Here are 20 tips on how to save money fast that can help you reach your savings goals with ease. While saving and budgeting might feel overwhelming at first, having a clear financial target can actually bring a sense of relief. It allows you to envision a brighter future where you’ve bought your first home, started a family, or treated yourself to something special.
So, if you’re looking for ways to save money quickly, here are our top suggestions to help you grow your savings and boost your bank balance in no time.
1. Master Budgeting and Understand Your Finance
The most crucial step to saving money fast is learning to budget. When you control your budget, you control your financial future. But where should you begin?
Before you can start saving consistently, it’s essential to get a clear picture of your financial situation. This involves understanding all your income and expenses, including debts, bills, and current savings contributions.
Here’s a simple guide to budgeting for quick savings:
- Track your income and spending over 30 days. Include all money coming in and going out.
- Compare your total income with your total expenses to see whether you’re saving or overspending each month.
- Break down your expenses into fixed and variable categories. Fixed expenses, like rent and utilities, are harder to change while variable costs, such as groceries, entertainment, and subscriptions, offer more flexibility.
- Pinpoint any variable costs you can reduce or eliminate to boost your savings.
- Review your progress frequently and make adjustments as needed. If budgeting feels overwhelming, try using budgeting apps that make it easier to manage and stick to your plan.
By mastering these steps, you can create a budget that allows you to save money fast and work toward your financial goals.
2. Eliminate Debt
Before focusing on saving, it’s important to tackle any outstanding debt. The longer debt lingers, the more it grows due to accumulating interest—the cost of borrowing money. Over time, interest can erode any savings you build up, making it crucial to pay off debts quickly.
A helpful strategy to manage this is the 50/30/20 budgeting method. This method became popular with U.S. Senator Elizabeth Warren, a bankruptcy expert at Harvard. This method offers a simple and effective way to prioritize debt repayment while balancing other financial needs:
Allocate 50% of your income to essential expenses, such as rent and utilities.
Use 30% for non-essential items, like entertainment, dining out, and subscriptions.
– Dedicate 20% to savings or debt repayment. For example, if your monthly after-tax income is €2500, set aside €400 each month for debt repayment. In a year, you’ll have paid off €4800 in debt.
By following this method, you can eliminate debt efficiently while maintaining control of your spending.
3. Automate a Savings Account
If you want to save money quickly, it’s essential to separate your everyday spending from your savings. The best way to do this is by creating a designated savings account.
Having a separate account helps protect your savings from being used for daily expenses, reducing the temptation to dip into those funds. It also encourages you to stick to your day-to-day budget while ensuring that your savings are safely set aside for future goals. By keeping your savings in a designated account, you’re more likely to maintain focus and build your savings faster.
4. Open a Dedicated Savings Account
If you have a regular income, automating your savings can simplify the process and ensure consistency. Set up an automatic transfer from your main account to a savings account each month.
This way, saving becomes a habit without you needing to think about it, and you reduce the temptation to use those funds for everyday spending.
For example, if you decide to save €200 each month, you can schedule a transfer to occur automatically on payday. Over a year, this would accumulate to €2400, all without any extra effort on your part. Automating your savings helps you stay committed and makes the process seamless.
5. Automate Your Bill Payments
Automating your bill payments, especially for utilities, is a smart way to save both time and money. By setting up direct debits for your energy bills, you could save more than £100 a year compared to paying when the bill arrives, according to MoneySavingExpert.
Direct Debit payments are usually based on an estimate of your annual usage and then divided into 12 monthly payments. However, if the estimate is wrong, you might end up overpaying. Energy suppliers held around £3.7 billion in credit.
To avoid overpaying, regularly review your bills to ensure the estimate reflects your actual usage. If you find you’re paying too much, contact your supplier to adjust the direct debit amount or ask for a refund of any credit balance. Automating payments ensures your bills are paid on time and helps you avoid late fees, but it’s crucial to stay on top of what you’re being charged to keep things fair.
6. Set a Spending Limit on Your Card
Setting a spending limit on your debit or credit card can be an effective way to control your expenses and save money fast. By restricting the amount you can spend, you become more intentional with every purchase and less likely to give in to impulse buys. Many banks offer this feature, allowing you to cap daily or monthly spending. For instance, setting a limit of £50 per day forces you to plan and prioritize your purchases, helping you stick to your budget and avoid overspending.
7. Use the Envelope Budgeting System
Another practical way to manage your money and save quickly is the envelope budgeting system. It became famous by Dave Ramsey. This method involves withdrawing your monthly income in cash and dividing it into envelopes designated for specific expenses. For example, create envelopes for rent, groceries, dining out, and entertainment. Once the cash in an envelope runs out, you’re done spending for that category.
By using physical cash, you gain a clear sense of your spending limits and are less likely to overspend. It’s a straightforward, disciplined approach that ensures you stay within your budget, helping you to save more each month.
8. How to Cut Rental Costs: Three Simple Strategies
Renting can be expensive, but there are smart ways to save:
- Become a Property Guardian: Live in empty properties like vicarages or care homes at reduced rent, typically £150 to £600 per month, in exchange for maintaining the property and preventing squatters (Zoopla).
- Consider Homesharing: Live with an older homeowner for lower rent in exchange for helping with household tasks. Charities like Share and Care Homeshare facilitate these arrangements, helping to cut costs while giving back.
- Be a Lodger: Opting to be a lodger rather than a tenant can be cheaper, with all-inclusive rent that covers utilities. However, lodgers may have less freedom and fewer tenant protections (Zoopla).
These alternatives offer affordable solutions to rising rental costs.
9. Cut Back on Your Utility Bills
- Switch providers: Shop around for the best energy deals using comparison websites. Switching providers can often result in significant savings.
- Use energy-efficient appliances: Upgrade to energy-saving devices like LED bulbs and efficient washing machines or dishwashers to lower energy consumption.
- Turn off standby mode: Unplug appliances when not in use to avoid wasting electricity on standby power.
- Lower your thermostat: Reducing the thermostat by just 1°C can cut heating bills by up to 10%.
- Install a smart meter: Track your energy usage in real-time and adjust habits to reduce waste.
- Insulate your home: Proper insulation keeps heat in during winter, reducing the need for excessive heating.
- Use energy during off-peak hours: Some energy plans charge less for usage at night. Shift high-energy activities like laundry to off-peak times.
These simple changes can significantly reduce utility bills.
10. Take Up a Side Hustle
If you want to significantly increase your monthly savings, consider picking up a side hustle. This could range from working extra shifts at a restaurant or bar, doing freelance work, becoming a virtual assistant, or even pet sitting. Many side hustles can fit around your current schedule and provide a steady extra income stream.
Freelance gigs in writing, graphic design, or social media management are great for those with relevant skills, while online platforms make it easy to find opportunities in gig work or service jobs.
The key to maximizing your side hustle’s financial impact is to dedicate all the money earned directly to savings. Setting this aside can help you build your financial cushion faster.
However, it’s important to strike a balance—don’t overextend yourself to the point of burnout. Your mental well-being is crucial, and working too many hours could be counterproductive in the long run. Pick a manageable side hustle that aligns with your goals and schedule.
11. Cancel Any Unused Subscriptions
Many companies make significant profits from subscriptions because people are often reluctant to cancel—even if they hardly use the service.
This reluctance stems from the sunk-cost fallacy, where individuals feel that canceling a subscription means accepting that their past payments were wasted. However, holding onto an unused subscription only prolongs the cost.
By letting go, you stop wasting money on something you’re not using, which frees up more of your budget for saving.
Take a close look at all your current subscriptions, such as streaming services, fitness apps, or monthly boxes, and ask yourself whether you use them enough to justify the cost. It’s easy to forget about subscriptions that are automatically renewed.
Instead of holding out hope that you might use them one day, cancel them now and put that money into savings. Every small amount saved on subscriptions can add up over time and contribute significantly to your overall financial goals.
12. Try to Fix Things Yourself
Repairing broken items yourself is a great way to save money and avoid unnecessary expenses. Thanks to the wealth of information available online, especially through platforms like YouTube, there are tutorials for almost anything—from fixing a leaking tap to repairing a broken zipper. Instead of immediately replacing an item or hiring a professional, take a moment to search for a DIY solution.
For instance, if your washing machine stops working, instead of calling a repair service right away, check for common issues online. You might find a simple fix that costs little to nothing.
Whether it’s home repairs, clothing fixes, or even small tech issues, learning to troubleshoot can help you save significant amounts of money over time. While some jobs may require professional help, attempting simple repairs yourself can often extend the life of your items and keep more cash in your pocket.
13. Think Before You Splurge
Instant gratification can be a major obstacle to saving money quickly. Before making a big purchase, give yourself at least three to four days to think it over.
This cooling-off period helps you avoid impulsive decisions driven by the desire for a quick serotonin boost from a new purchase. Taking a step back allows you to evaluate whether the item is truly necessary or just an impulse buy.
For a more stringent test, try implementing a 30-day rule for major purchases. Waiting a full month helps you determine if the item is genuinely worth the investment or if it was simply a fleeting desire.
During this time, you can also research if better deals are available, ensuring you’re getting the best price. By delaying your decision, you’re more likely to make thoughtful, cost-effective purchases rather than giving in to short-term cravings.
14. Buy Your Car at the End of a Financial Quarter
If you’re looking to score a great deal on a car, timing your purchase at the end of a financial quarter is key. According to Buyacar, car dealerships often have sales targets tied to bonuses that are awarded quarterly in March, June, September, and December.
At the end of these periods, dealers are more motivated to close sales and meet their targets, making them more likely to offer discounts, better financing options, or even additional perks to seal the deal.
You can enhance your savings by doing your research beforehand, knowing the market value of the car you want, and being prepared to negotiate.
Also, consider trading in your current car for additional savings or looking into pre-registered or slightly used cars, which can be thousands of pounds cheaper than brand new models. Timing your purchase right and going in with a plan can help you save significantly on your next vehicle purchase.
15. Cut Down on Your Grocery Spending
Reducing your grocery bill is one of the easiest ways to save money over time. Start by planning your meals in advance, so you know exactly what to buy and avoid impulse purchases. This helps prevent food waste and keeps you on budget.
Another effective tip is to go meat-free at least once a week. Meat tends to be more expensive than plant-based alternatives, so incorporating vegetarian meals can lead to substantial savings over time.
Additionally, pay attention to product placement in supermarkets. Cheaper items are often placed on lower shelves, while more expensive brands are at eye level. Take the time to scan all the shelves to find better deals.
Using coupons, buying in bulk, and choosing generic brands over name brands can also help stretch your grocery budget further. Over time, these small adjustments can add up to significant savings without sacrificing quality or variety in your meals.
16. Designate a No-Spend Day Once a Month
A great way to build better financial habits is by designating a “no-spend” day once a month. On this day, aside from essential bills and fixed costs, you won’t spend any money.
Plan meals using ingredients you already have at home, find free activities like going for a walk or spending time with friends at home, and avoid making unnecessary purchases.
Once you’re comfortable with one no-spend day a month, you can gradually increase it to two days a month, or even one day a week.
This simple exercise encourages you to be more mindful about your spending and can significantly increase your savings over time. By sticking to no-spend days, you’ll see how easily small lifestyle changes can add up, helping you reach your financial goals faster without feeling deprived.
17. Sell Your Unused Items
Decluttering your home can be a great way to boost your savings. Start by auditing your possessions and identifying items you no longer use, such as old clothes, electronics, or furniture.
Selling these on platforms like eBay, Facebook Marketplace, or Nextdoor can turn your clutter into cash, giving you an easy way to supplement your savings.
Not only does this help you clear out space, but it also adds to your financial goals, whether you’re saving for a vacation, an emergency fund, or something else.
Set a target for how much you want to raise, and make a plan to list items regularly. You might be surprised at how much extra money you can make from things just sitting around your home. This simple strategy can help you save faster while creating a tidier, more organized space.
18. Cook in Bulk and Freeze Meals
Cooking meals in bulk and freezing them for later is a great way to save both time and money. By making large portions of soups, stews, or casseroles, you can cut down on the cost of ingredients and avoid the temptation to order takeout when you’re too tired to cook.
Plus, buying ingredients in bulk is often cheaper than purchasing small quantities. Once you have several meals prepared and stored, you’ll reduce food waste and ensure you always have a home-cooked meal on hand, saving you money and helping you stick to a budget.
19. Use Cashback Apps and Rewards Programs
Maximize your savings by using cashback apps and signing up for rewards programs. Many apps offer cashback on everyday purchases, such as groceries, clothing, and fuel. Additionally, joining loyalty programs for your favorite stores or credit card rewards programs can provide discounts, exclusive offers, or points that can be redeemed for future purchases.
Over time, these small rewards can add up to significant savings. Make sure to check for available offers before you shop and use these apps regularly to get money back on purchases you were already planning to make.
20. Use Public Transportation or Carpool
Cutting down on transportation costs can lead to substantial savings. If possible, consider using public transportation instead of driving. Buses, trains, and bikes can be much more affordable than paying for fuel, parking, and maintenance for your vehicle.
Alternatively, consider carpooling with coworkers or friends to split the cost of commuting. By reducing the amount you spend on driving, you can redirect those funds into savings or other financial priorities. Plus, using public transport or carpooling helps reduce wear and tear on your car, extending its lifespan and reducing long-term costs.
How to Save Money for Major Goals and Life Events
Having a specific goal in mind can make saving money easier and more motivating. Whether your goal is large, like buying a house, or smaller, like planning a vacation, setting clear targets can help you stay on track. No matter where your savings journey leads, here are some useful tips to save for life’s major events:
- Buying a Car: Saving for a car is usually more manageable than a home down payment. Explore budgeting techniques and consider automating your savings to reach your goal faster.
- Buying a House: Saving for a down payment can seem daunting, but smart strategies, like cutting unnecessary expenses and automating savings, can help you reach your target quicker.
- Getting Married: Weddings can be expensive. Check out our tips on how to budget wisely and manage wedding costs without overspending.
- Having a baby comes with significant expenses. It’s essential to plan ahead and understand the costs to avoid financial surprises.
- Changing Jobs Career transitions can be exciting, but they shouldn’t derail your savings goals. Plan your finances to manage any gaps between jobs effectively.
- Taking a Sabbatical: Planning a sabbatical requires saving in advance. Budget carefully to ensure you can fully enjoy your time off without financial stress.
- Moving Abroad: Relocating to a new country can be costly. Use our guide to minimize expenses and make your international move easier on your finances.
Wherever your savings goals take you, proper planning will help you achieve them faster and with less stress.
