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Top 3 alternative ways to save

Top 3 alternative ways to save

It doesn’t matter where you are on your financial journey; it’s never too late to start saving. Sometimes, all it takes is a first, small step in the right direction to get used to putting money away. Before you know it, you’ll have a habit – but, like everything, that first step is often the hardest.

Top 3 alternative ways to save

We can’t all afford to lump large amounts of cash into savings accounts regularly – but there are some alternative savings methods designed specifically to structure your saving, helping you get started and maintain regular deposits. And by the time you’ve hit your first savings goal, you’ll find it gets easier and easier to achieve more and save more.

With that in mind, we’ve picked our top 3 alternative ways to save, to help get you started. Clearly these might not suit everyone – but you might just find some work perfectly for you.

52-week savings challenge

You might have heard of this one already. It’s fairly popular due to its simplicity and the £1,378 (before interest) you stand to save if you manage to complete it. The premise is simple: you start off by putting away £1 in the first week of the challenge, and then gradually increase your savings by a pound a week. By the end of the challenge, you are saving £52 a week.

To some of you, that might sound like a long time to save £1,378. But the benefit of the 52-week challenge is the momentum it brings and the habit it creates. Plus, you can start saving straightaway.

One of the problems with the 52-week challenge is that, by the end, you’re putting away £49, £50, £51, £52 per week – that’s £202 in the final month – which is a lot of money in most months, but with many people deciding to start saving on 1 January, it’s even more to try and save in December. So, we’d recommend choosing a different New Year resolution and starting the 52-week challenge before the end of the calendar year.

1p savings challenge

For those who like the idea of the 52-week challenge but would be more comfortable doing it on a smaller scale, the 1p challenge can help you save £667.95 in a normal 365-day year. The method is the same, but instead of adding £1 per week, you start with 1p and add another penny every day. Some have even started to do the challenge in reverse, starting at £3.65 on day one, £3.64 on day two and so on, making the challenge even easier as the year progresses.

You might think that £667.95 isn’t a lot – but if you’re someone who struggles to save, it’s the perfect way to start. Consider the fact that more than 16 million people in the UK have savings of under £100, according to research by Money Saving Expert, you can save much more than that.

Round up your change

Saving your loose change is an established way to save – but an emerging trend is rounding up transactions to the nearest pound (or more) and saving the difference. Many banking and third-party apps help savers do this digitally – but for those who deal in cash, the physical process of saving your change and paying this in can add extra reward to your savings accounts. It’s a fun, free and easy way to get into the saving habit.

If you’re disciplined enough to do this with every transaction, you’ll soon start turning pennies into pounds without noticing much difference, turning everyday purchases into sustainable saving – eggs into nest eggs.

Paragon Banking Group PLC.  Registered in England number 2336032.  Registered office 51 Homer Road, Solihull, West Midlands  B91 3QJ.