14 fun ways to save money

Studying Time: 11 minutes

Do you want some enjoyable methods to economize?

January is usually a powerful month. Not solely does it someway really feel ten instances longer than each different month, however early pay packets at Christmas time imply now we have to stretch our revenue a lot additional. 

The January blues additionally set in, and having no cash can prime all of it off. Don’t worry! We’re right here to make sure you know all the ideas and tips on the market to avoid wasting critical money. Whether or not you need to save for that dream vacation, repay some debt or get just a few extra quid in the home deposit fund, now we have a great deal of methods that can assist you stash some extra cash away. 

So, listed below are 14 enjoyable methods to economize this month and all year long. 

 

The 1p problem

Complete financial savings: £667.95 per yr 

The 1p problem is a superb place to begin in your financial savings journey. Maybe one of the vital well-known financial savings challenges, this lasts twelve months and is certainly one of our favorite enjoyable methods to avoid wasting. You don’t have to begin this firstly of the yr, both. There may be at all times a superb time to start! 

Primarily, you begin with 1p, and enhance the quantity you save by 1p every single day. So, on day one, you save 1p, day two you save 2p, day three 3p, and so forth. On day 365, you’ll save £3.65. As soon as you set all of the financial savings collectively from the entire yr, you should have saved a tidy £667.95. Not too shabby. 

It might appear manageable, however it could completely get powerful in direction of the top. It’s a good suggestion to maintain monitor of your financial savings to maintain you motivated. For instance, you might cross off every single day on a calendar. Or, you might maintain notice in a budgeting diary. A traditional pocket book works too. 

If you happen to assume chances are you’ll wrestle, you might put away all financial savings for the next month in a single go. Keep in mind, the best time to economize is on pay day! 

You may put bodily cash right into a jar and watch the pot develop, or you might put it in an internet financial savings account. Work out what works effectively for you. Everyone seems to be totally different in the case of saving cash. 

 

The 50 envelope problem

Complete financial savings: £1,275 per yr 

The 50-envelope financial savings problem – typically the 52-envelope financial savings problem, is one other nice, straight ahead manner to avoid wasting money. If you’re prepared for a brand new financial savings problem and need to push your self, this might be for you. 

With the 50-envelope financial savings problem, you might save as much as £1275 in 50 weeks. You may put this cash in direction of a home deposit, a vacation or your even use a few of it on Christmas presents – the alternatives are infinite. With inflation rising and meals prices and power payments hovering, chances are you’ll even need to save to permit your self a monetary buffer. 

This problem contains labelling 50 envelopes with the primary to 50. You then fill the envelop with the corresponding amount of cash each week. For instance, on week one, you set £1 within the envelope. On week two, you set £2 within the envelope.  

You possibly can both do that so as, or choose random envelopes each week. Chances are you’ll select to get a number of the bigger numbers out of the way in which first. When you have some spare money, chances are you’ll select week 50 first, placing £50 into the envelope. 

We wrote an entire article about this financial savings problem – you’ll be able to learn this right here. 

 

Open a Lifetime ISA (LISA)

Complete financial savings: As much as £5,000 per yr

When fascinated by your financial savings, it’s at all times a good suggestion to consider what your cash goes in direction of. You may be saving to your retirement or a first-time home deposit. No matter you bear in mind, a Lifetime ISA could also be a superb place to begin. 

You possibly can put as much as £4,000 right into a Lifetime ISA yearly. The good factor is, the federal government add a 25% tax-free bonus on prime of no matter you save. So, for those who save the complete £4,000 restrict, the federal government will provide you with £1,000 – completely free. 

Even for those who save £400 a yr, the federal government will award you with a tax-free bonus of £100. That’s completely free cash – what’s to not like? 

You will need to remember, nonetheless, that cash from a Lifetime ISA can solely be withdrawn if you’re shopping for a home for the primary time, or you’re over the age of 60. If you happen to do need to withdraw your cash early, the federal government will take 25% of the cash you withdraw.  

You possibly can learn extra about Lifetime ISAs right here. 

 

Get a nasty behavior jar

Complete financial savings: Variable 

Do you’ve a nasty behavior you are attempting to interrupt? Maybe you need to quit smoking, or cease swearing. A nasty behavior jar might be a great way to maintain you on monitor and get monetary savings. 

There are just a few methods you might undertake this problem. If you happen to solely need to save within the brief time period, you might put a set amount of cash right into a jar each time you partake within the dangerous behavior you are attempting to surrender. For instance, chances are you’ll put £1 in a jar you swear. Nonetheless, this can be seen as rewarding your self for doing the ‘dangerous’ factor. 

So, put cash in a jar for every single day you don’t do the dangerous behavior. For every single day you don’t smoke, put 50p right into a jar. You may even put away the cash you often spend on cigarettes or tobacco each week. Seeing how a lot you might save reducing again, in bodily type, may actually encourage you to maintain going. 

If you happen to seize a espresso in your solution to work each morning, you might put the amount of cash you often spend within the jar as a substitute, and take your personal espresso. In line with The Scotsman, the hovering value of milk may lead to a flat white costing £4. If you happen to get a espresso every single day in your solution to work, this might value £20 per week (based mostly on a five-day working week). 

£20 per week in a jar for 52 weeks? That’s a saving of £1,040 per yr. Why not give it a go? 

 

Use a piggy financial institution

Complete financial savings: Variable 

Ah, sure, the great old school piggy-bank. It truly is a tried and examined solution to save. Any piggy financial institution will do, whether or not it’s the form of a pig or not! Put your spare change in there and when it’s full, open it as much as see how a lot you’ve saved. 

Some folks put all their change away in a piggy financial institution. Others might put all their ‘huge’ change in there, resembling £1 or £2 cash. Attempt to get a piggy financial institution you’ll be able to’t see into if attainable – out of sight, out of thoughts. You’ll have much less temptation to open it for those who can’t see the cash! 

If you happen to assume chances are you’ll be tempted to dip into your piggy financial institution earlier than it’s full, get one which it’s essential to break open to get into. The hassle to do that, in addition to breaking the piggy financial institution for much less cash than you’d like, may stop you from getting your paws on it. 

There’s a cause piggy banks have stood the check of time – they actually work! We love this Cute Piggy Bank on Amazon. It is available in blue and gold too!  

 

The 50-30-20 technique

Complete financial savings: Variable

The 50-30-20 saving technique is one other useful gizmo. This entails allocating your month-to-month wage into totally different pots. Firstly, 50% of your wage will go in direction of your ‘wants’. These are bills resembling your housing funds, meals and payments. 

30% of your wage then goes in direction of ‘desires’. This contains expenditure resembling presents, going out for dinner, getting a takeaway or socialising. The remaining 20% of your month-to-month wage ought to then be put into financial savings. 

Attempt to put the 20% away into financial savings as quickly as you receives a commission. As beforehand talked about, there is no such thing as a simpler time to avoid wasting than payday. There will likely be much less temptation to spend it whether it is in a financial savings account. 

If you happen to don’t assume it is possible for you to to handle placing a full 20% of your wage into financial savings, you’ll be able to regulate these numbers. For instance, chances are you’ll put 60% in direction of your wants, 30% towards your desires and solely 10% in direction of your financial savings. Do what feels finest for you. There isn’t any must push to twenty% if you’re unable to handle this. 

 

Arrange auto-roundups

Complete financial savings: Common £437.32 per yr

Robotically rounding up your transactions is an unbelievably simple solution to save. You don’t have to consider it in any respect. Simply spend your cash as you often do, and watch the pennies add up.  

Now, this fashion of saving might not make you 1000’s of kilos a yr, however each HE Reader counts. Chances are you’ll be stunned at how a lot you save. 

How does it work precisely? Say you spend £2.30 on a cup of tea if you end up out looking the retailers. The quantity you spend will robotically be rounded as much as £3, with 70p being put into your financial savings. 

In line with Moneybox, its customers make round 30 transaction per week, with the typical spherical up at round 28p. This will not sound like so much, however you’ve already saved £8.41 per week, with out even fascinated by it. PSA: That is virtually £440 per yr! 

Most excessive avenue and online-only financial institution accounts permit you to spherical up your on a regular basis spending. This can be a characteristic chances are you’ll want to change on in your banking app. If you’re uncertain of how to do that, contact your financial institution straight. There are additionally many apps particularly designed to spherical up your spending, resembling Cleo, Plum and Moneybox. 

 

Money stuffing

Complete financial savings: Variable 

Money stuffing is the most recent financial savings development sweeping throughout social media, specifically, video sharing platform TikTok. It’s a cash administration approach wherein you ‘stuff’ money into envelopes which have totally different functions. It may be used to sort out overspending, and assist you finances and save. 

You might have envelopes for housing funds, payments, meals, gas, and different requirements. Then, you might select different envelopes you assume may gain advantage you. Thes might embrace presents, consuming out, garments, Christmas and financial savings. When you have any money owed, you might create a debt envelope too.  

Not solely does this assist you to finances, however it permits you to unfold your cash throughout totally different outgoings, after which you’ll be able to see what you’ve left to place into financial savings. 

Money stuffing helps you save as you’ve bodily cash, which you’ll be able to see. This lets you visualise what you’ve spent and what you’ve left. This doesn’t have to be carried out with bodily money, nonetheless. Many financial institution accounts supply ‘money pots’, which let you save for various issues. 

Our Magpie Isobel lately spoke with on-line journal Bustle about money stuffing. See what she needed to say here.

 

Have a use it up month

Complete financial savings: Variable

This solution to save doesn’t embrace truly placing cash away as such. As a substitute, you get monetary savings through the use of up objects you have already got in your house earlier than shopping for extra. This might embrace something, from meals to cleansing merchandise, make-up to toiletries. 

In line with WRAP, meals waste has a worth of over £19 billion per yr within the UK. Of the 9.5 million tonnes of meals waste produced yearly, roughly 6.4 million tonnes may have been eaten. This can be a staggering 15 billion meals thrown away yearly. 

So, why not get monetary savings and cut back waste in your house by having a ‘use it up’ month? Attempt to use the entire meals you’ll be able to out of your fridge, freezer and shops earlier than shopping for extra. Have a filter of your cabinets and see what you’ve out there. You might have objects you’ve forgotten about! 

Chances are you’ll even impress your self with the wide range of meals you may make with the varied tins, jars and packets hidden away. 

Do the same factor with toiletries, make-up and different private care objects. In line with Avon, the typical girl spends £1,365 yearly on skincare, make-up and toiletries. Nonetheless, most admit that round 75% of the merchandise they buy go partially or fully unused.  

Learn extra about saving cash and stopping meals waste right here. 

 

Save £1 a day

Complete financial savings: £365 per yr 

If you happen to don’t have the means to try to save 1000’s, or fear you received’t be capable of handle a giant aim, why not save simply £1 per day? You’ll save £365 over the course of a yr, which might be put in direction of your financial savings, or used as a monetary buffer in an unsure financial system. 

As with a number of the earlier challenges, there are just a few methods you might do that. You may put a £1 coin right into a pot on a regular basis as bodily cash – this may increasingly inspire you to proceed as you watch the kilos mound. Another choice is to place cash for the entire month into the pot, doing it on a month-by-month foundation. 

This will also be carried out on-line, utilizing an unused financial institution or financial savings account to place your £1 contribution into. You may even arrange a direct debit from one checking account to a different, for £1 per day. Then, you don’t even have to consider it. Actually, chances are you’ll not even discover it leaving your account! 

 

Save with the climate

Complete financial savings: Variable

This will appear a little bit on the market, however it’s undoubtedly a enjoyable manner to avoid wasting money. It’s easy actually – as soon as per week, have a look at the temperature, and put away that amount of cash. 

Whether it is 9 levels centigrade outdoors, put away £9. If it’s a heat summers day of 28 levels centigrade, pop £28 in your financial savings. You may do it on a set day each week, or have a look at the typical temperature in your space for the course of the week and put that apart. 

It’s enjoyable as you by no means fairly know the way a lot you’ll put away each week, and the cash will seemingly construct earlier than it. 

 

Double examine your subscriptions

Complete financial savings: Variable

Placing away extra cash each month and reducing again can undoubtedly assist you save; nonetheless, chances are you’ll be spending cash each single month with out realising. The place may this cash presumably be going? On payments and subscriptions.  

In line with Nat West, round £25 billion is wasted each single yr within the UK as the results of unused subscriptions, forgotten about free trials and dangerous offers in your payments and different companies. 

Fortunately for you, now we have discovered a brilliant helpful software that can assist you handle your subscriptions and avoid wasting critical money. Little Birdie is a lately launched, free, simple to make use of app that helps you handle your payments, common funds and subscriptions in a single place. It additionally helps you develop into conscious of products and companies you had no clue you have been even paying for each month.  

Actually, our Magpie Izzy is now saving over £200 per yr with the assistance of Little Birdie. Discover out extra about Little Birdie right here. 

 

Enhance your pension by 1%

Complete financial savings: Variable

Growing your pension contributions by simply 1% a month is unlikely to make an enormous distinction to your pay packet, nonetheless it’ll make a mighty distinction to your pension whenever you attain retirement.  

Due to compound curiosity, even simply £10 monthly further into your pension pot can construct up over time. Plus, your employer might match your contribution. That is free cash with tax reduction! Once more, it will construct up over time. You’ll completely thank your self for doing this. 

The wonderful thing about rising your office pension is that will probably be robotically deducted out of your pay packet. So, the cash is away and protected in your retirement fund incomes curiosity earlier than you’ve even considered it. 

Discover out extra about pensions right here. 

 

Have a no spend yr

Complete financial savings: Variable

May you do a no spend yr? It’s a huge problem, however one with a number of studying curves, nice reward and if accomplished, a fantastic sense of accomplishment. 

A no spend yr is precisely what it says on the tin, principally. Though there are a lot of necessities it’s essential to spend cash on in life – meals, housing and payments for instance – the no spend comes into play with non-essentials. 

If you happen to don’t know the place to start, what it entails, and what you’ll be able to and may’t spend on, try our full information right here.