How much does a social life cost in London?

3 Oct

If you’re young in London, you know just how expensive a social life is. Yet, at the same time, you probably feel like you’re expected to be living it up at all times. After all, social media is flooded with images of famous people and celebrities living their best lives.

And it’s not just on social media. The vast majority of brands use young people to present their products. Moreover, a social life regularly provides the necessary small talk to make friends and build connections both inside and outside work.

That inspired us to write this blog. In it, we consider the cost of social life of a hypothetical individual who is living and working in London. By doing so, we aim to show the collective costs they would incur over time. We then consider the salary they would need to earn to live this lifestyle. In doing so, you may be able to adapt these expenses for your purposes.

A typical scenario?

In this scenario, the individual is renting and working in London. They are careful about money, yet don’t want money to determine every decision. Instead, they are keen to explore the capital and make the most of what it has to offer. As a result, ‘social norms’ frequently dictate their spending habits.

Clubbing (every couple of months): £50 – £300 a year

To enjoy a night “out out” in London, they budget a realistic amount of money, with £50 about par for the course. This is because they need to cover any entrance fees, drinks in the club, additional food on the way home and an Uber or night bus. Generally speaking, the entrance fee is not the major cost of the evening, and many bars open late are free to enter. It is drinks that can be especially expensive.

A meal out with friends (once a month): £420 a year

Across the capital, the cost of a meal is pricier than in the rest of the UK, with the increase being reflected in the cost of the food and drink. And even though the majority of restaurants are reasonably priced, with mains typically around the £10-15 price point, there is likely to be little change from £35 if they plan to have a couple of drinks at the same time.

An evening drink with a friend (twice a month): £360 a year

The typical cost of a beer in London is around £5.50, and so if they decide to meet with a colleague for a drink, they’ll be hard-pressed to get change from £15. If they prefer a cocktail, then they’ll be hard-pressed to pay for a couple, or alternatively, have a few glasses of wine. These prices have been rising steadily fast in the last few years.

A brunch/ market meal (twice a month): £360 a year

Going for brunch or visiting a market for lunch is particularly popular, with markets across London catering to all tastes and providing great meeting places for friends. In doing so, a meal typically now pushes £10, while smoothies and drinks can easily cost another £5.

A concert or day festival (every six months): £160 a year

Concert tickets have gone up recently, and considerably after the pandemic. And with major performances in London now at stadium venues such as the O2, it’s very common to pay upwards of £60 for a ticket. And although this may not be a frequent occurrence, this is still a major expense to cover, before even a few drinks have been paid for.

Fitness classes (weekly): £720 a year

A gym membership is a staple for many young people. And this can take many forms. In this case, they decide not to have a fixed membership but instead try to attend a class every week, which works out at around £15 a time.

How much salary would they be earning?

We can place this yearly cost in context with the other costs that this individual will need to cover throughout the year. This would suggest that £24,000 is required to cover the essential living expenses, including rent, bills, council tax and travel. On top, this individual would be spending approximately £500 a month to cover holidays, consumer products and clothing. And further still, they would save 20% of their salary in case they lost their job.

Total monthly spend: £2887

£1688 (essential living costs)
£500 (discretionary expenses)
£218 (social life)
20% savings

Total salary required: £45,500

The social dilemma facing young people

You may want to adapt the figures to reflect your own social life. In doing, you may believe that they would be having a great life. Alternatively, you may feel that they may be struggling to enjoy what London has to offer.

To provide greater context, we know that this salary is considerably above the salary that most young Londoners get paid. Yet, even with this salary, the individual is unlikely to be considered as being ‘comfortable’ as they would be unable to afford to own a car or buy a house.

This highlights more the social dilemma facing young people in the capital. Specifically, even if they save as much of their salaries as they can, they are unlikely to afford to buy a property.

Even if this individual saved all the money they spent socialising each year, they would struggle to save enough for a deposit for more than a decade. If you are surprised by this, then you may need to our research on the influence that parental support has on many young people’s lives.

We hope you’ve enjoyed reading this blog. If you require any further assistance, please get in touch.