SWITCH BANK ACCOUNTS
Verena managed to save £900 in just one month by switching bank accounts – and it took just 10 minutes.
She said: ‘I made use of several different banks’ current account switching incentives to save up £900 towards my emergency fund.
‘The first account I switched to was Nationwide’s current account because they were running an incentive where if you recommended a friend and they switched, you each got £100, so my boyfriend referred me.
‘You could refer up to five friends in a tax year, so I referred five people and made £500, plus the £100 I’d got for switching in the first place.’
Other branches such as Natwest, HSBC, and First Direct also run incentive switches, and Verena recommends checking them out.
CASHBACK CREDIT CARDS
Verena said: ‘With banks offering really low-interest rates for savings at the moment, there aren’t really many opportunities to grow my money passively, so I’m maximising any opportunities to earn cashback instead.
‘I currently have a cashback credit card which I use for all purchases, which earns me 5% as an introductory offer and will go down to 1% after I’ve spent a certain amount.’
Verena uses the card for all of her normal spending and pays it off in full every week via direct debit.
She added: ‘Making extra payments every week helps me to have a more realistic picture of how much money I actually have in the bank at any time.
The super saver also recommends signing up to sites such as Quidco and Topcashback, which alert customers when cashback is available for their online purchases.
DE-CLUTTER AND SELL
Spending so much time at home has prompted Verena to have several clear-outs of her old belongings, which she then sells online.
She said: ‘I’ve made quite a lot of money in the past six months through selling homeware and furniture I no longer loved on Facebook Marketplace.
‘A fiver or tenner here and there has really added up and I’ve made over £200 so far.’
Verena also recommends selling old clothes on Vinted, which allows you to add the money you make to your app balance, meaning you can use it to purchase new clothes.
GET THRIFTY
In a bid to not only save money but also be kinder to the planet, Verena started buying most of her clothes on resale sites like Vinted and Depop.
She said: ‘I’ll often find things that are still brand new with the tags on but for half the price.
‘This has saved me a ton of money, particularly on things like knitwear for the autumn/winter months, which would usually be quite expensive.’
RENT OUT SPARE ROOMS
Got a spare room? Rent it out.
Although this option isn’t available to everyone – especially those stuck in small flats with no extra space – Verena has been able to rent renting out her spare room, which has helped cut costs and build up savings faster.
‘I’ve been renting this particular flat for the past two and a half years, and I’ve been subletting – with my landlord’s permission – for that whole time, until this January,’ Verena said.
‘I let it out to friends at first, and then found my most recent housemate on Spareroom.com.
‘With the pandemic, I feel less comfortable having an extra person coming and going, so have decided to stop letting it out for the time being. I now use my spare bedroom as space to workout while the gyms are shut.’
PAY OFF CREDIT CARDS BUT KEEP SAVING
Being self-employed, Verena’s monthly savings can often fluctuate so she keeps track of them using a spreadsheet.
Although she paid off the debt last year, the thrifty woman didn’t stop putting money away for it, but added this into a savings account instead.
Verena said: ‘I finished paying off my credit card debt in October and I’ve put the amount I used to pay towards that straight into savings.
‘I then only pay myself a set amount each month as if it were a wage.’