Save a purchase before you splurge

Another savings tip is to save as much as you intend to splurge.

Barclays experts said: “The next time you want to buy a treat with your usual pocket money – a £30 dress, for example – save yourself the £30 first.

“For example, stop buying that cafe (£3 saved), make a few more vegetarian meals (£10 saved, etc.) until you hit £30.

“Now transfer this amount from your checking account to your savings account. This way you’ll save more, get into the habit of cutting down on spending, and give yourself time to make sure you really want that dress.

Potential tax savings

Married couples could potentially save money by transferring personal allowances.

Personal Allowance is a part of wages which is completely tax free, and this financial year the amount people can earn tax free is £12,570.

Martin Gurney, tax expert at Haines Watts Swindon, previously told ‘Where your spouse or civil partner is not using their full personal allowance, consider jointly electing to transfer an item to you – if you are a basic rate taxpayer – to reduce your family tax burden.

Marriage Allowance allows people to transfer £1,260 of their Personal Allowance to their husband, wife or civil partner – and recent data indicates that up to 2.4million eligible UK couples are without it.

If eligible, Marriage Allowance can reduce tax by up to £252 in the tax year (6 April to 5 April the following year).