Revealing London living costs in 2024

Summary

In this video, Pranav, a photographer and creator living in London, breaks down the costs of living in the city. He discusses three key expense categories: needs (50%), wants (30%), and savings (20%). Pranav shares insights on housing costs, utilities, groceries, transportation, council tax, and subscriptions like Amazon Prime and Uber. He also touches on personal spending habits, such as dining out and coffee expenses, and emphasizes the importance of saving and investing. His experiences as a freelancer highlight the challenges and strategies for managing expenses in one of the world’s most expensive cities.

Takeaways

• 💰 Living in London is expensive and requires careful budgeting.
• 🏠 Pranav shares a 4-bedroom house with three other people, with rent costing £950 per person.
• ⚡ Utilities like gas and electricity cost around £100-120 per month in summer and increase in winter.
• 🚰 Water bills come every six months, averaging £10 per person monthly.
• 📶 Wi-Fi costs £40 per month, divided among four people, and mobile phone expenses are around £1 per month with Vone.
• 🛒 Grocery expenses average £250 per month, divided by four roommates.
• 🚌 Public transportation (TFL) costs Pranav about £80 monthly.
• 🧾 Council tax is around £155 per month, divided among the roommates, and varies based on location.
• 📉 Pranav divides his expenses into needs (50%), wants (30%), and savings (20%).
• 💼 As a freelancer, Pranav invests 10% of his income in shares and an ISA, and sends 10% back home to his mother.

Q & A

What are the three major categories the speaker divides their expenses into?

The speaker divides their expenses into three categories: needs (50% of income), wants (30% of income), and savings (20% of income).

How much does the speaker pay for rent, and what type of accommodation do they live in?

The speaker pays £950 for rent, living in a 4-bedroom terraced house shared with three other people.

What are the speaker’s utility costs for gas, electricity, and water?

For gas and electricity, the cost is around £100 to £120 per month in summer, and it increases during the winter. Water costs around £10 per person monthly.

How much does the speaker spend on groceries each month?

The speaker and their flatmates spend around £250 per month on groceries, which is divided among four people.

What is the speaker’s average monthly transportation cost?

The speaker spends around £80 a month on transportation within London, using Transport for London (TFL).

What is council tax, and how much does the speaker pay for it?

Council tax is a local tax that covers services like waste collection and neighborhood upkeep. The speaker pays £155 a month, divided among four people.

How much does the speaker spend on subscriptions in the UK?

The speaker spends around £16 a month on subscriptions, including Amazon Prime (£5), Smol cleaning products (£5-£8), and Uber One (£6).

Does the speaker spend much on going out to eat or drink?

The speaker often receives free food when working at restaurants, but when going out for drinks on a weekend, they typically spend around £40 per night.

How does the speaker save money on coffee expenses?

Instead of buying coffee from shops (which costs £3-4 per cup), the speaker uses espresso pods at home, which significantly reduces the cost.

What does the speaker do with their savings, and how do they divide them?

The speaker allocates 10% of their income to investments in shares and an ISA account, and another 10% is sent back home as a gift to their mother.