“If you do what you’ve always done, you’ll get what you’ve always gotten” – Tony Robbins

I love this quote by Tony Robbins and it is very applicable to saving money fast. If you have never tried to save money fast before and are just starting this is going to be hard. Let me repeat that saving money is hard if it is not a habit. This is because it is going to require long term change.

Disclaimer: If you are not interested in doing hard work then do not read this post

Still with me? Welcome hard-workers, you are going to learn about how to create a long term saving habit and NEVER EVER go into debt again. This article will NOT tell you how to flog some rubbish on ebay for a quick buck and neither will it tell you how to speculate on trading options. These are “get rich quick” schemes that are not sustainable. We want saving to become a natural part of your daily routine so that you do not even have to think about it.

Sound good? Read on

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How to save money fast in a nut shell

The concept behind saving money fast is really really simple. You have two options:

  • Earn more money and keep your spending the same
  • Spend less money and keep your earning the same

However it is not that easy in practice (Or else you would not be reading the post). The problem is that when the general population earns more money they spend more money on things that lose value with time. These are called Liabilities.

Let’s say I have a friend called Alan. Alan is a banker who after working really hard one year get’s a bonus of £20,000. He is of course super happy! He knows that he should really invest the money however he has always wanted this flash car which is £40,000. He decides to put the £20,000 down as a part payment and get the rest on finance. He decides that every time he get’s his £20,000 bonus he will follow this strategy

I have come across a lot of Alan’s in the past and I am sure you have to. Let’s analyse this terrible financial decision. Most cars depreciate by 50% in 3 years. So in 3 years he will have lost all his bonus £20,000 and he will still have to pay off the finance. Ouch! This results in a net worth that looks like this:save money fast 2

As Alan comes into money he spends it always meaning that he ends up curving back to £0 net worth. If we consider a second example:

Our good friend Alan the banker again works his socks of for the year and get’s his bonus of £20,000. After his disastrous purchase of the car he has since learnt that liabilities are not a good purchase. After a year of hard graft he is so very tempted to go on an amazing holiday however he uses his brain and decides to buy a rental property with a mortgage. He chooses wisely and buys an £80,000 house with a £20,000 down payment which brings him net £200 per month. He decides that every time he get’s his £20,000 bonus he will do this strategy

I have not come across as many of these Alan’s. The reason? Because it is deferring gratification. He could of bought many nice luxurious holidays with that £20,000 or even a brand new car. But this Alan decided to buy a “boring” old rental property. This was an incredible financial decision because his savings graph will do this:

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Yes there are still the spikes of the original Alan but as you can see his savings are increasing. The reason is because of the £200 extra passive income that he is getting from the rental property. This boosts his earnings and providing he does not spend more money, will mean that he saves more cash. This will allow us save FAST in the long term.

So now you understand that concept let start from £0. If we were on £0 of savings what would we do?


Step 1 Calculate your current financial position

“When your self-worth goes up, your net worth goes up with it.” – Mark Victor Hansen

The strict definition of net worth is total value of assets minus total value of liabilities. If you look at the accountants definition of net worth they will include cars as assets and other terrible depreciating assets. Not us. This is because we do not want you buying a depreciating asset which adds to your net worth. That is dumb!

Instead the only things that you can include in your asset column is stuff that generates you money. This includes although not limited to: property, stocks and shares, cash and business. In the liability column you put any stuff that loses you money on a monthly basis. For example taking finance out on your car would go into the liability column.The figures that you put into your asset column and liability column may not be the full amounts.

Another Alan Example

The easiest way to explain this is in a worked example:

Alan (We like Alan for examples) has got 3 assets that produce income:

  1. A rental property that cost him £100,000 and has a mortgage of £75,000 meaning he has £25,000 in the property
  2. A stocks and shares portfolio worth £20,000
  3. £10,000 in savings

Alan on the flip side has 3 liabilities:

  1. A £50,000 car that he has a £20,000 finance meaning he has Rental
  2. A £10,000 student debt
  3. A house that he bought with outright (No mortgage) for £100,000 which he lives in (yes your house is a liability)

What would his net worth look like?

The rental property would add £25,000 to his asset column (Because £100,000 minus £75,000). The stocks and shares portfolio and savings add up to £30,000 respectively. This gives him a total asset value of £55,000. As you can see for assets you only look at the money that you have put into the asset

For liabilities this is reversed we only calculate the debt that you have got within the deal. For the car he has £20,000 of finance so we use that number. For student debt it is easy £10,000. The house he has no debt (mortgage) on and so counts as £0. The total liability value would be £30,000.

This produces a net worth of £55,000 – £30,000 = £25,000

Using our FREE net worth calculator it would look like this.

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You may be wondering why we calculate net worth in this crazy way (trust us we are the only ones to calculate net worth like this). It is because we are encouraging the right mindset to wealth. If you buy more assets you increase net worth. If you take on more bad debt then you decrease net worth. Simples!

Action point – Calculate your net worth today and ensure to calculate it each month to track your progress

Get your FREE Net Worth Calculator. Just enter your email below and click subscribe.

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Step 2 Find out where you are wasting (Spending) Money

“Never spend your money before you have it” – Thomas Jefferson

If you find out your net worth is £0 or even a minus then you are most likely spending what you earn. It is OK you are in the 80% of people who do not save. If you want to work all your life carry on. If you don’t then read this.

The quickest and simplest way to increase your net worth is to decrease your spending habits

How to stop your spending habit

Decreasing your spending is hard to begin with. Sometimes you can’t go on that luxurious thousand pound cruise that you always wanted to go on. Every time you moan that life is hard, think about the millions of people who struggle to put food on their table every day and be grateful for the life that you have been given. It is important that you always live below your means. Yes in the future when you have a million pound net worth you can loosen the strings a little but if you are starting on £0 cut the luxury crap out of your life. We love this quote:

“Success is living a few years of your life like most people won’t, so that you can spend the rest of your life like most people can’t”

Deferring gratification is the key mindset shift to building your wealth and is the one thing that is holding you back. So how do you decrease your spending?

First for one month track where you spend your money. We use a simple phone app to monitor what we spend our money on. Get into the habit of every time you buy something to write it down. We use a simple Iphone app called spending. It is a really simple to use app that not only tracks your spending but also creates a funky graph to show you where you are wasting your money.

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Once you have tracked your spending for a month use the information to cut out the useless rubbish from your life. You can see in the example above that we have spent £411.98 in the month. We have spent £147.01 on eating out. If we spent that each month over the course of the year that would be £1764.12 which is an obscene amount of money on eating out! If instead we cooked at home and spent £50 on shopping a month. We would save £1164.12 over the course of the year. Changing that one habit would increase our net worth by over a grand each year.

The simple act of monitoring your spending will reduce it.

Note of caution – Do this sensibly and do not plan on eating baked beans for the rest of your life. Remember your health and time is more important than your wealth. If you are dead your money is not going to save you.

Reducing spending part 2

The second part to reducing your savings is going through the direct debits that you have. We can guarantee you that you have at least one random direct debit that is sucking money up each month. Go to your online banking click on direct debits and scroll down the list. Immediately get rid of anything that you don’t need. You will be surprised some of the random direct debits that you find and no longer use. Before you ask you cannot remove the direct debit we set up in “pay yourself first”. For example I just found that I was paying £40 per month to the association of anesthetists (WTF) , just cancelling that will save me £480 in a year.

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Once you have cut out your direct debits and reduced your wasteful spending, you can add up your target amount that you are going to spend each month. This is going to be important for step 3

Action point – Download the spending app and start tracking your spending.


Step 3 Set your savings goals

“I’d like to live as a poor man with lots of money.” – Pablo Picasso

Now you have a target amount that you are going to spend for the month. You can work out the net take home pay that you have coming in using a calculator such as this one – click here. Then it is just the simple task of calculating your net monthly take home pay minus your target spending amount. This will give you the magic savings figure per month Multiply this by 12 to give an annual amount and then set it as your financial goal for the year.


The way that your goal is written is crucial to being able to save money fast. When creating your goal make sure that it is SMART:

  • Specific – about a single topic
  • Measurable – easily quantifiable
  • Achievable – within the realms of possibility
  • Relevant – connected with your long term goals
  • Time-bound – has a definitive target date

A good example of a well written financial goal: I will have £12,000 saved in my bank account in one year’s time (28/01/2017 – set a specific date). I will achieve this by saving £1000 a month for 12 months.

Setting a goal will focus your mind on what needs to be done. It will make it infinitely more likely that you actually reach your target savings. Make sure you read over your Goals (affirmation) every day. If you want to have a morning routine that allows you to look at your goals everyday then click here.

If this all sounds complicated get the FREE financial goal setting spreadsheet. Just enter your email below and click subscribe.

Thank you so much for subscribing :)! One more thing, you need to confirm your email address. This is to ensure your not a robot. We have sent you an email so head over there now.

Note: If you have already given us your email address you have unlimited access to our free resources which we update and add to each month. Just use the password we gave you.


Bonus Tip: Pay yourself first

“Do not save what is left after spending but spend what is left after saving.” – Warren Buffet

Once you have decided on your savings goal set up a direct debit each month from your current account straight into a savings account. The idea is as soon as you get paid, the direct debit zips the money from your current account so you do not see it and thus do not spend it.

Under no circumstances are you allowed to transfer money from your savings account back to the current account.

The idea is that when you are getting close to the £0 balance in your current account, you will be thinking of a million and one ways to make money so you do not go into your overdraft.

Action point – set up your “pay yourself” direct debit now


Congratulations! You now have money flowing into your savings!

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You have just taken your first real actionable steps towards financial freedom. You have learnt to save money fast which is the first step to getting your personal finances back in order. Remember the following quote:

“A journey of a thousand miles begins with a single step” – Confucius

This is just as true financially as it is in every part of your life. Small steps compounded over a long period of time will produce amazing feats. Consider this over a ten year period that £100 a month will result in a savings pot of £12,000. That is infinitely better than a net worth of £0.

In the next article we will be discussing what to do with your initial savings and build up your asset portfolio. If you enjoyed the article please leave a comment in the section below. We really appreciate all the help and support that you give us :).


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