London is nowhere close to ‘cheap’ when it comes to living or travelling. If you are foreign traveler, you will have to be more mindful of the expenditure here because flight, hotel and transport costs will easily add up. The food is also fairly expensive which means eating out could be a drain on your pocket. The locals have found a solution to this problem. They, along with some smart tourists, play It helps them gain some extra cash while on the move, so all their food and shopping splurges could be funded with ease.

Let’s understand the costs you may have to pay when you are in the city.


This is going to be the biggest expense you make in the city. If you want to save money, the best option will be living in a hostel. These hotels cost only 15-40 GBP per night. You get to be in dorm rooms. However, if you don’t mind travelling a little, then try the dorm hostels on the outskirts. They could cost as little as 10 GBP. You get free WIFI in almost all hostels. If you want a private room, you could pay as much as 55 GBP, about the same as a hotel room outside the city. Within London, budget rooms start at 105 GBP.

If these options don’t work well for you, try Airbnb rooms where you could pay 80 GBP per night for an entire apartment and about 25 GBP per night for standard rooms. If you have a camp, then go ahead and camp at dedicated sites. It could cost you 15 GBP per night for a camp which can accommodate 2 people.


The bus and the Tube (underground) will cost you a fortune, unless you have an Oyster pre-paid card. It helps in cutting down your fares significantly and is the cheapest option possible. However, if you want to explore the city yourself, hire a bike. If you hire at the station, you could end up paying 27 GBP for the rental while online prices for one-way tours are 22 GBP. This option is preferred only by those who understand the city better or who have been here before. For first time visitors, London streets could be a nightmare to navigate.


Fast food restaurants, Asian and English restaurants are the cheapest and meals usually cost around 5 GBP. A filling lunch with a drink in a lunch special menu could cost 10 GBP. Most other restaurants will charge you 20-30 GBP for a lunch/dinner along with drinks.

Make sure you plan your budget accordingly.