11 Money Saving Tips

Whether you’re looking to save money fast, can’t put away as much as you’d like each month or just want to save as efficiently as possible, there are quite a few ways that you can save more money.

These saving and spending hacks range from cutting costs and putting the savings in the bank to finding ways to boost your income. We’ve listed a few of our favourite tips below.

Still need to begin your savings journey? Read our how to save money guide to put yourself in a great position to gain financial independence.

Take on a savings challenge

If you’re looking for a fun way to maximise your savings, one of our favourite money saving tips are savings challenges. They’re a good way to make things into a bit of a game, while giving your funds a healthy boost.

Be sure to read about our eight favourite challenges, which we ranked by how difficult they are. To get you started, we’ve listed a few briefly below:

• 1p savings challenge: Save 1p on day one, 2p on day two and so on, until you’re saving £3.65 at the end of the year. This will net you £667.95.
• Spare change challenge: This one’s for cash users. Basically, you put any spare change you have in a jar, then take it to the bank to deposit once it’s full.
• No spend challenge: Choose a ‘nice to have’ cost in your budget to give up for a month or so. Send the extra funds you save straight to your savings.
• 52 week saving challenge: Save £1 in week one, £2 in week two and so on until week 52. You will eventually build up £1378 by the end of the year!
• Temperature savings challenge: Pick a day in the week. Every week, on that day, check the temperature high and save a matching amount to your savings account.

Cancel unnecessary subscriptions

It’s easy to take out a free trial on Amazon Prime to watch a new show or a premium Spotify subscription for when you’re travelling, but then forget about it. And, since subscription based services are fairly inexpensive and easy to join, the fees can fly under the radar. But they can quickly add up!

Therefore, if you’re looking to save, we recommend going over your bank statements and making a list of any subscriptions you pay for. Armed with this list, you can then decide to keep or cancel them, then direct any savings to your savings account.

Be a savvy grocery shopper

Your grocery shop is likely to be one of your biggest costs on a week to week basis, and, thankfully, there is plenty of scope to make some savings.

The first thing to consider is where you’re buying your groceries from. Simply put, if you are shopping at a supermarket that is generally more expensive, you can expect to pay more at the checkout. Therefore it’s a good idea to do some research on this topic, and Which?’s price tracker is a helpful and up-to-date comparison of the big supermarkets.

Obviously, if you do your shopping in person, then you may not have the cheapest store on your doorstep, so you may have to make some compromises. However, don’t forget that online delivery is often free or discounted if you spend a certain amount.

We also recommend writing out an itemised list before starting your shopping, which will help to ensure that you only buy what you need, and don’t get too distracted with impulse purchases. Likewise, never go shopping on an empty stomach if you want to avoid picking up those snacks!

Eat in over eating out

If you enjoy regularly dining out, you’ll already know that the food isn’t the only thing that gets eaten — your bank balance also gets a bite taken out of it! With this in mind, you may want to consider eating in over eating out if you want to save some money. While you can still go out for the occasional meal, cooking at home most of the time will mean your food bill is cheaper and you can try out some great recipes.

You could view this as an opportunity to improve your cooking skills, and you may be able to share the load with a loved one or housemate. There are even some shortcuts you can take: many supermarkets offer meal kits or ‘two dine in’ sets that take the effort of sourcing a recipe and ingredients away.

Search for discounts

When you’re shopping for clothes, household goods, electronics or anything else, having some patience often pays off. That’s because most items will eventually end up in a sale, and there are multiple periods during the year when sales tend to happen. This means that if you’re willing to bide your time, you can save some money.

Alongside sales, it’s often possible to find discount codes online or through one of the many apps that are dedicated to finding them for you. With a handy discount to use, you can often knock a significant amount off the retail price. Feel free to send the money you save straight to your savings account!

Loyalty schemes are another way that you can shave a few pounds off your bill. Many stores offer some kind of scheme you can take advantage of, whether it’s by giving you access to lower prices, allowing you to earn points or sharing exclusive deals and sales. So, if you buy from a retailer fairly regularly, make sure you sign up and take advantage.

Additionally, for many items you need to buy there will be an option to purchase a used or refurbished version at a steep discount. It’s worth checking online marketplaces and listings websites before you go ahead and pay full price — you might just be able to pick something up in great condition for much less.

Use cashback sites when shopping

When you’re buying things or signing up to a financial product online, you may be able to earn some money back for your savings account by going through a cashback site.

You usually have to sign up to the cashback site then search for a particular retailer or service provider to see if they are listed. If they are, you can click through and earn funds, which are normally deposited in your cashback account to be withdrawn. You can earn anything from pennies on small purchases to hundreds on large purchases.

Wondering where to start? MoneySavingExpert has a comprehensive guide that also includes a list of some of the best cashback sites.

Shop around for insurance and bills

Bills and insurance will always be part of your budget. However, you may be able to make some savings by shopping around and showing a little bit of disloyalty.

A lot of the companies that you pay for services or insurance regularly rely on either loyalty or laziness to make more money from you. They often introduce small price increases in the hope you won’t jump ship or realise you’re free to leave. In many cases, it’s not as difficult to switch to another provider, which could save you money.

So, take some time to look at how much you’re paying for the likes of insurance and bills and — where you can switch — shop around to see if there are better deals available. And be sure to do the same for any new services or subscriptions you need to take out.

Avoid impulse or unnecessary purchases

Impulse and unnecessary purchases are pitfalls that all savers have to deal with. You might see an item of clothing that you decide you simply must buy, or you could get hooked by a shiny gadget that’s advertised on social media. Whatever it is that tempts you to part with money, you’ll often feel a sense of buyer’s remorse a few days later.

Unfortunately, there’s no magic way to resist these purchases. You just have to try to be more disciplined in how you spend your money. Once you’ve mastered this, you’ll find that you have more money you can channel into your savings.

There are a few rules you can set yourself to try and exercise some control:

1. Ask yourself: “do I really need this item?”, “can I afford it?” and “will this enrich my life in the long run?”
2. Don’t go shopping in person or online without a shopping list of what you need, then never deviate from it.
3. See something you like? Give yourself a 24-hour cooling off period to see how you feel when the excitement and compulsion fades.
4. Unfollow any social media accounts or uninstall any apps where you find that you are regularly tempted to spend money.

Pick up a side hustle

Finding a way to earn more income will ensure you can put more money into your savings. Many people are now supplementing their main income with another job or method of making money in their spare time, known as a side hustle.

These are often jobs that can be carried out from the comfort of home or a hobby that has crossed the divide to become a money maker. From creative ventures like selling artwork, crafts or photography to more unusual activities like pet sitting or becoming a professional survey completionist, there are plenty of options to consider.

Need more inspiration? Be sure to check out our blog post on side hustle ideas.

Sell unwanted items

Another way to increase the funds to put into your savings is to sell any unwanted items that you currently own. Not only will this be a nice money maker, but it has the added benefit of helping you declutter your space — quite helpful if you’re saving for a house!

Even if you don’t have any big ticket items that you’re looking to part ways with, you may be surprised at how quickly the funds add up once you’ve sold a few small things. And if you simply don’t have time to individually sell your old books, DVDs or clothes, you can usually find businesses who will buy them from you in bulk, albeit at a reduced price.

Reduce your fuel costs

If you’re a driver, you may be able to reduce the amount you regularly spend on fuel by shopping smartly and practising fuel-efficient driving. It might seem like a very small saving when viewed on its own, but once you get into the habit, it really adds up!

First of all, try to find the best deal on your desired fuel in a location that’s convenient to you. There are lots of apps and websites available that track live prices in your local area you can use and by picking a spot that’s relatively nearby or on your daily commute, you can ensure you’re not going out of your way. You might also wish to take advantage of any loyalty schemes that the petrol station offers, as they can earn you pounds back.

Next, try to keep your car and driving in fuel-efficient form. The key to fuel efficiency is accelerating slowly, which burns less power and puts you in a better position to break easily. You should also check you’re not carrying excess weight (check that boot!) and that you’re not using the air con when you could wind down your window.

Lastly, be sure to check your tyre pressure is within the ideal range for your vehicle. This will help to ensure you’re not having to burn rubber and fuel to get the friction you need on the road when moving. Not sure how? Use this guide from TyreSafe.

Hopefully, these money saving tips have inspired you to save more money and bring you one step closer to your financial goals. But, if you need more information on what to do with these extra savings, be sure to check out our comprehensive savings guide on how to maximise your money.