Saving just £1.66 per day could make you happier

In a survey by NS&I, more than half of British people said saving improved their state of mind, and 62 per cent said they were not happy with what they were saving.

However, 30 per cent of people said saving £50 per month would improve their mood, and 12 per cent said saving just £30 would have that effect.

John Prout, NS&I retail customer director, said: “For people who aren’t satisfied with their savings, it doesn’t require big changes to lay aside an extra £1.66 each day, equating to £50 a month – it can be as simple as walking short distances rather than taking the bus.

“Those using regular savings tricks have shown that it’s so often the simplest daily changes that can make a big difference.”

The research found that 41 per cent of people save by collecting loose change, while 35 per cent use online management tools and the same number put a portion of their earnings into a savings account every month.

One-fifth of people grow their own vegetables to reduce grocery bills and 11 per cent make homemade cards and gifts instead of buying them for birthdays. Thirty-six per cent of people plan ahead and buy in bulk to save in the long term, while 22 per cent walk, cycle or car share daily to reduce transport costs.

Meanwhile, those who are dissatisfied with their savings are more likely to splash out on impulse purchases and spend money unnecessarily, such as on unused gym memberships.