How to save £500 in one month for last minute Christmas shopping

A financial expert from money.co.uk savings accounts has recently saved £500 in one month.

Savings challenges have been taking social media by storm in recent years, with influencers garnering millions of hits if they reveal the latest ‘savings hack’ – but do they actually work?

Financial expert Lucinda O’Brien decided to take matters into her own hands and has taken on her own savings challenge, showing how you can save £500 in one month.

Here is how she did it, and how you can too.

Lucinda O’Brien, expert at money.co.uk savings accounts, said: “The cost of living crisis has impacted us all and an emergency savings pot has never been more important.

“According to recent savings statistics, the average person in the UK has £17,365 in their savings and the average savings per month is £450 per UK household, but could I match this monthly saving?

“As Christmas is fast approaching, and with saving pots a little battered from a busy summer, here is how you can save up money for Christmas this November.

“However, it’s important to note that savings challenges aren’t for everyone. Before attempting any challenge, be realistic with your budget and only save within your means.
“In the current climate, I feel really lucky to have some disposable income each month, but putting away £500 is a big stretch.

“My plan was to save £1 on October 1, then £2 on October 2 and so on, until I reached October 31 and saved £31. If I stuck to this daily plan, my savings pot would reach £496.

“My current account is with Chase and I have a linked savings account offering 4.1%. Remember to always compare savings accounts to ensure you are getting the best deal.

“I planned to send the money from my current account into the savings account each day via a quick transfer on the Chase banking app.

“On October 1, I felt apprehensive about the coming days and quickly sent the £1 to my savings – it felt like a mountain to climb.

“Chase also has a round-up pot which helps you to save any spare change, so I made sure this was up and running prior to the challenge.

“By day six, I was getting into the groove of saving each day. However, at the end of the first week, I was feeling a lot more positive as I had £27 in my savings, and it hadn’t felt too much of a strain on my finances.

“The turning point was when I started to save more than £10 each day.

“I had to make small changes. For example, I opted to walk instead of taking the bus or even remembered to take a recyclable bag to the supermarket – every little bit helps!

“By day 20, the purse strings were tightened, and I found myself spending a lot more time at home. It also forced me to reflect on my spending and I took the time to review my previous bank statements to see where I could save money.

“I looked at my regular outgoings and removed any miscellaneous direct debits that I didn’t need anymore.

“I was also keen to implement some no-spend days as this would help to keep my budget on track. By day 31, I managed six days without spending a penny.

“By the end of the month – I was thrilled to see my savings goal hit. I had successfully saved £496, and I topped up the remaining £4 using the round-up savings, meaning I had saved £500, and now had the money to treat my family during the festive period.

“This challenge requires a lot of determination to stick to a tight budget, but if you are looking for a quick way to grow your savings pot in the month before Christmas – this could be the answer.”

For more information and guidance on saving, including the best savings rates available today, visit: https://www.money.co.uk/savings-accounts