A new study has found that a single person living in London in a studio or a flatshare would need a gross salary of £37,000 in order to be financially stable
According to the latest figures, a single person living in London in a studio or a flatshare would need a gross salary of £37,000 in order to cover their everyday expenses and save a bit, according to personal finance website finder.com.
Rent in London is 40% of the minimum financially stable budget
The budget considers rent, utilities and much more, and, unsurprisingly, the cost of accommodation is nearly 40% of take-home pay, with a single person living in a studio or flatshare in London spending an average of £921 on rent.
To live comfortably alone in a one or two-bedroom flat, the average rent is expected to be at least double the current estimate in central areas.
Utilities, council tax, subscriptions and transport make up 21% of the budget
The average Londoner spends around £133 on gas, electricity and water per month and an estimated £63 per month on council tax. A transport allowance of £200 per month combined with around £102 in online subscriptions brings total bills to around 21% of monthly take-home pay.
The online subscriptions include a phone plan, broadband plan, music streaming service, video streaming service and a premium shopping membership for online retailers.
Groceries and dining out stack up to over for £300 a month
A weekly shop is estimated to be £31, bringing monthly grocery costs to £166, meanwhile eating out for dinner once a week will amount to an estimated £173 over a month. This brings total food costs to £339 per month, however, some discretionary spending was also included, on snacks and drinks of around £115 per month. This includes alcoholic drinks and coffee and tea costs.
Health and leisure spending is around 11% of the monthly spend
Gym membership, holidays and clothes shopping amount to 11% of the monthly budget. The average Brit spends around £2,115 on holidays per year, meaning a monthly contribution of around £176. Meanwhile, the average gym membership in the capital comes to £51, whilst the average estimated monthly expenditure on clothing is £32.
On top of this, the budget includes 10% monthly savings, to account for any unexpected expenses and additional discretionary spending. This could be supplemented with additional credit lines.
