Introduction

Congratulations! If you’ve recently completed a no-spend challenge, you’ve done something that many people struggle with—taking control of your spending habits. Whether it was a weekend, a month, or longer, you’ve proven to yourself that you can live with less and still thrive.

But now comes an equally important question:
What should you do with the money you’ve saved?

Without a plan, it’s all too easy to let that extra cash disappear. Before you know it, you might be back to old spending habits, undoing all your hard work.

In this article, we’ll explore the best ways to use your no-spend savings, including:

• Paying off high-interest debt
• Building or topping up your emergency fund
• Investing for the future
• Saving for something meaningful

We’ll also provide a simple savings calculator to help you see how your money can grow over time.

So  – lets get started!

Take Stock of Your Savings

Before deciding how to use your saved money, it’s essential to calculate exactly how much you’ve set aside during your no-spend challenge. Even if it doesn’t feel like a large sum, every pound saved is a step towards better financial health.

How to Calculate Your Savings

Follow these simple steps to determine your total savings:

1. Check Your Bank Statements – Compare your spending during the no-spend challenge to previous months.
2. Look at Your Budgeting App – If you use apps like Monzo, Starling, or YNAB, review your spending categories.
3. Calculate the Difference – Identify areas where you spent less (e.g., no takeaways, no impulse purchases).
4. Add Up the Savings – Transfer this amount into a separate savings account to prevent accidental spending.

Example Calculation

Here’s a simple example of how much you might have saved during a one-month no-spend challenge:

The Power of Small Savings

Even if you’ve saved only £20 or £50, it can still make a big difference over time. The key is to stay consistent and direct that money towards something meaningful.

Now that you’ve calculated your savings, let’s look at how to prioritise where it should go.

Prioritise Your Financial Goals

Now that you know how much you’ve saved, the next step is to decide where to put it. With so many possible options—paying off debt, saving, investing—it’s easy to feel overwhelmed.

The best approach? Prioritise based on your personal financial situation. Here’s how to decide:

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Step 1: Pay Off High-Interest Debt First

If you have credit card debt, overdrafts, or high-interest loans, tackling them should be your first priority. Interest charges can quickly eat away at your savings, making it harder to get ahead financially.

Why It Matters

• Most UK credit cards charge 20-30% APR—meaning you’re losing money every month to interest.
• Clearing debt reduces stress and improves your credit score, making future borrowing cheaper.

What to Do

• Use your no-spend savings to pay off the highest-interest debt first (this is called the “avalanche method“).
• Consider a 0% balance transfer credit card if you qualify—this can help you avoid interest while you repay.
• If you’re struggling, seek free debt advice from:
  • StepChange
  • National Debtline

Step 2: Build or Top Up Your Emergency Fund

Once you’ve tackled high-interest debt, the next priority is financial security. An emergency fund acts as a safety net for unexpected costs like:
✅ Car repairs
✅ Broken appliances
✅ Sudden job loss

How Much Do You Need?

• Bare minimum: £500–£1,000 (enough for small emergencies).
• Ideal amount: 3–6 months of essential expenses (especially if you have dependents).

Where to Keep It?

Your emergency fund should be:
✅ Instantly accessible (a savings account, not locked in an ISA or investment).
✅ Separate from your everyday account (to avoid temptation).

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Step 3: Save for a Big Goal

If you’re debt-free and have an emergency fund, you can start saving towards a big-ticket goal, such as:

🎯 A House Deposit – Consider a Lifetime ISA (LISA) for a 25% government bonus on savings towards your first home.
🎯 A Holiday – Open a dedicated holiday fund account to avoid dipping into everyday savings.
🎯 A Course or Career Investment – Upskilling can increase your earning potential.

Step 4: Start Investing (If You’re Ready)

Once your finances are stable, investing can help grow your savings long-term. However, it comes with risks, so it’s not for everyone.

Best Investment Options in the UK

• Stocks & Shares ISA – Tax-free investing for long-term wealth growth.
• Lifetime ISA – A great option if you’re saving for a home or retirement.
• Index Funds & ETFs – Low-cost, diversified investments for beginners.

Which Option Should You Choose?

Here’s a quick decision table to help you prioritise your savings:

By prioritising your financial goals, you ensure your no-spend savings go towards something truly beneficial.

Now that we’ve set clear financial priorities, let’s explore how to maximise your savings with a simple savings calculator.

Consider Investing (If You’re Ready)

Once your finances are stable—meaning you’ve paid off high-interest debt and built an emergency fund—you might want to put your savings to work by investing.

Investing can grow your wealth over time, but it’s not for everyone. It comes with risk, and the stock market can be unpredictable. However, if you invest wisely and think long-term, you can potentially outperform traditional savings accounts.

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Why Consider Investing?

✔️ Higher Returns Over Time – UK savings accounts rarely offer more than 4% interest, while long-term stock market returns average 7-10% annually.
✔️ Beat Inflation – Inflation erodes the value of cash savings over time. Investing helps your money maintain its buying power.
✔️ Compound Growth – The earlier you start investing, the more time your money has to grow exponentially.

However, investing isn’t risk-free—the value of your investments can go up or down.

Best Investment Options in the UK

If you’re new to investing, it’s best to start simple.

Here are some beginner-friendly options in the UK:

1. Stocks & Shares ISA (Best for Long-Term Growth)

• A tax-free way to invest in stocks, funds, or bonds.
• Any profits are free from Capital Gains Tax.
• You can invest up to £20,000 per tax year.
• Great for long-term savings (5+ years).

📌 Where to Open One?

• Vanguard (low fees, good for beginners)
• Nutmeg (managed portfolios for passive investing)
• Hargreaves Lansdown (wide range of investments)

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2. Lifetime ISA (Best for First-Time Buyers or Retirement)

• Get a 25% government bonus on your savings.
• You can save up to £4,000 per year (bonus up to £1,000 per year).
• Must be used for a first home or retirement (penalty if withdrawn early).

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3. Index Funds & ETFs (Best for Hands-Off Investing)

• Low-cost, diversified funds that track stock market performance.
• Examples: FTSE 100, S&P 500, Vanguard LifeStrategy Funds.
• Historically, less risky than picking individual stocks.

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How Much Should You Invest?

Investing doesn’t have to mean thousands of pounds. Even small amounts add up over time.

Check out our special article Investing on a Small Budget for more on this!

💡 If you invest £50 per month, and it grows at 7% per year, here’s how much you could have:

This example assumes a 7% annual return and does not factor in fees or taxes.

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Is Investing Right for You?

✅ You should invest if:
✔️ You don’t need the money for at least 5 years.
✔️ You’re comfortable with some risk.
✔️ You have no high-interest debt and an emergency fund.

❌ You shouldn’t invest if:
🚫 You might need the money soon (less than 3 years).
🚫 You have high-interest debt (pay that off first).
🚫 You don’t have an emergency fund (investing isn’t a substitute for savings).

Final Thoughts on Investing

• Investing is a long-term game—don’t expect overnight success.
• Always do your research before choosing an investment platform.
• If in doubt, consider seeking financial advice from a qualified professional.
• Give our introductory article Investing for Beginners in the UK a look!

Now that we’ve explored investing, let’s move on to our savings calculator, which will show you how much your money could grow over time!

Visualising your saving goals

Now that you’ve prioritised where your no-spend savings should go, it’s time to calculate the potential impact of your savings. Whether you’re saving for an emergency fund, a big purchase, or investing, it helps to see how small amounts add up over time.

 

How Much Can You Save?

Use this simple formula to estimate your savings growth:

Savings Growth Table

Below is an example of how different savings amounts grow over time, assuming a 2% annual interest rate (common for easy-access UK savings accounts).

These figures assume no withdrawals and a steady 2% interest rate compounded annually.

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Interactive Savings Calculator

Use MoneyHelper’s savings calculator: This calculator can help you visualise how long it may take to read a saving’s goal or how much you need to save per month.
🔗 Use the MoneyHelper Savings Calculator

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Why Tracking Your Savings Matters

💡 Seeing your progress motivates you to save more. Whether it’s for an emergency fund, a house deposit, or a holiday, watching your money grow keeps you focused.

Now that you understand how to maximise your savings, let’s discuss how to keep the momentum going and prevent backsliding into old habits.

Maintain Momentum: Prevent Backsliding

Completing a no-spend challenge and deciding where to put your savings is a huge achievement—but what happens next?

Many people find that without a plan, they gradually slip back into old spending habits. To keep your progress going and build long-term financial stability, it’s important to set up systems that make saving effortless.

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1. Automate Your Savings

One of the easiest ways to ensure you keep saving is to automate the process. This way, your savings grow consistently without you needing to think about it.

How to Automate Your Savings:

✅ Set up a standing order – Transfer a set amount into your savings on payday.
✅ Use round-up savings features – Banks like Monzo, Starling, and Revolut automatically round up your purchases and save the spare change.
✅ Try salary splitting – Some employers allow you to split your paycheck into different accounts (e.g., bills, savings, and spending).

2. Keep a Budget That Works for You

A budget helps you stay on track with your spending and ensures you’re still saving regularly.

If you’ve never used a budget before, checkout our deep dive How to Choose the Best Budgeting Method for You  or consider one of these simple methods:

💡 The 50/30/20 Rule:

• 50% – Needs (rent, bills, food).
• 30% – Wants (entertainment, shopping).
• 20% – Savings & debt repayment.

💡 The Zero-Based Budget:

• Give every pound a purpose—track exactly where your money is going each month.

💡 Envelope System (Great for Cash Savers):

• Withdraw cash and physically separate it into different envelopes for spending categories.

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3. Create a No-Spend ‘Buffer Zone’

If you’re worried about slipping into impulse spending, try a cooling-off period before making purchases.

Ways to Avoid Impulse Spending:

🚦 The 24-Hour Rule – Wait one full day before buying non-essential items.
🚦 Wishlist Method – Instead of buying instantly, write it down and review in a month.
🚦 Unsubscribe from Retail Emails – Remove temptation by opting out of marketing emails.
🚦 Use the ‘Cost-per-Hour’ Trick – Ask yourself, “How many hours would I need to work to afford this?”

4. Set a New Savings Goal

Having a specific savings target helps keep you motivated. Instead of just saving for the sake of it, pick a clear goal, such as:

🎯 Building a £1,000 emergency fund.
🎯 Saving for a house deposit using a Lifetime ISA.
🎯 Investing £100 per month for the future.
🎯 Creating a ‘fun fund’ for guilt-free spending.

📌 How to Track Your Progress:
✔️ Use a savings tracker app (e.g., Plum, Moneybox, or Monzo Pots).
✔️ Create a visual progress chart—colour in sections as you hit milestones.
✔️ Set mini-rewards (e.g., treat yourself to a free experience when you hit a goal).

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5. Find Free or Low-Cost Alternatives to Spending

If boredom or stress led to past overspending, replace those habits with free or low-cost alternatives.

Ideas to Replace Shopping & Takeaways:

✔️ Use your local library for free books, audiobooks, and films.
✔️ Meal prep and cook at home—turn it into a fun challenge.
✔️ Explore free UK activities – Museums, walks, community events.
✔️ Try skill-swapping – Offer a skill (e.g., baking, DIY) in exchange for something else.

And check out our dedicated site section on Frugal Living!

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6. Reflect on Your No-Spend Challenge & Lessons Learned

Take a moment to think about what worked and what didn’t in your challenge.

Ask yourself:
❓ What spending habits do I want to keep?
❓ What was surprisingly easy to cut out?
❓ Where do I still struggle with impulse spending?

Keeping a money journal can help you stay aware of your spending habits and make better financial choices moving forward.

Final Thought: Keep Progressing!

By maintaining momentum, you ensure your no-spend savings lead to long-term financial success.

Up next, we’ll wrap up with a summary of key takeaways and useful financial resources!

Additional Resources & References

By now, you should have a clear plan for what to do with the money you saved during your no-spend challenge. To help you continue making smart financial choices, here are some trusted UK resources for savings, debt management, investing, and financial planning.

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Best UK Resources for Financial Guidance

💰 Budgeting & Saving Help

• MoneyHelper – Free, impartial advice on managing money, saving, and budgeting.
• MoneySavingExpert – Tips, calculators, and comparison tools for saving money.
• Plum – An AI-powered app that helps automate your savings effortlessly.

📉 Debt Support & Management

• StepChange – Free, confidential debt advice and debt management plans.
• National Debtline – Help with debt relief orders, bankruptcy, and budgeting.
• Citizens Advice – Support with debt, benefits, and financial rights.

📈 Investing & Growing Wealth

• Vanguard UK – Low-cost index funds and investment ISAs.
• Nutmeg – A beginner-friendly platform for managed investing.
• Hargreaves Lansdown – A wide selection of investment funds and ISAs.

🏡 Saving for a House or Retirement

• GOV.UK – Lifetime ISA – Information on government-backed ISAs for first-time buyers and retirement.
• Pension Wise – Free government guidance on pensions and retirement planning.

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Best Tools & Calculators for UK Savers

🔹 Savings Calculator – MoneyHelper – Work out how much your savings will grow over time.
🔹 Budget Planner – MoneySavingExpert – A free interactive budget spreadsheet.
🔹 Debt Payoff Calculator – StepChange – Calculate the best way to clear your debt.

Conclusion

A no-spend challenge isn’t just about saving money for a month—it’s about changing how you think about spending and ensuring your money goes toward something meaningful.

By taking stock of your savings, prioritising financial goals, and automating your progress, you can use your no-spend savings to:
✔️ Pay off debt and break free from high-interest payments.
✔️ Build an emergency fund for financial security.
✔️ Save for important goals like a house, a holiday, or a big purchase.
✔️ Start investing to grow your money long-term.

💡 Remember: Even small amounts add up over time—the key is consistency!

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What’s Next?

We have some more articles in this series you may like:

What it’s all about – our introduction to No Spend Challenges! What is a No-Spend Challenge A Beginner’s Guide to Saving Money

Here are some different challenges to try out: 9 Creative No-Spend Challenge Ideas to Save Over £1,000 This Year

Worried you can’t hack it? Have a read of this! How to Survive a No-Spend Month

Good news about the long term benefits of a no-spend challenge! How No Spend Challenges Can Rewire Your Spending Habits

Preparation is key – check out this report before you start! How to Prepare for a No-Spend Challenge

Get the rest of the family on board! Family No Spend Challenges