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From healthy eating to taking more exercise, good habits have a long-term benefit.
The same is true of saving. Building a nest egg helps take away money worries, which can boost your mental health and overall wellbeing.
Sometimes the hardest thing is getting started in the first place.
But, just knowing you have some money in reserve means less worrying about day to day cash flow and more enjoyable planning for the future.
Take a look at these simple money saving tips to get started.
How to create a budget
Before you start, you need to work out how much you can afford to save.
Write down your monthly income, including any extras like benefits. Then write down all your monthly spending, including utility bills, loans, subscriptions, memberships, social activities and food and less regular items such as presents, and holidays – the total amount you spend can be divided up between the months of the year. Once you’ve added up everything you spend each month, take the total amount away from your monthly income, and if you’re lucky enough to have any money left over, think about setting up a standing order to put this leftover cash in a savings account.
How to cut spending
Knowing your budget will also help you understand where you can reduce spending, giving you more money to save. Once you’ve created your budget if you find you don’t have any money left over, go through what you spend each month and see if you can cut back – for example, find a cheaper gym membership or TV package, or making your coffee for your daily commute rather than buying it every day. Can you cut bills by switching suppliers? Perhaps you could also cancel subscriptions you’re not using.
Think before you buy as well - if you’re shopping online, leave items in your basket overnight. When you come back to check out in the morning, you may have changed your mind about what you really need.
How to earn extra money in the UK
Could you make money by selling unwanted items or taking on extra work?
Perhaps you could turn your hobby into a side hustle, or you could pledge to save overtime payments. Sell used clothes online for cash, find a new home for clothes you no longer wear and bring in extra cash to top up your savings.
How to save money for something you want
Having something to save for can make saving easier.
Whether you’re saving a deposit for a house, or a smaller sum for a winter coat, knowing where your money is headed can be fantastic motivation.
Once you know why you’re saving and over what kind of term, you can choose a savings account that’s right for you - check out our TSB savings account guide.
You can also set up Saving Pots for ‘holiday’ or ‘winter coat’ with our TSB Spend & Save account or Spend & Save Plus. You can save interest along the way, set yourself goals and track how your savings are growing. TSB Saving Pots are only for TSB Spend & Save account or Spend & Save Plus account holders.
Saving Pots are only for TSB Spend & Save account or Spend & Save Plus account holders. Features must be set up through our Mobile Banking App or Internet Banking. 18+ and UK resident only. T&C’s apply.
How to save money fast
How and when you save is up to you and it makes sense to tailor your plan to your situation.
If you get paid monthly, setting up a standing order could be the best way forward but if your income is less regular you might want to deposit funds as and when they come in.
Round up cards, apps and accounts are just some of the great ways to save little and often.
TSB’s Save the Pennies rounds up purchases on your TSB debit card to the nearest pound and pops the extra in a Savings Pot or any other eligible TSB account you’ve set up - you’ll be surprised how quickly the fund grows. Save the Pennies can be set up from any TSB personal current account - which has a Visa debit card. It rounds up your debit card purchases to the nearest pound and puts the difference into an eligible TSB savings account. If you have a TSB Spend & Save or Spend & Save Plus account, you can also link Save the Pennies to a Savings Pot.
Saving Pots are only for TSB Spend & Save account or Spend & Save Plus account holders. Features must be set up through our Mobile Banking App or Internet Banking. 18+ and UK resident only. T&C’s apply.
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