Ten ways to save money in 2025

Want to boost your savings? We asked Clare Seal, author and financial coach to take over our blog to share ten tips on saving money.

Let's get started. Some are new habits to build, whereas others are one-off or occasional actions that can make a big difference to your money:

1. Make an annual plan

It’s hard to achieve your financial goals if you a) don’t make any in the first place and/or b) don’t have a plan to get there. Think about where you’d like to see yourself in a year's time and come up with a strategy to get there. Would you like to improve your earnings? Start saving for a house deposit? Overpay on your mortgage or pay off your credit card? It doesn’t matter what your goals are, but it does matter that you know what they are.

Once you have an outcome in mind, work backwards – what steps do you need to take to get there? Is there anything getting in your way that you need to address? Keep it brief and to the point. Save your plan somewhere accessible, like a note or document on your phone, to keep you motivated when temptation to go rogue strikes.

2. Budget in two parts

Want to know one of the biggest mistakes people make when budgeting? It's making a spending plan for the month and thinking that’s the job done. For budgeting to work, you need to create the plan - maybe as a spreadsheet or in a paper planner, depending on what medium suits you best. Then you need to track your spending throughout the month using a budgeting app. You could use Snoop or Moneyhub, or your banking app if you use a digital bank like Starling Bank or Monzo.

These fintech platforms will allow you to set your budget for each spending category, tag transactions and alert you when you’ve overspent. They take the legwork out of it, and should help to keep you on track.

3. Automate everything you possibly can

Bill payments, credit card repayments, saving and investing are all things that require a lot of admin and it can be hard to remember to do everything each month. Take the mental load off by automating as much as you can. This will also help you to avoid any late fees on repayments or fall behind on your bills.

Some autosaving apps will also help to keep saving money fun with features that allow you to complete saving challenges for example.

4. Use cashback on EVERYTHING

Cashback is becoming more and more popular as prices rise and new cashback providers continue to come onto the market. It's no surprise they're popular – it’s free money (as long as you’re using it for things you’d be buying or booking anyway). You can use apps such as TopCashback, Cheddar and Jam Doughnut to earn cashback on your day-to-day transactions and then withdraw the money to a savings pot.

You could also use Airtime Rewards to earn cashback to get money off your mobile bill. Or Sprive, to earn cashback that overpays on your mortgage.

5. Review your contracts and subscriptions

Review your contracts and subscriptions every three to six months. Just take an hour or two to go through all your outgoings. Check if there’s an opportunity to change or cancel some of your recurring costs. If you’re out of contract for broadband or your mobile phone, you can probably make a saving. Many of us have subscriptions we’ve been meaning to cancel for ages – just bite the bullet and get it done.

6. Shift your debt to 0%

Interest free balance transfers aren’t as easy to come by as they once were. But you may still be able to cut the cost of your debt by shifting your balance from an interest incurring card to a 0% one. Check your eligibility before you apply, so that you don’t get stung by a declined application, as this can make it harder to get credit in the future. And close your existing credit card once you’ve made the transfer because it’s too easy to rack up a balance again.

7. Get (re)mortgage fit

With mortgage rates higher than they were a few years ago, many people will find themselves with a hefty increase in monthly repayments if they remortgage this year after a five year interest rate deal has ended. 

Give yourself the best chance of grabbing the best rate available. Make sure you start working to improve your credit score, cut down on expenses and think about making overpayments where you possibly can.

8. Get on top of your loyalty points

Billions of pounds worth of customer loyalty points are sitting unused on cards in the UK*. Take some time to round up all your cards, check the balances and commit to using them every time you shop.

9. Change the way you shop for groceries

For some people, a weekly shop just doesn’t work. Food ends up going off before you can use it. Or you run out of staple items and resort to expensive convenience stores. A twice-weekly shop means you don’t have to meal plan so far in advance. Plus the food will be fresher. It also means that you have less in your fridge and cupboards, so seeing what’s available is much easier. You may find yourself spending less overall, wasting less and resorting to a takeaway less often.

If you shop online and pay monthly for a delivery pass, this change shouldn’t add any extra time or expense.

10. Start saving for Christmas (and other annual costs) now

Sinking funds can be super helpful if saving feels impossible because there’s “always something” eating up your extra cash. These are little pots of cash that you add to monthly for planned expenses. Examples of sinking funds could be Christmas, car maintenance and repair or car insurance. This can have the effect of smoothing out your outgoings and enabling you to budget and save better.

We hope you find these tips useful. For more tips on managing your money, head over to Clare’s website.

*Source: https://restless.co.uk/money/everyday-finance/shop-loyalty-schemes-what-are-your-points-worth