I’m a money expert – here’s how you could save £5,000 by the end of the year

5 Feb, 2024

Andy Wood, a finance expert from Tax Natives has revealed his top tips that could save you up to £5,000 by the end of 2024.

 

The Envelope Challenge

“Try the ‘Envelope Challenge’ for a simple saving technique. Label 100 envelopes with numbers from 1 to 100. Each week, randomly pick an envelope and save the amount written on it. It’s an engaging way to potentially save up to £5050 by the end of the year.”

 

The 1p Challenge

“The 1p Challenge is perfect for those who prefer gradual saving. Start by saving just 1 penny on the first day, and increase your saving by 1 penny each subsequent day.

“By the year’s end, you’ll have saved around £650.”

 

Cash Only Spending

“Go old-school with your spending. By only using cash for your weekly expenses, you physically see your expenditure, reducing the likelihood of impulsive purchases. This method also makes it easier to save any leftover change at the end of the week.”

 

Linking Savings to Bad Habits

“Combine saving money with kicking a bad habit. For instance, each time you resist a cigarette, if you’re trying to quit smoking, put that money into a jar. It’s a win-win strategy”

 

No-Spend Weekends:

“Implement ‘No-Spend Weekends’ where you only participate in free activities. This can significantly reduce your monthly expenses, and it encourages creativity in how you spend your leisure time.”

 

Shopping Hacks:

“Be vigilant with your shopping. Check your receipts for any discounts or multibuy savings and immediately transfer these savings to your account. Also, consider purchasing discounted and ‘wonky’ items to reduce grocery bills,” advises Andy Wood.

Being Open About Saving Goals:

Andy Wood emphasises the importance of community in saving, “Talk about your savings goals with friends and family. It creates a support network that can keep you accountable and motivated in your financial journey.”