For example, savers will put away 1p on January 1, 2p on January 2, 3p on January 3, and so on. If the challenge sticks, people could amass a savings pot of around £667.95 in total by the end.
Does this work?
Ms Herbison said: “This saving technique is a great example of how a little can go a long way. And if you are someone that struggles to put aside money, this could be a tactic for you.
“While the biggest challenge may come with remembering to put aside money each day – you can keep track of this on your phone and set daily reminders.”
The 50-30-20 budget rule
The 50-30-20 rule is a simple and straightforward method for allocating income and budgeting wisely. The idea is to split spending into three categories: needs, wants and savings. Within these categories, 50 percent is allocated to needs, 30 percent is for wants and 20 percent is put aside as savings.
Needs are generally classified as bills and food, while wants could be clothes, dining out, and hobbies, among other things.
Does this work?
Ms Herbison said: “This is a simple and sustainable way to budget your income – meaning you can incorporate it into your spending plan across the entire year. As a general rule, it’s an excellent way to make sure you are taking care of your spending needs, while still putting money aside.”
However, money experts at HyperJar have pointed out that during today’s climate of high inflation and living cost pressure, swapping this rule to 70-20-10 could be more effective.
Mat Megens, finance expert and founder of HyperJar said: “As Britons have made sacrifices to compromise with rising expenditure, the spending power of the nation has weakened significantly, with outstanding payments on credit cards increasing by 10.1 percent.”
He continued: “The 70-20-10 rule can really help people get a handle on their spending and budget effectively, giving you a good understanding of where your money is going.”
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