3 Fun and Easy Ways to Save Even When You’re Broke

It’s always important to have some savings in case of an emergency. There is no real recommended amount as it depends on your outgoings and unique cicumstances. Although it’s wise to save between 3 and 6 months bill money.

As we emerge slowly from the pandemic the cost of living is set to rise making saving money even harder, but not impossible. Here are 3 fun and easy ways to challenge yourself to save a little money even when your income is limited.

3 Fun and Easy Ways to Save...

1. Pence Balance Transfers

I have a few accounts that I like to keep a close eye on. At least once a week I transfer the pence from each of these accounts to a savings account. I like to keep at least £25 minimum in this savings account. At the very end of the month, anything extra (on top of the £25) gets invested into an Individual Savings Account (ISA).

For example:

• If there was £653.67 in the account  transfer 67p to savings.
• £6.08 in an account, then transfer that 08p to savings.
• Have just £2.01 - Save that penny!

Some banks have this as an additional option you can set up on your account, for example, every time you spend on your card they will round up the change and automatically put it into your savings account. This can be a great way to save money, with little effort.

For me, this method of saving is one of my favourites! Along with what ever I spend on my card getting rounded up I can save anywhere between £25 - £60 per month!

2. The Compounding Effect (The +1 Weekly Challenge)

A popular saving challenge currently doing the rounds on social media is the +1-weekly challenge. This challenge lasts for 52 weeks and is based on compound effect, which sees consistency as the ultimate key to wealth and success in life. The strategy is reaping the fruits from consistent smaller actions.

Small Actions + Consistent Practice + Over Time = Significant results.

For example:

• In week 1, you’ll save just £1 a week - this can be in a money box or a savings account.
• Week 2 you will save £2.
• Week 52 you will put away £52
• If you successfully complete this challenge you could end up with a whopping £1,378 in your savings account. If you can afford to try this challenge for £2, and grow your savings by £2,756 in a 52-week period!

This approach is a good way to build an emergency fund, this is something that is unique to you and will depend on your outgoings (bills). It is always a good idea to have at least 3-6 months’ worth of bill money in your accounts.

The Change Challenge

If you still pay by cash then every time you spend and receive some pound coins back, save them. This challenge could also be done with £2. Always check the back of £2.00, I’ve been lucky enough to find some rare designs that have fetched between £25-£60 on eBay!

For example:

Buy something for £8, pay with a tenner, and pop the two into a piggy bank rather than on a packet of sweets, where the only compounding effect ther would be the waste line or on a scratch card.

Again this is money you wouldn’t have had so invest this back into your savings. Since the Pandemic, I rarely pay cash these days, but this is still a good little challenge to think about it.

In Summary: Savings Challenge

You could try just one of these challenges or mix it up a little. Don't worry if you miss a week. The goal here is to start to change your saving habits to build a more consistant routine that will reap you the rewards in the longer term. Remember every penny saved is progress. Look after those pennies and the pounds they become will look after themselves! Good luck.

© Trisha Dunbar

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