Extreme money saving tips

[Bonbon27]

What are people's most extreme ways of saving money. Really want to save to get on the property ladder, I do all the obvious like meal plan, no spend days. Trying hard to save, just wondering if anyone has any tips. Would be gratefully received 🙂

[maxelly]

Well I don't know about extreme but in general I would say the best way to save is either to increase your income or reduce your outgoings - obviously both are highly dependent on individual circumstances but increasing your income tends to be most effective, so if you are able to get a promotion or pay rise at work, work overtime or extra shifts or even get a second job or 'side hussle' (urgh hate that phrase but the concept is fine, there are useful threads on the money matters board for things like 'earn £10 a day' doing things like online surveys and market research), if you have a regular 9-5 job doing bar work in the evening or a retail/supermarket shelf stacking type jobs at the weekends is tiring but can be a useful 2nd income stream, even if it's minimum wage if you direct all your earnings straight into savings that can be several hundred pounds a month towards your house deposit.

Also, make sure your money is working for you, so if you are a FTB make sure to use the government ISA schemes for your savings, have you got a credit card that gives cashback (obviously make sure to pay in full), some current accounts give rewards and interest too. Obviously check you are on the cheapest possible rates for utilities, internet, insurances etc and never auto-renew, always shop around for the best deal. If you have a contract phone don't upgrade at the end of the contract, keep the older phone and switch to a sim only deal which can save £30-£40 a month, obviously not much but its still a few hundred a year, every little helps.

On the reduction of outgoings front, while a lot of common 'tips' you read online and in media focus on reducing frivolous spending on things like takeaways and 'treats', I found the most effective thing if you are prepared to make major sacrifices is to look at wherever you spend the most money. For most people that's housing and transport, now obviously if you have 3 children with special needs moving into a cheap room in a house share isn't possible or if you are disabled you might not be able to sell your car and walk to work or get the bus, but the people I know who've been able to save a house deposit without major assistance from family or being very high earners have done it through living very very cheaply for a number of years. E.g. living with parents rent-free or in a very cheap bedsit or house share, no car, cycle/walk or public transport everywhere (car club or car hire can be a good option for the odd occasion where you really need a car), no holidays etc. If you are saving £500 a month say by taking these measures, but to lighten up the grimness you spend £100 a month on a takeaway and getting your nails done, that's still £400 net saved. Compared to just cutting out the takeaway and nails but keeping an expensive car on lease, renting a nice flat and having an annual foreign holiday, where you'd only then save £100 net (sorry I don't know if this applies to you as you don't give any further details, but you get the idea).

[purpledagger]

I agree with the previous poster - it's essentially cutting back on your outgoings whilst increasing your income.

I once knew someone who was saving up to buy a home abroad. They were on minimum wage, so that's no easy feat, but they did it. This person worked 6-7 days a week for years and took every opportunity they had to earn more money. They worked a morning and evening shift in job one, a lunchtime shift in job 2, and a couple of hours over the weekend in job 3. Plus, adhoc seasonal work, whenever it was going. This person took the jobs that no one else wanted to do. They would even take annual leave to take on well paid seasonal work.

[windmill26]

Supermarket points. When money was tight supermarkets points were a lifesaver for gifts and holidays.
Nectar; download the app,every week they send you a list of product with extra points. Once a year they do a points double up ,last year was Oct. or Nov. so you can double up for Christmas gifts.
Tesco; I don't use them very often now but when my child was younger we managed to go to Disneyland Paris (twice) with the points.

[ssd]

Topcashback

[murbblurb]

shop at a supermarket that doesn't give points or loyalty schemes, or home delivery - will be a lot cheaper. Those points aren't for your benefit.

comparison check for energy, broadband and insurance. If your mobile phone costs you more than £6 a month you are wasting money.

there's bugger all interest to be had on savings or current accounts now so forget that.

[windmill26]

" shop at a supermarket that doesn't give points or loyalty schemes, or home delivery - will be a lot cheaper. Those points aren't for your benefit."
I disagree ,you have to play them at their own game.
I mainly use Lidl (they also have an app and if you spend £200 monthly they give you £10 ) and I buy few bits from Sainsburys especially if they give me extra points for something I would buy anyway. It depends which are your closer supermarket etc. Another way to help you save a bit extra is to sign up to a couple of surveys sites,you can do them in the evening while watching some TV.They often pay in Amazon or M&S gift cards which you can use for all different things. Everyone replying to you have different suggestions and methods and it will be up to you to try a few to see what best works for you and your family.

[Guidebutton]

I don't know if it's extreme but I don't buy anything on the spur of the moment. I imagine I need to go and get the cash from the bank like the olden days Usually I either decide I don't want it enough to bother going or by the time I've had a chance to "get the cash" I've forgotten all about my planned purchase. Internet shopping is a lovely convenience, but way to easy if you need to save.

[brokengate]

I agree re supermarket points and really thinking about what you buy. Tesco points have become harder to get value.

Nectar is great just now. Last year every time I needed something I checked the app and partner offers and bought it that way. eBay, Argos all get you points. By Christmas my food and drink were paid for and I had a fair amount left. No big purchases, just using triple offers and bonus offers.

[Tagagzjskva]

I save £800 pcm, as soon as I get paid it goes in. Then I allocate for rent and bills. Anything left over is what I live off.

[Passthecake30]

Put what you think you can afford to save away on payday, and don’t touch it, rather than save what is left at the end of the month.

Write a list of expenses down and for each line, see if you can reduce or remove it, and if not, why not?

[Reinventinganna]

Pay your savings first, treat it as a bill.

[slashlover]

I do online surveys, Moneysaving Expert has a guide. I do them while I'm watching TV and put the money in a separate account. I usually earn £30-£50 per month, although as some only pay out at £50, the most I've had paid out in month is £100. I've made about £650 in 9 months.

[MirandaWestsNewBFF]

You don’t generate that much extra income just by saving unless you’re already wildly overspending in the first place. Nobody ever got rich by scrimping alone.

The best way to generate extra cash is to combine saving money with establishing some extra income streams. Ive been writing and selling freelance articles for years. My husband who is really knowledgeable about comics and collectibles trades on eBay. I tried the surveys but found that it didn’t work for me as an income stream - maybe I just didn’t qualify for enough of them.

[Mintjulia]

An accountant once pointed out to me that when you cut back expenditure, you get to keep all the money. When you earn more, the govt takes 40%.

I've had to cut back hard since furlough. The things I found saved the most were stop buying brands, go meat free two nights a week and turn the heating down two degrees and wear more layers indoors.

[imyournextdoorneighbour]

Our credit card pays us to use it (Barclays reward) we pay it off in full every month and get a couple of hundred quid back every year.
List EVERYTHING you spend money on, ALWAYS get a receipt- you will be shocked at where money goes. Before lockdown we were spending £25 a week on coffee without realising.
Use Too good to go app, and Olio. And join a fb group for how to save money - scrimping on a budget.

[changingnames786]

Extreme is changing jobs or big lifestyle changes like dropping a car or holidays guess? I personally think it's the small lifestyle changes that add up to ongoing good financial health and habits, and make a huge overall difference, just takes a bit of time.

I'm impatient though, so have literally begun applying for jobs the next grade up because I want to afford a cleaner again (upsized last year) and want to go back to Vegas. That's pretty extreme I guess, wish me luck

[user1471523870]

Nothing extreme as going to live in your parent's garage or only eat once a day...but hopefully some useful random tips:

• do a very good review of your finances and budget well taking into consideration your annual expenses. Then put an x amount in your savings immediately after payday.
• Look at your income and expenses one by one and google them if needed. Make sure you are claiming all the tax discounts you can, that your council tax is correct etc. Also question every expense: do you need that insurance or is it perhaps cheaper to get a more expensive bank accounts that includes that insurance for free? Are you with the cheapest energy provider? Can you browse around for the cheaper car insurance? Etc
• I invested in sturdy, ecological but trendy food containers and flasks. I bring my own food, water and sometimes tea/coffee wherever I can. And I feel posh and cool as I can take out this shiny amazing gadget and feel I am treating myself. I developed a habit of never leave home without a snack and some water at least, so if I have a sudden change of plan I never have to stop in a cafe. Of course if it's a planned day out I pack more.
• I meal plan and batch cook for the freezer. That allows me to buy in bulk and save money vs buying smaller amounts. Also, I stock up on certain things if they are on sale and adjust my meal plan accordingly.
• Don't use a car or public transport if you can. Walking or using a bike is also better for you.
• If you have to make a purchase, look around for the cheapest place you can buy. Don't buy on impulse. Check cashback websites at the very least. I keep a wish list on amazon and put every item on camelcamelcamel so I get alerts when it drops to the price I want to pay for it. Of course it doesn't have to be an essential item in need to be bought immediately.
• If you have children buy their clothes/shoes in advance during the season sales. I buy summer t-shirts now at super low prices but for the size my little one will wear next year. I do this all year round. And sometimes for myself too.
• This is a bit more extreme, but if you like exercising you could cancel your gym membership and rely on free youtube videos.
• Use the library
• Use less stuff. I.e. reduce the amount of washing powder you put in your washing machine or cut the bottle of moisturizers in half to get out the last bits before throwing it away.
• Reuse. I never buy nappy sacks or freezer bags etc but I reuse any type of plastic bags I have around the house (bread bags, frozen veg bags, packaging from random items/clothes. Depending of course of what was the original content of it!!).
• Don't waste food unnecessarily. Freeze leftovers.
• Buy presents in the sales, even months earlier if needed. Just requires a bit of planning. Same for cards. When a card shop has good discounts I stock up of different ones and I never have to pay full price in a hurry.

[ememem84]

Use up what you have before buying new. I’m a bit of a beauty product hoarder. I have put a ban on buying new shiny products until I have nothing left of that particular product.

Same with clothes. I don’t need anything new. So unless I break all my 18 pairs of jeans I don’t need a new pair.

But as others have said

Meal plan and shop with a list. Buying only what’s needed.

Sometimes the deals aren’t actually cheaper. I almost got caught on a Mayo deal the other day. Eg buy two and save £1. But it worked out I’d still have less Mayo. So I bought the bigger one.

I also buy things in bulk if I have space to store them if they’re on a good deal.

[ginislife]

Sign up to an app like Chip or Moneybox where they will auto save money based on your bank balance every few days. You can set your target and your aggression level. Mines set quite high and I've saved £8k so far this year and not missed it - and I'm not a particularly high earner.

[bluejelly]

Giving up your car is a good shout. Added benefits: better for you and the environment.

[bluejelly]

Not getting a pet also a great way to save £

[coodawoodashooda]

Don't go into a shop. It takes away temptation.

[Welshiefluff]

If you work in an office and still go in try and charge up your mobile when you are there.

Sell some old clothes on marketplace.

[Animood]

People are giving tips to save small amounts.

Realistically, you need to focus on the things that cost the most. Ie rent and cars.

Want to save a shit load of money? Move to a smaller place in a worse area. Give up one car or all cars. Stay there until you have enough to buy.

Can your kids share a room? Could you move from a house to a flat? It won't be for long! Do you have any generous relatives you could stay with for 6 months?

When you do big things like this, shaving a fiver off the weekly shop becomes irrelevant. Selling your dvds for £1 each becomes irrelevant. And you can eat all the avocado on toast you like.

[samesign]

Apply for better paid jobs if possible, start a side hussle sell products or your services around your existing job.
Cut out luxuries such as buying new clothes, no beauty/nail salon trips.