Whether you want to save money fast for a house or you are trying to build up an emergency fund, fast savings might require some sacrifices. And if you want to get your numbers up quickly, you should be ready to focus your attention and efforts on a few key things.
Follow these four tips to save money fast.
1. Figure out where your money goes
There’s no magic trick for how to save money fast. Instead, you should be prepared to do some hard work. If you don’t have a budget yet, sit down and write down your fixed monthly expenses. These include rent or mortgage, bills, utilities and things like transportation costs. Add these up and subtract them from your income. If the result says you should have £500 left in your bank account every month but you only have £50, you need to figure out where the difference is going.
Chances are you’re overspending somewhere – whether that means groceries, fun shopping or socialising. To get an idea of how much you’re spending in these variable areas, write down everything you spend your money on for a week or two. Then see how your numbers compare.
For example, according to independent consumer research site NimbleFins, the average UK household spends £62 a week on food to eat at home and £30 eating out. If you need to save money fast, eliminate the money spent on take aways and coffee on the go, then try to reduce your cost of eating at home.
2. Stop all extras
The easiest way to save money fast is to reduce your spending to the minimum. This means no eating out, no drinks with friends, no unnecessary shopping. This might sound extreme, but look at it as a temporary pause, not a ban. You only need to do this for a month or two to see significant growth in your savings.
If any membership is coming up for renewal, take a break. Go for a run or exercise at home instead of extending your gym membership. Cancel any subscriptions, including streaming movies or food delivery. You can always restart subscriptions once you meet your goal.
3. Downgrade your services
Some services, such as your car insurance bill or your mobile plan, can’t be cancelled. But you can call your service provider to see what your options are. If you have a good driving record, you might be able to get a car insurance discount. Or maybe you can switch to a cheaper phone plan if you don’t need all the features you currently have.
It doesn’t cost more than a few minutes to try and the savings could be significant.
4. Find ways to make some money
That mountain bike you haven’t used in two years? It’s time to sell it. The same is true for old jewellery, items your kids (or pets) have outgrown, and anything duplicate you own. Used electronics, furniture, camping supplies and sports equipment all sell well too. Facebook Marketplace is a good place to start selling, or you can try posting on local buy/sell/trade groups.
Another easy way to make quick cash and save money fast is to find little side gigs. If you’re crafty, look into selling things on Etsy. Or try babysitting, walking dogs or looking for virtual assistant work. Any money you make can go straight into your savings.
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