London, as one of the most beautiful and diverse cities in the world. It’s a great destination to intern, but the cost of living there is particularly high. According to Expatistan, London is ranked among the most expensive cities in the world. At first, it might seem challenging to live here but trust us. It can be done, and you can have lots of fun new experiences doing so. Budgeting is a way to ensure you don’t spend all your savings while interning. :contentReference[oaicite:0]{index=0}
This is why we decided to give insight on how to reduce your living costs to a minimum – so you can not only thrive in London but also be able to create a savings account, treat yourself and have lots of fun! To demonstrate, we are creating a hypothetical case study using a budget of £1500 per month. Scroll down to see how you can thrive in London without breaking the bank.
Step 1: Cheap accommodation prices and the right area
Your starting point is to hunt for room prices, taking into consideration that a single room costs around £400–£600 per month, whereas a double can be at least £600–£900. It is best to do your research into what areas in London are affordable for you. Find areas with an average price that you can afford and be thorough with your search there. Checking London’s newspapers online and housing websites like Spotahome are your first tool when chasing the best price in accommodation.
Next step…
When you find a place that you like, always speak with the landlord first. Ensure the rooms are furnished. Always try to view the property before committing. See if there are any friends or family that can host you for a couple of weeks while you settle into the country and view properties (if this is not an option, then try to have a virtual meeting with different landlords so they can show you the place) or stay in an Airbnb for a few days before making the commitment.
For the sake of our case study, let’s say you’ve found a double room with bills included and a shared restroom for £700 per month. Our remaining budget is now £800. Now, let’s talk about food!
Step 2: Food
There are many street markets such as Whitechapel Market or Lewisham Market. They all offer a great choice for a small price, making these your go-to options. Go and find your local street market and compare its prices with the ones from the local supermarket. You can also get great deals from these markets in the evenings, just before they wrap up for the day.
Compare Pricing:
Check prices in all the supermarkets around you, since the prices among local shops could vary widely. Find a shop near you that offers the lowest price and do your grocery shopping there.
Shop with your head, not your stomach:
You’ll more likely buy for cravings. To help yourself keep track, make a shopping list and stick to it.
Shop supermarket brand:
Most supermarkets have their own-brand items, which are often the same quality as branded items but often less than half the price.
Buy in bulk:
Try to buy and store non-perishable items in large amounts, as it will often save you money in the long run.
Meal prep:
Cook lunch and dinner for the week ahead and store it in portioned containers to avoid overspending on takeaways.
Estimated groceries: £150/month → Remaining budget: £650
Step 3: Transportation
London offers multiple transport options, but choosing wisely can save a lot.
- Tube: Fast but relatively expensive
- Travelcard: Around £150/month depending on zones
- Buses: Affordable and capped fares
- Cycling: £2/day using Santander Cycles
- Walking: Free and healthy
Assuming a monthly pass (£150), remaining budget: £500
Step 4: Entertainment
London offers a surprising number of free or low-cost activities:
- Free museums like the Science Museum
- Parks like Hyde Park and Kensington Gardens
- Free film screenings and low-cost cinemas
- Scenic viewpoints like The Shard (no dining required)
Estimated entertainment: £70 → Remaining budget: £430
Step 5: Eating out
Use discount platforms like Groupon, Opentable, or Too Good To Go to reduce dining costs. You can also try mystery dining or meal delivery promotions.
Estimated eating out: £60 → Remaining budget: £370
Step 6: Working out
- Free gym trials or outdoor gyms
- No-frills gyms from £12.99/month
- Free sports and fitness classes
Estimated gym: £24 → Remaining budget: £346
Step 7: Reduce your phone bill
Switch to budget-friendly providers like GiffGaff, Lyca, or Lebara to reduce costs.
Estimated phone: £20 → Final budget: ~£326
Final Thoughts
This is a practical example of how you can manage your finances while living in London. With smart budgeting, discounts, and planning, you can not only survive but actually enjoy your time in the city.
Track your expenses, stay disciplined, and adjust based on your lifestyle. Over time, you’ll naturally find even more ways to save.
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