London is home to 48 prestigious colleges and universities. Known for its renowned academic excellence and vibrant cultural atmosphere, it’s no surprise that millions of national and international students desire to study and stay in London. However, living in the heart of the city comes with a high cost. According to YouStock, the average monthly living expenses for students in central London hover around £1,694, significantly higher than in other UK cities. 

For many students, the challenge of balancing academic life and managing finances can feel difficult. Despite being one of the UK’s most expensive cities, living in London doesn’t have to break the bank. With thoughtful planning, students can make the most of their time in this bustling metropolis. In this article, we’ll explore 8 practical tips to help students manage their expenses while fully embracing the unique opportunities London offers.

How to Manage Your Living Costs in London? Top 8 Ways You Should Know as a Student

When you first move to London, the city’s high cost of living can be shocking. Every time you step out of your apartment, you are going to spend a significant amount of money. However, for some students, the high expenses make it difficult to balance finances and academics. Students working double shifts often find it challenging to dedicate enough time to their studies. In such situations, many students prefer to contact London-based assignment writing services for quick and reliable support.

That said, managing your finances wisely is essential if you want to save money and maintain a good balance. Here are some practical tips to help you handle your living cost in London as a student:

1. Create a Budget

The very first step to managing your money and living cost-effectively is tracking all your weekly and monthly expenses. For that, you have to make a budget which tracks all the expenses with their frequency. You should allocate a portion of your income for the essentials and keep others as savings. 

Follow these tips given by Consumer Gov to make a budget to manage your cost of living in London as a student: 

  1. At the beginning of each month, think about how you want to spend your money from now on. 
  2. Note down the list of expenses every day. 
  3. When the month ends, see if you have spent per the budgeted plan. 
  4. You can use the information to devise new strategies for the coming month. 
  5. You can also add the unavoidable expenses to the budget so that everything is controlled. 

You can also use an online budgeting app to track all the spending and identify the areas where you splurge the money excessively. You will be surprised to see how much money you waste on drinking coffee from expensive coffee shops in a month. 

2. Use Student Discounts 

Several restaurants and entertainment venues in London offer special discounts for students. To avail of such discounts, you should always carry your student ID card and ask about all the discounts before making a purchase. Several online applications also deliver student-only discounts and make sure that the lives of learners are facilitated a great deal due to that. 

Some benefits of getting student discounts from various online sources and applications are listed here: 

  1. Students get instant relief and afford products that they otherwise cannot. 
  2. They can be exposed to new brands and services which broadens their views. 
  3. When businesses offer student discounts, the learners may feel valued and appreciated. 
  4. In the form of groups, students can get the things they always wanted. 
  5. On the occasions of big events and seasonal sales, you can save a lot of money by benefitting from the discounts. 

You can also save hundreds of pounds that you might spend on eating, luxury, electronics and travelling expenses. Also, students are eligible to get discounts on various online entertainment sites. They can get an extra 10% off when they use Amazon Pay for making all their purchases. 

3. Socialise on a Budget

If you want to save more money, you will have to be smart with how you socialise in London because going out with your friends to bars and restaurants on a regular basis can be very pricey. In particular, those costly coffee cups can cost you quite a lot of money, and you may end up broke thinking about where did all your money go. 

Worried about you socialising on a budget? Well, we have a solution. Follow these tips: 

  1. It keeps your finances under check, and you do not end up spending extra money. 
  2. You can realise where you need to spend extra money and where to make adjustments. 
  3. It makes you see where your money goes instead of wondering about it all the time. 
  4. It helps you reduce stress and boosts your mood when you socialise with like-minded people. 
  5. You can improve your quality of life overall when socialising with the right people and peers. 

Socialising while keeping a budget can help you keep track of all the extra expenses that you do every month. Hence, making a budget beforehand is really important if you want to manage the cost of living in London as a student. 

4. Use Public Transportation

According to College Dunia, the overall costs of transportation in the major cities of the UK amount to £12,000 per year. This is quite a lot of money and makes a major part of the day-to-day expenses of students. If students go for cycling or walking, they can save quite a lot. They do not even have to use public transport to go to places that are nearby. 

Wondering about the advantages of using public transportation? Here you go:

  1. Students can learn quite a lot about their surroundings and be well aware of their locations. 
  2. By interacting with others, they can develop enough social awareness. 
  3. The learners can feel more independent when they learn to use transit passes and tickets. 
  4. It also improves the mental well-being of students in several ways. 
  5. You can also meet family and friends who don’t live nearby by using public transport. 

Furthermore, they should also get weekly or annual subscriptions or travel cards for trains, tubes or buses. In particular, if you are planning to use public transport more often, you should get the cards and tickets for the public locomotives. 

5. Get a Job

While it may sound like a no-brainer working full-time or part-time, it can help students manage the cost of living in London. Research by BBC shows that 55% of students do paid work to manage their daily expenses. Not only does it let them manage the expenditures, but it also adds skills and values to your CV. 

The top guidelines to follow when you land a job for the purpose of managing your costs of living in London are the following: 

  1. You should prioritise your academic schedule over your job. 
  2. Make a detailed and dedicated study plan to follow. 
  3. Communicate with your employer and tell them about the timings of your classes. 
  4. Don’t forget to take care of yourself, as you should save yourself from burnout at all costs. 
  5. Be open about your commitments both with your professors and the workplace managers so that you can strike a balance. 

However, everyone can’t work at the university because studies are always a priority for students. In such cases, they should follow the tips to complete their assignments like a pro.  However, it is always important for students to consider their physical or mental well-being before committing to long-term employment. 

6. Cook at Home 

Eating out as a student in London can cost you an arm and a leg, so try to cook all your meals at home whenever possible. Make a plan for the entire week and buy groceries accordingly. When you buy all the ingredients in bulk, you will be able to save money greatly. 

As we have said, cooking at home can save quite a lot of money. Here is how you can make it possible: 

  1. Read recipes from the start to understand the cooking process better. 
  2. Consider getting notes on the areas where you feel confused. 
  3. If possible, keep a cooking book with yourself to get clear guidelines. 
  4. Practice cooking a dish multiple times so that you may become familiar with the process. 
  5. Invest in the basic utensils used for cooking purposes, as they make the process easier for you. 

You can consider preparing the meals on the weekends as it will save you money and time on weekends. Once you start doing this, rest assured that there will be no going back. Students can easily become addicted to the taste of home-cooked food. Also, cooking is considered really therapeutic. 

7. Share Utilities and Accommodation

One of the best ways to manage the cost of living in London is by sharing the accommodation and utilities. All your expenses can add up if you have someone to share all the expenses with, and your housing cost will also be significantly reduced.

You can rent a room in a student housing scheme or live in a shared flat and can save money on utilities and rent. You might be thinking about how it can be helpful for you. Read the following points:

  1. They can split the bills, hence reducing the stress of having only one person to pay for everything.
  2. Some of the packages can be all-inclusive, which means that students will not have to think about individual bills.
  3. There will be a fixed monthly cost which can be budgeted more efficiently.
  4. There might be deals and discounts for a group of students which can be availed to reduce the overall prices.
  5. The sharing of utilities also fosters a sense of interaction and oneness in the sharing community.

Furthermore, you should also keep the utility bills expenses low. For instance, you can save energy consumption in your flat by turning off appliances and lights when they are not being used. You can also consider investing in applications that are efficient in terms of the use of energy. 

8. Make the Most of Free Activities

Since London is a busy city, there are a lot of activities to be done for free. It just needs some research and planning to find out what the right thing to do is. You can end up learning some of the most beneficial skills that can help you earn more money while living as a student.

You can go to exhibitions or museums and meet new skilled people in such places. The cultural scene of London is unparalleled, and most of the galleries and art museums offer free admission to students.

Similarly, you can find several places and activities that complement your taste and you can improve your skillset considerably. When you put those skills to work and make some use of them, you can even get paid for them. You will need to advertise your skills a little bit. 

Can You Live In London with 1000 Pounds a Month?

Although it is possible to live in London for just £1,000 per month, it can be extremely challenging for students. For this to come true or happen, you will have to live in a shared flat in an area which is less central and the budget should be strictly spent on transport and food. You will also be expected to keep the expenses to a minimum and make ends meet in one of the most expensive cities in the world. 

Some things to consider in this regard are the following: 

  • Limited Lifestyle

In such a tight budget, students will need to severely cut back on their entertainment, dining out options and other leisure activities that are done for fun. The lifestyle will be very limited overall and several activities will be needed to stop. 

  • High Costs of Rent

It is almost impossible to find a decent flat in London that is under 1000 pounds per month. You cannot get one in the central areas. However, you can share a room in a flat which is quite far from the centre of the city. 

  • Strict Budgeting

Since the budget is tight, you will also need to be careful when planning your budgeting. Ensure that you prioritise the essential expenses like utilities, transport, and food, and you will be good to go with the tightest budget. 

  • Possible Locations 

To stay within this budget, you may live in areas such as the Outer Side of London. It should be places where the rents are slightly lower, but the commute may become longer for you, and the transportation costs will be quite high. 

What Is a Good Price for Student Accommodation in London?

The price for students’ accommodation can be around £2,500 per month, as mentioned in the Complete University Guide. The cost of living in London is significantly higher than in other areas of the UK. It includes the groceries, travel costs, accommodation and the costs associated with living outside. 

As it is home to several internationally renowned universities, London becomes the abode of several hundred students every year. The higher cost of living can put a lot of students off, and they find it difficult to manage the accommodation prices of this city. If you choose any other area in London, you will be charged significantly lower rent. 

How Much Does It Cost to Live in London as a Student? 

The cost of living of a student in London can vary from institute to institute. As per Imperial College London, the lower range of the expenses is £303, and the monthly payments may amount to £11,834. This cost includes the rent, all the food and travel expenses, and all the other fun activities that students usually do. 

However, the management of all these expenses also depends on the students. If they cut down on the irrelevant expenses, they will be able to save. Everything aside the fixed cost can be controlled and kept under check. The exact cost of living in London varies from student to student. 

What Factors Affect the Cost of Living in London for Students? 

Several factors in London contribute to the rise in the prices of living in London. It’s a big city and the overall demand for housing is high. Not only that, the living prices are quite high as compared to other cities in the UK. Some of the top elements that hurt the costs of students’ accommodation are the following:

  1. Transportation: The cost of all the public transport can be affected by inflation. 
  2. Accommodation: One of the major costs for students is the price they have to pay for the rent. 
  3. Entertainment: Students like to party and hence spend a lot of the entertainment and movie stuff. 
  4. Food: The cost of food and other groceries can also be affected by inflation and the increasing rates. 
  5. Healthcare and Insurance: The amount of money to be spent on healthcare and insurance bills is also insane. 
  6. Storing and Shipping: Students are often required to ship and send items and the costs of those matter a lot.
  7. Utilities: A major sum of money also goes towards the utilities that they have to get every month. 
  8. Course Materials: The cost of materials to be used for the research, coursework, and other supplies also matters a great deal. 

Apart from all of these factors, some unexpected circumstances may arise that affect the cost of living for students in London. You may deal with such conditions by making a budget for them and not mindlessly spending money on all the things that can be helped without money.  

Conclusion

This was all about the top 8 best ways to manage the living cost in London as a student. We hope that you have learnt about the best and most affordable housing options and management tips for other expenses from this article. Thinking about all these expenses is important so that you can manage your academic life responsibly. When it comes to academics, even if you’re on a tight budget, you can still get support from affordable assignment writing companies in the UK. Expert writers on these platforms can help you maintain steady academic progress without breaking the bank.

Lastly, when searching for accommodation, choose an area that aligns with your budget. By planning and considering your preferences, you can manage everything more easily. Be sure to budget your expenses in advance to avoid any financial stress down the line.

Author Bio

Abby Gregory is an experienced assignment writer and financial advisor specialising in student budgeting and cost management. With a background in guiding students through the challenges of living in high-expense cities like London, they provide practical insights and actionable strategies to help students manage their finances while maintaining academic success.