15 smart ways to save money in 2026

1. Create a realistic budget

A budget is simply a plan for where money goes each month. It answers a basic question: how much comes in, how much goes out, and what's left over?

Without this clarity, saving becomes guesswork. Even a basic spreadsheet or a free app can reveal patterns that might otherwise go unnoticed, like how much actually goes toward subscriptions or takeaways each month.

Learn more: How much should I be saving each month?

2. Set clear savings goals

People with specific savings goals tend to save more consistently than those without a target. A vague intention to "save more" rarely translates into action, while a concrete goal like "£5,000 for an emergency fund by December" creates both direction and motivation.

Goals can be short-term (a holiday, a new laptop) or long-term (a house deposit, retirement). Having both keeps the momentum going and helps you track your progress towards that goal over time. 

If you’re a Tembo saver, you can see how you’re progressing towards your savings goal straight from within the app. If you’re saving towards your first home, you can also set up a tailored homebuying plan that shows you the next steps you need to take on your journey to homeownership. Find out more about our savings accounts here.

3. Track your spending habits

Tracking spending reveals what budgeting alone can miss: the small, forgettable purchases that quietly add up. A £3 coffee five days a week becomes £780 over a year. A forgotten subscription here, an impulse buy there - these overspending habits are often invisible until you actually take a step back and look at them. Bank statements and spending apps can categorise transactions automatically, making it easier to spot where adjustments might help.

4. Set up standing orders to your savings

Automation is the closest thing to a savings cheat code. When deposits into your savings happen automatically, there's no decision to make each month, and no opportunity to talk yourself out of it. A standing order is a scheduled automatic transfer from one account to another. Setting one up for payday means your savings move before the money can be spent elsewhere.

If you're wondering how much to save each month, even starting with £50 or £100 builds both the habit and the balance over time. The amount can always increase later!

5. Use round-up and money-saving apps

Another way to use automation to your advantage is through round-ups. Round-up apps work by rounding purchases to the nearest pound and saving the difference. A £2.40 coffee becomes £3, with 60p going straight to savings. It's a small amount each time, but those small additions to your savings add up!

6. Turn birthday gifts into top ups

If you normally get cash from family on your birthday, why not get them to put these straight into your savings pot? If you have a Tembo Lifetime ISA, you can use our Gift Link feature to share a personalised, secure link with loved ones, which they can use to send money directly into your Lifetime ISA. Find out more here.

7. Switch energy providers or tariffs

Recurring monthly costs offer some of the biggest opportunities for savings. A single phone call or switch can reduce expenses for months or years to come, with no ongoing effort required.

Energy bills are often one of the largest household expenses after rent or mortgage payments. Yet many households stay on expensive tariffs simply because switching feels like a hassle.

Comparison sites make it straightforward to check whether a better deal exists. Simple changes like using LED bulbs and adjusting thermostat settings can also reduce bills without switching at all.

8. Cancel unused subscriptions

Unused subscriptions are one of the most common money leaks; an estimated £1.6 billion is spent on unwanted subscriptions a year by UK spenders. Streaming services, gym memberships, and forgotten app subscriptions quietly drain accounts month after month without providing any value.

A quick audit of direct debits often reveals subscriptions that can be cancelled immediately:

• Streaming services, especially duplicates
• Gym memberships that aren't being used
• Magazine or news subscriptions
• App subscriptions set to auto-renew

9. Pay off high-interest debts

Prioritising debt repayment can actually accelerate long-term wealth building, even though it might feel counterintuitive, as high-interest debt can cost more over time than savings typically earn - but not always!

Credit cards and overdrafts often charge 20-40% interest annually - far more than any savings account pays. The "avalanche method" involves paying off the highest-interest debt first while making minimum payments on everything else.

Once high-interest debt is cleared, the money previously going to interest payments can flow directly into savings instead!

10. Homeowner? Look at your remortgage options

For many homeowners, their mortgage is typically the largest monthly expense. Yet many stay on their lender's standard variable rate (SVR) and pay far more than necessary without realising it.

Remortgaging means switching to a new mortgage deal, either with the same lender or a different one. With mortgage rates having fluctuated significantly over recent years, comparing remortgage rates regularly can unlock substantial savings - sometimes hundreds of pounds per month! Any savings from a better rate can then flow directly into your other financial goals.

At Tembo, our award-winning mortgage service compares your eligibility to mortgages from over 100 lenders and 20,000 products to find the best deal for you. Ready to see your mortgage options? Get started with Tembo

11. Plan meals and shop with a list

Food is typically the second-largest household expense after housing. Small changes here can free up significant amounts for saving without dramatically changing how someone eats.

Meal planning reduces both impulse purchases and food waste - WRAP research found that UK households waste £17 billion worth of edible food annually. Shopping with a list keeps spending focused on what's actually needed rather than whatever catches the eye in the moment. Buying staples in bulk, like rice, pasta, and tinned goods, often reduces the cost per item significantly, especially for things that get used regularly.

Meal planning can also help you cut down on takeaways and eating out. The cost difference between cooking at home and ordering in is substantial. A £25 takeaway for two could cover several home-cooked meals using the same ingredients.

Rather than eliminating takeaways entirely, reducing them by even one or two per month creates sustainable savings that actually stick. Drastic changes rarely last.

12. Review your car insurance annually

Auto-renewal often means paying more than necessary. Insurers frequently offer better rates to new customers, so comparing quotes a few weeks before the renewal date typically reveals cheaper options. The same applies to breakdown cover and other vehicle-related insurance.

13. Use public transport or cycle more

For some journeys, ditching the car saves both money and time - especially in cities where parking is expensive, and traffic is slow. Railcards and bus passes can reduce costs further for regular commuters.

Even replacing one or two car journeys per week with cycling or public transport adds up over a year.

14. Use the 30-day rule before big purchases

The 30-day rule involves waiting 30 days before making any non-essential purchase over a certain amount - say, £50 or £100. This pause helps distinguish genuine needs from impulse wants.

Often, the urge to buy fades entirely during the waiting period. What felt essential in the moment turns out to be something easily forgotten.

15. Take a look at where you're saving your money

The most effective approach to saving combines smart habits with the right savings account. When money moves automatically into a high-interest account, working towards your goals happens without effort or willpower.

Whether the goal is a house deposit, an emergency fund, or simply building better financial habits, the key is to start. Tembo's savings accounts, including our market-leading Lifetime ISA, competitive Cash ISAs, and innovative HomeSaver account, help savers reach their goals faster. Get started with Tembo to open a savings account and take the first step toward your financial goals.

What to do if you cannot afford to save right now

Not everyone can save immediately, and that's okay. In fact, Finder research shows that 8.9 million UK adults currently have no savings at all. Financial circumstances vary, and sometimes other priorities - like paying rent or clearing urgent debt - come first.

Remember that starting small is better than not starting at all. Even £5 or £10 per month builds the savings habit, and habits are easier to scale up than to create from scratch. The goal at this stage is consistency.

For those struggling with debt or bills, free resources like Citizens Advice offer guidance on managing financial difficulty. Keep in mind that circumstances change, and saving becomes easier over time as income grows or expenses reduce.