Britons embrace 'revenge saving' with mind-trick method to build cash pot

A social-media trend dubbed 'revenge saving' is gaining traction in the United Kingdom as households seek to reclaim control over spending and build a cash cushion. The approach treats budgeting as a challenge and frames the act of saving as a proactive response to economic pressures. This trend has been popularized by personal-finance outlets such as This is Money, which outline a five-step 'mind-trick' saving method intended to help Britons grow a cash pot with minimal daily effort.

At the heart of the method are five practical habits designed to turn saving into a habit rather than a one-off effort. First, starting even if you feel you do not have enough. Second, saving even when interest rates are not attractive. Third, letting the snowball effect work by reaping benefits from compounding. Fourth, doubling the amount saved each day to accelerate growth. Fifth, making saving automated so that money moves without active thought.

First idea: starting small, but consistently. Rachel Springall, finance expert at Moneyfacts Compare, says: 'It is a misconception that saving a little bit here and there is not worth it. This is untrue, all the pennies add up and they work harder in accounts that pay decent returns of interest.' The guidance notes that Almost a third of people, some 29 per cent, say they regret not starting to save sooner, according to research from Tesco Bank. Some banks offer round-up features, such as Lloyds Bank's save the change scheme, so people save cash automatically with every purchase. If you tuck away £10 a week at the start of the year, it will turn into £520 by year end.

Second idea: saving even when rates are not good. Savings rates have slipped from their October 2023 highs, when the best easy-access account paid about 5.2 per cent and the top one-year fixed-rate bond offered around 6.2 per cent. As of today the base rate sits near 4 per cent, with the strongest easy-access accounts around 4.3 per cent and one-year fixed-rate bonds around 4.45 per cent. Andrew Hagger, founder of MoneyComms, says: 'Even though rates are less attractive now that shouldn't deter you from saving. Even with no interest you are building a capital sum, the interest is just the icing on the cake albeit a bit thinner than it was a year ago.' Regular saver accounts remain a practical starting point for smaller sums, with some offering as much as 7 per cent.

Third idea: letting the 'snowball' do the work for you. After a year of tucking away a small amount, a savings plan can snowball into something larger. The concept relies on compounding, which Albert Einstein famously called the eighth wonder of the world. If you save £100 in a bank account and earn 10 per cent interest, you would have £110 after one year, £121 after the second year, and £133.10 after the third year. The larger the base, the bigger the eventual payoff, reinforcing the principle of starting early and staying consistent.

Fourth idea: doubling the amount you save each day. Starting small and increasing the amount saved by a little each day can yield surprising results with minimal effort. The approach in practice might begin with 10p on day one, then 20p, 40p, 80p, £1.60, £3.20, £6.40, and so on; by week’s end the total could reach around £12.70. Andrew Hagger notes that if you sustain this pattern for a year, the total saved would be roughly £660. Some savers use apps connected to their bank accounts to automate the process, including options tied to services such as Monzo Extra, Perks or a Max account, which can cost between £3 and £17 a month.

Fifth idea: making it automated and forgettable. Automating transfers from a current account into a savings vehicle removes the mental load of saving. Direct debits can be scheduled to depart on payday or at regular intervals, mimicking routine payments such as utilities or rent. Savings apps can also handle the flow, with Plum among the popular choices. Ms Springall says: 'You could use apps like Plum to automatically save cash every single week. If it collected £20 a week from now, that is £260 saved by Christmas week. It only saves what you can afford as it links to a current account and checks balances.'

Not all readers of This is Money are starting from a large pot, but the five mind-trick ideas are presented as a practical framework for building a habit that can lead to meaningful savings over time. The publication notes that readers are welcome to share tips or their own experiences in the comments, highlighting a broader interest in practical, scalable approaches to personal finance.

The trend mirrors broader market dynamics, where households face a mix of inflation pressure and evolving interest rates. While the exact returns of any savings plan depend on account types and market conditions, the overarching message emphasizes behavior change over quick gains. The five steps are designed to be portable across income levels, with the core aim of turning a modest initial gesture into a durable savings habit.