More Britions are diligently saving their money rather than spending it in a new trend known as 'revenge saving.'

This savings method is gaining in popularity on social media sites as a way to budget and take control of finances.  

It involves caferfuly tracking how much you are saving as with normal budgeting activities. 

But revenge spending goes a step further by deliberately not spending and taking part in savings challenges to build up a pot of savings.

There's no single method of revenge saving, but people take part in challenges such as the 'no buy' challenge. 

As part of the no buy challenge, people will go through strict periods of not purchasing anything beyond absolute necessities or use up all the products or food they already own before replacing them as a way to save money. 

While some revenge savers force themselves to sell their belongings before making new purchases. 

There is a 'No Buy' thread on social media platform Reddit where revenge savers share the savings they have made from limiting their spending.  

Other revenge savers will transfer payments into their savings accounts as soon as they get paid each month, before they’ve paid rent, mortgages or other bills so that their savings are taken care of before they get to the end of the month. 

There is also a 1p challenge where savers start by saving 1p and then adding on 1p  - saving what you saved the day before, plus a penny more each day, eventually saving up to £667.95 by the end of the year. 

You start by saving 1p on 1 January, then 2p on 2 January, then 3p on 3 January and so on.  

Why are Britons revenge saving? 

It's no surprise people are trying to save more in order to build a buffer to protect them from the onslaught of continuously rising prices. 

The rise of revenge savings is a result of people wanting to shield themselves economic uncertainty beyond their control - including higher than expected inflation, high interest rates and the threat of unwelcome tax rises expected to be announced in the Autumn Budget. 

The cost of living crisis never fully went away and Inflation has remained well above the Bank of England's 2 per cent target, currently stands at 3.8 per cent. 

This means people's hard earned money is losing value in real terms. 

In the pandemic, many people were able to build up 'lockdown savings' because they weren’t able to go out and spend money. 

When lockdowns ended, people rushed to the shops to spend the cash they’d saved up in a phenomenon then called 'revenge spending'. This is in effect the opposite of that trend. 

The trend of revenge saving is thought to have originated in Chinese media and on social platforms. It has made tracks in the US and now is becoming popular in the UK. 

How to maximise a revenge savings pot? 

If you are using revenge savings tactics, make sure you are keeping the money saved from 'no spend' weeks or months in a high interest savings account. 

It's no use keeping them sitting in a bank account paying low or no interest. 

The best easy-access accounts currently pay 4.3 per cent in interest. So make sure you are getting a rate as close to this as possible. 

Your savings account needs to at the very least be paying over the current rate of inflation which currently stands at 3.8 per cent otherwise you will be losing money in real terms if inflation comes in at 3.8 per cent this time next year. 

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