SAVING money is one of the most popular New Year’s resolutions – but less than a third of us stick to our promises, research has found.
One easy way to do it is to set up a standing order for a fixed amount of cash to go to a savings account – but you don’t always know how much you’ll have left each month.
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Other popular challenges involve putting away 1p on January 1 and then an extra penny a day all year – so by the end you would have £667.95.
Doing it all year can be fiddly and tedious though.
Here we look at the savings hacks that really will make a difference in 2024.
DRY JANUARY
BEST FOR…. partygoers and takeaway fans
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“Dry January” type savings challenges mean you only spend on essentials, such as bills, groceries and basic toiletries, and cut out luxuries like coffees, snacks, takeaways and streaming services like Disney Plus.
Official figures show takeaways like pizza, curries and fish and chips cost around £9 on average – which adds up to at least £36 a month if you have one a week.
A medium latte from Costa Coffee is £3.95, so even a weekly coffee can add up to £15.80 a month.
Cutting these out doesn’t have to be all doom and gloom.
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Take the opportunity to cook some new recipes and check out the library for free films and books, which you can even borrow on your phone using apps like Libby or BorrowBox.
If it sounds too ambitious, only do the challenge two days a week, or just on weekdays, adapting it to your own lifestyle.
That way you can carry on through the year.
It’s a great opportunity to review your spending habits and check your bank account to see what debits and subscriptions are coming out.
SAVINGS: £36+
ROUND-UPS
BEST FOR…. debit card payers
Many banks now offer a service where they round up debit card purchases to the nearest £1 and add the difference to a savings account.
For example, if you were to spend £5.75 on your lunch, £6 would be taken from your current account and 25p added to your nest egg.
It won’t make too much of a dent in your bank balance, but the pennies quickly add up.
Saving 20p a day for a year would mean you have £73 saved away.
Teacher Jacqueline Poutney, 29, from Newcastle, managed to save £990 using the round-ups feature on the Plum smart money app.
She said: “You don’t really feel it that much but once that [saving] balance tops up you don’t want to spend it.”
If you’re not sure how to set this up, ask your bank.
SAVINGS: £73
COIN-SAVING
BEST FOR… cash lovers
If you typically pay for your shopping in cash, putting all or some of your change into a piggy bank is a great way to save without noticing the difference.
Nathan Walters, from MyVoucherCodes, said: “Essentially, all you need to do is round up your change from purchases and save it.
“For example, suppose you go to the store and spend £1.78, you’d take the 22p change and put it in a jar, not to be touched.
“You’d be surprised how much adds up in the background without much effort or notice on your part.
“If you saved 25p – the price of a Freddo bar – in coins every day you would have a whopping £91.25 by the end of the year.
“That’s a cheap weekend holiday to Spain just by saving spare change.”
Pete Ridley, of carfinancesaver.co.uk, recommends emptying your wallet or purse as part of your daily routine, or as part of a Sunday “reset” for the week ahead.
“It’s a small action that can quickly add up”, he added.
SAVINGS: £91.25
OVERPAYING YOUR MORTGAGE
BEST FOR… homeowners
Paying extra into your mortgage can shave off months, if not years, of added interest charges.
Figures from Halifax show someone on a 25-year repayment term on an average £241,073 loan, fixed at 5.2%, would save £14,444 in interest if they overpaid an extra £50 a month.
Even small amounts count. Someone who overpaid an extra £10 per month from the start would save £3,091.
Before you spring to action, check with your lender if you’ll be hit with any early repayment fees.
Typically borrowers can overpay by 10% each year before being stung with extra charges.
SAVINGS: £3,000+
NAUGHTY RULE
BEST FOR… compulsive shoppers
This challenge aims to stop you from impulse buying by adding an extra charge onto frivolous purchases.
The Plum banking app allows you to choose a retailer or service that you deem to be “naughty” to use, like Greggs, Costa or McDonald’s.
Then whenever you buy from them, you’ll pay a set amount – either £1, £2, £5 or £10 – into a savings account.
So three trips to McDonald’s a month would mean you save £36 or more over the year.
A Plum spokesperson said: “Knowing that extra will leave your account either acts as a deterrent to shopping in the first place, or alternatively builds up your savings while you are spending.”
If you don’t have Plum you can just transfer the cash yourself.
Another version of this challenge is to “fine” yourself whenever you fail to hit a personal target, like go to the gym twice a week or have a cigarette when you’re trying to quit.
The idea is that you get fed up with paying out and stop your bad habits, or if not at least you’ve got some cash stashed away.
SAVINGS: £36+
Where to keep your savings
Make sure the money you save earns the best possible interest.
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Check comparison site Moneyfacts.co.uk regularly for the top-paying accounts.
Currently, the best rate for easy access is Santander’s Edge Saver, at 7%, but the rate only applies to balances up to £4,000.
