Barclays has shared a savings challenge that could help people 'save money quickly'. The £5 challenge is one of 10 ideas featured on the bank's website in a post titled: 'How to save money quickly. 10 fast ways to build your savings.'
How the £5 Challenge Works
The method challenges participants to save £5 each time they make a purchase over £20. Barclays 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 the challenge for that purchase.
Other Savings Tips from Barclays
A different approach recommended by the bank involves making a 'sacrifice' by cutting back on one luxury you could do without. Barclays asked: '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 bank added that auction and marketplace websites could also help sellers.
The 1p Savings Challenge
For shoppers looking for a longer challenge, another popular method is the 1p savings challenge. According to Martin Lewis's Money Saving Expert, the challenge is a 'clever, fun and relatively painless way to amass a surprising sum.' The challenge encourages participants to save 1p on January 1, 2p on January 2, and so on, until making the last payment of £3.65 at the end of the year. This method enables people to save £667.95 in one year.
Even though many people started the challenge months ago, it's still possible to join in by catching up on the totals missed since January 1 and then continuing as usual. Alternatively, people could start the challenge from a date of their choosing and finish it in a year.
