London is one of the most expensive cities in Europe and in the world. While many travelers believe the city can easily burn the pockets, there are now more ways to enjoy it even when on a budget.

Whether it's a good meal or some of the most unique souvenirs to take back home, here are a few budget-friendly tips when traveling London.

1. Consider fare-hotel bundle discounts

Typically, airfares to London range from $1,000 to $2,500 and accommodations can be as cheap as $12 a night to well over a luxurious stay of $300 per night. A practical advise is to book these early and consider consulting various and accredited travel agencies.

Most of the time, these agencies give a good amount of discount should you choose to book both the fare and accommodation at the same time.

2. Know which London neighborhood to stay in.

Oxford Street, Covent Garden and Knightsbridge neighborhoods are the ones budget travelers need to avoid when in London. These are the city's most expensive areas and no matter how long or far one walks, it will be hard to find a cheap restaurant to eat in.

Areas like Camden, Hammersmith and Bayswater are better picks for backpackers because not only are the hostels are cheap, there are also local pubs and takeaway restaurants that cost 50% cheaper than in other areas of the city. If exotic and spicy foods are to the traveler's liking, there are good Indian restaurants around the block.

3. Choose free walking tours over bus tours

London traffic is bad and the only way travelers will get the best and most out of their pocket money whilst discovering the city is through free walking tours.

Doubledecker bus tours are boring, as most of them have recorded commentaries plus it's not as productive as walking since most of the time, it's just going to be unbelievably traffic.

Walking tours led by Sandemans New London Free Walking Tours make for a good 3-hour interesting and educational experience. The only payment anyone would want to make is to give the tour guides tips.