I saved £20k in a year on a £32k salary while renting in London – anyone can follow 8 easy tips & copy my side hustle
SAVING money can be tricky, especially when we are living in a cost of living crisis.
However, one woman has revealed how she managed to save an impressive £20,000 while renting in London.
TikTok user @anitalksmoneyy broke down her top tips for saving and said it was achievable on her £32,000 salary.
The first thing she did was cut out all “unnecessary expenses.”
This includes waving goodbye to all her subscriptions, including Netflix, Spotify and Apple Music.
Anita then automated her savings by setting up an automatic transfer into a saving account each month.
It’s much harder to save if you have a large mortgage to pay or hefty rental costs, and Anita decided to move flats to find a cheaper place to live.
She said: “Paying £500 a month really helped me to save.
“I lived closer to work and walked when I could.”
On her £32,000 salary, Anita would have taken home approximately £26,171 after tax and National Insurance, which works out around £2,180.92 each month.
After putting aside £500 on rent, she would still have £1,680 to play with.
She saved as much of this as she could, and also topped up her salary by doing a side hustle of selling CV templates.
She also picked up extra shifts when she could, although she admitted she “hated” doing this.
During good months, she could make an extra £800 to help with her living expenses.
Anita added: “I had a strict budget for everything.
Side hustles in numbers
Based on new research from Finder, an estimated 22.8 million Brits are using side hustles to top up their income.
Among those aged 18-23, 68 percent have a side hustle in 2024.
Those aged 24-42 aren’t far behind, with 65 per cent having an additional source of income.
Side hustles are less popular among older generations, with 40 percent of those aged 43-54 having one.
Whereas 23 percent of people aged 55-73 and just 7 per cent of those aged 74 and over are earning extra cash this way.
“If I was craving takeout I would watch YouTube and make it at home.
“[I did] little to no shopping.
“I got all my makeup from the drugstore.
“I had to say no to going out sometimes.
“I opted for cheaper (under £10) or free activities in London.”
Anita's eight top tips for saving
TIKTOK user @anitalksmoneyy broke down her top tips for saving and said it was achievable on her £32,000 salary.
- Cut out unnecessary expenses such as subscriptions
- Automatically transfer part of your salary into a saving account
- Have a strict budget for everything
- Ditch takeaways
- Only do activities that are £10 or less, or free
- Consider moving to pay a cheaper rent (if applicable)
- Get make-up from cheaper shops
- Pick up extra shifts or start a side hustle
The savvy saver admitted that the process “wasn’t easy” but it is easier when you have a goal in mind.
She shared: “Most of the money went towards paying my tuition, and I’ll be graduating next month. I’m so excited and proud of myself.
“Coming from a low-income family, it was my goal to sponsor myself through my studies, and I’ve done that.”
Many people were impressed that she had managed to put aside £20,000 in just 12 months.
One person wrote: “Thank you for sharing. That how I save an am saving like this for the next four years.”
Another added: “you should be so proud of yourself!!”
A third commented: “Well done good progress.”
5 Money-saving tips for autumn/winter
1. Draught-proof your home
It takes time and money to heat up your home, so it’s important that you do as much as you can to keep in the warmth. Close your doors and windows, and fill any gaps with a draught excluder.
2. Dial down your thermostat
According to Energy UK, turning down your thermostat by just one degree Celsius could cut your heating bill by up to 10%, and save you around £85 per year. Plus, if you don’t have a thermostat, installing one could save up to £70 per year!
3. Move furniture around
Make sure not big, bulky furniture like sofas are blocking radiators.
4. Wash clothes on a lower temp and add an extra spin
Unless it’s bedding, towels or really dirty items, dial down the temperature to 20 or 30 degrees, and do a double spin to remove excess water.
5. Heat the person not the home
There’s not point heating up a room that no one is sitting in, so be mindful about which radiators are on.