High street bank Barclays is encouraging its customers to adopt a straightforward savings technique known as the £5 challenge, which it promotes as a method to save money quickly.
The Simple £5 Savings Rule
Barclays highlighted the challenge in a blog post on its official website titled "How to save money quickly. 10 fast ways to build your savings." The bank suggests that cutting back on non-essential spending can be an effective route to accumulating extra cash each month.
The core idea is simple: every time you make a purchase costing more than £20, you should try to set aside an additional £5 into your savings. Barclays acknowledges this might feel challenging but frames it as an excellent habit-forming exercise.
To find that extra fiver, the bank recommends practical steps like choosing a slightly cheaper product, selecting a more economical delivery option for online orders, or cutting back on another small expense that same day.
Other Fast-Track Savings Methods
Alongside the £5 method, Barclays proposes several other strategies for building a savings buffer. One involves making a conscious 'sacrifice' by downgrading a luxury you can manage without.
Examples given include switching to a cheaper pay-as-you-go mobile phone plan after your contract ends, taking a packed lunch to work or university, using the bus instead of a taxi, or trading a premium gym membership for a basic one.
Another recommended approach is to earn cash by selling unwanted items. The bank points customers towards apps that provide instant valuations by scanning barcodes, with some companies even supplying pre-paid postage labels. Auction and online marketplace sites are also suggested as effective platforms for selling directly to buyers.
The Popular 1p Savings Challenge
The article also references another well-known savings method: the 1p savings challenge. This method, endorsed by Martin Lewis's Money Saving Expert, is described as a 'clever, fun and relatively painless way to amass a surprising sum.'
Participants save 1p on the first day of the year, 2p on the second, and continue increasing the amount daily until saving £3.65 on the final day. This results in a total yearly saving of £667.95. For those starting late, the advice is to catch up by depositing the missed cumulative total before continuing with the daily increments.
By promoting these accessible challenges, Barclays aims to provide customers with practical, actionable tools to improve their financial resilience without requiring significant lifestyle overhauls.
