Saving money in tough economic times can be challenging. Although we Brits are often seen as a “nation of savers,” research from the Building Societies Association shows that one in seven of us has no savings at all, and nearly two-thirds (65%) feel they couldn’t last three months without borrowing money.
However, with interest rates on savings accounts rising — the best regular savings accounts now offer up to 7% — there’s a real reason to get organized and look for extra cash to save. Regular saving, no matter the amount, helps build financial security and prepares you for life’s unexpected events. According to the Money & Pensions Service’s Financial Wellbeing survey, about 44% of regular savers feel more satisfied with their lives overall.
Explore our tried-and-true money-saving tips, tricks, and strategies. You might be surprised at how much you can set aside.
1. Save First, Spend Later
Pay yourself first. Research shows that around 60% of us save some money every or most months. If you’re finding it hard, try the 50/30/20 budgeting approach: spend 50% of your take-home pay on needs (bills, groceries, minimum debt payments), 30% on wants (dining out, hobbies, entertainment), and 20% for future goals (emergency savings, short- and long-term goals). Adjust these percentages as needed if money is tight.
2. Avoid Paying Interest on Debt
If you have credit card debt, create a plan to pay it off. If you can’t pay it off in one go, consider transferring it to a 0% balance transfer credit card to avoid interest for a set period, usually two years or more. Set up a monthly repayment schedule and avoid using the card for new purchases. When the 0% period ends, look for another balance transfer deal if needed. Comparison sites like Moneyfacts and MoneySuperMarket can help you find the best options, but keep an eye out for balance transfer fees.
3. Spend Mindfully
It’s easy to lose track of spending, especially with contactless payments. Try different methods to stay aware of each transaction:
Return to cash: Some people use the “jam jar” method, dividing cash into separate envelopes or pots for various spending categories. This can help you stick to a budget.
Use budgeting apps: Apps like Plum, Moneybox, and Chip can link to your bank account, track spending, and help you reach savings goals. Many digital banks offer similar tools, like Starling’s Savings Spaces and Monzo’s “pots.”
Try prepaid cards: Load a specific amount onto prepaid cards, like HyperJar, to limit spending. Some cards have monthly fees, so check before signing up.
Set up a spending account: Open a separate account for everyday expenses, transferring a weekly allowance to control spending.
4. Keep Switching!
While energy deals may be limited right now, you can still find savings on broadband, mobile plans, streaming services, and insurance. A survey by Topcashback found that people who negotiated saved an average of £155, with the highest success in broadband, phone contracts, and insurance. Use comparison sites like Uswitch, CompareTheMarket, or MoneySupermarket to explore options.
5. Review Your Workplace Benefits
Look beyond your pension and flexible working options to other benefits your company might offer. This could include perks like eye care vouchers, gym memberships, bike-to-work schemes, or discounts at nearby stores and cinemas.
6. Consider Remortgaging
When your current mortgage deal ends, you’ll likely be moved to your provider’s standard variable rate, which may be higher. Remortgaging could save you thousands each year. Speak to a mortgage broker or check unbiased.co.uk or vouchedfor for an independent adviser.
7. Check for Unclaimed Money
You might have forgotten bank accounts, tax rebates, or even Premium Bonds. My Lost Account can help you find lost bank and building society accounts. The Government’s free Pension Tracing Service can also help locate forgotten workplace pensions.
8. Resist Payday Splurges
On payday, many receive promotional emails encouraging them to celebrate with discounts or special deals. While it’s fine to take advantage of discounts on things you planned to buy, avoid impulse spending. Research by Portafina suggests that people spend 20% of their monthly disposable income within 24 hours of payday.
9. Shop and Earn Cashback
If you’re already shopping, make the most of it by using a cashback website like Topcashback or Quidco or a cashback credit card. You can earn up to 2% back on purchases, which could add up to hundreds of pounds over the year. Just make sure to pay off the card each month to avoid interest charges.
10. Claim Marriage Allowance
If you’re married or in a civil partnership, you may be able to transfer £1,260 of your Personal Allowance to your partner, reducing their tax bill by up to £252.
11. Rent Out a Room
If you have extra space, you could earn up to £7,500 a year tax-free under the Government’s Rent a Room Scheme. No need to register for the scheme if your rental income is below this amount.
12. Try a Financial Fast
Commit to a no-spend day each week or a minimal-spend week each month. A spending “detox” can boost your savings and encourage more thoughtful spending. Disable app notifications, unsubscribe from marketing emails, and adjust your social media ad settings to reduce temptation.
13. Limit Spending at the ‘Coffice’
If you’re working from coffee shops, the costs can add up. Consider Pret a Manger’s £30 monthly subscription, which offers up to five free drinks a day and 20% off their menu, or use food waste apps like Too Good to Go for discounts.
14. Check for Benefits You’re Entitled To
Billions of pounds in benefits go unclaimed. Use the Entitledto calculator to see if you’re missing out on Child Benefit, Pension Credit, Council Tax Support, or Universal Credit.
15. Look for Free Overdrafts
Some bank accounts offer interest-free overdrafts up to a certain amount. Nationwide’s FlexDirect account, for example, offers a 0% overdraft for 12 months, while First Direct’s 1st Account includes a £500 overdraft, with £250 of it interest-free.
16. Evaluate Your Packaged Bank Account
If your bank account includes extras like phone insurance, breakdown cover, or travel insurance, make sure these add value for you. If not, you could save up to £180 per year by switching to a basic account.
17. Ask for a Better Price
For anything from a new TV to broadband, it’s always worth asking if you can get a discount or price match. If you save money this way, transfer it directly into your savings account.
18. Use Resale Platforms
Selling unwanted items on platforms like Depop, Vinted, and eBay can bring in extra cash. Many people are also buying secondhand to save money and reduce waste. You can even find high-quality or brand-new items at lower prices, perfect for gift shopping.
These strategies can help you keep more of your hard-earned money, giving you financial security and peace of mind.
