A Barclays-approved savings challenge could help people to ‘save money quickly’. While customers might try out various methods to grow their savings pot, one straightforward option is the £5 challenge.
Unlike some challenges, it doesn’t matter when you start, either. So it could appeal to customers seeking some extra cash ahead of the summer holidays. The savings challenge was highlighted by Barclays on its website, featuring as one of 10 ideas in a post entitled: “How to save money quickly. 10 fast ways to build your savings.”
In the blog, Barclays told customers: “Cutting back on a few non-essential items could be a quick way to help you save a little more each month.” The £5 method challenges participants to save £5 each time they make a purchase over £20. The bank said: “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 your challenge for that purchase.”
Another method included making a ‘sacrifice’ by cutting back on one luxury you could do without. Barclays explained: “Got an expensive mobile phone contract?
View 3 ImagesBarclays highlighted the savings challenge on its website(Image: Getty)
“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 advice said that auction and marketplace websites could be particularly helpful for sellers. Customers could also look elsewhere for more inspiration, reports Birmingham Live.
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View 3 ImagesCustomers can choose between various savings challenges(Image: Getty)
For instance, NatWest also recommends money-saving challenges to customers. Another option could be the ‘increasing challenge.’ The bank said: “Start simple: pick an amount, any amount. Then, decide how often you want to save – daily, weekly, or monthly.
“Here’s the fun part: increase your savings by the same amount each time. For example, save £1 on day one, then £2 on day two, and keep going. Watch your savings grow!”