I’ve saved £22,000 with the cash back savings method

Finding the best way to save yourself can be a task – but Kay Bardsley used the little-known cash-cutting method to rake in a whopping £22,000.

Kay, 27, has been trying to travel abroad for a year AND bought her first home with fiance Dom Parker, 28, using unusual engineering.

Kay used the cash cut method to save a whopping £22,000


Kay used the cash cut method to save a whopping £22,000
She earns her own wallet to make sure she's always on track using this method


She earns her own wallet to make sure she keeps track using this method
Cash allows her to travel, buy a house and save for a wedding


Cash allows her to travel, buy a house and save for a wedding

Life coach Kay, from Yorkshire, stumbled across the cash cut in 2016 on YouTube while searching for videos to inspire her to get on with her finances.

“I was on a mission to organize my life,” she said. “I want to travel, but every time I look at my bank account, I just see my bank balance going down, not going up.”

Money cutting works by taking money out of your bank account and dividing it into separate pots for different uses.

Kay used the system to keep her and her partner Dom’s trips organized, putting cash in four separate wallets to spend on gas, food, clothes and fun things like going. dining out.

She even created her own giant wallet to stuff money in by gluing 5 plastic wallets together and crocheting a pretty cover for it.

This method has saved the couple a total of £30,000 over five years, money they’ve spent on travel, home deposits and wedding savings.

But the savings method isn’t for everyone, says Kay — and there’s a risk that you could lose your cash, meaning that once it’s gone, it’s gone.

She explains how it works for her with The Sun.

Travel savings – £6,000

Kay decided to drop the change herself while she was saving up to travel with Dom.

She sits down and calculates how much she can afford to put on her savings relative to her expenses.

Living with her family at the time, she didn’t pay any rent – this allowed her to increase her savings.

At the time, her monthly income was £800 while she was working part-time in the local supermarket.

“I figured I could put 75 per cent of my savings, which is £500, and the other 25 per cent, which is £300, to pay bills and more,” says Kay.

“While my expenses are paid in cash, I have moved my savings to an ISA account so I don’t lose interest – I wouldn’t be able to raise the money if it was just in my wallet.”

She soon found this method worked for her, and her spending habits changed for the better as she kept track of her budget.

“In the past, I used to go to the supermarket or shop along the high street and not keep track of how much I spent – ​​I just typed in my card and paid for it all,” says Kay.

“But with physical cash, I had everything in my head as I moved on and knew what I could and couldn’t buy.

“I even started shopping at charity stores for cheaper clothes instead of Next and New Look, and I would trade in more expensive beauty products for cheaper ones.”

She even made her own large purse to make handling cash easier, bought plastic purses from The Range in 50p, glued them together and knit a flap to make it look good. .

In 12 months, she’s saved £6,000 for her travel – and Kay even brought her huge purse overseas to help her cash in on her stay in New Zealand.

Savings on a home – £8,000

The couple returned from travel in 2019 – but it was a “system shock” for Kay when she looked at her bank balance.

“My finances were really going down, so I used the cash out system to get them back on track,” she said.

Kay decided to use the withdrawal system this time to raise cash for a home deposit.

“We both have to live apart with our families after we return from a trip – and we were desperate to have our own space and wanted to buy a home,” says Kay.

“Sit down to set a savings goal for our deposit, we want to raise £20,000 so we have at least enough cash for a 10% deposit.

“We’ve got £4,000 in savings between us – which means we need to find £16,000, which is £8,000 each.”

Right now, Kay is working at a supermarket while Dom is a minimum wage ski instructor.

Living apart from their parents means Kay doesn’t have to pay any rent, while Dom is given back the subsidized rent he paid the family when he moved out. .

Kay managed to increase the amount of money she was saving when the lockdown hit and she lost an average of 10 extra hours of work shifts.

She plans to put £1,300 of her £1,700 salary into savings, leaving her with up to £400 a month.

“We’ve shelved our plan to buy a gym membership, saving both of us around £30 a month, and instead of going out to eat and buy takeout, we’re going to make our own. hang out, save £200 a month.”

Kay and Dom alone have saved £8,000, which means they’ve hit their £20,000 goal together – and they bought their dream home last June.

Wedding savings – £8,000

Since moving in, the couple have used the savings method to cash out together, combining their paychecks to set aside money for their wedding.

To do this, Kay created a spreadsheet for the two to log their trips and track with with the goal of shelling out between £1,000 and £2,000 a month on their big day.

However, this changed when the couple quit their jobs to start their own businesses.

In total, they’re looking to raise £20,000 – so far, they’ve deposited £8,000 using the cash clipping method.

Kay adheres to certain rules so that she can fit in her pocket.

“I’m doing a no-spend challenge, which means I haven’t bought any clothes or any household items in a year,” she said.

“I was spending £200 a month on random things I didn’t need – now that money is spent on weddings.

“Dom and I have also cut our grocery bills in half by switching to cheaper stores and meal planning.

“We cut out expensive items, like chicken, and shop in Aldi and Lidl.”

Risk of cutting cash

Using the cash-cut method to hit a savings goal means Kay has saved £22,000 – but she cautions that the method isn’t for everyone.

There’s always the risk that you could lose your cash when you go out or misplace it – and once it’s gone, it’s gone.

You may also be at risk of losing it if your home is burglarized, or if there is a fire or flood.

“I’m not a number, so seeing things materially works for me – that’s why the short cash method has really worked for me.

“But everyone is different – ​​make sure to research different methods and find the one that works for you.

“For me, it made a huge difference and made me feel like I was in control of my money.

“Having saved £22,000 in total myself feels like a huge achievement and I will certainly continue to use this method in the future.”

Alternative savings methods

Cash cutting isn’t the only savings method you can use to store your cash.

You can make more money from your savings by depositing it in a savings account instead of pulling out cash and putting it in the pot.

even though interest rate very low, making it harder to grow your money, you can still find the best savings account to increase your cash.

Based on MoneySavingExpert, the leading easy-to-access account at the moment is by Investec and pays only 0.71% interest.

If your savings goal is to build a home, you may want to open a Lifetime ISA to help you save.

The government will add 25% to your savingsup to a maximum of £1,000 a year.

If you save the maximum amount between the ages of 18 and 50 you can get up to £32,000 for free.

Here’s how a savvy saver is on track to becoming mortgage free for eight years.

Someone else used “pocket” method to write off debt worth more than 14,000 pounds in just one year – she explains how.

A thrifty Englishman save £725 a year washing your clothes at night and use a slow cooker when energy bills are high.

Kay says she will continue to use this method because it really saves her


Kay says she will continue to use this method because it really saves her
However, there are downsides to using this method - we explain


However, there are downsides to using this method – we explain
The man who turned the basement hidden under the floorboards into a home cinema

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