Martin Lewis, founder of Money Saving Expert, has shared a quirky saving trick: put aside 1p on the first day, 2p on the second, and so on, increasing by a penny each day. Over a year, this would total £667.95. But does it work? Lewis himself notes that it's more about mindset than the amount. "Anything that gets you into the habit is worthwhile," he says.
However, the trick may not suit everyone. For those with limited income, even small amounts can be challenging. Lewis emphasises that before saving, people should clear expensive debts and consider overpaying their mortgage if possible. He also advises having at least three months' worth of bills in an emergency fund.
For those who can save, Lewis recommends setting up separate accounts and automating transfers right after payday. He also suggests reviewing bank statements to cut unnecessary spending, like daily coffees that can cost £750 a year. "We are very unrestrained when we don’t have a budget," he warns.
Lewis points to government schemes like the Lifetime ISA (25% bonus for first-time buyers) and Help to Save for low-income earners. He also notes that the best easy-access accounts currently pay 1.45%, but locking money away can yield more. Ultimately, the 11p trick is just one tool: "If your finances have room, anything you can do to break your habitual pattern and start to put money aside will be helpful."
