and there.
Some of the more quirky methods include; not flushing the toilet after every visit, washing clothes less often than usual and sharing bath water. It seems that the line between innovation and desperation can get a little blurry at times.
People are also starting to transform their lifestyles according to their living standards, which can be an amazing thing. Smoking 15 cigarettes a day can cost almost ￡2,000 a year. Some people have decided to kick the habit and boost their savings, providing them with a bonus apart from boosting their health.
Many Londoners are also taking to side-hustles for extra income on top of their savings. Taking on extra work or turning a hobby like selling handmade products online into a small business are just some of the things that can contribute to overall household income.
Homeowners that have extra space in their homes take in lodgers and turn their assets into recurring profit.
Perhaps the reason why so many Londoners are beginning to think outside the box in terms of monthly expenditures is that of the rising popularity of doing up a budget.
Having spending milestones are a good way of keeping track of financial leeway. Budget planner apps or spending diaries are very useful for taking note of what you do spend on, from the smallest piece of candy to filling up gas for the car.
In any case, it’s interesting to see how adaptable Londoners can be when it comes to getting by in one of the most financially intimidating corners of the globe.
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I’m Tyrone Skipper, a fully qualified, seasoned financial advisor with over 20 years of experience assisting high net worth individuals across the UK, NZ, UAE, India and Malaysia. Over the years, it has been a great honour to have the people and families I serve rely upon me as a steady hand, guiding them across the financial landscape. I specialise in investment planning including trust, education, insurances and retirement.