What Are Some Realistic Ways of Saving Money?

Saving money sounds simple in theory, spend less than you earn. But when life gets busy, expenses pile up, and prices creep higher, it can feel like saving is always something you’ll “start next month.” The truth is, you don’t need a dramatic lifestyle overhaul to build better habits. Small, consistent changes can have a big impact over time. 

Here are some realistic ways to save money, strategies that actually fit into day-to-day life. 

1) Track Where Your Money Actually Goes 

It’s hard to save money when you don’t know where it’s going. A good starting point is to track your spending for a few weeks. Use a budgeting app or even a simple spreadsheet, anything that shows your: 

• Fixed expenses (like rent, bills, subscriptions) 

• Variable expenses (like food, petrol, shopping) 

• One-off or impulse purchases 
   

Most people are surprised at how much they spend in certain categories. Once you spot the patterns, it’s easier to cut back where it makes sense. 

2) Automate Your Savings/Investments 

One of the most effective saving tricks is to treat savings like a bill, something non-negotiable that leaves your account before you can spend it. Set up an automatic transfer (standing order) to a separate account on payday, even if it’s just £20–£50 a month to start. 

You’re less likely to miss the money if it’s gone before you see it. 

3) Switch and Compare Regular Bills 

It’s easy to stick with the same energy provider, phone plan or insurance company year after year. But loyalty rarely saves you money, and comparison sites make it simple to find better deals, and switching takes less time than you think. 

Things worth reviewing: 

• Broadband and mobile plans 

• Energy and water suppliers 

• Car, home and pet insurance 

• TV and streaming subscriptions 
   

Even switching one or two services a year can free up extra cash. 

4) Rethink Food Spending Without Cutting Everything 

Food is one of the biggest flexible costs in most households, yet you don’t need to live on beans and toast to make it more manageable. 

Try this: 

• Plan meals before shopping to avoid impulse buys 

• Shop in the evenings for markdowns or reduced items 

• Switch from branded to supermarket own-brand for staples 

• Batch-cook meals and freeze portions 

• Use up what’s already in your cupboards before buying more 
   

The goal isn’t to cut joy, just reduce waste and spend more intentionally. 

5) Start a Separate Savings Pot for Irregular Expenses 

Birthdays, car MOTs, holidays, Christmas, they’re not monthly bills, but they’re not surprises either. Setting aside small amounts each month for these kinds of costs can stop them from hitting you hard later on. 

Create a “sinking fund” in a separate savings account, and add to it gradually throughout the year. 

6) Use a Tax Exempt Savings Plan (If Eligible) 

If you’re looking for a longer-term, tax-efficient way to save, a tax-exempt savings plan might be an option. These are offered by friendly societies and allow you to save regular amounts over a fixed term (usually 10 years) with returns that aren’t subject to income or capital gains tax (up to certain limits). 

They’re not for everyone, but they can be worth exploring if you’re comfortable locking money away and want a more structured savings option. 

7) Cut Back Without Cutting Out 

Total bans rarely work. It’s better to reduce than remove. 

Love takeaway coffee? Try limiting it to once a week instead of five times. Obsessed with online shopping? Add items to your basket and wait 24 hours, chances are, you’ll end up skipping most of them. 

Making saving feel manageable (and not miserable) is key to sticking with it long-term. 

8) Sell What You Don’t Use 

Old tech, clothes, books, furniture, if it’s collecting dust, it might be better off in someone else’s hands. Apps like Vinted, eBay, or Facebook Marketplace make it easy to list and sell items. 

Even a few sales a month can boost your savings pot without needing to cut anything from your regular budget. 

9) Make Use of Discounts and Cashback 

Before you buy anything online, check for discount codes or cashback offers. Tools like Honey, Jam Doughnut, TopCashback and Quidco can help you save money on things you were already planning to buy. 

Just remember: it’s not saving if it convinces you to spend money you weren’t going to spend in the first place. 

Saving money isn’t about being perfect; it’s about being consistent, and you don’t need to give up everything you enjoy or follow a rigid budget to see progress. Even small changes, like automating your savings or switching a few providers, can make a difference over time. 

Start with one or two changes that feel doable for you. Build from there. The best time to start saving might have been a year ago, but the second-best time is today.