How To Save Money: 11 Ways To Make Your Money Go Further

We get it, money is tight right now. For many of us, due to rising costs and smaller pay rises, we have no choice but to tighten the purse strings and try our best to lower spending to keep our heads above water. It also means we need to come up with new ways to ensure our money goes further so we still have the opportunity to have a little bit of fun.

Some of the biggest price increases over the last few years relate to food, fuel, energy bills, mortgages and rent, public transport and childcare. Many of these are must-haves for a lot of people, which is why it stings that we’re now having to pay more for them than ever.

But it’s not all doom and gloom. There are still plenty of ways to save money so you can continue with the must-haves and the nice-to-haves, and maybe even save some pennies for later while you’re at it. 

In this guide, Savoo’s team of budget-conscious experts will offer you plenty of cost-cutting tips to help you save money. Below, we’re going to cover…

1. The common challenges people face when saving money
2. How to create a budget
3. How to cut the cost of expenses
4. How to save money on food
5. How to save money on fuel
6. How to save money on energy bills
7. How to save money on your mortgage
8. How to save money on public transport
9. How to save money on childcare
10. Prioritising spending needs vs wants
11. Saving techniques and hacks

The common challenges people face when saving money

We all aspire to save a little money. The trouble is, life often has a habit of getting in the way. You may do a great job of cutting down on takeaways and slashing your streaming subscriptions in half, but suddenly the boiler breaks down or your car needs new tyres and those savings go poof.

You're not alone in this. Small changes can go a long way, but one of the biggest challenges is reducing those expensive recurring monthly costs. Data from the Office of National Statistics (ONS) found that almost half of adults (47%) found it difficult to afford their gas and electricity bills. Worryingly, 6% said they're behind on these bill payments.

Charity Action for Children also found that one in five homes with children were classed as being in serious financial difficulty.

Here are just some of the challenges people face when trying to save money:

• Increasing cost of living expenses
• Debt repayment
• Uncertainties around budgeting and financial planning
• Impulse buying
• Unexpected expenses and emergencies
• Lack of savings goals
• Other economic factors, such as inflation and interest rates

A common go-to solution for paying off debts is using a credit card. The ONS data revealed that in early 2023, 22% of adults had to rely on their credit cards, compared to 17% just one year before. Of course, most credit cards are notorious for having high levels of interest, which can unfortunately make saving money even more difficult as people take on more debt to clear debts. The ONS also found that 49% of adults reported high anxiety due to being behind on bill payments.

When feeling financial pressure, it can be tempting to give yourself a hit of dopamine to ease some of the tensions by treating yourself to something. But, there are ways to do this that don’t have to impact your finances as much. For example, rather than spending money on a spa day, you could have a spa day at home and save money on spa products using discount codes at Superdrug.

But this is just one example. We've put together many more ways for you to budget and save money below.

How to create a budget

Budgeting is hard and takes time. But, it’s a necessary evil. With ineffective financial planning, money worries can get worse, so you must do what you can to keep on top of it.

It's time to crack out the budget planners (we've even created a downloadable one for you just below). If you do that, and make a few cuts here and there, it can do wonders for your finances. That is, only if you have the willpower to stick to it – but if you do, you can make positive changes to your finances and ease some of that financial stress.

Alex Fiske, who bought his first home last year shares how a budgeting planner has helped his financial well-being;

“As soon as my partner and I knew we were buying our first home, our immediate thought turned straight to money - which I guess makes sense, right? We knew writing down our monthly income, outgoings, and all spending in between would only benefit both our headspace but also financial stability.

“Having a planner is such a simple solution to really understanding your finances and builds your confidence in managing money. It can feel daunting, but it’s also easy to set up with budget templates already made and takes only a few minutes to update each week!”

There are several different budgeting strategies that might work for you, or they might not – it could be a little bit of trial and error as it depends on your unique circumstances.

Here are four commonly used budgeting methods:

1. Zero-based budget– make sure every last penny of your monthly earnings is allocated to something. Whether it’s bills, savings, entertainment or something else.
2. Envelope budget– Other than bills that require electronic payments, take cash out and put it in specific envelopes that mean they’re allocated to different things, like cinema trips or meals out. Then, once the envelope is empty you can’t top it up until the next month.
3. Pay yourself first– before you make any monthly bill payments, first commit to paying yourself, which could be a savings account or a budget for having fun throughout the month.
4. The 50/30/20 rule– this involves splitting 100% of your monthly income into chunks. 50% goes on necessities, including bills, 30% goes on fun stuff, like nights out and takeaways, and 20% goes into savings.

Of course, none of these methods know your personal circumstances, such as how much money you bring home each month and how much your bills are. Using the 50/30/20 rule, it might not be possible to save 20% of your income each month, and your outgoings might be far greater than 50% of the money listed on your payslip. If that’s the case, and you’re not sure one of these methods would work for you, you could try something more bespoke.

To get a true idea of how you can accurately and efficiently budget every month, we’ve created a downloadable budgeting sheet, which you can use to input all your income and outgoings. That way, you can get a clear picture of your finances so you can accurately analyse them.

How to cut the cost of expenses

Cutting how much money you spend every month is the easiest way to save money. In theory, of course – it’s far easier said than done.

ONS data between May and June 2024 found that the price of a food shop has increased for 91% of people. This is on top of various other huge increases, such as fuel (58%), gas and electricity (50%), and rent or mortgage (25%).

While it may be tough cutting your expenses, due to these increases, it’s far from impossible. With a little effort and perseverance, you can absolutely cut down on your monthly spending to help you save. Below, we’ve provided ways you can make positive changes across the six main areas consumers have seen price increases for.

How to save money on food

The sharp rise in the cost of food has hit a lot of us hard. With food bills now higher than they’ve ever been, getting to the checkout with a trolley full of groceries can be a rather daunting experience.

Thankfully, there are ways to make sure you still have a fridge full of goodies while you reduce spending:

• Bulk buy where possible to save money per item - Look at the ‘cost per unit’ on the pricing label as it helps you work out the value of individual items, weights or volumes, so you can compare to other options
• Make a list and do your best to stick to it
• Utilise discounts and promo codes at online supermarkets like Ocado, Iceland and Tesco
• Shop on a Monday so you have in-date food throughout the week, reducing the need for those ‘top-up’ shops
• Avoid shopping when you’re hungry – a survey showed people are more likely to buy larger portions or fall for special offers if they go shopping while hungry 
• Sign up to store loyalty schemes to capitalise on money off and exclusive offers
• Shop for seasonal ingredients, which often cost less
• Choose store own brands over big-name brands - they’re often manufactured in the same factory, but can be a fraction of the cost
• Shop during less crowded times, such as later in the evening, when shops might offer discounts or have clearance items
• Learn what the best storage methods are for different foods on your shopping list and invest in quality storage containers to help keep your food fresher for longer
• Consider growing your own food with a small vegetable patch to save money on fruit, vegetables and herbs
• Get creative with your cooking and use up leftovers to make new meals, and focus on simple ingredients that can be used in multiple dishes 

Our food expert, Yasmeen Lubbock’s top saving tip: “Utilise Toogoodtogo and other apps for massive savings across multiple bakeries, cafes and bistros!”

How to save money on fuel

Over the years, the cost of fuel has fluctuated massively. In 2020, the cost of petrol per litre was less than £1. However, just two years later this hit almost £2 per litre. It’s unlikely that fuel prices will hit the lows of 2020 again – and if they do, it won’t be for some time. For that reason, it’s more important now than ever before to find ways to save money on fuel.

Our top ways to save money on fuel include:

• Drive more economically, such as avoiding rapid acceleration and heavy breaking – the smoother you drive, the less fuel you use
• Remove unnecessary weight from your car such as roof racks as they can increase drag, therefore increasing fuel consumption
• Keep your vehicle maintained, such as ensuring tyres are at the correct pressure and air filters and oil are replaced when necessary to ensure optimal fuel consumption
• Fill your car little and often to reduce weight and drag, and help spread costs throughout the month
• Plan ahead so you use the car less, for example, pick up the kids and pop into the post office on the same trip
• Limit the use of your air conditioning, especially when driving at lower speeds as this uses around 10% more fuel
• If possible, drive during off-peak hours to avoid journeys taking longer
• If your vehicle has cruise control, utilise it on the motorway - keeping a consistent rev counter and speed allows for better fuel consumption
• Walk, cycle or car-share where possible

Our transport expert, Stephanos Charalambous’ top saving tip: “Use a petrol price app to check for the cheapest fuel in your area!”

How to save money on energy bills 

Energy bills can really sting. Over the last few years, there have been some well-publicised increases, and there have even been government schemes to help us manage them. Thankfully, unless you’re on a specific tariff, you only pay for the energy you use, so it’s possible to save money on your bills by using energy in more economical ways. Here are ways you can slash spending on energy:

• Don’t stick with your current supplier just because it’s easy, when your tariff is up for renewal shop around – browse discount codes at EDF Energy, ScottishPower and Uswitch to save even more
• Do energy-intensive tasks when costs are lower, such as using the drier at night
• Wash clothes at 20°C, which is an average of 62% cheaper than it is when you wash at 40°C
• Install a programmable smart home heating system to keep a close eye on your heating and hot water usage, and therefore costs
• Use blankets and jumpers before resorting to boosting the heating when it gets a little chilly
• Consider installing smart thermostats to optimise your heating based on whether you’re at home or what the weather is like
• Consider adding insulation to your loft, walls and floors to maintain a consistent temperature for heating savings long-term
• Consider investing in an air fryer, which is proven to be cheaper to use than an oven

How to save money on your mortgage

Generally, if you have a mortgage it’ll be your single biggest expense every month. Even if interest rates trickle down, repayments are likely to be a big chunk of your monthly budget, which means homeowners are always on the hunt for ways to save. Here are our top ways to save on your mortgage:

• Pay for your mortgage bi-weekly - paying the same amount but in 24 instalments instead of 12. Over the course of a year, it’ll equate to you paying 13 mortgage payments, rather than 12, due to interest saved, reducing your overall mortgage length
• Request whether you can extend the term of your mortgage to reduce monthly payments - be aware that you will pay more in long term interest
• If you’re signed up for a fixed-term mortgage, make sure you shop around early when it comes to renewing so you secure the best deal for you
• Make extra mortgage payments if you can, as this adds up over time and can lessen your payments when it comes to your renewal, and helps reduce interest
• Improve your credit score which will increase how much you can borrow and which rates you qualify for
• Consider investing in energy efficient home improvements as some lenders offer green mortgages with lower rates for those who live in an energy efficient home 

Luke Meadows, Mortgage Advisor at Mortgage Link Ltd. says ‘find a whole of market broker, ideally one who doesn’t charge, rather than only sticking with your bank so they can find the best deal out there for you’

How to save money on public transport

If you live in a busy city, spend a lot of time commuting or simply love to explore the country, then chances are you spend a lot of time on public transport. It also means you’re likely to spend a lot of money on your travels. Unfortunately, public transport can be expensive, but there are ways to save money. Here are some suggestions for how to save money on public transport:

• Book as far in advance as possible, as there are often more offers and discounts. Train tickets usually go on sale 12 weeks in advance - this is the best time to book to make the most of advanced ticket prices
• Search for discount codes and get big savings, like those for Trainline, National Express and TrainPal
• Browse different travel sites and compare the same journey to find the best deal
• Sometimes, booking two separate trips, known as split ticketing, can be more cost-effective than a single or return ticket. Sites such as trainsplit.com and splitmyfare.co.uk can do this for you
• If you’re a student, the best way to save money on transport is with a student card, so make the most of it while you’re in education
• Try and limit train journeys to off-peak times as this will significantly lower what you pay
• If you travel regularly, consider a season ticket to pay weekly, monthly or annually  – it can be a hefty up-front cost but may save you a lot. Some train operators also offer flexi-season tickets, giving you the choice to travel for a set number of days throughout the month for a saving
• Explore different routes, as sometimes taking a longer route with multiple transfers can be cheaper than a direct journey. Also, consider cycling or walking part of the journey alongside public transport to not only save on fares, but get some exercise too!

Our travel expert, John Connellan’s top saving tip: “This is straight forward! Get a railcard if you can and if it makes sense for your travels. If you’re based in London and use public transport on most days, paying for a monthly travelcard could be a good idea to save money!” 

How to save money on childcare

Balancing work and childcare is a challenge for a lot of parents, with one of the biggest hurdles being the costs involved. Childcare isn’t cheap, but it is a necessity for many, so it’s important to find ways to save money. There are several things you can do to save money on childcare:

• Take advantage of government childcare schemes if you qualify, including:
• • Tax-free childcare of up to £2,000 per year, per child
  • 30 hours of free childcare a week for 38 weeks of the year after your child turns three
  • 15 hours of free childcare per week for 38 weeks of the year for children aged two
• Explore employer childcare voucher schemes if offered
• Hire a nanny shared with other families to split the cost
• Hiring a childminder who can provide occasional childcare as and when needed is usually more affordable than a nursery, if that option would work for you
• Share childcare responsibilities with other parents you know. You can rotate who looks after whose children to fit within both of your schedules and help reduce unnecessary childcare costs  
• Discuss flexible working arrangements with your employer to help fit around your child’s schedule, saving money on afterschool clubs and activities

Content Executive Céline Pastezeur says, ‘Consider putting your child in nursery for shorter days. For example, they go to nursery from 9 to 4 instead of 8 to 6. This can save you up to £250 over the course of a month. It’s not ideal when you have a regular work schedule, but if you have a flexible employer, ask them to plan meetings before 4pm so it becomes more manageable. You can also save some money if you go for a childminder rather than a nursery, and even more if you bring your child’s lunch every day.’

Prioritising spending needs vs wants

When it comes to saving money, it’s important to outline what are ‘needs’ compared to ‘wants’. Needs are the outgoings we spend each month to maintain our basic lives, including bills, fuel and food shopping. However, there are also grey areas within those that can be categorised as wants.

For example, a weekend trip to the beach may be a low-cost day out, but the cost of the fuel to get there may be pricey, which would class it as a want. Similarly, a takeaway pizza may sound like a great Friday night treat, but it’s likely to cost you around £20, compared to a similarly sized supermarket pizza for a fraction of the cost.

When budgeting, before you buy something ask yourself the question: do you need it or do you want it? If you need it, then you should plan to buy it. If you simply want it, you should consider the impact this will have on your finances for the rest of the month. You need to make sure that your wants don’t have a direct impact on your needs, because you can’t change what you need.

One method people use is focusing the first three weeks after payday on needs. When you suddenly have money in your bank account it can be tempting to splurge and treat yourself. But, to help budget better, try to switch it around and only purchase your wants during the final week leading up to payday instead. This can help reduce the anxieties around running out of money after being a little too frivolous after payday.

Saving techniques and hacks

Here at Savoo, we have a team of money-saving, cost-cutting, budget-savvy experts who are dedicated to helping you spend less and save more. It’s now more important than ever to make your money go further, so we asked our team to share their top tips on how to save money.

Distribute your money into different pots

As soon as payday hits, divide your money up into pots so you have enough money to spend on bills and fun stuff throughout the month.

I often get asked, as Savoo's Managing Director, what is the first bit of "budgeting for beginners" advice I give to people beginning their journey to better manage their money.‘When a lump sum comes into your account it is easy to get carried away. Putting it straight into different money pots or waiting until the month's rent and bills have been subtracted makes it much easier to see exactly how much you have to play with.

‘Then, around halfway into the month it's easier to see how much you have for the remaining weeks to enjoy things like meals out, trips and hobbies. You can then use tools like discount code sites, comparison sites, and clearance offers to reduce and help your money go much further.’

Focus on your financial goals

When looking to save money, it’s important not to think about it as cutting back on the things you love, but focusing on your financial goals. Having goals in mind can help with the mindset that you’re not really giving something up, you’re helping to achieve something else.

Savoo’s Senior Media Buyer Charlotte Amadis says, ‘List your financial goals in order of priorities, with a mixture of short- and long-term targets. Set up a recurring transfer at the start of every month to your savings account so you can budget around your savings. 

‘Automating the process also makes saving much more effortless than constantly thinking about it, which you can do via a monthly standing order. Make sure you keep track of your goals and whether the specific amount you save each month is in line with your goals.’

Time your purchases perfectly each month

If you have something you need to buy, it’s important to time your purchases carefully. Many outgoings, like your mortgage/rent and food shop can’t change, but promotions usually happen for specific and limited times. You could even try putting notifications on your shopping apps to alert you when there’s a deal. So, if there’s something you really need, see if you can wait it out until a deal rolls around so you can save money.

Technology expert Ryan Broadfoot says, ‘While hunting for deals, timing is everything. Brands often roll out their best promotions towards the end of the month to coincide with many people's payday. Making some tweaks to your shopping habits is highly advised, particularly for fashion brands who have learned to target customers with deals at times when they are more likely to purchase.’

Ryan believes that technology can play an important part in helping people better deal with their everyday finances. Take a look at the 7 Best Money Saving Apps to see what savings can be unlocked from your smartphone.

Get into meal prep and planning

The amount we spend on food is increasing despite the size of the receipt staying the same. But, by planning meals, batch cooking and buying in bulk, you can keep how much you spend on food down so it’s closer to what you’d prefer to pay.

Content Executive Celine Pastezeur says, ‘Create a weekly menu and shop only for what you need to create those meals and try to shop once a week to avoid multiple trips to the supermarket. 

It’s also worth shopping online so that you have time to compare prices and find the best deals, and have a better chance at avoiding those expensive impulse purchases.’

Save money with vouchers

Saving money is something of an art form. But, it’s something anyone can learn – it just takes a little perseverance with a change in mindset and habits. It’s totally worth it, though, as with just a few changes you can lower your monthly spending so you can save money and take control of your finances.

Whether you’re looking to save money to make home improvements, whisk the family away on holiday or save for a rainy day, there are ways to achieve your financial goals.

One of the most effective ways to save money, whether it’s energy, your food bill or transport, is by browsing new discount codes on Savoo. Get a Savoo discount code and save money with our range of quality brands.