Yep, you heard that right, spending your money can also help you save money.

And no, this isn’t some sort of mental gymnastics designed to confuse you, it’s absolutely possible. Let marketing exec Lewis, show you how.

What is this witchcraft of which you speak?

This month’s blog is a quick one, the ideal read for anyone looking to invest in their savings without investing too much of their time!

So, over the past 12 months I’ve been using a new bank for my current account (it starts with an M and ends with a onzo) and it’s the one I use to make everyday purchases (or sometimes multiple-everyday-purchases). And after a couple of months, I realised that with every purchase I made, I could round-up the rest of the spending.

For example, if I spent £4.35 on my train ticket to work, then 65p would automatically be rounded up and added to a pot of my choice outside of my current account.

So, how much did you save?

Over the past 12 months, without having to think about it, I managed to save £76.79 into a round-up pot, outside of my regular savings pot which I would add to monthly. The beauty of having round-ups as a savings mechanism is that at times, I would forget it was even there and every so often check in and see how much I’ve saved. Saving nearly £80 a year without making any real effort isn’t bad in my opinion. Imagine how much you could save with a plan in place!

Now, how is this helpful?

Many of you reading this will be thinking ‘that’s great but how does it help me?’.

And the answer is, if you’ve set yourself a goal of how much you’d like to save, you can then use the roundups to add to it. Most banks that offer round-ups give you the opportunity to double or even triple the change from your purchases.

This means annually you can revisit your round-up pot like I now do, alongside your regular savings account and add that money to a fixed rate bond or cash ISA to help you save even more money in the long run.

Speaking of fixed rate bonds and cash ISAs, you can take a look at the accounts Hodge offer here.

Safe in the knowledge that even the Money Saving Guru himself mentioned our cash ISAs recently…https://www.moneysavingexpert.com/savings/best-cash-isa/

What next?

I’d say do a little bit of digging into your current account and its capabilities. Once you’ve found out what’s possible, set up a round-up pot, and you’ll be on the journey to saving more money every time you need to buy something.

I did tell you this would be a quick one. At least now you’ve got more time to find an account with round-ups, that suits you!