This blog post details the monthly expenses of a banker living in London, categorizing them into needs, wants, and savings. It highlights fixed living costs, discretionary spending on entertainment and dining, and emphasizes the importance of investing and saving for the future.
In this blog post, I will share a detailed breakdown of my monthly expenses as a banker living in London. This includes my fixed costs, discretionary spending, and savings. While it may seem outrageous to some, I find it interesting to analyze how much I spend each month, especially after binge-watching similar videos from others. Below, I have categorized my expenses into needs, wants, and savings/investments.
I earn my income through my day job in banking, which provides a stable financial foundation. Additionally, I run a personal finance channel, which contributes to my overall earnings.
My largest expense is my mortgage, which amounts to just under £1,200 per month. This is relatively reasonable for London, especially since I locked in a low mortgage rate during the pandemic at 1.6%. My repayment scheme is structured as half capital and half interest, further reducing my monthly payments. Having a comfortable living space is crucial for my mental well-being, as I spend a significant amount of time at home.
I also pay ground rent and a service charge, totaling £2,200 per year or approximately £180 per month. These costs are necessary for the ongoing maintenance of my building.
My utility bills, which include electricity, energy, and water, come to around £210 per month. Additionally, my internet connection costs £20, bringing my total utility expenses to £230.
I pay £1,800 annually in council tax, which breaks down to £150 per month.
On average, I spend £120 per month on groceries. I do a weekly shop at my local supermarket to ensure I have enough food at home, which helps me avoid the temptation of ordering takeout after a long day at work.
Travel is another essential expense, as I commute to work by train, costing about £100 per month.
In total, my basic living expenses amount to approximately £1,980 per month.
I have several subscriptions, including Amazon, Spotify, Apple Fitness, and Nespresso coffee pods, which total around £60 per month.
I spend about £150 per month on Uber rides. While I try to use public transport and walk whenever possible, I opt for Ubers for safety or convenience, especially late at night or when time is of the essence.
Eating out in London can be expensive. I typically spend around £50 each time I dine out, averaging once a week. This expense also includes lunches at work, which cost about £8 to £9 per day. If I have client lunches or dinners, those expenses are covered by my company.
I allocate funds for activities that do not involve eating out. This month, for example, I tried kayaking on the River Thames, which cost £100 for two people. I prefer spending on experiences that create memories rather than material items.
Interestingly, I have not spent any money on clothing in the past six months. My shopping habits have changed; I now only buy clothes when necessary.
I also budget for gifts, averaging £150 per month for birthdays, weddings, and other occasions. This expense is likely to continue as social events are a part of life.
My total discretionary spending amounts to approximately £760 per month, bringing my overall monthly expenses to around £2,800.
While I have not included ad hoc expenses such as haircuts or furniture purchases in my monthly breakdown, I do prioritize saving and investing. Holidays are my second-largest expense after my mortgage, and I have previously shared my spending on trips, such as my recent visit to Bali.
Living in London is known to be expensive, but I am content with my spending habits. I focus on saving a significant portion of my income without depriving myself of experiences. I believe in prioritizing larger financial decisions, such as securing a good mortgage rate, over minor savings that do not significantly impact my happiness.
With my savings, I invest in real estate, the stock market, and various side hustles. I have created content on my channel discussing different income streams and side hustles.
I hope this breakdown of my monthly expenses provides insight into the financial realities of living in London as a banker. I would love to hear your thoughts on my spending habits and whether anything surprised you. If you enjoyed this post, check out my other content on financial management and lifestyle choices.
