Studying abroad in London is a big chance to grow professionally. The capital of the United Kingdom is home to iconic landmarks, world-class colleges, and a vibrant campus. A dream for many students around the world, its cobbled-stoned streets and cute cafes await your arrival. However, it is also one of the most expensive cities, and student accommodation in London is a big financial strain. Hence, before you choose to move to its capital, it is necessary to know how to budget for it. Only with careful planning and smart strategies can you get a cost-friendly lodging in the city. This guide will break down the real costs, equip you with the knowledge of budget, and explore your options.
Why is Budget necessary?
Before you move on to student accommodation in UK landscape, it is necessary to know the necessity of a budget. Let us say you have £200 in your account for two months. Out of this amount, you need to pay your rent [which will vary depending on your lifestyle], your bills of £40, and food for £20. These are necessary expenses and hence your first preference at the start of the month. After paying these bills for survival, you will also need to pay for books, supplies, and travel, which will cost around £60. Now you need to know how to manage it to save it for the future while also squeezing fun activities into your budget.
When you have various expenses like student accommodation in London, you need to know money management. Only after budgeting can you find fiscal freedom. This will lead you to make good choices with your money and help you learn how to be self-sufficient. Moreover, learning how to budget is also necessary to remain updated on the economics of a country. It helps:
- Avoid unwanted expenses while exploring the new country.
- Thriving in the new place on your own instead of just surviving.
- Furthermore, it opens up a chance for you to try investing your money.
Knowing the London Housing Landscape
There are various types of student accommodation in London open for you to choose from. It depends on your lifestyle, needs, desired proximity to college, and more. The prices for all the following lodgings vary based on their amenities and type. Here are the housing options to look out for:
College Halls
It is a very famous choice among individuals from the first year. This offers convenience, flexibility, and a built-in community. Moreover, this type of student accommodation in London usually also consists of paid utility bills, like gas, electricity, water, etc. The average monthly cost ranges from around £1200 to £1400. Some of the standard options might also cost £700 to £800 for a student. Though these are more expensive than other options, they also come with various benefits, like their proximity to campus.
PBSA
These are purpose-built student accommodations in London that offer modern facilities such as gyms, common rooms, and planned social events. They are privately owned and managed housing complexes with a cost of £1300-£1800 per month. However, shared rooms in these lodgings might be cheaper for around £900. They are tailored to students’ schedules and offer complete independence.
Homestay
It is a unique experience of living with a local host family for £900 to £1200 per month. However, it offers the best chance to explore the culture of the country. Moreover, it also consists of all meals and bills paid, which helps you save money. If you want independence, it might not be the right choice since you might have to follow their house rules.
Shared Flats
These lodgings let you rent a flat and share it with strangers or your friends for £1000 or more. It offers more space, flexibility, and control over your life. However, it comes with the stress of shared bills and effort for house management.
How to Budget Properly?
Let us now see how to budget for you to afford your dream type of lodging, lifestyle, and spending goals. Remember, it depends on the exchange rate of the host country and its economy. However, here is the golden rule for making a budget that works for you:
The 50:20:30 rule:
Divide your money into two sections, one for your present and the other for your future. Keep the highest part of your total income for your necessities like food, lodging, electricity, and more. Your 20% is for savings and investments for your future self and emergencies. And the remaining 30 percent is to have fun and spend on hidden expenses like broken locks, new lights, etc.
Moreover, create a digital budget spreadsheet to list your income and expenses. This visual reminder of your limited funds will let you track your spending. It will also let you find areas where you can save more.
Remember to factor in the initial cost of settling in the city. It will be a lot of expenses at once, however, they will not return for quite some time, like:
- Deposits
- Advance rent
- Furniture
- Travel to London
Conclusion
Budgeting for student accommodation in UK needs diligence and an active approach. With thorough research of your options and knowing the true costs, you can easily navigate the city’s housing market.
