Six months ago friends and business partners Victoria Harris and Sophie Hallwright moved from Auckland to London. Now the pair, who run a financial advice platform, reflect on what they wish they'd known on arrival. Words by Victoria Harris.
Let’s be honest, the world is a pretty funny place right now. Some countries are thriving, others are definitely not. Some people are lying on the beach in Europe, others are struggling with their mortgage payments. The stock market is all over the show, people are freaking out about who will be the next US President and oh, let’s not forget Snoop Dogg attending the Olympics – WTF.
With all this going on, I can definitely see the allure of moving to another country. The headlines in the media make it easy to think the grass is always greener elsewhere. This was exactly me earlier this year. I decided the "grass was greener" in London and jumped on a plane and moved my life, and our business – The Curve – to London. Even though I loved (and very much still do love) New Zealand, I wanted to plonk myself right in the centre of one of the biggest financial hubs of the world.
Now, I know I'm not the first to do a big OE to London – it's been a Kiwi rite of passage for decades. In the 12 months ended May 31, 2024, nearly 90,000 Kiwis left the country, with one of the top destinations being the UK. But how many of these people forgot to have a financial plan before they left? How many of these people got to London and wished they had more money? Probably quite a few. So here I am sharing the six things I wish I’d known before I moved to London.
Add 'GST' to your budget
Not actual GST, but you need a buffer. Sometimes it feels like even breathing costs you money here in London so the bigger your buffer the better. If you've budgeted NZ$5000 to get yourself set up, add 15% to that. There are always unexpected things like rent deposits, visa costs or train fares that you might have forgotten to factor in.
Keep a close eye on the exchange rate
Most people have an idea in their head of the exchange rate between New Zealand and England, but it can fluctuate a lot and quickly, meaning your hard-earned Kiwi dollars might not go as far as you calculated they would. Right now, converting Kiwi dollars is the worst it has been in five years. So if you'd saved NZ$5000 for your move to London, this now equates to £2362, whereas if you'd moved to London in February 2023, you would’ve had £2600.
Look for deals, deals, deals
Ask around among fellow ex-pats or newfound British friends about deals to sign up to to ensure you’re making the most of your paycheck. For example, I just got told about a "Railcard" which apparently gives you 30% off all rail transport in London – amazing! Also, apps like Classpass (a credit-based membership program, also available in New Zealand, which grants access to gyms, salons, studios and spas around the world) are game-changing here, especially when a single Pilates class costs £25. One of perks of being in a bigger city is also the ridiculous number of meal-kit delivery companies. For example, with Gusto, you can pay around £30 for five meals – now that’s a bargain! The Tesco Meal Deal is also a UK lunch staple and allows you to grab a sandwich, snack and drink for £3.90.
Groceries are in, restaurants are out
I was surprised to find that, unlike in New Zealand, groceries don’t cost you an arm and a leg in London. Despite inflation being arguably worse in the UK, and headlines flooding the newspapers about the cost-of-living crisis here too, my paycheck goes further at the supermarket in London than it ever did in Auckland. For example, strawberries, usually reserved for Christmas time, are a regular staple of my diet now - it's like Christmas all year round! However, while groceries are cheaper, eating out is, in my opinion, much more expensive. A simple Sunday roast could cost you £25 (pub dependent) which is over NZ$50…ouch.
Don’t even try to understand your payslip
If you thought tax in New Zealand was confusing, has the UK got a surprise for you! The income tax (or PAYE) is super confusing. Payslips have things like "National Insurance", which is just the state pension, and a "tax code", which is really a tax percentage – just to make it confusing. Oh and you also don’t pay tax on your first £12,570. so the amount you get in your bank account for your first few payslips won’t be what you can expect to receive in future – this makes budgeting super fun!
Take advantage of all the free stuff
You’re now living in a big, fun, new, exciting city – go explore it! Take a walk in the park, literally. Go visit the British Museum – you’ll be able to delve into two million years’ worth of human history and culture FOR FREE. Visit Borough Markets or head to Covent Garden and watch the array of street performers. Explore your new home!
Uprooting your life and saying goodbye to friends and family can be an emotional and stressful time at best. Therefore, being as financially prepared as possible means you can make the most of living in one of the most fun cities in the world – for however long that might be.
For more on saving, budgeting and investing, head to The Curve.
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