Living on £22.5k in London

One of the challenges our Associates face is adapting to live on a salary of £22.5k for their year on the programme, after having earned on average £55k in their previous jobs. In this blog, we explore how our current Associates manage this transition and what their advice is to everyone thinking about joining the programme and having concerns about the salary cut.

What does living on 22.5k mean for you?

It means looking at my bank account and finding savings wherever I can. And being much more conscious about when and how to spend money.

What is the most unexpected thing about living on 22.5k?

Overall, it has been an important reminder that you can still have loads of fun living in London without a big wage. It is more than the London Living Wage after all.

What is your top tip for living on 22.5k in London?

Don’t go out for dinner with friends unless you really like the restaurant and think it is good value. I was going out for dinner as a way of meeting up and spending £40–50 at chain restaurants that weren’t even any good. Go for a drink instead and don’t buy rounds (your friends will understand)!

What does living on 22.5k mean for you?

It means that I have to be more disciplined with not spending unnecessarily, packing my own lunch and saying no to certain things (e.g. nights out, meals out, frivolous shopping).

Even before I started the On Purpose Associate Programme, I used to buy my clothes from charity shops. What I now know is that charity shops in certain areas of London are cheaper than others so now I shop in those areas.

What is the most unexpected thing about living on 22.5k?

How difficult it is to live on 22.5k and how much self-discipline is required. The feeling when I manage to stick to my budget is amazing. I am also pleased with how supportive some friends are by being receptive to catching up whilst doing things that are free and cheap.

What is your top tip for living on 22.5k in London?

Figure out exactly whether you really need something, or whether you merely want it. It’s amazing how many things we think we need, but actually they are not essential.

Find the many cheap and free things to do in London — sites like TimeOut and Londonist will usually have listings. Galleries are free and there are lots of free events on Eventbrite. I also use Groupon to find things for the occasional time I want to treat myself (massages, afternoon teas etc), because this is also important!

Freecycle is great for free stuff (homewares, books, electrical goods etc) that people don’t want and and Olio is good for free surplus food that would otherwise go to waste. Charity shops are great treasure troves, and you will also be helping a good cause and the environment by creating less demand for goods.

What does living on 22.5k mean for you?

Apart from the eye watering 75% pay cut, the main things it meant for me were: 1) Having to pull together a budget for monthly variable costs for the first time in a long while 2) Actions to reduce fixed costs relating to where we live but with understanding that I will need to use some savings to subsidise rent or move 3) Eating out less, replaced with home cooking 4) Reducing expensive nights out in favour of free events 5) Researching deals, vouchers and coupons before buying services and products 6) Reduced overseas travel 7) Netflix subscription versus going to or buying movies.

What is the most unexpected thing about living on 22.5k?

When I began to focus on my costs I seemed the universe began to supply a lot of discount vouchers and coupons :-)

What is your top tip for living on 22.5k in London?

Take advantage of new customer deals for fresh food delivery services like HelloFresh, Simply Cook, Gousto etc. You can cover up to 3 months of fresh produce and home cooked dinner ideas at drastically reduce prices by signing up for initial delivery trials and then cancelling before full price kicks in.

What does living on 22.5k mean for you?

Not a big deal, but definitely having to think more about what I’m spending on. It’s a bit like going back to student times.

What is the most unexpected thing about living on 22.5k?

There are so many free events, talks and museums in London. You really don’t have to pay to get the best of culture and intellectual stimulation in London! Just go to Eventbrite and London will unleashed it’s magic. You will have more invitations to cool (free) events than you will be able to attend.

What is your top tip for living on 22.5k in London?

Checking Eventbrite and different institutions (e.g. LSE) for interesting events, museum museum museums and cheap eats in Whitechapel.