Millions of Britons are watching the pennies but some have made just a single change to their life – and as a result are an average of £300-£400 a month better off.
How are they doing it? They have two bank accounts.
A study by revealed that people with one bank account for their everyday spending and another for essentials like rent, travel and food are saving that much a month.
To take advantage, simply , work out what you need for essentials and set up a direct debit for that amount for the day after pay day. And hey presto, you know absolutely that all the money left is available for spending or saving and – conversely – the exact amount of money you have left for either of those things each month.
Overall, three people in five are now working to a weekly or monthly budget, with most doing so to stop themselves spending too much while one in eight are saving up for something.
“Being on a budget was once seen as something that would hold people back from doing what they wanted and enjoying themselves. However, our research shows consumers have become savvy to the idea of setting aside money each month to increase their spending power for the long term,” said Natasha Rachel Smith, consumer affairs editor at Topcashback.
How hard people find sticking to a budget
72%
Say it's easy
28%
Say it's challenging
TopCashback
And for those really making an effort to watch the pennies the savings can be huge.
“I now set myself a monthly budget by category – eg groceries, going out etc,” explained Leelo Kilg-Thornley, from Scotland was recently relocated for work and had his salary cut in half but is still managing to put money into savings.
“I also use an app to analyse my spending in more detail and remind myself of how much I’m spending.”
On in four Brits are using budgeting tools to keep track of where their money goes each month or use an app to track it, while one in four simply checks their bank balance.
To make life easier for you, we've got an in-depth .