It’s always a good time to review your finances and get into better spending habits. Instead of cutting back on the joyful things in life, let’s consider ways to save money that won’t impact your lifestyle too much.
Review Your Borrowings
People may not review their mortgage regularly. Mortgage rates and available deals change over time, so it can be worth reviewing your mortgage periodically. But a mortgage is probably the most substantial and longest-running debt you will ever have, meaning that it costs more over the long term.
Of course, there may be fees to consider, and penalties will apply if your existing deal runs for a fixed term. But if you are approaching the end of your deal, or if you have not renewed your mortgage recently and are on the bank’s standard variable rate, you could make significant savings.
If you have a repayment mortgage, your outstanding capital should generally reduce as you make repayments. This could open up more competitive deals. It is worth seeking mortgage advice to find out whether your borrowing situation can be improved.
On a smaller scale, you could also transfer your credit card balances to a 0% balance-transfer deal. While you should still prioritise repaying these debts, this means that your entire payment goes towards reducing the debt rather than servicing the interest.
Save on Childcare
The Childcare Voucher scheme is closed to new applicants, although some existing members can continue to use it. Tax-Free Childcare is available to eligible working families. When you pay £8 into a childcare account, the government adds £2, up to the applicable limits. There are a few conditions:
- You cannot receive Tax-Free Childcare at the same time as Universal Credit or childcare vouchers.
- The government top-up is normally capped at £500 every three months (£2,000 a year) for each child, or £1,000 every three months (£4,000 a year) for a disabled child.
- You must use the money to pay an approved childcare provider that is signed up to Tax-Free Childcare.
- You and your partner, if applicable, will usually need to be working or returning to work and meet the minimum earnings test.
- For someone aged 21 or over, the minimum is normally equivalent to 16 hours a week at the National Living Wage. Different figures apply to younger workers and apprentices.
- Special rules can apply during periods such as sick leave, annual leave and certain types of parental leave.
- If you are newly self-employed, the minimum earnings test may not apply during your first 12 months.
- Neither you nor your partner can normally have expected adjusted net income of more than £100,000 for the tax year.
- Your child is generally eligible until the September after they turn 11, or until the September after they turn 16 if they are disabled. You may also qualify for Free Childcare for Working Parents, so check which support is available for your circumstances.
Reduce Your Bills
Comparison sites have made reducing bills easier by letting you filter and sort the best deals for your needs. The main comparison sites are:
- Money Supermarket
- Money Saving Expert
- Compare the Market
- Go Compare
- USwitch
You can compare and save on various household bills, including
- Gas
- Electricity
- TV Packages
- Phone and Broadband
- Mobile contracts
- Buildings & Contents Insurance
- Car Insurance
Remember, some companies do not appear on price comparison websites, but if you are comparing multiple contracts at once, you will save a vast amount of time by using a price comparison site.
Cut Your Grocery Spend
There are several ways to save on your food shop, depending on your lifestyle and family situation. There are entire websites devoted to this subject, but here are some suggestions:
- Plan your meals for the week, and only buy what you need
- Shop online to keep spending under control
- Try supermarket own-brand or discount ranges. Buy branded items only when on offer.
- Buy non-perishable items in bulk
- Seek out discount coupons for eating out, or go a little earlier and order from the set menu.
Make Use of Available Tax Allowances and Reliefs
Saving on tax means more money in your pocket. While tax planning is a complex area, here are a few simple ideas that most people can use to save tax:
- Increase your pension contributions
- Consider using your ISA allowance
- Make sure you are claiming all the reliefs you are entitled to
- Take advantage of benefits provided by your employer
- If you have a business, check with your accountant that it is structured in the most efficient way
What to Do with The Savings
If you have gone through all of the above steps, even modest savings can add up over time. The amount you can save will depend on your household costs, debts, income and existing arrangements.
Rather than waste all your hard work and spend your savings, make a plan for what you want to do with the money. For example:
- Consider paying off some debt
- Increase your emergency cash reserve
- Top up your pension, allowing you to retire earlier. For example, under relief at source, a £100 gross pension contribution normally costs a basic-rate taxpayer £80, with the pension provider claiming £20 from HMRC.
- Invest for potential long-term growth through an ISA, where appropriate
- Take an extra holiday each year
- Start a new class or hobby
With a small amount of effort, and no real change to your lifestyle, you can create good habits that lead to a happier, more fulfilling life.
Please don’t hesitate to contact a member of the team if you would like to learn more.
The content in this article was correct on 02/10/2026.
The value of your investment can go down as well as up and you may get back less than the amount invested
A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age).
The Financial Conduct Authority does not regulate Trusts, Wills, Tax and Estate Planning
You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on savings, pensions, investments, mortgages, protection equity release and estate planning for teachers and non-teachers.
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