A savings strategy approved by Barclays could help people to ‘save money quickly’. While savvy customers may try out various techniques to grow their savings, one straightforward approach is the £5 challenge.
Better still, unlike some challenges, there’s no specific start date required. It could be ideal for customers wanting some extra cash ahead of the summer holidays. The savings challenge was highlighted by Barclays on its website. It’s one of 10 ideas the bank featured in a post titled: “How to save money quickly. 10 fast ways to build your savings.”
In the blog, Barclays said: “Cutting back on a few non-essential items could be a quick way to help you save a little more each month.” The £5 method challenges participants to save £5 each time they make a purchase over £20. The bank explained: “Try setting aside £5 for your savings every time you buy something that costs more than £20.
“This might seem a bit challenging, but finding that extra fiver is a good way to get into the habit of making sensible savings. For example, you could buy a slightly cheaper alternative, opt for a cheaper delivery option when buying online or cut back on something else that day to complete your challenge for that purchase.”
The bank pointed out that customers could also make a ‘sacrifice’ by cutting back on one luxury. The blog said: “Got an expensive mobile phone contract?
“When it expires, downgrade to a cheaper pay-as-you-go alternative with a modest handset. Try taking a packed lunch to work or uni, jumping on to a bus instead of hailing a cab or trading in your premium gym membership for something more basic.”
Alternatively, customers may wish to raise some extra money by selling items they no longer use, such as books, clothing, DVDs and games. Barclays said: “Search online for apps that let you scan in barcodes to get an instant price – some companies even give you pre-paid postage labels for sending in your unwanted stuff.”
The advice said that auction and marketplace websites could be particularly helpful for sellers. Customers could also look elsewhere for more inspiration, reports Birmingham Live.
Several banks share ideas for money challenges on their websites. For instance, another idea from NatWest challenges customers to look for services they can cancel. The bank says: “Take a moment to go through your current outgoings and see if there’s anything you’re paying for but no longer use or need.
“If you find something, like a subscription or a service, cancel it. Then, move that money into your savings instead. Imagine you’ve got a subscription that’s £9.99 a month you don’t need anymore. Switching the payment to go to your savings could bump your savings by £199.88 a year!”