A SAVVY saver has revealed his top tips to easily save £500 each year to put in an emergency cash pot.
The money expert shared his recommendations to help young people set aside cash for an emergency fund.
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In a post on social media site TikTok, the saver, known as @Frugal_Spender, said a huge chunk of 22-to-29-year-olds have no cash stored up.
He recommended that savers set aside £41.60 every month for a year.
That would result in a cash pot of £500 after 12 months.
In the video he said young people could sell their unwanted things or do surveys online to raise some extra dough.
He also suggested getting a second job or developing a “side hustle” to top up your income.
“However you do it, however quickly you do it, just put it aside and don’t touch it,” he said in the video.
“You’ll be amazed how quickly your relationship with money changes.”
It might sound like simple advice but making small changes like this can help you form positive money saving habits.
Remember to keep your savings in an account that earns interest to maximise your hard work.
You should compare different kinds of savings accounts before you open one to make sure it suits your needs.
Easy access savings accounts, notice savings accounts, regular savings accounts, individual savings accounts (ISAs) and fixed rate bonds are the options available to consumers.
Some have high interest rates but are inflexible and won’t let you access your money whenever you like.
Others have lower interest rates but will allow you to withdraw cash when you need it.
Personal finance expert Andrew Hagger said: “Saving regularly is a good way to get into the savings habit, so try setting up a standing order from your current account to a savings account for a set amount each month – ideally on or around your payday makes most sense.
“If during the month you have a bit extra spare, transfer this to your savings too – even if it’s just another £5 or £10 it all makes a difference.”
He added: “Don’t put it off – why not start your savings plan today – most savings accounts can be opened online and you can switch money from your current account whenever you wish – it’s that simple – so what’s stopping you?”
Sell unwanted things online
You can make extra cash by selling things you no longer want or need online through websites such as Ebay, Facebook Marketplace and Depop.
Other sites include Gumtree, Etsy and Shpock, or specialist marketplaces such as MusicMagpie.
We spoke to a dad-of-three who showed what’s possible through online reselling.
George Ross, 30, from Essex, repaid £12,000 in debt in two years by reselling clothes, furniture and toys online.
One person’s junk really can be another’s treasure – as demonstrated by this eBay seller who has made more than £2,000 selling 1980s crisp packets.
Try not to sell your things for less than they’re worth – it could be worth doing some research on how much they generally go for before putting up a listing.
You should also check how much you’ll have to pay in seller’s fees and factor that into your overall profit.
Do online surveys for money
You can earn cash and vouchers by filling out surveys online for sites such as Swagbucks, Toluna and i-say.
The surveys typically take 10 to 15 minutes to complete, and are handed out depending on who you are, where you live and your interests.
If you qualify for enough surveys and are persistent with checking the sites, you could make around £5 per hour.
Doing that a few times a month could make a big contribution to your £41.60 goal.
Get a second job
If you’re really serious about earning some extra cash, it could be a good time to look for a second job for the evenings or the weekends.
Hospitality firms and delivery companies have all reported a shortage of staff recently.
Tesco is even offering a £1,000 bonus to lorry drivers to join due to shortages.
Indeed and Totaljobs are two of the UK’s biggest job sites advertising full time and part time work.
A second job is a big commitment though, and could be hard to juggle with full-time employment, and seeing friends and family.
If you don’t think another regular gig is the thing for you, you could try looking for more sporadic work.
Try posting details of your skills and ability on a community app, such as Nextdoor.
Also check out sites such as Taskrabbit.
With some hard work, you could earn up to £35 an hour on Taskrabbit.
Find a “side hustle”
This is similar to getting a second job, except a side hustle is about making your hobby into a project that pays.
Lockdown was a boom time for people starting businesses on the side as workers were put on furlough.
The latest research by 118 188 Money showed podcasting, making products such as candles and soaps, and homemade food and drink were some of the most profitable ventures.
On average, Brits with a “side hustle” make £5,000 a year, according to the research.
Instagram and Etsy are both good places to begin advertising your new business.
Remember there are rules about launching a business from home.
You may require permission from your landlord, mortgage provider, local planning officer or your local council.
It might also be necessary for you to register as a sole trader with HMRC and pay tax on your new stream of income.
This savvy saver paid off £32,000 debt in just 18 months by working two extra jobs, slashing her grocery bills and flogging her unwanted items.
You can build up your credit score without having to take out a credit card.
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