For the new year to come sorting out your finances should be on top of your resolution list, something that could be hard when you live in a city like London known as one of the most expensive cities to live in the world.

Even though the median annual salary in London is £34,473 there are many people, specially young people, who have a salary below this. In order to be able to cover your basic necessities including rent and food and have something left for a big holiday it is important to organize yourself and try to save some money. Here some tips on how to save yourself a few pennies when you live in London.

1. Loose change adds up

By the end of the week we all have some coins left in our pockets and purses. You may think these pennies won’t make a difference but just £1 a week in loose change will give you a cushion of over £50 by the end of the year. Collect these coins in a jar, you’ll thank us by the end of the year.

2. Ride a bike

Skipping daily train fees will add up really fast plus, you’ll get some exercise.

3. Keep track of what you spend

There are times we don’t know where the money goes. We suggest you keep a daily diary and write down everything you spend, even on the smallest thing to help you identify which ones are not necessary and you could cut.

4. Take the Time to Look for Deals

Make sure you’re getting the best deal on your bills. Every year double check you are getting the best deals for your phone, internet, etc.

5. Try to increase your income

Besides your main job you can try to do some extra work by turning your hobby into a small business or selling things made by you.

6. Budget, budget, budget

Poor money management is one of the main reasons you could run out of cash. It is important to take control of your money and finances and for this we recommend you to have a budget and respect it. Knowing where you spend is essential to knowing where you can best save. 

7. Have a saving goal

Determine a saving goal and with our other tips organize yourself in order to fulfill it.

8. Set up a savings account

You could earn more interest with a regular savings account but keep in mind that with this type of account you might not be able to access your money without paying a penalty.

9. Review your budget every few months

Your needs may change so it is important to check your budget at least every couple of months.

10. Take time to manage your money

11. Use an app to help you budget

12. Go easy on indulgences

Instead of buying a latte at the coffee shop every morning, make your own. 

13. Conserve energy.

If you want to save money in London you have to be prepared to change your habits. Saving is about flexibility as much as self-discipline.