If you have lived in London for a long time you should know what most locals already know; despite popular belief, London is not one of the most expensive cities in the world. If you have just arrived, though, and you feel overwhelmed by high prices, do not despair. Following these simple steps will ensure that you have the time of your life while staying within your budget.

Go out as frequently as possible

There are hundreds of pubs and bars out there and most of them are desperate for clients. Find when they have discounts on drinks and take advantage of that. Do you like gigs? There are tens of free gigs in pubs around London every week; just search for them in Time Out London. Do you like cinema? Do Orange Wednesdays! If you have a mobile phone from Orange, you can get 2 for 1 cinema tickets on Wednesdays. These are valid for any film and any cinema, but remember that cinema tickets are more expensive in Central London, especially in Leicester Square. Eat out with your friends. Avoid expensive restaurants in Central London. Visit the multi-ethnic neighborhoods in Greater London and enjoy the food there. Not only is it much cheaper (starting from 5 pounds for a full meal per person) but it is a lot more original. Be prepared for hot, exotic flavors!

Be clever with your expenses

Try to cut your utility bills. Replace your light bulbs with energy-saving ones and shop around to find the company that provides the cheapest broadband. Consider renting a room in shared house and moving to a cheaper neighborhood. This does not have to be far from central London. If you don't want to live with strangers, why don't you find a house to live with your friends? When you view a property, do not forget to negotiate the price with the landlord. Landlords are usually desperate to find tenants as soon as possible.

Go shopping as frequently as you want

Go for a walk in Oxford Street. Visit Primark for clothes and shoes in really low prices. There are several other shops with good offers, too, especially at the end of a season. Shop around a bit to find them.

Do the shopping for your house wisely. Go to Wilkinson's for everything that you need around the house; they are really cheap. When it comes to food, go to cheap supermarkets like Tesco and look out for special offers. It is also a great idea to shop locally. Try convenience shops with exotic products in your neighborhood, such as Indian shops, that sell food in bulk. Buying halal meat is a good idea, as it is usually cheaper.

Travel around in your free time

Do it cleverly, though. If you want to save money and keep fit, follow the trend and buy a bike. Second-hand bikes are inexpensive and can save you lots of money. Get the bus instead of the tube and buy a Travelcard if you use it a lot; if you are a student, you are entitled to a discount. In the unlikely case that you are tired of London, explore other English cities. Travel by train if you are entitled to a discount Travelcard or book tickets with Megabus from as little as 1 pound.

The best things in life are for free!

There are so many nice places in London; just take your friends for a walk along the Thames or go to Hyde Park for a picnic. If you like the arts, you will be surprised with the number of free exhibitions in London. Start with the British Museum and the National Gallery. Take every opportunity to socialize; it's free and you will meet people from all over the world!