Uncovered: Six Tips for Saving up to £1,418
29th Sep 2020
After surveying 1,000 members of the British public who had suffered financially during the pandemic, thinkmoney has uncovered that 50% of Brits surveyed didn’t have any savings pre-COVID-19.
However, we want to make it easier for people to start to set money aside for any unexpected events or emergencies in the future. With this in mind, we have pulled together our top tips for saving more than £1,000 in less than an hour’s work.
46% of people financially affected have had to dip into their savings due to COVID-19
thinkmoney surveyed 1,000 members of the British public who had been financially affected by the pandemic. While exactly half (50%) of the Brits surveyed didn’t have savings before COVID-19, it appears many others have been severely affected. Almost half (46%) have had to dip into their savings over the past several months, with the remaining 4% borrowing credit.
Those who have been financially affected could have suffered due to a large number of reasons, such as recent job losses and business closures during the pandemic. Similarly, approximately 9.6 million jobs were furloughed in the UK, with many workers not receiving 100% of their wages and, therefore, potentially dipping into any savings they might have had to cover their outgoings.
1 in 8 surveyed have spent all of their savings to survive in the current climate
Furthermore, thinkmoney’s research uncovered that 1 in 8 (12%) have had to use all of their savings to survive in the current climate, leaving them extremely vulnerable should anything unexpected pop up that they have to pay for. Additionally, 4% of people have had to borrow credit or take out a loan due to the financial issues they have faced during the pandemic.
Surprisingly, 13% of those aged 65+ have had to use all of their savings, which is more than any other age group. This could be due to the higher age group considered more at risk and, therefore, potentially spending more of their savings on shopping as they have been shielding.
Almost a fifth (18%) of people living in Yorkshire & The Humber have had to use all of their savings
Sadly, it appears that residents in Yorkshire & The Humber who have been affected have seen their personal savings take the biggest hit. Almost a fifth (18%) have used all of their savings due to the pandemic.
This is a similar tale in the West Midlands, where 16% also stated they no longer have any savings due to using them to get through the past several months.
Both Yorkshire and the West Midlands have a large number of their workforce (10% to 12%) within the manufacturing industry, which is one of the most vulnerable sectors in the UK. The job losses in the industry may have contributed to people using their savings.
How to save £1,418 for 53 minutes of work
With many Brits extremely concerned about their finances, thinkmoney has pulled together their fast finance tips which could potentially help individuals save a staggering £1,418. What’s more, it’ll take you less than an hour to complete them all.
thinkmoney calculated the time it would take to:
- Use comparison sites and to complete the online process to switch internet providers and energy suppliers
- Calculate a new car insurance quote and mobile phone contract
- Cancel forgotten direct debits
- Sign up for supermarket loyalty cards
- Open a better bank account
It took just 53:22 minutes to do all of the above (not including the actual time it takes to switch once accepted) and the savings could total around £1,418. That’s just £578 less than the average monthly wage in the UK.
Apply for a new phone contract in six minutes and save up to £100
We regularly use our phones, but have you ever wondered how much you could save by shopping around for a new deal? In just over six minutes - the time it takes to search for a ‘new phone contract’, select the top option, and apply for the phone of your choice (we chose iPhone 11) - you could save up to a staggering £100.
It takes under seven minutes to switch energy supplier, with the average saving being £310
Searching for a new internet supplier and completing the process online takes just under seven minutes, which could be a saving of £44 per minute. In just that short space of time, you could save up to a massive £310 per year.
There are plenty of comparison sites available that can tell you if you are paying over the odds for energy in your area, providing you with new quotes for suppliers that can cut your bills. One such example is ismybillfair, which asks for you to input your postcode, energy supplier, the amount you pay and it will provide you with an estimate of whether you are paying too much for your energy based on your postcode.
If so, you can then look at changing suppliers to save money. It’s also important to note that, once applied, it can take up to two weeks for the switch to take place.
Get a car insurance quote in seven minutes and 20 seconds and pocket an extra £507
Likewise, on average, Brits spend £2,000 per year on their vehicles, which could be causing a lot of stress for individuals - particularly for those working from home and not using their car. However, you could save up to £507 in less than seven and a half minutes if you’re due for renewal. That’s how long it takes to search for a ‘new car insurance quote’ and fill out a form for a new quote (we chose Compare the Market) to be sent straight to your email.
Signing up for supermarket loyalty cards can take up to 10 minutes, but save you up to £400
For those who regularly shop at the supermarket but don’t yet have loyalty cards, you could be missing out on a lot of money. We signed up for a Tesco Clubcard, Morrisons More, Sainsbury’s Nectar, and M&S Sparks card in just 10:21 minutes.
You can receive your rewards online if you are unsure about using cards, and you could save up to a whopping £400 per year with these cards.
Consider opening a new bank account in less than ten minutes to save an average of £32 a year
Moving to a bank account that will help you avoid bank charges is another great way to save money in almost no time at all. The average person spends £152 a year on banking fees, including costs from overdrafts, spending money abroad, and charges for missed payments. However, by moving to a bank with no overdraft fees and a budgeting tool to help you manage your bills, you could save yourself these unnecessary costs.
It takes less than 10 minutes to open a new current account with thinkmoney from start to finish by downloading the app, and as the app costs just £10.95 a month, the average person could stand to save up to £32 each year by opening a new account.
Switch internet provider in 12 minutes and save £69
Lastly, switching internet providers can take as little as 12 minutes to complete online. That includes searching for ‘switching internet provider’ and using the first comparison service (Which?). This tip takes a little longer than the others as you will likely need to know your landline number to switch. But as it could save you up to £69, it’s well worth your time.
Jonny Sabinsky, Head of Communications at thinkmoney, said: "The last six months or so came completely out of the blue and have been extremely tough for the majority of people from a financial perspective. It's sad to see how many people have been forced to dip into their hard-earned savings. Hopefully, our money saving tips can help those affected save a little extra by changing a few small things."
If you like these money-saving tips, read more advice on personal finance tips with our Budgeting Hub.
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