A teacher and mother-of-two from North Yorkshire has revealed how one steadfast financial habit helped her save an impressive £1,370 in a single year. Nicola Richardson, 39, attributes her success to a simple but powerful rule: she only carries cash.
The Power of Physical Money
For the past decade, Nicola has operated on a strictly cash-based budget, only briefly adapting to card payments during the Covid-19 pandemic when contactless was essential. She believes using physical money makes spending feel "more real" and actively prevents impulse purchases that are all too easy with a quick card tap.
"I work to a weekly budget, withdrawing £130 to cover everything from food and petrol to household items and things for my two boys," Nicola explains. "Not using a card stops me from making impulse buys. When I know I only have £50 in my purse, I don't buy random things I don't need."
She even avoids the temptation of supermarket middle-aisle bargains, simply because the money isn't physically there to spend. This disciplined approach has become second nature, allowing her to complete a full week's food shop for under £50.
Savings Challenges That Add Up
Nicola supercharges her savings by participating in popular money-saving challenges. Last year, she took on the "penny challenge," saving 1p on January 1st, 2p on the 2nd, and so on throughout the year. This method alone netted her £667.95 in accumulated loose change.
She also implements "Tenner Tuesday" and "Fiver Friday," where she removes notes from her purse and stores them in a binder. "I saw Fiver Fridays on TikTok and liked the idea because it's a consistent, small amount," she says. "By year's end, you have £260 saved that you probably wouldn't miss."
For January, she has set herself the goal of 25 "no buy" days, further cementing her mindful spending habits.
Resisting Trends and Focusing on Value
Nicola is cautious of the influence of social media and consumer trends, consciously avoiding viral purchases like Stanley Cups. "Social media plays a big part in people getting carried away," she states. "Being honest about money is really important. People need to know it's okay not to have all these things."
For her, value lies in experiences rather than possessions. "Memories are more important to me than buying stuff," Nicola reflects. "Using your money for what you actually want, rather than buying things, will make your life better in the end."
She shares her frugal living advice on her YouTube channel, NicolaatTheFrugalCottage. Her top tips include meticulously noting every purchase, having a clear savings goal, thinking carefully before any buy, and trying out savings challenges.
This regimented yet simple approach means any leftover cash can be enjoyed guilt-free on small luxuries, like a coffee treat, while building significant savings for household bills, maintenance, or a family holiday.
