20 money saving tips you can use every day - Times Money Mentor (2024)

The rising cost of food and energy bills means it’s harder than ever to save money – our list of saving tips can help you spend less.

Here are 20 easy money saving tips designed to slot into your daily life without too much effort.

This article includes:

  • How can I make sure I’m not overpaying for my bills?
  • Can I get free cash from a bank?
  • How can I add to my income?
  • What are the ways to spend less on my grocery shopping?
  • Can I reduce my tax bill?
  • Are cashback websites worth it?
20 money saving tips you can use every day - Times Money Mentor (1)

Read more: Five apps for saving money every day

The importance of saving

The cost of living is making saving money impossible for many. However if you are able to put some aside for emergencies, then it will not only help you financially but mentally too.

If you know that you struggle to save, here are 20 simple methods to help you get into the savings habit:

1. Switch to spend less on your utilities

No one wants to pay more for exactly the same thing. Yet so many of us do with our gas and electricity bills, car insurance and mobile phone contracts.

Due to rising energy bills, good fixed deals are impossible to find. Switching energy supplier may not be the answer now but it could be for lots of other utility bills. And there are also plenty of things you can do to reduce your energy bills.

Shopping around for a better deal is easy and could save you hundreds of pounds. Comparison websites make it simple to find the best deals and can give you negotiating power with your current providers.

Boost Your Broadband tells you what types of broadband are available in your area and gives impartial advice on getting the best deal.

If you can, buying a mobile phone outright and paying for a SIM-only deal often works out cheaper than paying back the price of the handset over a long contract. Again, always shop around.

2. Change banks and get free cash

You can also switch your bank account and get paid in cash to do so. Some banks are currently offering up to £200 bonus for new customers who move to them. However, all of these deals come with Ts&Cs, so check that you will be eligible.

Changing your bank account can feel a little scary but it’s easier than you think. It takes just seven days to move your money with the Current Account Switching Service and your regular payments over from your old account.

Your new provider will do it all for you but make sure that the account is right for you — money isn’t everything.

We have independently rated the best current accounts on the market for different needs and requirements. Check them out here.

3. Cancel unnecessary commitments

Almost two years of intermittent coronavirus restrictions have given us plenty of time to evaluate our spending habits — and in some areas to increase them.

Go through your bank balance and see exactly where your money is going. You may discover you are paying for services that you have forgotten about and no longer use.

Think carefully about how much you use your subscriptions now. While Netflix may have been essential during lockdown, can you live without it now? If you’re shopping online less frequently you might want to cancel Amazon Prime.

4. Transfer debt to a 0% deal

If you have a large amount of debt, perhaps on an overdraft or credit card, it is likely that you are paying high levels of interest. You could consider switching it all to a credit card with a 0% balance-transfer deal.

These cards don’t charge any interest on your transferred debt for a set period, so you can stop giving your money to the bank and instead use all of it to pay off what you owe faster.

Watch out as you may have to pay a fee. Not everyone will get accepted for the best deals depending on your credit rating but it could be worth it in the long run.

5. Organise a free overdraft

New rules were introduced in April 2020 aimed at making overdraft charges clearer and easier to compare. However now you could be facing charges as high as 39.9% for being overdrawn.

Some bank accounts do offer free overdrafts up to a certain amount. We list the best bank accounts for overdrafts.

Watch out! If you go over the arranged overdraft limit, costs really start to mount.

6. Get a side hustle

A side hustle is simply another activity that you do on top of your main join that earns a bit of income. It should ideally fit comfortably into your daily life.

  • Online surveys: sites such as YouGov, Prolific, and PineconeResearch can pay £50 a month
  • Rate music: you can get paid to listen to music and rate it for about 10p a track at Slicethepie
  • Tutoring: if you can play the piano or speak a foreign language, you can get paid around £30 an hour

Discover how Times Money Mentor reader Laura Dempster used her love of embroidery to boost her social life and house deposit.

20 money saving tips you can use every day - Times Money Mentor (2)

7. Do a low-spend week or month

Consider a systematic low-spend day, week or month to build up your emergency fund and to train your saving brain in the long term.

Low-spend, is only spending on the essentials, which rules out takeaways, coffees out or drinks with friends. Pick a month like January, where people are feeling the pinch after Christmas and less keen to go out.

Check out more money saving challenges and discover how Claire gives her children no pocket money during her annual no-spend January.

A great way to stay on top of your finances, and knowing where your money is going, is to draw up a budget. Our budgeting guide can help you get started.

8. Have a holiday-free year

Sticking to day trips, cheap weekends and camping holidays away can save you a significant chunk of money and often be more fun. It is also likely to be less stressful given the disruption caused by the pandemic to foreign travel.

Try our tips for saving money for a holiday.

9. Support charities with your time

If you regularly donate money to charities, you could consider volunteering your time instead.

There are lots of ways to do this, depending on your interests, skillset and time available, which include:

  • Becoming a phone friend to an elderly person
  • Being a mentor to young people
  • Getting involved in conservation

Do-it.orgis a database with more than a million volunteering opportunities that you could pick from. Search by interest, activity or location and then apply online.

10. No presents

Implement a no-presents rule for a full year with your family members and friends. If that doesn’t sit well with you, why not suggest:

  • A spend limit
  • Secret Santa for Christmas
  • Only hand-made or gifts bought from charity shops

If others still want to give on birthdays and you have children, stick solely to savings accounts and check out our independently rated junior ISAs.

Here’s more on how you can teach your kids about money.

11. Spend less on food

There are lots of ways to cut back on your grocery shopping, without having to limit the amount that you buy, these include:

  • Swapping to a budget supermarket
  • Downshifting, such as swapping branded products for supermarket-own
  • Writing a list and meal planning
  • Cooking in bulk
  • Using apps such as Too Good To Go, which offer unsold but still fresh food from supermarkets, restaurants and other retailers at much cheaper prices to prevent it going to waste.

BBC Good Food has a budget recipe section and the popular Cooking On A Bootstrap shows you can eat well for less. Check out our guide to family finances: how to prepare for everything for more tips and tricks.

12. Reduce your tax bill

Keep more of your earnings by claiming all the tax reliefs you are entitled to. If your employer has asked you to work from home, make sure you claim this tax rebate effectively giving you up to £140 of free money every year.

There is also rent-a-room relief, which lets you earn £7,500 a year tax-free from letting out furnished accommodation in your home.

For more tax tips, here are ten easy ways to cut your tax bill.

13. Get the right money-saving app

If you need extra encouragement with saving, then a money-saving app could be for you – and there are plenty to choose from. For example:

  • Chip calculates what you can afford to save every few days and then transfers that amount from your current account to your Chip account
  • Plum does the same and automatically notifies users when they’re overpaying on bills and let them switch to a cheaper provider within the app
  • Cleo* is a chatbot on Facebook Messenger that analyses your spending, offering insights into your habits and what you can do to save more

Many of these apps, like Moneybox, make saving feel like a game where you challenge yourself to put more away.

14. Cashback websites

Cashback websites give you a certain percentage cashback whenever you spend online at a selected retailer by going through them first. They are free and simple to use and you could earn hundreds of pounds.

TopCashback and Quidco are the most well-known and are free to use, just make sure you only use them for usual spending rather than buying things you don’t need.

15. Hit the charity shops

A surge in donations to charity shops during the pandemic has meant there have been plenty of bargains to be had.

For high-end bargains, charity shops in Chelsea in London, Alderley Edge in Cheshire, Bath, Oxford and St Andrews in Scotland are the places to go.

Charities also appear on designer shopping app Depop.

16. Borrow rather than buy

If you don’t manage to find what you need in a charity shop, maybe you can borrow it. Family members who are on board to support you while you save may be able to help here.

Alternatively, Badlee is an app that lets you borrow items from friends and neighbours, while the Library of Things in south London lets you borrow useful products like drills, gazebos and carpet cleaners at affordable prices.

17. Learn for free

There are a huge variety of quality courses and content online, many of which won’t cost you a penny.

Skillshare is an online community offering thousands of free classes including fashion illustration, pasta making, interior design basics, analytics and management.

Recruitment site Reed offers free online courses – from essential IT skills and book-keeping to understanding autism.

18. Free nights out and culture

Get free nights out by signing up to the right mailing lists. You may have to wait because the coronavirus is affecting filming and scheduling, but tickets to The Graham Norton Show, Live at the Apollo, The Great British Bake Off after-show and Countdown can be applied for at SRO.

The BBC mailing list offers free concerts all around the UK, including Later … with Jools Holland, Radio 1 gigs, Radio 6 recording sessions and BBC orchestra performances.

19. Quit the bad habits

Smoking is the most obvious bad habit to quit. Not only is it terrible for your health but awful for your wallet too. A ten-day-a-smoking-habit can easily cost you £1,825 a year.

Over 30 years that’s almost £55,000.

You can find support to quit smoking at NHS Smoke Free and get healthier and richer in the process.

Cutting down on booze can really save the pennies too. On average we spend £1000 per year on alcohol, which is £63,000 over our legal-drinking lifespan. Cutting out two glasses of wine or pints of beer at the pub a week, costing £4.50, could save you £469.

Where as cutting out just two shop-bought coffees, costing £2.75 each, every week for a year, you would save £286.

20. Write a list and stick to it

It sounds incredibly simple, but by making clear what you need – rather than what you want – you can avoid impulse purchases. It can save you a lot of money.

Avoid adding items to your trolley if they aren’t on your list.

Check out our guide to budgeting, if you’re looking for more help with forming healthy spending habits.

If you are struggling

Money worries impact on your sleep, your relationships, your work, and your physical and mental health. According to the Money Advice Service, a fifth of us say we are “drowning in debt and money worries”.

If you are struggling with debt, practical and emotional support is essential and available for free.

  • StepChange, and National Debtline, provide free, confidential advice and support to anyone worried about debt
  • Turn2us helps people in financial hardship gain access to welfare benefits, charitable grants and support services
  • PayPlan offers free advice and debt solutions, such as debt-management plans

*All products, brands or properties mentioned in this article are selected by our writers and editors based on first-hand experience or customer feedback, and are of a standard that we believe our readers expect. This article contains links from which we can earn revenue. This revenue helps us to support the content of this website and to continue to invest in our award-winning journalism. For more, see How we make our money and Editorial promise

Important information

Some of the products promoted are from our affiliate partners from whom we receive compensation. While we aim to feature some of the best products available, we cannot review every product on the market.

20 money saving tips you can use every day - Times Money Mentor (2024)

FAQs

What is the 50 30 20 rule? ›

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

How you can save money in your daily life? ›

You can learn more about apps that automate savings and decide if they're a good fit for you.
  • Count your coins and bills. ...
  • Get discounts on entertainment. ...
  • Delay purchases with the 30-day rule. ...
  • Lower your car costs. ...
  • Bundle cable and internet. ...
  • Reduce your electric bill. ...
  • Lower your student loan payments.
Mar 26, 2024

How to do a 30-day savings challenge? ›

Here's how it works: When you have the urge to make an impulse purchase, wait for 30 days and give yourself time to think about it. While considering the purchase, deposit the money you need for it into a savings account. If you still want to buy that item after the 30-day period is up, go for it.

What are some good habits for saving money? ›

  • Pay yourself first. If you wait to see what income is left over after paying expenses, you are less likely to save. ...
  • Take advantage of bank technology. ...
  • Pay your bills on time and pay more than the minimum amount. ...
  • Determine needs versus wants. ...
  • Shop around. ...
  • Consider investments. ...
  • Consult your local bank.

What is the 20 savings rule? ›

Key Takeaways. The 50/30/20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should be split between savings and debt repayment (20%) and everything else that you might want (30%).

Does the 50 30 20 rule still work? ›

Customize according to your situation

For many people, the 50/30/20 rule works extremely well—it provides significant room in your budget for discretionary spending while setting aside income to pay down debt and save. But the exact breakdown between “needs,” “wants” and savings may not be ideal for everyone.

How much is $1 dollar a day for a year? ›

If you saved $1 a day for a year, do you know how much money you'd have? Roughly $30,000. This is totally 100% true.

What is the 30 day rule? ›

The premise of the 30-day savings rule is straightforward: When faced with the temptation of an impulse purchase, wait 30 days before committing to the buy. During this time, take the opportunity to evaluate the necessity and impact of the purchase on your overall financial goals.

What is 100 envelope challenge? ›

The 100-envelope challenge is pretty straightforward: You take 100 envelopes, number each of them and then save the corresponding dollar amount in each envelope. For instance, you put $1 in “Envelope 1,” $2 in “Envelope 2,” and so on. By the end of 100 days, you'll have saved $5,050.

What is the 100 day challenge for saving money? ›

It works like this: Gather 100 envelopes and number them from 1 to 100. Each day, fill up one envelope with the amount of cash corresponding to the number on the envelope. You can fill up the envelopes in order or pick them at random. After you've filled up all the envelopes, you'll have a total savings of $5,050.

What is the $100 in 30 days challenge? ›

The goal of the Challenge is simple: save $100 in a 30-day time period through a series of gradually increasing deposits. November has 30 days so every day is a savings day. As shown in the picture below, daily savings deposits start at $1 a day for five days followed by $2, $3, and $4 each for five days.

What is the 10 rule for saving money? ›

The 10% rule of investing states that you must save 10% of your income in order to maintain a comfortable lifestyle during retirement. This strategy, of course, isn't meant for everyone as it doesn't account for age, needs, lifestyle, and location.

What is the 80 20 rule in saving money? ›

The rule requires that you divide after-tax income into two categories: savings and everything else. As long as 20% of your income is used to pay yourself first, you're free to spend the remaining 80% on needs and wants. That's it; no expense categories, no tracking your individual dollars.

How do you spend money wisely? ›

How to Manage Your Money Wisely
  1. Make a plan. Having a financial plan is about more than figuring out how much of your paycheck is left after the bills are paid. ...
  2. Save for the short term. ...
  3. Invest for the long term. ...
  4. Use credit wisely. ...
  5. Choose a reasonable rent or mortgage payment. ...
  6. Treat yourself. ...
  7. Never stop learning.

What is the disadvantage of the 50 30 20 rule? ›

It may not work for everyone. Depending on your income and expenses, the 50/30/20 rule may not be realistic for your individual financial situation. You may need to allocate a higher percentage to necessities or a lower percentage to wants in order to make ends meet. It doesn't account for irregular expenses.

What is the 40 40 20 budget rule? ›

The 40/40/20 rule comes in during the saving phase of his wealth creation formula. Cardone says that from your gross income, 40% should be set aside for taxes, 40% should be saved, and you should live off of the remaining 20%.

What is the 50 30 20 rule of budgeting examples? ›

For example, if you earn ₹ 1 lakh, you can allocate ₹ 50,000 to your needs, ₹ 30,000 to your wants and ₹ 20,000 to your savings, every month.

How much money should I have in my savings account at 30? ›

Fidelity Investments recommends saving 1x your salary by 30. At the end of 2021, the average annual salary was $49,920 for 25 to 34-year-olds and $58,604 for 35 to 44-year-olds. So the average 30-year-old should have $50,000 to $60,000 saved by Fidelity's standards.

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Kelle Weber

Last Updated:

Views: 5716

Rating: 4.2 / 5 (53 voted)

Reviews: 92% of readers found this page helpful

Author information

Name: Kelle Weber

Birthday: 2000-08-05

Address: 6796 Juan Square, Markfort, MN 58988

Phone: +8215934114615

Job: Hospitality Director

Hobby: tabletop games, Foreign language learning, Leather crafting, Horseback riding, Swimming, Knapping, Handball

Introduction: My name is Kelle Weber, I am a magnificent, enchanting, fair, joyous, light, determined, joyous person who loves writing and wants to share my knowledge and understanding with you.