Five ways to save when you're skint!

If you're a little strapped for cash and your savings are suffering, follow our five top tips to get you back into the savings habit.

Most of us know that saving is important. But actually managing to get into the habit can be tricky - particularly at this time of year, when most of us are feeling the pinch after Christmas.

Here at lovemoney.com, we always recommend that you have at least three months' salary in an instant access savings account as a cash cushion. And in these difficult times, the more you have to fall back on the better.

Yet, according to Nationwide, many of us simply aren't managing this. In fact, a quarter of its customers stopped saving at all in the run up to Christmas. Less than half of them (45%) save regularly.

So if you're one of the many who are currently not managing to put anything aside into a savings account, I've come up with some top tips to help you find some spare cash to save!

Cut your energy bills

I don't know about you, but my heating seems to be on pretty much continuously these days, thanks to the recent cold snap. And that means my energy bills are certainly likely to be on the rise, and even more of my money will be zapped out of my bank account. Ouch.

But rather than simply putting up with it, there is something we can all do - get switching! Most of us could save £300 on average by switching gas and electricity suppliers. And it's really quite easy to do! Simply take a look at our gas and electricity comparison tool where you can compare a whole range of tariffs and see whether there's a cheaper one for you.

You can also reduce how much you spend on gas and electricity by switching to an online tariff and by paying by monthly direct debit, rather than quarterly. You should also regularly check your energy bills to ensure they show actual, not estimated, meter readings - if your reading is estimated, phone your supplier to correct it.

Slash your food bills

Food can work out to be incredibly expensive, but unfortunately it's a necessity. So shift down a gear and start buying the cheaper supermarket own brands, rather than premium brands - this will help to shave the pounds off your bills.

It's also worth checking out deep discounters such as Lidl, Netto and Aldo as these will work out to be cheaper than the major supermarkets. And if you're shopping online, make sure you do so through mySupermarket.co.uk, where you can track how much your shopping would cost at each of the UK's four major supermarkets (Sainsbury's, Tesco, ASDA and Ocado/Waitrose) and downshift to value brands easily.

For further tips, read Ten ways to slash your supermarket spend.

Shop around for insurance

Paying out for insurance - whether it's home insurance, car insurance, or travel insurance - can be a major drain on your finances.

So if you want to reduce how much you pay, make sure that as soon as your current policy is up for renewal, you shop around to see if you can find a cheaper deal, rather than simply renewing it there and then.

It might feel like a bit of a hassle, but you'll be amazed at how much money it saves you. And you can put the extra cash towards your savings. For more tips on this, adopt this goal: Slash your insurance costs.

Get cashback

If I told you that you could earn money back every time you spend it, you'd jump at the chance, wouldn't you? Well the good news is: you can!

Normally, we wouldn't suggest you pay for everyday items with a credit card. However, providing you can afford to pay off the bill in full each month, spending on a cashback credit card can in fact be a very sensible option!

That's because you will literally earn money back when you spend on it. The American Express Cashback Credit Card, for example, gives you 5% cashback for the first three months (up to £100 cashback). After that you can earn 0.5% to 1.25% cashback, depending on how much you spend.

On top of this you can also use cashback websites if you're shopping online. Cashback websites such as Quidco, TopCashBack, RPoints and GreasyPalm allow you to earn a percentage of what you spend back in cash. To find out more, read The best way to shop online.

Finally, some banks offer cashback if you open a current account with them. Our favourite is the Alliance & Leicester Premier Account, which pays £100 cashback, and offers a 12 month 0% overdraft. You do have to transfer in all your direct debits and pay in £500 a month, however. Alternatively, go for the Halifax Reward Current Account, which pays £60 cashback a year if you pay in £1,000 a month. And you don't have to keep £1,000 in there - you earn the £5 regardless of your balance.

Rent it out

A great way to boost your savings is to increase your income. And one way to do this is to rent out the stuff you don't need!

For example, if you have a spare room in your home and you don't mind taking in a lodger, you can benefit from the government's Rent a Room scheme which means you can receive up to £4,250 tax-free! To find out more, read How to make an extra £4,250 per year!

Alternatively, if you have a driveway you never use, why not rent it out to someone who could use it? Good websites to check out include LetMePark, YourParkingSpace and ParkatmyHouse - all of which match motorists looking for parking with homeowners who have a spare driveway. How much you earn will depend on the location and how popular that area is.

And if you don't have a spare room or driveway to rent out, don't panic. The website Spareground will allow you to rent out a spare shed, loft, or even garden, while Rentnotbuy allows you to rent out pretty much anything - from handbags, to kitchen gadgets, to boats!

Where to save

Of course, once you've managed to find some extra cash to save, you might be wondering where to stash it. So let's take a look at some of the options.

If you'd prefer to be able to access your savings whenever you want to, plumping for an easy access savings account is probably your best bet. The Scottish Widows Bank Internet Saver, for example, offers an interest rate of 3.01%, which includes a bonus of 1% for the first year. Alternatively, the Coventry Building Society has a postal savings account which pays a higher rate of 3.3% - but you can only make four penalty-free withdrawals a year.

The good news is, you can earn even more interest from a cash ISA because all the interest you earn is tax-free! The market-leader is the Santander Direct Cash ISA, which pays 3% on balances over £9,000 and 2% on balances below £9,000. You can read more about the best cash ISAs in The top 10 cash ISAs for 2010.

Finally, if you want to earn an even higher rate of interest, you could consider a fixed rate bond. Just be aware that you won't be able to access your funds during the term of the bond.

For example, you could consider the 12 Month Fixed Account from Punjab National Bank which pays an interest rate of 3.75% for one year. You'll need a minimum deposit of at least £1,000, and remember that you won't be able to make any withdrawals during the 12 months. Read Earn an extra £220 a year on your savings for more tips on the best fixed rate bonds. 

And don't forget that if you need more help getting into the savings habit, lovemoney.com can help. First, adopt this goal: Build up your savings. Next, watch this video: How to save when you've got no money. And finally, why not have a wander over to our Q&A platform and ask other lovemoney.com members for hints and tips about what worked best for them?

More: Seven unusual ways to make money in 2010 | Earn an extra £220 a year on your savings