With rising food and energy costs, saving money has become harder than ever. Our list of practical tips can help you cut costs and make your money go further.
These 20 simple money-saving ideas can fit easily into your daily routine without requiring too much effort.
In This Article:
How can I avoid overpaying on my bills?
Are banks giving cash bonuses for new customers?
How can I add to my income?
How can I save on groceries?
Can I lower my tax bill?
Are cashback websites worth it?
Why is saving important?
The high cost of living makes it tough for many to save money. But setting aside a little for emergencies can help you financially and reduce stress. If saving is challenging for you, here are 20 straightforward ways to start building good saving habits:
1. Switch and Save on Utilities
No one wants to pay more than necessary for utilities like gas, electricity, and phone services. Since energy prices are high, a new supplier may not always offer better rates, but you may find savings in other services. Comparison sites make it easy to find better deals, potentially saving you hundreds. Check for better options, including for broadband and mobile plans, and consider a SIM-only mobile plan if possible.
2. Switch Banks and Get a Cash Bonus
Some banks offer cash bonuses—up to £200—for new customers. Check the terms to ensure you qualify. Using the Current Account Switching Service makes the process simple, taking just seven days to transfer your money and recurring payments to your new account.
3. Cancel Unnecessary Subscriptions
Review your bank statements to identify subscriptions you no longer use. Cancel those that no longer provide value. You may find, for example, that services like Netflix or Amazon Prime are no longer essential.
4. Transfer Debt to a 0% Interest Card
For those with high-interest debt, consider a credit card with a 0% balance transfer offer. This allows you to pay down debt without extra interest costs, though you may have to pay a small fee.
5. Set Up a Free Overdraft
If you often use an overdraft, look for bank accounts that offer free overdraft protection. But be cautious—going over the limit can result in high fees.
6. Pick Up a Side Job
A side hustle can provide extra income and doesn’t have to interfere with your main job. Options include paid surveys, tutoring, or even rating music online.
7. Do a Low-Spend Week or Month
Try a low-spend period, during which you only cover essentials, to save money and train your saving habits. For example, pick a month like January to cut back on non-essential expenses.
8. Take a Year Off from Holidays
Stick to day trips, affordable weekend getaways, or camping instead of more expensive holidays. This can save a lot and even lead to new and fun experiences.
9. Support Charities with Your Time
Instead of donating money, consider volunteering. Sites like Do-it.org have listings for roles that match different skills and time commitments.
10. Skip Gifts for a Year
Consider a “no-gifts” rule with family and friends or set a spending limit. For kids, suggest putting the gift money into savings accounts instead.
11. Save on Groceries
Cut down on food costs by shopping at budget stores, switching to store-brand products, and planning meals ahead. Apps like Too Good To Go offer unsold food at lower prices.
12. Lower Your Tax Bill
Claim all available tax breaks. For example, if you work from home, you may be eligible for a tax rebate, and you can earn up to £7,500 a year tax-free by renting out a room in your home.
13. Use Money-Saving Apps
Many apps, like Chip, Plum, and Cleo, help you manage and save money by tracking spending and identifying ways to cut costs.
14. Try Cashback Websites
Cashback sites like TopCashback and Quidco offer cash back on purchases if you shop through their links, helping you save on your usual spending.
15. Visit Charity Shops
Bargain finds are plentiful at charity shops, especially in popular locations. Apps like Depop also sell charity-donated designer items.
16. Borrow Instead of Buying
If you need a rarely used item, consider borrowing instead of buying. Apps like Badlee and services like the Library of Things let you borrow useful items from neighbors or community centers.
17. Learn for Free
Take advantage of free courses online on platforms like Skillshare and Reed, offering lessons on topics from cooking to digital skills.
18. Find Free Entertainment
Sign up for mailing lists for free tickets to shows and concerts, or enjoy free cultural events like BBC-sponsored concerts across the UK.
19. Cut Out Expensive Habits
If you smoke or drink, consider reducing or quitting to save money. For example, giving up two pints a week can save over £450 a year, and skipping two coffees a week could save you £286.
20. Make a List and Stick to It
Plan your purchases carefully to avoid impulsive buys. This simple habit can help keep your budget in check.
If You Are Struggling
Financial stress affects mental and physical health. Free, confidential support is available from organizations like StepChange, National Debtline, and Turn2us, which provide guidance on managing debt and financial hardship.
With these practical tips, you can start building habits to save money, reduce stress, and gain greater financial control.
