Experts explain how to save up to £1,400 a year in six quick steps

So much of these steps can be done online in minutes (Picture: Ella Byworth/ Shutterstock)

We all like the idea of saving money at the best of times, but this year it is more important than ever to be on top of our finances.

New research shows that one in eight Brits have spent 100% of their savings trying to survive the financial struggle that came with lockdown, and 10% have spent up to three-quarters of their savings over the last six months.

With furlough ending, unemployment rising and financial insecurity on the way up, we all need to look at ways to cut our costs and think about building our savings back up. Particularly if your finances have taken a big hit this year.

‘The last six months or so came completely out of the blue, and have been extremely tough for the majority of people from a financial perspective,’ says Jonny Sabinsky, head of communications at thinkmoney.

‘It’s sad to see how many people have been forced to dip into their hard-earned savings. Hopefully, our money saving tips can help those affected save a little extra by changing a few small things.’

Jonny and the team at thinkmoney have pulled together six simple steps that they say could save you up to £1,418 – in a really short amount of time.

They pulled together six money-saving tips – that you could technically get done today – that could save you money in the long-run. Their experts have estimated the total amount you could save by following these tips, but this amount could fluctuate depending on individual circumstances.

1) Switch to a cheaper mobile phone contract

We are so attached to our phones we rarely think about how much they cost, but you could save by shopping around for a new deal.

In just a few minutes – the time it takes to search for a new phone contract, select the top option, and apply for the phone of your choice – you could save up to around £100.

Of course, lots of people are tied into long phone contracts, which can make switching difficult. If you are in a contract, check in with your provider and see what your options are – there still may be savings to be had.

Estimated savings: £100

2) Switch to a more cost-effective energy supplier 

Searching for a new supplier and completing the process online could save up to a massive £310 per year.

There are plenty of comparison sites that can tell you if you are paying over the odds for energy in your area, and provide you with new quotes for suppliers that can cut your bills.

If that is the case for you, you can then look at changing suppliers to save money. It’s important to note that, once applied, it can take up to two weeks for the switch to actually take place.

Estimated savings: £310

3) Apply and accept a cheaper car insurance quote

Brits spend £2,000 per year on their vehicles, which could be causing a lot of money stress and worry, particularly for those working from home and not using their cars.

However, you could save up to £507 if you’re due for renewal and use a comparison site to get a new quote on your insurance.

Estimated savings: £507

4) Sign up for supermarket loyalty cards

If you regularly shop at the supermarket but don’t yet have loyalty cards, you could be missing out on a lot of money. You can sign up for Tesco Clubcard, Morrisons More, Sainsbury’s Nectar, and M&S Sparks cards in a matter of minutes.

You can receive your rewards online if you are unsure about using the cards, and you could save up to £400 per year with all of these cards.

Estimated savings: £400

5) Open a new bank account

Moving to a bank account that will help you avoid bank charges is another great way to save money in almost no time at all.

The average person spends £152 a year on banking fees, including costs from overdrafts, spending money abroad, and charges for missed payments.

However, by moving to a bank with no overdraft fees and a budgeting tool to help you manage your bills, you could save yourself these unnecessary costs.

Estimated savings: £32

6) Switch to a more budget-friendly broadband provider

Switching internet providers can take no time at all to complete online. And it could save you up to £69, so it is well worth your time.

Estimated savings: £69

Do you have any money-saving tips to share? We want to hear from you.

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