Money saving techniques

The best method to save money is one that’s achievable for you.

That means saving an amount that’s affordable, so first you need to work out your monthly income and outgoings. Then work out what you can comfortably put away each month, while still leaving money for fun things like cinema trips and pizza nights.

There are lots of good money saving techniques out there, from budgeting rules to saving challenges. We’ve listed a few to get you thinking about different ways you can save. But remember, the best method is one you can stick to.

The 50/30/20 rule is a simple way to budget each month and ultimately can help you save. For example, say you get paid £1,000 each month, following the 50/30/20 rule would mean you’d spend: 

• 50% (£500) on needs, such as rent and bills
• 30% (£300) on wants, such as socialising and new clothes
• 20% (£200) on savings.

The 50/30/20 rule can be flexible to your individual circumstances.

To apply it to your finances, you first need to work out what percentage of your income you’re spending on wants, needs and savings each month. To do that:

1. divide the amount you spend on needs each month by your monthly income eg £500 ÷ £1,000 = 0.5
2. then multiple that number by 100 eg 0.5 × 100 = 50%
3. now repeat it for your wants and savings spending.

If 50/30/20 doesn’t work with your sums, your savings rule might look something more like 60/30/10 or 70/20/10. Whichever way you cut it, it’s a good rule of thumb to follow.

Setting up a standing order to your savings account for the same amount each month could also help you stick to your savings goal.

Need a savings account to get you started? Our Regular Saver Account rewards you for not touching your money – ideal if you have a savings goal and don’t need immediate access to your cash. 

Our Regular Saver Account is available to first direct 1st Account customers via our App and Online Banking. Withdrawal restrictions, eligibility and T&Cs apply.

We all enjoy a little treat from time to time. But next time you have the urge to splurge, pause and ask yourself: ‘Do I really need it?’.

If the answer is no, then pop that money you were going to spend into your savings account. Continue doing this throughout the year and you might be surprised by how much you have saved at the end.

Our Savings Account is an option for everyday savers. You can put away whatever you have, whenever you have it, without limits or restrictions.

Our Savings Account is available to first direct 1st Account customers, T&Cs apply.

Setting yourself a 12 months saving challenge is just one of many methods to save money that have become popular in recent years. This one involves you multiplying the month number by £10 and saving that amount in your savings account.

For example, you’d save £10 in January, £20 in February, £30 in March. All the way up to £120 in December, giving you a total of £780 at the end of the 12 months.

Our Bonus Savings Account pays a higher rate of interest for each calendar month you don’t make a withdrawal. 

Our Bonus Savings Account is available to first direct 1st Account customers. Eligibility and T&Cs apply.

These are just a few of the ways you can save money each month – and just a few of our savings accounts that can help you stay on track. 

Take a look at our full range and kickstart your savings goal today.