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Saving: How to save when you don't have any money

Always reaching for the last bit of change?

Cut the cost of living
Find money you didn't know you had
If you've got it, rent it (or sell it)!
How and where to put your hard-earned cash

Saving is a really good idea, but not until you have paid off your debts - the amount you lose in interest on the repayments is likely to cancel out anything you make from your savings.

So - once you've cleared your debts, how do you find the money to save?

Cut the cost of living - and keep what's left over

In order to save you need to free up some money each month. The easiest way to make a dent in your outgoings is to cut your utility bills - so see if you can't save money by switching providers.

With energy price rises, your fuel bills are a good place to start. Have a look at our article about switching and saving for loads of advice, then check out our energy comparison page.

You can also use our comparison tables to quickly find cheaper insurance (on everything from your car to your holidays), as well as cheaper phone and broadband.

Then cut down on your general spending. If you don't know where your money is going each month, keep a spending diary for a few weeks and you'll soon find out!

Start with just one thing that you'll cut down on - perhaps you buy a coffee every morning on the way to work? Replace that with a travel flask or cup of your own brew and you'll save about £12.50 a week.

Bring sandwiches to work instead of buying them, or have one less takeaway a week. All these things add up, and cutting back on them will free up a lot of money.

For loads more ways to cut your spending, read our article on reducing your outgoings and find out how you can save over £1,000!

You should also check you have the best bank account - currently we reckon the Alliance and Leicester Premier Direct account. It's a great all-rounder, with an interest-free overdraft of up to £2,500 and 8.50% interest (AER) on balances of up to £2,500.

Find money you didn't know you had

Check out the brilliant website Mylostaccount, which will search for any dormant accounts you might have forgotten about.

And don’t forget other financial products you may be missing out on. Our article on how to get free money has links to services like the Pensions Schemes Register, which will find any old pension schemes you set up with previous employers.

There’s also the Unclaimed Assets Register which covers all manner of investments, life policies, shares, National Savings and others.

They charge a small fee (which they give to charity) but it’s worth it. They're also partnered with the Halifax to help current and former Halifax members find old savings accounts quickly.

While you’re at it, why not pull the cushions from the sofa and check in pots, on shelves and under boxes around your home to see if you can find any spare coins.

According to Visa UK, Britons collectively have £1 billion of loose change just lying around!

Save coins in a jar

Pick a coin - any coin. It could be £1 coins, £2 coins or 20p coins. Whichever you choose, you have to save any coin of that denomination you have left at the end of each day. Get yourself a piggy bank or a special jar that you empty your coins into regularly.

A lot of people use this method of saving for things like a holiday or Christmas. It's a great way of gradually accumulating money, without it hurting your purse too much.

However, it's also a good idea to empty your coins jar every month and put the money into a high-interest savings account. That way you can start making interest on it and, hopefully, take away the temptation to raid the jar!

If you've got it, rent it (or sell it)!

What have you got hanging around the house that could make you some money?

If there's space in your house you don't use you could rent it out for cash. Read our article about renting for loads of ideas on how to rent just about anything, from your spare room to your driveway.

Alternatively, you could set yourself the task of clearing out all your unwanted junk and selling it on. Get selling on eBay or eBid and don't worry if you are completely new to it - find out how to sell things on eBay here.

You could also try posting an ad on Gumtree in the 'Stuff for Sale' section, or checking out some online car boot sites like iBootSale. For loads more information about car boots, have a look at our article on how to turn your trash into cash.

Set aside time to make money

Instead of slumping in front of the TV every night, how about setting aside just one evening a week to make some extra cash to save?

Try spending a few hours in front of the computer one night just doing online surveys, or trying to recruit friends to news jobs on commission-based site Zubka.

You could even write your own blog and use Google Adwords to help make you some money. Check out Get Paid to Surf for loads more ideas on how to make money online.

Take a look at the ideas in our Making Money section for any that match your circumstances, and find out about money making you can do in the evenings or at the weekend with Need a bit on the Side.

My Budget Day

AXA says that over 20 million households have been eating into their savings since the beginning of the year. We all need to get into the habit of regularly reviewing our finances.

So, get started by joining in the AXA 'My Budget Day' which takes place on 20 November. It's a campaign to encourage the nation to spend an hour a month (or 15 minutes a week) planning their finances.

Their website allows you to calculate your budget, plan your pension and manage your debt, and is a great way to kick-start the habit of keeping track of your cash.

How and where to put your hard-earned cash

The first thing to do is open a high-interest savings account to help your money grow - find the current top savings accounts here and tax-free Cash Isas here.

If you think you'll only be depositing small amounts, a regular savings account could well be what you need.

Currently the best is the Barclays Monthly Savings Account which has an interest rate of 7.75% AER.

You can deposit between £20 and £250 a month into the account, but the interest rate will drop significantly if you make any withdrawals - a good incentive not to touch your money!

If you make money over the internet, move it straight into an internet-based savings account as soon as you get it.

If it's cash, put it in an envelope and deposit it in your savings account immediately to stop yourself spending it on treats!

If you're still worried about the safety of your money after the recent banking turmoil, you could consider looking at some of our savings alternatives.