How To Save Money On A Budget: From The Latest Apps To Saving Goals

For years I thought saving money was something rich people did. The reality is that if you wait until you have ‘spare’ money you won’t ever save because it rarely happens by accident. I’ve found the harder it is to access my savings the less likely I am to spend them. As a result, I use the app Moneybox to invest. It rounds up everyday purchases to the nearest pound and sets aside the spare change into a savings account.

The other thing I found helpful is accepting that when saving money, sometimes you just have to be the boring one who suggests having pasta on the couch instead of eating out at a restaurant. I know it sounds obvious but the rewards and the peace of mind that comes from having a small financial back up (even enough to cover a friend's birthday dinner) is worth it.

BUY 'OPEN UP'

The easiest time to save is when you’ve just been paid because what you don’t see, you won’t miss. I advise setting up a standing order to move money into a savings account as soon as your salary has landed into your direct debit account.

You should also look at your monthly spending to spot the areas where you could make savings. For example, rather than buying a coffee on your way into work every day, make it a treat once a week and take a flask from home. You’ll probably save at least £10 a week, which is £40 a month and more than £400 over the course of a year. Cutting back on the small things you buy can really boost your savings.

Individual gym classes can also add up to a huge amount, but that doesn’t mean you have to choose between keeping you or your finances in shape. Mix up your routine with free activities, like a local running club, and watch your savings go from strength to strength.

I've set up my direct debits so that my rent and gym membership come out as soon as possible after pay day. As a result, it means I start off the month afresh and have a better understanding about what 'extra' funds I have that month to spend.

When I'm really low on money, I take out a lump sum in cash on a Sunday night and vow to only spend that amount the following week. It helps keep track on how much I'm actually spending and avoids the habit of using contactless on everything.

I also order a pint of water with every drink I have in a pub or club to prevent me going up to the bar every time I'm thirsty.

When it comes to socialising with my friends (who are also struggling to save), we often choose to have dinner at someone's house and each bring an element of the meal with us, whether it's a bottle of wine, bread or dessert. It helps to be open about your finances with friends so you (and they) don't have unrealistic expectations of what you can afford.

If you promised yourself at the start of this year that you were going to put aside a set amount each month into savings but didn’t quite manage it, then try this nifty trick. It starts with just £1... but will leave you with £1,378 in 12 months.

Start by putting £1 into savings in week one, then £2 in week two, £3 at week three, and so on. Every week will see an increase of £1. By the end of a 12-month period, you will have saved £1,378.

You can even make it daily challenge with 1p, where you save 1p on day one, 2p on day two etc. By the end of 12 months, you will have saved £671.61.

Just make sure you keep the money in a dedicated bank account and, preferably, one earning some interest.

Sometimes, the old ways are the best. There are a number of apps that take their cue from the old-fashioned practice of saving money by putting it away in jamjars. Using Goodbudget, Mvelopes and Savings Goals can be an effective way of squirrelling away cash.

Link apps like Plum to your current account which automatically works out how much you can afford to put away each month without it having a massive impact on your life.

Starling’s in-app feature Round Ups can also help you effortlessly save money. The feature allows you to round up transactions to the nearest pound and add these pennies to a Goal of your choice. For example, if you spend £2.30 on a sandwich, 70p could be added to your Goal for a holiday. You can also multiply your Round Up by two, five or ten times if you want to increase what you save when you spend.

BUY 'MONEY REVOLUTION'

We have a 'money in, money out' rule at the moment in our house. We're not allowed to pay for anything but essentials with our salaries which covers all the usual things like rent, food, bills, but also includes necessary expenses like a new vacuum cleaner.

But if we want to spend frivolously, we have to sell something on eBay first. For example, it could be old designer shoes that have been sitting in the cupboard or a piece of design equipment that my husband hasn't used for a while. Only the money from an eBay sale can be the 'treat yo self' cash, for new clothes, fancy dinners etc.

Factor in other people’s occasions into your budget. A friend or family’s birthday happens every year and most celebrations, for example weddings, give us more than enough time to prepare.

Every month, look at your calendar and communicate with your loved ones. Do they plan to celebrate their big day? If so, how much will that celebration cost? You can have fun with your money as long as you plan for it in advance.

Get ahead of your money by thinking how your favourite times coincide with your bank balance. Life is not dull and your budget doesn’t have to be either. Everybody needs a fun fund!

As an impulse shopper at heart I've managed to save some money by giving up quick fashion fixes. I've unsubscribed from retail mailing lists and unfollowed certain accounts on Instagram to take away the temptation of giving in to those no-thought online purchases. By completely going 'cold turkey' on shopping at designer retailers, however, comes the need to spend occasionally.

To combat big splurges, I allow myself to shop fairly freely on resale platforms like Depop and eBay. This keeps spending down as much as possible and supports the circular and sustainable fashion economy.

The key to saving money is making it hassle free and even fun. Fortunately, technology has made that easier than ever.

Look for apps and tools that make it effortless. For example, link your account to apps like IFTTT, which helps to set savings challenges meaning that you won’t tend to notice when money is being stashed away.

Most importantly, make sure you keep your savings separate to your main account so you don’t get tempted to spend on that ‘must have’ near the end of the month.

I think there's a fallacy that in our thirties, we'll have everything figured out when it comes to our finances (have a pension, savings pot etc ) but for a lot of people, we are all still living day to day.

I don't have savings but my husband and I are renovating our house so we scrape together money by selling old laptops and video equipment we don't use anymore for work, even some clothes that no longer fit have brought in quite a lot of money on eBay.

I like to let the money made build up in a separate account so it feels like a bigger chunk when you release it.

I maximise regular savings accounts – where you can save a set sum each month – as they offer the best interest rates.

I also have to set myself some rules. For example, I have a 24-hour 'cooling off' period for anything in my online shopping basket. It means that I can only buy things I still want when I've slept on it. I find, more often than not, I end up not wanting the items the next day so don't spend the money.

I’ve also just discovered a great new app, Airtime Rewards which allows you to earn money off your mobile phone bill when you spend in places like Waitrose and Boots.

BUY 'MONEY: A USER'S GUIDE'

I have a really cool spreadsheet where I track my spending.

At the beginning of each month (on payday), I transfer spending money into my Monzo account, then transfer it into 'pots' so I can save for specific things like Christmas presents and holidays. I know how much I need, can afford to spend and what I need to save because of all the tracking.

My top tip? Keep a note of everything you spend.

Clothes are my weakness so I have a 'one in, one out' policy. If I don’t want something enough to merit chucking out something I already own, then I don’t buy it. It’s an excellent way of both limiting my spend and keeping my wardrobe at a manageable size.

It’s not always easy though, especially when it comes to jeans, which I would wear everyday if I could – I’m emotionally attached to each pair I own.

I spent weeks finding the perfect new pair recently (Levi’s Ribcage in Indigo by the way) which finally meant saying goodbye to my old 501s which were in tatters. They’ve gone to a good home though as my boyfriend, a tailor, will use them to patch up old pairs in his studio.

Usually, if I put money aside, I can’t stop myself transferring it back at my every whim, but with the app Chip I don’t have to think about it at all.

Chip uses AI-powered algorithms which calculate how much you can afford to save without impacting on your day-to-day life and it takes the money out of your current account automatically every few days and puts it in your Chip account.

Don’t let that loss of control scare you, though, as you can withdraw the saved money instantly and cancel, pause or decrease the transactions before they go ahead.

The money in your Chip account is effectively with the Barclays bank (so you know it’s safe), under your own name and there’s passport and billing address checks before you sign up so you know it's legit.

You can even make money out of it - for each friend that signs up with your promo code 0.5% interest is added to the account. It’s definitely the most hassle-free saving I’ve ever managed.