What are your best squirrelling money away techniques?

[YourCalmRoseCat]

It’s a new financial year and I want to try and get better at saving. What little tricks and systems do you use to quietly build up savings? Not so much strict budgeting but things like moving money out of sight, automatic transfers, any little habits that make saving easier. Basically anything that helps you save without overthinking it?

We’ve got set savings per month and have ‘save the change’ set up on our bank. That rounds up the card payments each day and transfers it to our savings account. Then if we have anything left that also gets cleared into savings on payday.

I put a small amount straight into my own account as that’s my monthly money. I don’t have much. Some months I take some out as cash, buy bits of clothes I need and so on. I don’t buy things unless I need them. The rest I have left I put in a rainy day savings account and a higher interest account. The cash goes in an envelope in the house so I have it when I need it.

what’s remaining after dd’s, mortgage and cc (never paid interest on it cleared every month) then gets divided off into separate savings accounts. one for council tax one for bills, one for car, one for pets and so on. I also usually withdraw cash as well as I try to spend cash whenever possible to stop me buying things we don’t need. Cash gets divided between my purse and a safe place, safe place amount only gets used in an absolute emergency. this month was used for an emergency vet visit previously a car repair so it’s there if we need it.

I do not like not having cash so always make sure I have some. Over the years We’ve had months where a bank has gone down and rent was due or a card was declined due to a fraudulent transaction so the cash is there if we need it.

I’ve worked really hard over the years to save little bits here and there and it’s really improved my life. I’ve been able to make overpayments on the mortgage some years, buy a big item we need without having to dip into this months wages.

as you can tell I’ve lived in the past with zero savings or ability to save so it feels like a luxury to have little savings accounts with money put by for when we need it.

Like a PP I put extra in to my pension, including any bonuses.

On payday I put money in premium bonds for me and DCs and a LISA. Any money left at the end of the month gets saved.

DC are lucky and get lots of gifts from family at Christmas and birthdays, so any money they are given we save for them - do it- by the time they’re 18 they’ll have thousands and it’ll make a huge difference for Uni/house buying etc.

I do:

Round up x 3 on my Natwest spends

Monzo 1p a day thing

Vinted - money goes into a locked pot in Monzo. It'll pay for a trip away this year

Weirdly I don't want to save every penny. My parents did this and have spent years scrimping needlessly..they now have loads of money but won't spend it. Miserable

Regular saver accounts. Lloyds does a £400 /month at 6.25% interest, FD £300/month @7% interest. I do this every year. In 12 months I have £4800 in Lloyds and £3600 in FD, before the interest is paid. I normally bung the lot in an ISA.
I earn this money by doing extra shifts, btw. It’s my yearly challenge.

Two current accounts: salary paid into one, which has direct debits for bills and savings, and a direct debit to the second current account which is spending money. Reduces the temptation to spend to the limit of what's in the main current account. Maintain a buffer in the first account with the accumulation of unspent money, and any excess move to a savings account.

Have an easy access savings account that pays interest monthly - seeing the interest increase in response to putting more money into the account is a good incentive to maintain the savings and makes you reluctant to spend it.

I divert all “free” money directly into a savings account. So discounts, cashback, reward scheme points redeemed, personal stuff sold, etc etc. No council tax months I transfer that money in too. I pay for everything with a cashback credit card and that money goes into the savings account too. I pay for energy quarterly on receipt of bill, but pay a consistent amount into a pot monthly to cover it - then withdraw the excess every year and pay it into the savings. When we paid off our debts, we diverted that repayment money into savings. Ditto our mortgage payment. A saving is only a saving if you actually save it. But the best part of saving is making a plan of what to do it - fun goals, sensible goals, short term and long term.

This!
I shift a chunk across to savings as soon as I get paid. More than I expect to actually save so I can get the extra (tiny) bit of interest.
I'll scooch some back to my current account if I'm short at the end of the month, but only the amount I'm short by.
Usually end up saving a decent amount because if you don't see it, you don't spend it.

Weirdly I don't want to save every penny. My parents did this and have spent years scrimping needlessly..they now have loads of money but won't spend it. Miserable

Yes, you can get into the mindset of accumulating savings and then not wanting to spend any of it. I have one savings account to set aside money for guilt-free spending, otherwise it would end up in long-term savings and I wouldn't want to spend it.

Money goes into an ISA on payday.
Anything spare goes into premium bonds at the end of month.
My current account has a “round up” function. I accumulate my roundings up for holiday spending.

I'm awful at saving, so for ages I would ask to be put on emergency tax so I'd get a lump sum at the end of the year
Now I'm on a better wage, have been saving into set term savings accounts (interest rate drops if you withdraw any) and the other one is overpaying council tax each month. Appreciate this isn't for everyone but I view it as having it paid off/mostly paid off by December which gives me that extra bit at Christmas.
Oh and shoving a bit into premium bonds

Also doing all this on payday. Means rest of the month might be tricky at times but better than spunking it instead.

Monthly salaries go into a joint account where the direct debits come out from. Then we pay ourselves a weekly amount on a Wednesday to a different account which is what we have to live on (food/fuel/going out). Then if we've splurged a bit - we only have to hang on for a day or 2 til its Wednesday again. Its surprisingly effective at stopping us (me!) merrily spending away , then being skint for a week at the end of yhe month.

Pension comes directly out of pay and I pay into AVCs as well to minimise tax. My net pay gets transferred into one account and then split into a mortgage/bills account (I overpay the mortgage each month), into a savings account and food/ everyday expenses account. I do the Monzo 1 p thing. I have a spreadsheet with all expenses and savings that gets updated every couple of months.

I transfer money to savings when I’m paid and try not to touch it. Otherwise I just keep an eye on prices, particularly food and shop around for good deals.
Using cash definitely means I spend less as I’m more mindful of handing it over.

What banking app is this?? This is how I do things but means I have loads of different accounts and it's all gotten a bit complicated as life got more complex. Was far simpler as a 20 something mortgage and child free singleton 😂

I read something recently that may help with motivation. It was just to save for the sake of saving even if it’s tiny amounts. By doing so you are hedging against uncertainty and the financial curveballs that life will inevitably throw at you. It’s quite an empowering idea I think.

Starling have introduced something where, say you have £10.57 in your account they take the 57p and put it into your savings account A good way of building up savings.
Not sure if other banks do the same.

I use 0% credit cards and then put money in savings accounts. However, you must be organised and not miss paying it all off when the 0% period ends, or it negates any gain.

When I was working I was always pretty disciplined about putting money away at the beginning of the month and living on what remained (with any surplus at the end of the month also being put away).

A really useful tool was joining share purchase schemes at work (if available in your industry), the money being automatically deducted so you never even got to see it. After a few "dry" years, you then get a maturing scheme every year with the option to either take your money or buy shares at an advantageous rate.

I have standing orders set up from my main account to transfer into various pots the day after I am paid. Amounts reassessed as required.

Anything in the ‘holiday’ pot is the first to be used in the event of unexpected bills or expenditure.

Airtime app gives money off phone bill via normal spending.

Any Purchases made through Quidco where possible. Filling basket then waiting to see if I still want the items a day or two later. Usually not.

Any bonus into pension.

Great advice on this thread.

On the flip side, I sell a lot on Vinted and put that money in my holiday savings. I got over £2k in my first year of Vinting. All the little amounts really add up.

I calculate myself a daily spend and pay all my bills on the first of the month. I then transfer all money left over into savings at the start of the month- not what’s left at the end.

if I am out and make a “good” decision, like not to buy a coffee that day I transfer that £3.50 straight into savings so I am not tempted to spend it later in the month. That way a good choice isn’t lost.

on day 28 whatever is in my savings account is then sent to my isa or if later in the year a fixed term savings account so it is locked away and safe from future spending.

I'm a huge fan of looking after the pennies. A habit of not bying things you're not actually that bothered about because it's only £3, really makes a difference over time. Also the difference between the branded and un branded mayo or whatever.

Also the mantra it's only a bargain if you were going to buy it anyway. £10 shoes still cost you £10, even if they're reduced from £90. If you'd have bought them at £90, you've got a good deal. If not, you've spent £10 unnecessarily.

How does that work? I assume these contributions are not matched by your employer if they are not part of your salary?

I don't understand as all my friends who are retiring seem to talk about taking the lump sum and getting their money out of their pension to invest elsewhere?

What happens to the pension savings after you die? Does the pension company keep them or does it become part of your estate?

So many questions!

I don’t have separate bank account pots (because they didn’t exist when we started out) but I have a spreadsheet that shows how the money in an easy access savings account is divided up:

House (washing machine servicing etc)
Holidays
Kids (originally for shoes and school uniform, now school trips!)
Cars