Feeling broke? You’re not alone.
Trust me, I have been there.
But, using the principle in this guide, I’ve been able to grow my savings FAST over the last few years.
The best part is that you can too!
If you take any value from this post, let it be this:
You cannot budget your way out of poverty.
In this guide you will learn:
- Why saving money is crucial,
- The real secret to saving fast;
- A practical roadmap to manage your money effectively.
Let’s flip the narrative, and learn how to actually save money fast!
Why Save Money?
Times are tough right now, especially if you’re a student or young person.
You might not make much money, but it probably seems like you spend so much.
Saving can feel impossible.
But, hear me out: building a saving habit now is a superpower.
Why?
Most people will say it’s important to save for ‘rainy days’, and for big events like buying a car, going on holiday or saving for your first home.
Yes, all of that is true.
But saving money is way more important than you think…
It enables you to create new streams of income.
Whether it’s opening an investment account or starting a business, saving money can open up the doors of opportunity.
Compound interest is a cheat code, especially when you’re young.
This means that the more money you can save, the more you can earn.
Your future self will thank you for it!
How to Save Money Fast.
How we were taught to save money at school is wrong (surprise, surprise!).
If you’re broke, the only way to save money fast is to increase your income.
With more money coming in, saving becomes easier and financial stress fades away.
But, as always, there’s a caveat:
This only works if you grow your income whilst being in control of your expenses.
It’s easy to fall victim to lifestyle inflation.
We earn a bit of money and we instantly get the urge to spend it.
(I’ve talked to my younger brother about this recently, actually).
To mitigate this, I created a simple finance strategy about three years ago that has enabled me to save money fast, and I hope it helps you as well:
- Understand your current finances.
- Boost your income.
- Automate.
- Cut unnecessary spending.
- Think long-term.
Let’s get started!
Step 1: Understand Your Finances.
Saving starts with understanding your current financial situation.
First of all, it’s important to…
Track Your Income and Expenses.
The simplest way to do this is with Google Sheets.
Or you can just use good ol’ fashioned pen and paper.
Track everything you make and spend for (at least) 30 days.
You could use this table to help you get started:
Income:
| Source of Income | Amount (£s) |
| Wages | |
| Side Hustle | |
| Investments | |
| Other | |
| Total: £ |
Expenses:
| Expense: | Amount (£s) |
| Rent | |
| Utilities | |
| Car | |
| Insurance | |
| Phone | |
| Food & Drink | |
| Other | |
| Total: £ |
At the end of the 30 days, work out your net income.
Net Income = Income – Expenses.
How much did you have left over?
If you spent more than you earned, I’m not judging.
If you were able to save some money, then great!
Categorise Your Expenses.
Next, revisit your expenses and think about how they group together.
I work out what the expense was for (i.e. car) and whether it was necessary or discretionary.
Necessary = stuff we have to spend money on (usually direct debits e.g. rent).
Discretionary = stuff we bought because we felt like it (e.g. games, takeaways etc).
You could make a simple table that looks something like this:
| Category | Necessary / Discretionary | Amount (£s) |
| Rent | ||
| Utilities | ||
| Car | ||
| Insurance | ||
| Phone | ||
| Food & Drink | ||
| Other | ||
| Total: £ |
This will help you understand where your money goes, and enables you to…
Create a Financial Plan.
I recently bought a new car and this process helped my anxiety a lot.
For the income and expenses tracker above, note where your money is and the balance:
- Bank Account (£?)
- Savings Account (£?)
- Investments (£?)
- Cash (£?)
Categorising your income source is useful, too.
For example, you might have monthly pay from a job (which is consistent) but also income from other sources (such as a side hustle) that changes each month.
This helps you know reliably how much you make each month, which you can then plan your expenses around (because you’ll have a rough idea of your monthly net income).
You might be familiar with the 50/30/20 Rule, which is often associated with US Senator Elizabeth Warren.
It looks something like this:
- 50% Needs – Essentials such as rent and groceries.
- 30% Wants – Fun stuff like eating out, entertainment etc.
- 20% Savings – Move the rest into an emergency fund or savings account.
It’s good to save more than 20% if we can.
Remember to review and adjust your budget as needed, especially if you’ve had a big expense such as a holiday or new car.
If you can’t afford to move 20% of your net income into savings or you want to save money faster, the only way is to increase your income whilst budgeting your expenses.
Step 2: Boost Your Income.
Sounds simple, right?
The traditional advice of saving by budgeting can help, but increasing your income is the only way to save money fast.
But the problem is, how do you make more money?
Lots of “influencers” gatekeep the answer behind paywalls and courses, or spout some bs about doing pointless side hustles like “online surveys”.
The reality is much simpler, but requires hard work.
How to Make More Money
There are only a few real ways to grow your income:
Work more – Take on more shifts at work – or get a job if you haven’t already (needs must).
Upskill – Become qualified in higher income skills to get a better paid job. Or – do both and start a side hustle (or two).
The Best Side Hustle Ideas.
There are two types of side hustles.
In-person – Such as tutoring, washing cars etc. These are great for students.
And online – such as freelancing (using a platform like Fiverr), digital marketing, dropshipping, and my personal favourite – matched betting.
If you’re struggling to save money, it’s best to find a side hustle that doesn’t cost much to start.
Check out my top side hustle ideas if you want to go deeper into this.
Remember you don’t have to stick to just one side hustle, but mastering a skill is a great way to quit your job eventually (if that’s what you want to do).
Creating multiple income streams is how you can become financially free.
But don’t be fooled by the idea of “passive income” – everything requires some work (especially if you don’t have much money to start with).
The key is finding a side hustle that suits you.
Step 3: Automate.
A great way to save money fast is to automate your finances.
Some people call this “paying yourself first.”
That is – transferring money to your saving / investment accounts as soon as you get paid.
You can’t spend money that you don’t see!
For savings accounts, I’d recommend starting with an emergency fund.
This is usually savings worth 3-6 months of your expenses.
The best way to do this is with an instant-access savings account that will give you some interest.
You can also automate your bills, so the money goes out as soon as you get paid.
Automating your bills means you’ll never miss a payment, and you will know how much you can afford to spend after the necessary expenses have been paid.
Step 4: Cut Unnecessary Spending.
Boosting your income is the only real way to save money fast (especially if you’re broke).
But the key is to make more whilst spending less.
Ask yourself: What am I spending too much money on?
Usually something will stand out to you.
If you’re stuck, here are a few tips:
Food – If you’re like me and spend way too much on takeaways, consider meal prepping. This is especially useful if you’re a student. It will save you a fortune, trust me.
Phone – If you’re coming to the end of your contract, consider a sim-only one. This could save you hundreds per year. Let’s face it, do you really need a brand new phone every 2 years?
Renegotiate Contracts / Use Comparison Sites – You can save a lot of money by asking insurers and utility companies about your premiums. For example, car insurers typically send renewal quotes that are higher than what you’re currently paying. Calling them and quoting competitor rates from comparison sites (or moving suppliers at the end of your contract) can save you a small fortune.
Cancel Unused Subscriptions – Audit your subscriptions. Do you really need everything that’s on there? The answer is probably ‘no’.
Managing Debt & Using Cashback.
Then there’s debt.
If you have any high-interest debt (such as credit cards) – prioritise paying these first before you spend money on other things.
There’s a difference between good debt (which you use to buy income-generating assets) and bad debt (such as high interest car loans).
Bad debt that’s high interest is crippling your ability to save.
I know you might be struggling with debt and overdrafts right now, but consider paying it before you overspend on other things.
Another quick tip is to take advantage of cashback sites like Topcashback, or a cash back card.
If you’re spending money, you might as well get a bit back in cash and/or rewards.
Step 5: Think Long Term.
Save money fast…by thinking long-term.
Set Financial Goals.
What are you saving for?
Is it to create an emergency fund?
To open an investing account?
or start a side hustle?
Then there’s the longer term.
A lot of us are looking to save to buy our first home.
That’s the big one.
Long-term thinking motivates you to make more and spend less.
Mindset & Habits.
If you want to save money fast, it’s important to create a strong mindset and develop a healthy relationship with money.
This includes avoiding lifestyle inflation.
Just because you’ve saved a few £s doesn’t mean you can suddenly live like you’re rich!
It’s also about understanding that money is a tool; not an end in itself.
Take accountability and be honest with yourself about your financial situation.
Be frugal with the things that don’t matter, but don’t avoid spending on things that do.
For example, getting a qualification that will grow your income is a worthwhile investment.
To summarise :
- Focus on growing your income,
- have clear goals,
- foster a healthy relationship with money, and
- avoid spending on things that don’t matter.
Wrap Up.
You now know how you can save money fast (even if you’re broke).
This is the same 5-step strategy I used as disabled uni student:
- Understand your current finances.
- Boost your income.
- Automate.
- Cut unnecessary spending.
- Think long-term.
Remember: the key to saving money fast is not to budget better, but to focus on growing your income.
By increasing your income whilst keeping your expenses low, you can save money much faster.
Side hustles are the best way to do this.
You can check out my top side hustle ideas or learn about matched betting to get some ideas about what side hustles might be right for you.
Times are tough for everyone, but remember: you are in control of your financial future.
