Minsk to Mist

I gotta be transparent – I am VERY bad at budgeting. To the extent that it’s easier for me to find ways to earn extra money than to take an honest look at my spending and set limits for myself on maximum spending per category.

Between my partner being in between jobs and the inflation running rampant, I did get out of my comfort zone and looked at my bank statement to see what eats up my hard-earned cash the most. And while I was at it, I thought – why not take a look at the cost of living in London generally? For those of you who are just looking to move to London, especially from abroad, understanding cost of living might be tricky. Hopefully, an insight from a Londoner could help.

There are some important caveats to cover here, though:

• We rent and don’t have a property of our own.
• There are two of us (and a cat!), and normally there would be two incomes to sponsor our lifestyle. At the moment, there’s just one.
• We don’t have any support from our parents. At the same time, our parents are luckily in a position to support themselves.
• We don’t have any children yet.
• We don’t have to travel to work every day.
• The calculations are for a REAL bank statement (mine), however, rents, utility bills, cost of services etc. may vary depending on multiple factors – location, service company, service package you go for, etc.

My real cost of living in London per month

Picking a month that would be suitable and representative of my average monthly spend was not very obvious. In December, you splurge on Christmas food, drinks and presents. Right after the New Year’s Eve, you, on the contrary, cut back on your expenses to make your pay last for about 180 days of January. February is the shortest month of the year, so it’s not exactly fair to use that month as a reference. Besides, I was travelling overseas for work for almost 2 weeks, so many of my card charges are going on corporate expenses. March 2026 seemed to be my best bet, so here we go!

Living in London Cost Breakdown

Based on my actual spending, you will most likely say ‘blimey, why on Earth is it so expensive?’

Living in London is not cheap for several reasons:

• High rent: despite the number of Londoners reducing back in 2020 as many people moved back to their native towns and countries to save on rent amidst the covid restrictions, the demand for accommodation in London still outweighs the supply.

• Transport: unless you are happy to cycle or walk to work or any other places of your interest, you will have to either use the public transportation system (which, in all fairness, is pretty good) or drive. The former comes with a hefty price tag, especially following the recent fare increases. The latter comes with the cost of petrol, which isn’t going to get cheaper unless the war in Iran ends any time soon, and sometimes – with the TfL congestion fees, tunnel charges and parking charges.

• Lifestyle choices: OK, you can live on a budget even when you live in London. The main problem here, though, is how you avoid multiple temptations. Awesome restaurants serving cuisines from all over the world, West End musicals that take you to a completely different world for a couple of hours, fun activities from painting classes and puppy yoga up to wine tastings and Thames Rib rides – even if you take advantage of free or cheap things to do in the city, you will fall for one of the indulgences sooner or later.

What is your biggest budget item for living in London? What are your top tips for saving money on London lifestyle? Share your thoughts and ideas in the comments!