A penny saved is a penny earned? Budgeting tips for Londoners as rents soar to DOUBLE the rest of the UK

Rents in London are soaring and show no signs of stopping – the average monthly rent in the city is now £1,605, that’s at least double the price of rents across the rest of the UK.

Whilst this is nothing new and most Londoners have come to expect to pay more rent than others across the country, rents are getting higher year on year.

It is becoming increasingly difficult for Londoners, many of whom need help to make ends meet, whilst covering the cost of their rent, with others being priced out of the market completely.

Although wages tend to be slightly higher in London in order to take account of the higher cost of living, more and more people are finding themselves on the breadline.

With the average rent in London now hitting record levels and living costs seeming to get higher by the day, it has never been more important for those residing in the capital to take a hold of their finances.

For those experiencing financial difficulties, there is help out there – and for those looking to save some extra cash each month, there are lots of little tips and tricks that can help you.

Star of Channel 4’s Superscrimpers, Mrs Moneypenny, has plenty of good advice up her sleeve.

Firstly, if you’re looking to save money and budget effectively for both your rent and your living costs, it’s important to understand exactly how much you are earning and spending each month.

With many Londoners spending at least 50% of their monthly wage on their rent, it can be really beneficial to understand exactly how much money you have available and how much is left after rent.

It is then much easier to budget for other areas of your life, such as bills, food, and social time.

The next step is to look at exactly what you are spending and identify how you can make cut backs.

Mrs Moneypenny suggests writing down every expense that you encounter during the week and reviewing them.

There will obviously be necessities such as fuel and bills that are unavoidable but, according to her money advice video, there are plenty of areas in which to reduce everyday spending.

So many people spend a lot more than they realise on a daily basis and writing everything down helps them face up to their true situation.

Utilities, mobile phones, and other costs such as insurance, also take their toll on most people’s wage packets.

Even with an increasing number of comparison sites out there, many people don’t actively check if they could be paying less elsewhere.

Even saving £5 on each bill per month can have a huge impact once everything is added up, especially over the course of a year.

With the increasing costs of both rent and living, it is perhaps unsurprising that more and more people are turning to credit in order to survive, never mind affording luxuries.

Whilst this is understandable, Mrs Moneypenny advises keeping a close watch on your credit and the interest that you are paying – after all, interest payments eat into your monthly budget even further.

Picture courtesy of Images_of_Money, with thanks

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