I’m savvy saver and here are five steps to take now to save £1,000 by Christmas 2025
CHRISTMAS is a time for feasting, celebrating and exchanging gifts - but the costs can add up fast.
So, if this festive season has strained your budget, you could begin saving now to lighten the load for next year's celebrations.
We spoke to Louise Bastock, editor at the personal finance comparison site Finder.com, who shared her top savings tips.
Louise's full-proof tips will allow you to save at least £1,000 in time for Christmas 2025.
These include taking advantage of free cash, doing a quick check that could earn you hundreds of pounds, and making sure you prioritise paying off any debts.
Plus, she said the key is to think of savings as money that you can't touch so you let it earn good interest.
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Here's exactly how to build yourself a nest egg for next Christmas...
Switch banks to bag free cash
Louise recommends switching banks or building society to take advantage of free cash-switching perks.
She said: "After a lack of bank switching deals earlier this year, there are currently four deals on the market, so 'tis the season to switch your bank account to bag some extra cash.
"The bank switching landscape has changed over the last 12 months, with some 'switch and stay' deals requiring you to stick around for several months to get the full amount on offer.
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"So, check the eligibility criteria in advance to make sure you're happy to jump through all the necessary hoops."
Some of the top deals at the moment include £175 from First Direct and Nationwide (free account options available).
Newbies can also get £150 from Santander, although £2 monthly account fees apply, or £75 from Co-op Bank.
Make your savings work hard
Louise said you can make the most of your free cash with the second move.
"Pop the cash you got from a switching deal into a high-interest savings account," she advised.
"The best part is many of the current accounts offering switch deals also come with linked regular savers with some of the highest savings rates on the market - around 6%-7% AER.
"Bear in mind a regular saver requires you to pay in a set amount each month, and you may lose your rate if you withdraw your cash before the end of the term."
FINDING THE BEST SAVINGS RATES
WITH your current savings rates in mind, don't waste time looking at individual banking sites to compare rates - it'll take you an eternity.
Research price comparison websites such as Compare the Market, Finder.com, Go.Compare and MoneySupermarket.
These will help you save you time and show you the best rates available.
They also let you tailor your searches to an account type that suits you.
As a benchmark, you'll want to consider any account that currently pays more interest than the current level of inflation - 2%.
It's always wise to have some money stashed inside an easy-access savings account to ensure you have quick access to cash to deal with any emergencies like a boiler repair, for example.
If you're saving for a long-term goal, then consider locking some of your savings inside a fixed bond, as these usually come with the highest savings rates.
Repay those pesky credit card debts
However, being a successful saver isn't just about stashing your spare cash.
If you have any outstanding debts, it's a good idea to clear those, starting with those charging the highest interest.
"If you've racked up credit card debt in 2024, prioritise paying that off before you start saving so you’re not losing money each month in interest," Louise explained.
A good way of clearing this debt and ensuring you pay as little interest as possible is to shift it to a balancer transfer credit card.
These cards allow customers to temporarily stop paying interest for up to 30 months for a small processing fee of 0-4%.
However, if you want to pay your debt down completely, you should avoid spending any extra money on these cards.
FINDING THE BEST CREDIT CARD DEALS
YOU should always use an eligibility calculator before applying.
To assess all the available cards, visit price comparison websites like MoneySavingExpert's Cheap Credit Club or Compare the Market.
Once you run your details through an eligibility calculator and you've been shown that you're likely to be accepted, make a formal application.
To do this, you will need to provide your name, address and email address as well as details of your income so a provider can assess your eligibility.
You will also need to provide details of how much money you want to transfer to the new card, but you can often do this after you have been accepted.
That's because every credit card application leaves a mark on your credit file and can affect your credit score.
If your application for a balance transfer card is approved, you must transfer the balance within a set period, usually around 60 or 90 days.
Your old balance will then be cleared and you can start making interest-free repayments on your new card.
Make use of free budgeting and saving apps
There are free apps that can connect all your bank accounts in one place, help you track spending and spot where you're paying out for subscriptions you're not using.
They can also help you become a regular saver without trying.
Louise said: "Saving is so much easier when you enjoy doing it - or better yet - when you don’t even notice it.
"Budgeting apps like Plum and Emma use open banking to automate your savings based on what you can afford every month, so you can ditch the spreadsheet for good (unless that's your thing).
"You could also use features like spare change round-ups to squirrel away 20p here and 50p there every time you spend.
"I typically save around £30 a month with round-ups without even realising it.
"At £360 over the year, that's plenty to cover the cost of my Christmas pressies."
There are lots of other money apps that can help you to budget and save.
Most apps are free, but some may give you the option to upgrade your subscription.
We've previously reviewed several popular money saving apps that work in a similar way to Plum.
Try a savings challenge
If you're still struggling to save cash, there are several quirky savings challenges you could do next year.
Louise said: "Social media is good for some things, and in 2024 it brought us a bunch of savings challenges like the '100 Envelopes Challenge', where you write a monetary amount from £1 to £100 on 100 envelopes and save that amount each day in incremental amounts.
"This challenge would bag you £5,050 after 100 days, which would be a lot for most.
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"But, you can customise it to suit your budget - for example, 52 envelopes with amounts ranging from £1 to £52 that you randomly select each week.
"The idea is that, by gamifying the savings experience, it feels like less of a chore."
How to cut the cost of your debt
IF you're in large amounts of debt it can be really worrying. Here are some tips from Citizens Advice on how you can take action.
Check your bank balance on a regular basis - knowing your spending patterns is the first step to managing your money
Work out your budget - by writing down your income and taking away your essential bills such as food and transport
If you have money left over, plan in advance what else you’ll spend or save. If you don’t, look at ways to cut your costs
Pay off more than the minimum - If you’ve got credit card debts aim to pay off more than the minimum amount on your credit card each month to bring down your bill quicker
Pay your most expensive credit card sooner - If you have more than one credit card and can’t pay them off in full each month, prioritise the most expensive card (the one with the highest interest rate)
Prioritise your debts - If you’ve got several debts and you can’t afford to pay them all it’s important to prioritise them
Your rent, mortgage, council tax and energy bills should be paid first because the consequences can be more serious if you don't pay
Get advice - If you’re struggling to pay your debts month after month it’s important you get advice as soon as possible, before they build up even further
Groups like Citizens Advice and National Debtline can help you prioritise and negotiate with your creditors to offer you more affordable repayment plans