Customers of Barclays looking for simple ways to grow their savings have been given a series of clever recommendations by the bank itself. The tips, designed to help people save money 'without really noticing', include a method dubbed the 'vanishing £2 coin trick'.
The 'Vanishing' £2 Coin Method Explained
In guidance published on its website, Barclays highlighted five 'wily ways' to bolster your finances. One standout suggestion is to give the £2 coin a special status in your saving strategy. The bank points out that as the least common coin in circulation, it's perfect for this purpose.
The method is straightforward: every time you receive a £2 coin as change, immediately move it from your wallet or purse into a jar at home. The key is to resist the temptation to spend these chunky coins. Barclays advises only emptying the jar when it's full or at the end of the year, allowing the savings to accumulate out of sight.
Additional Smart Saving Strategies from Barclays
Beyond the coin trick, the bank proposed other effortless habits. One involves transferring the 'penny' remainder from your current account balance daily into a savings pot. For example, if your balance is £123.45, you would move 45p. 'Even as little as 30p a day can add up to more than £100 a year,' Barclays noted.
Another tip is to consciously reduce cash withdrawals from ATMs by £10. So, if you normally take out £50, try withdrawing only £40. This small reduction can curb spending on non-essential items.
Setting Goals for Success
Barclays also emphasised the importance of psychology in saving. The bank recommends breaking large financial goals, like a house deposit, into smaller, manageable milestones. Setting up a regular automated payment into your savings account can make the process seamless.
Writing your goal down and placing it somewhere visible can provide crucial motivation, helping you stay on track. These smart tweaks to everyday habits, the bank suggests, can collectively make a significant difference to your financial health without requiring major lifestyle changes.
