Published On: Thu, Dec 26th, 2019

Saving money: How you could amass £667 in less than a year with 1p saving challenge | Personal Finance | Finance


Whether it’s on pay day or at the end of the month, many people may opt to set aside some of their income each month. Be it for the future or for a particular upcoming event, saving money can be a practice many people do, or want to begin doing.

On this challenge, the same amount as the day before should be added, as well as an additional 1p.

This means that on the final day of the challenge at the end of the year, savers should contribute £3.65 into their savings fund.

In total, saving the required amount everyday would see those on the 1p saving challenge hold £667.95.

In a bid to make the challenge seem easier as it goes on, it’s also possible to carry out the challenge backwards.

This means beginning with a saving of £3.65 on day one, going on to set aside £3.64 on the second day.

On the final day of the year, just 1p would need to be saved.

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Finances can be a cause of stress for many. A recent survey of 2,000 UK consumers by Know Your Money found 41 percent of people feel stressed out by their personal finances, largely due to credit card debt, student loan repayments, and personal loan repayments.

John Ellmore, Director of Know Your Money, has shared his thoughts on getting in control of one’s finances.

Understand your financial situation

“First and foremost, it is vital to gain a firm understanding of your current financial situation,” he said.

“You’d be amazed how many people have no understanding about their finances. This is, quite possibly, the biggest hurdle, if you want to become financial responsible – how can you develop a financial plan if you don’t know how much you spend on a weekly, or monthly basis?

“The best way to address this problem is by making a note of your incomings and outgoings.”

Be strict with yourself

“Self-imposed discipline is perhaps one of the hardest parts of becoming financially responsible.

“However, there are ways which will help you limit frivolous spending, without having to overhaul your entire lifestyle.

“Creating a savings pot, for example, will help you control your spending by encouraging you to work towards a savings goal; this could be anything from a housing deposit to your dream holiday.

“Knowing you have a goal in mind will make it much easier to refrain from splashing the cash on unnecessary items. However, for those with slightly stronger willpower, setting a credit card spending limit will be a useful way to limit spending, and ensure your debt does not spiral out of control.

“Whilst such discipline might be difficult to begin with, the more you practice it, the easier it will become. What’s more, you will soon be reaping the financial rewards of your efforts.”

Shop around

“A key element of financial responsibility, which is often overlooked, if comparing all your options on various goods and services. As a result, many people settle for a more expensive product, just because they didn’t investigate their options.

“However, this doesn’t mean spending hours trawling the internet to find the cheapest deals. Let comparison websites do some of the hard work for you! Use their comparison tables for your desired product – this could be anything from car insurance to train tickets – so all you need to do is decide which option best suits you.

Get creative

“Perhaps the most clear-cut way to improve your financial responsibility is to investigate the numerous, and creative ways you can make savings on your everyday activities. You will soon see the change starting to add up.

“For example, skipping your usual granola pot from your local Pret a Manger by making your own at home. Not only will this be a delicious substitute, your bank account won’t be taking a daily £4.00 hit.

“Other ideas could include making your own birthday cards, rather than buying them, or having friends over to your house or flat for dinner, rather than going out to a restaurant. There are thousands of ways you can make small, daily savings that add up in the long term – don’t be afraid to be creative.

Remember, you don’t have to suffer in silence

“A vital element of becoming financially responsible is recognising when you need help, and of course, reaching out to those who will be able to help you.

“If you find yourself struggling, from debt, or even if you just feel overwhelmed by a period of overspending, reach out to a trusted friend or family member to voice your concerns.

“This will be a massive weight of your mind, and together, you might be able to develop a plan to get your finances back on track. Alternatively, there are a number of dedicated debt charities such as StepChange that you can turn to for support.

“Becoming financially responsible does not mean that you have to struggle through problems alone. Never be afraid to ask for help.”



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