There are plenty of quick and easy ways to save money. Some will save you more than others, but when combined, your bank balance could start to look significantly healthier.
Take a look at these 18 tips for saving money fast.
Choose a savings account with the best rate
If your savings account has a variable interest rate, the rate can change at any time, particularly following a change in the Bank of England base rate. Make sure you keep an eye on your savings rate and get ready to switch to a better paying account if the rate drops. There are also current accounts that pay interest.
Use a savings pot to organise your cash
Many online banking providers now offer savings pots that allow you to separate your cash for different purposes. You can often give each savings pot a name and some also pay interest on your cash, helping you to reach your savings goals faster. Popular apps include Revolut, Starling, Chase and Monzo.
Another option, Zopa, for example, offers Boosted pots that pay a higher interest rate but require you to give notice before accessing your money, as well as Access pots that pay a lower interest rate but give you instant access to your cash.
Automate your savings
It’s easy to set up a regular automatic transfer from your bank account to your savings account so that you save without even thinking about it. This can prevent you from spending the money in your account that you should be saving.
What’s more, some banking apps offer round-up features that round up your spending to the nearest £1 and automatically transfer the difference to your selected savings pot. Popular apps include Plum and Moneybox.
Take on a savings challenge
There are plenty of different savings challenges to try. For example, the 1p savings challenge requires you to save 1p on day 1, 2p on day 2, 3p on day 3 and so on. After 365 days, you’ll have saved more than £650.
You could also try the £1 challenge that works in the same way, but starts with £1. Or the 52-week saving challenge where you save weekly rather than daily, and the amount you save depends on what week it is. In week 1, you save £1, week 2 you save £2, and so on until you get to week 52. By the end of the year, you’ll have saved £1,378.
Make the most of bonuses and incentives
Always take advantage of any bonuses or discounts on offer from banks and banking apps, particularly when you first sign up.
You might be given straightforward cashback, or you might be able to make use of a ‘refer a friend’ scheme that could help you earn even more cash.
Switch banks to earn money
Switching bank accounts can enable you to take advantage of better features or enjoy improved customer service. But many banks also offer switching bonuses where you can earn £100 or more just for moving your bank account to a new provider.
You will usually need to use the Current Account Switch Service to make the move and some banks might have separate eligibility criteria that must be met to get your reward.
Cancel unused subscriptions
Go through your bank statements every few months to check whether there are any subscriptions you’re paying for that you simply don’t need. Are you paying for a subscription to a magazine you never read or did you sign up for a free trial and forget to cancel it once that period was over? If you find any, get them cancelled immediately.
Stop buying on impulse
Buying online is easy which means you can quickly end up spending money on items you don’t need.
If you’ve added items to your online shopping basket, leave them there for at least 24 hours while you mull over whether the purchase is actually necessary. Chances are, you’ll wake up the next day and decide you don’t need them after all.
It’s also sensible to unsubscribe from retailers’ emails and stop following them on social media to prevent you from being tempted to buy more.
Shop around at renewal
Never simply accept your home or car insurance renewal quote. Although insurers are no longer allowed to charge existing customers more at renewal than they charge new customers, you could still save money by shopping around and comparing quotes from a range of different providers.
Save on your energy bills
There are lots of easy ways to reduce your energy bills, such as turning off lights when you leave the room, switching to LED bulbs, switching off appliances left on standby mode, and turning down the thermostat by a degree.
Blocking draughts, such as those coming through doors or windows or down the chimney, can be another quick and easy win.
Buy second-hand
These days it’s easier than ever to buy clothes second-hand, thanks to the rise of websites and apps such as Vinted and Depop. But you can also use these sites to buy items such as children’s games and accessories, making them ideal when hunting for gifts. Other second-hand options include eBay and Facebook Marketplace.
Before buying, be sure to check out the seller’s reviews, read the description carefully and don’t forget to factor in postage costs.
Try a no-spend weekend
Nominate a weekend where you won’t spend anything at all. You might need to get creative to achieve this goal, but you could cook using leftovers in the fridge, go for long walks, create a movie night or visit free museums.
Switch your supermarket
If you always shop at the same supermarket, it might be time to switch things up.
Discounters such as Aldi and Lidl often have lower prices, but you’ll need to have one local to you to make the savings worth it. If you don’t, it’s worth keeping an eye on research that compares prices at the major supermarkets so you can see which ones work out to be cheapest.
Shop around for petrol
Sites like petrolprices.com help you find the cheapest petrol stations in your area for free. Simply enter your postcode and watch the results come up. You can filter by brand or fuel type or, if you’re in a rush, filter by distance instead of price. You could save up to £240 a year.
Set up a spending limit on your card
Some banks, such as NatWest and Barclays, enable you to set spending limits on your debit or credit card to discourage you from spending too much.
With NatWest, for instance, you can set a daily or monthly spending budget on your credit card through the app. If you go over this limit, you’ll be notified immediately.
Barclays, meanwhile, lets you set a limit on how much you can spend in a single transaction on your debit card. Again, you can set this up in your app.
Haggle on your bills
If your mobile phone or broadband contract has come to an end, don’t be afraid to try haggling with your current provider to see if you can get a better deal. This can be more effective if you’ve found a cheaper deal elsewhere, so it’s worth doing some research before you pick up the phone so you can hit your existing provider with some numbers.
Stop wasting food
According to Love Food Hate Waste, by reducing food waste at home, eight meals a week could be saved.
Storing your food correctly can help prevent food from going off too fast, while it also pays to plan your meals each week so that you know exactly how much food you will need and can avoid overspending. Using any leftovers for the following day’s lunch saves you money too.
Pay off expensive debts
If you’ve got expensive debts to pay off, it can be more cost-effective to use any savings you have to clear those debts. That’s because the interest you’re earning on your savings is often lower than the interest you’re paying on your debts.
If you have multiple debts to repay, you can save money by focusing on your most expensive debt first. To do this, pay off as much as possible on that debt, while keeping up with the minimum monthly repayments on your other debts. Once that debt is cleared, focus on the next most expensive debt and so on.
Saving money doesn’t have to be difficult. There are lots of different options for saving cash fast, whether you want to lower your household bills, stash away more cash into your savings pots or simply adopt better spending habits.
