How to manage your finances when moving to London

For many hoping to progress up the ladder in their chosen profession, it can get to a point where a move to London seems like the only way of truly re…

For many hoping to progress up the ladder in their chosen profession, it can get to a point where a move to London seems like the only way of truly reaching your potential.

Whether you northerners out there like it or not, the concentration of sought after jobs in a lot of industries is still most highly concentrated in the capital. The biggest allure might be that your new job brings with it a better salary, but the fact is that it is more than likely your outgoings will increase as well.

The big question is whether this balance will see your wages in real terms increase. The figure that arrives in your bank account at the end of the month may well be significantly greater than it was before, but if the hike in rent, transport and socialising is equally as inflated, you could actually end up in a spot of bother.

With that in mind, there are a couple of considerations that anyone planning a move to London should think about.

Living arrangements

The rent rates on a fairly modest flat in London could be well above the level you are used to paying in pretty much any other city in England, so this has to be properly factored into your budget before you make a decision to relocate.

In many cases, this can prove to be one of the main barriers for people deterred from moving to the capital, but putting together a meticulous plan of how your outgoings will shape up could be the key. Be frugal and prepare yourself to settle for somewhere that might be slightly smaller than you are used to if you have your heart set on a new job in London.

Think carefully about your commute

This can be one of the biggest influences on where you live and could also be the difference between a personal finance budget that works and one that is unable to take the strain.

Public transport in London is expensive, especially during the peak times of rush hour. It might seem like finding property a bit further out of town is the best way to save a few pennies, but if that results in your travel costs spiralling out of control it may well prove detrimental overall.

Any budget you put together for a move to London should be as holistic as possible, pinpointing where sacrifices can be made to make up for any potential shortcomings.

Is there an option to work remotely?

If you manage to secure your dream job through the interview process, but just don't think you have the budget to make the move to London, it is always worth enquiring about whether there is any chance of working remotely.

This could mean you are able to enjoy all the benefits of your new employment, without having the stress of increased bills and potential debt.

If you feel like your debts are out of control and urgent action needs to be taken, do not hesitate to call us on 0800 019 2095.

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