Amid rising living costs, saving money can feel like an uphill battle. With average London rents around £2,250 a month, according to U Homes, many struggle to set aside funds for goals like a house deposit or a holiday. But one woman has shared a simple yet effective strategy to boost savings just before payday.
The 24-hour rule: transfer every last penny
Alicia Chapman, a finance tip influencer, recommends transferring all remaining money into savings the day before payday, regardless of whether it's £5 or £500. She says 'no one talks about this enough' and that every amount adds up toward your goal.
This habit not only accumulates savings but also proves you managed to live within your means for the month, which can be particularly challenging in today's economic climate. Psychologically, starting the new month with only your fresh paycheck prevents the illusion of being wealthier than you are, stopping impulsive splurges and forcing you to stick to your standard budget.
The power of small savings
The cumulative effect is significant: saving just £5 each month yields £60 a year, while £500 monthly adds up to £6,000 annually. Alicia emphasizes that even small amounts build the habits of a saver, and if you can save more, it's a bonus.
In the comments section, others shared their own saving techniques. One woman wrote: 'Honestly, if you take £50 out of the bank every Sunday night and don't spend any more than that, you will always have money in the bank before payday, bills are separate.' Alicia replied: 'I love that system! What will you spend that £50 on? Non-essentials?'
The woman explained: 'Just every day things, you will not use your bank card in that week, believe me, it works.' When another user asked if the £50 covers food shopping, she clarified: 'No food bills separate just for pocket money, cash in the purse, no using cards, it worked for me as I was fed up being in my overdraft all the time, or not checking how much I was spending using my card.'
Building a saver mindset
Alicia's tip underscores the importance of mindset in personal finance. By transferring leftover money before payday, you avoid the temptation to treat yourself with 'extra' cash and reinforce disciplined spending. While £60 a year won't buy a house, it establishes the foundation for long-term saving habits.
