I’m a savings expert – here’s how you could save £5,000 by the end of the year

Budget Plan 2023. Piggy Bank on top of wooden block

A PERSONAL finance expert has revealed their top tips that could save you up to £5,000 by the end of 2023.

These seven handy hacks can slash bills and make saving a breeze as the cost of living crisis squeezes everyone.

The seven tricks could save you thousands in just one year

Lucinda O’Brien from money.co.uk said: “As much as we may try to put it to the back of our minds, money is something that can be a major source of stress, especially in the current economic climate.

“However, sticking to a budget in order to consistently save money could be a lot easier than you think.”

She went on to outline her top methods for cutting down costs and boosting your financial reserves.

First of all, there’s the ‘envelope challenge‘, where you write down the numbers one to 100 inside 100 different envelopes.

Each week you pick an envelope and put the combined total in savings.

If you keep it up, you can save £5050 by year’s end.

The 1p challenge is also a great variant on this theme, where you save 1p more each day than you did the day before, putting away £650 in a year.

Another trick is to get a rough idea of your weekly spending and then withdraw that amount in cash.

Leaving your debit card at home, as well as deactivating mobile payment apps, helps avoid unnecessary purchases and lets you easily tuck away leftover change back into savings.

Speaking of spending on impulse, linking savings to kicking bad habits can be a great way to stay on track with both.

For example, if you’re trying to give up smoking, pop some change into a jar each time you feel like having a cigarette.

At least then if you fail at one goal, you at least have something to show for it.

Other great ways to limit spending include ‘no-spend weekends’, which sort of do what they say on the tin.

Trying to forgo a night out once a month and instead doing only free activities, like playing board games or an at-home spa day. really helps to reign in costly weekends.

Meanwhile, Lucinda recommended a couple of shopping hacks to keep costs down.

She advised to carefully read receipts and making a note of any savings from multibuy or discount offers, which will be displayed at the bottom of the slip.

Moving this money straight into your savings account means that the supermarket deals end up making you money.

On that theme, switching to discounted items, reduced products and “wonky” fruit and veg will all knock chunks out of your final bill.

Finally, Lucinda suggested being open about saving goals, including talking to friends and family about them.

This lets your nearest and dearest check in on your progress, support you in your savings journey and keep you honest.