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10 Tips to manage your expenses, while moving to London

Once you’ve landed in your dream job, and are all set to relocate to London, then you need to focus on all that needs to be done, in order to make this transition convenient. If you are wondering where to start from, then we strongly recommend that you prioritize financial planning.  

After all, London is one of the most expensive cities in the world, and you don’t want to be broke in a distant land. You need to understand that everything is going to change — from currency to lifestyle. Plus, you cannot get lost in the nuances, and ignore the very reason why you moved to London. So here’s a list of ten tips that can help you plan ahead, during your initial days in London, in order to save up your hard earned money.

1. Save money while you rent out an accommodation

In case you plan to rent out a property in London, you need to carefully look into its insurance coverage. Most landlords in London usually opt for the Landlords’ Insurance, and that may or may not cover contents. If it doesn’t, then you may have to buy a separate contents insurance policy, which covers your own possessions. On the other hand, if you rent an accommodation that already covers you and your belongings, then you don’t need to spend any further. If you aren’t familiar with this concept, then you need to know that a Landlord’s insurance generally covers any loss to the building, and provides for its repair and maintenance.

2. Pre-planning to qualify for Credit

In London, be prepared to manage at least a couple of years without a current account or credit cards. By that time, you must try to meet the minimum threshold required to prove your repayment ability. This could get difficult since London is extremely expensive, but you need to plan ahead and scrape up all your savings, and turn it into a reserve for the tough times. Another way to get around it is by looking for jobs that pay you enough to make through this threshold. You can call up the leading banks in London and seek clarifications about the minimum threshold to qualify for the current account or credit cards. It would always be wise to speak to your banker, to know the minimum criteria and start planning well in advance.

3. Hit the streets to bring down your expenses

Don’t be disappointed because you do not qualify for credit and can’t buy all the things that you require on credit, through a credit card. During the initial phase of your stay in London, you could consider buying pre-owned stuff or rather go street-shopping for cheaper stuff. Some of the best places to shop cheap stuff include the Old Spitalfields Market, Apple Market, Backyard Market and a ton of other similar places around London. You can find some amazing furniture on Portobello road, or the Haynes Lane Market.

Don’t fret too much about having just a basic savings bank account. After all, it does let you deposit cheques and withdraw money. Imagine how bad things would be without that. Although a basic

savings account may not allow you to buy stuff on credit, it does facilitate basic banking transactions. However, if you are of the opinion that having certain home appliances or other home decor related things shipped from your home country is going to turn out to be much cheaper, then you can do that as well. For convenient international transfers, we recommend the use of premier financial services providers.

4. Address for bank account, rental agreements etc...

If you are moving to London for your dream job, or even for an internship, you definitely need to have a local bank account. However, that's not always easy in London because you need to produce adequate documentation. Now that’s something you may not always have, and the chances are higher if you are there for your studies, internship, or even if you landed in a new job. That's primarily because you would either be travelling to and fro London, or sharing an accommodation with someone else out there. This is likely to put you in a situation where you do not have a rental agreement, which can serve as an address proof. Here are a few ways in which you can handle the situation. Some banks let international students produce Passport, EEA national Ids and a certificate of introduction, from the institution that you are a student of. Likewise, those employed could try doing the same with a letter from their employer.

5. Learn more about the various types of Bank accounts

In London, you need to have solid documentation, or be prepared to manage all your transactions with just a basic savings bank account. Unlike earlier, you need not struggle with the paperwork, in order to get yourself a bank account in London. Now, the times have changed and several premier banks offer convenient documentation options. For example, banks such as Lloyd provide ‘New to the UK’ account, with minimal documentation, requiring just the passport. If you are from the EU or EEA, some banks even accept a valid driving license. However, non-UK folks are required to furnish a copy of their UK Visa.

The criteria to get yourself a current account is quite extensive, and requires you to have a consistent source of income. Most banks in the UK set a minimum threshold, which you need to make through, in order to qualify for one. So, it is likely that the bank may insist that you come back when you have a full-time employment. In fact, at times, even those in a full time employment, are turned down.

We have listed down some of the most basic roadblocks, which you need to steer clear. Although these expenses may seem negligible now, but all of them combined could make things difficult for you to handle. No matter how well you plan your finances, there is always going to be an unexpected one. So besides all of the above mentioned essentials, make sure to also have adequate reserves in place.

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