A savings expert has shared three “simple” ways people can save up to £2,250 in the space of a year.
Tom Ellmers, head of savings at Tandem said: “The ‘perfect’ saver doesn’t exist, and this concept is one of the biggest ideas that holds us back when unlocking our financial goals.
“We all have financial commitments, but also commitments when it comes to looking after ourselves. From meeting up with friends over a coffee, treating yourself to something you really want, or travelling the world, we all make these purchases to feel a bit happier through a release of dopamine, and ultimately that’s where the ‘retail therapy’ theory comes from.
“The key to success in becoming a saver is to find the habits that work for you, and starting small and savvy can help lead to those bigger saving goals.
With the cost-of-living crisis impacting millions across the country, Mr Ellmers said: “These simple saving methods can be a great way to kickstart your financial goals, in an attainable way.”
The 1p savings challenge
According to Mr Ellmers, the 1p challenge is a “super easy” way to save £650 in a year.
He explained: “On day one, you’d save one penny. On day two, you’d save two pennies. On day three, and so on. Starting off slow and small is a great way to save as you are less likely to feel the impact when you still want to spend on the things you love, and it’s a great way to get into the habit of putting money away every day.”
Digital-only accounts can be an easy way to transfer money from a current account into a separate savings account and often offer higher interest rates than high street banks.
Mr Ellmers added: “When transferring from your current account to your savings account, it can be a great way to get you checking your banking app daily and becoming more familiar with your bank balance.”
Check for cashback offerings
Cashback sites give users the opportunity to earn discounts or rewards on purchases when shopping through their platforms. People can rack up hundreds of pounds worth of savings when using these correctly.
Mr Ellmers said: “There are many apps and websites that offer cashback at top websites, such as TopCashback and Quidco. These give you money back for your transactions if you use the link they provide you. Additionally, coupon sites scrape the internet to find active offers to lower your basket price – giving you an even better saving. Check to see if you can get a lower price before you click checkout.”
According to users from MoneySavingExpert’s forums, people have managed to save around £300 when using cashback on their everyday purchases.
Try ‘no spend’ weekends
Weekends can be really expensive, so scheduling a few spend-free days per month can be a beneficial move to bolster finances.
Mr Ellmers said: “Setting yourself a ‘no spend weekend’ every month means you can opt for free activities instead.
“These could range from countryside walks, movie nights at home, or even the range of free museums and attractions across the country. You can then put the cash you would have spent into your savings without having to sacrifice family time.”
With 52 weekends in a year, Mr Ellmers suggested having a ‘no spend’ weekend every two weeks and, instead, saving £50 per weekend. By the end of the year, people can accumulate up to £1,300.
