One in five people (21 percent) in the UK are using “cash hacks” to help them save money, new research from Post Office revealed.
Around 40 percent of those who were surveyed explained they can save and manage their money better by taking out a set amounts of cash for specific areas each month.
The increase in those using cash has been confirmed with Royal Mail’s tracker data which shows there has been a 15 per cent rise in cash withdrawals year-on-year, and 3.6 per cent rise from January.
As the cost of living crisis continues, a social media finance expert has shared her top savings hacks to help save people over £7,000 a year.Mrs Mummypenny, real name Lynn Beattie, said cash is “very much back” and it is encouraging people to be savvier with their savings and spending.
Speaking to her thousands of followers she asked what financial New Year’s resolutions people were making and she found there was a shift to more cash-related techniques.
Ms Beattie said: “The cash envelope system is used by many, and I’ve been told it gives more control and reassurance around money management.
“Savings challenges are a lot of fun and can generate huge amounts of savings by the end of the challenge, from the daily 1p challenge to the 100-envelope challenge, choose one that suits you.
“Or go back to basics and save your £2 coins or 50p in a money jar, bag it up and take it to your local post office every few months to pay into your savings account.”
For those looking to save thousands this year, there are a number of cash savings challenges that could help pocket some real cash.
Mrs Mummypenny's top cash hacks:
- The 1p Savings Challenge:
“A cash-based savings challenge that lasts for a year. Starting on day one you save 1p, day two save 2p, day three save 3p etc, until day 365 where you save £3.65. This year-long challenge adds up to a huge £671.61 after a year of savings.”
- The £1 Weekly Savings Challenge:
“Similar to the 1p challenge but for this version instead, you save £1 in week one, £2 in week two, £3 in week three all the way through until £52 in week 52. This year-long challenge adds up to an even larger saving amount of £1,378 after a year of savings.”
- The 100-envelope challenge:
“Another very recent popular cash-saving hack. You get 100 envelopes and label them £1 to £100. Every week choose two envelopes at random and stuff that envelope with the appropriate amount of cash. By the end of the 50 weeks, you will have £5,050 in cash saved!”
By taking part in these savings challenges, customers will be able to save up to £7,099 a year.
Mrs. Mummypenny’s local Post Office branch in Knebworth is a vital pillar for the local community as the last bank in the village closed in 2016.
The locals now have to spend extra money for the two-mile travel to Stevenage to get to the nearest bank.
Mohsin Miah, postmaster at Knebworth Post Office said: “Even though there’s an ATM in the village, it’s much more convenient for people to come into the branch. We are seeing more and more people these days frequently withdrawing very specific amounts of cash to pay for expenses like their bills, groceries and cabs.
“For example, they cannot withdraw exactly £13.50 for their shopping at an ATM, but they can here. Sometimes they want that exact amount because they might only have £20 left in their account.
“For the locals, coming into the Post Office is much easier than going to the nearest bank as withdrawing cash there costs even more as they have to spend on bus tickets, or fuel and parking for their cars.
“Older people especially prefer coming into the branch as they find greater safety and security within the post office premises compared to using outdoor ATMs, which can’t provide the support that a person can. It’s a tight knit community and my customers are very familiar with me and the staff so they know they can ask us for help.”
