Saving money can often feel like an uphill battle. And once you’ve reached your target, it can be all too easy to splash what you’ve saved and return to square one.
But saving money doesn’t need to feel like hard work. In fact, there are ways you can put money aside without even thinking about it. Here’s how:
1) Pay yourself first
Paying yourself first means shifting money to a savings account as soon as you get paid – before you pay any other bills. Setting aside money at the start of the month can help you save more, as you can put away what you might have otherwise splurged by the end of the month.
Doing this on payday can take the hassle out of saving. As you’re already sorting out your finances, making a one-off payment to your savings won’t seem like a chore. And once it’s done, you can forget about saving for the rest of the month.
Handy hint: make sure your savings account has restricted access. This means you won’t fall into the trap of dipping into your savings on a regular basis.
2) Round up your spare change
A clever way to build a savings pot is to save as you spend. Many banking apps – such as Monzo or Moneybox – allow you to round up your purchases to the nearest pound and stash the spare change away.
After a few fancy coffees here and there, it won’t take long before you build a nice nest egg. The beauty of round-up apps is that you won’t need to think about saving at all. Just carry on spending as normal, and you’ll gradually put away money. Plus, with the tiny but regular deductions, you won’t even feel the pinch.
3) Use intelligent saving apps
Instead of working out a fixed savings amount, you could sit back and let technology do the hard work for you. Financial apps like Chip or Plum connect to your bank account and regularly withdraw money based on what you can afford.
You won’t need to lift a finger. You’re still in charge though – with Plum and Chip, you can choose to confirm or cancel the transactions.
There’s no need to worry about security, either. Just check the app is FCA regulated to make sure your money is protected.
4) Automate your savings
Another way to save without thinking is to set up a standing order from your bank account to a savings account. A standing order takes a fixed payment from your account on the same date each month.
If you set up your standing order on your payday, you won’t have time to miss the money that’s left your account. Out of sight, out of mind.
Remember to transfer your savings to an account that’s tricky to access – like an ISA.
5) Cut down everyday costs
You could be spending too much on everyday essentials without even realising. Something as simple as changing your energy provider or switching insurance could save you heaps each month.
Take a look at your monthly outgoings and see where you could cut back. Instead of spending the money you’ve saved, you can pop it straight into savings.
Use our Budget Buddy to see how you could cut down on day-to-day expenses.
