If you are reading this, you are probably looking for a realistic way to make some extra cash, fund a new side hustle, or simply build up a financial buffer. We have all seen the social media posts claiming you can make thousands of pounds a day by clicking a few buttons. Let’s be honest: most of that is complete nonsense.
Building up extra money takes a bit of effort, but it relies on basic, proven methods that anyone can do. One of the best ways to generate seed money for a side hustle or padding for your savings is by using the ABC method.
You don’t need a massive salary to get started. Often, the easiest money you will ever make is the money you are currently wasting without realising it. By clawing back that wasted cash, you create a dedicated fund to kickstart actual income-generating side hustles.
If you are wondering what the ABC secret savings method actually is, it stands for Audit, Bank, and Cash-in.
Instead of trying to pull extra money out of thin air, this framework helps you find cash hidden in your current finances, secure it so you don’t accidentally spend it, and then use it to make even more money.
Here is the quick breakdown:
- A – Audit: Going through your current outgoings with a fine-tooth comb to stop financial leaks.
- B – Bank: Automatically moving the money you have saved into a separate pot so it doesn’t get absorbed into your everyday lifestyle.
- C – Cash-in: Using rewards, cashback, and clever side hustle strategies to multiply that freed-up cash.
By following these three steps, most people can realistically free up between £50 and £150 a month. Over a year, that is a chunky bit of cash to throw at your financial goals. Let’s break down exactly how to do it.
Step A: Audit Your Outgoings to Find Hidden Quid
You cannot start a side hustle or grow your savings if your current account is leaking money like a rusty bucket. The first step is to sit down, grab a brew, and face your bank statements.
To do this effectively, print out your last three months of bank statements. Yes, real paper works best here. Grab three different coloured highlighters and start categorising. Mark your essentials (rent, mortgage, energy) in green, your non-essentials (takeaways, pub trips) in amber, and your subscriptions or direct debits in red.
Tackling the ‘Phantom Subscriptions’ Drain
Look closely at your red highlights. We all sign up for free trials, meaning to cancel them, only to forget. Suddenly, you are paying £8.99 a month for a streaming service you haven’t watched since Christmas, or £15 a month for a gym app you haven’t opened.
Be ruthless. Cancel anything you haven’t used in the last 30 days. If you genuinely miss it, you can always sign up again later. Cutting just two unused subscriptions can instantly put £20 a month back in your pocket.
Renegotiate Your Essential Bills
Do not assume your green highlights (the essentials) are fixed. A loyalty penalty exists in the UK, meaning providers often save their best deals for new customers while slowly creeping up the prices for existing ones.
Take your broadband and phone bills. If you are out of contract with providers like Virgin Media, EE, or Sky, ring them up. Tell the automated system you want to “leave” or “cancel” – this usually routes you straight to the retentions department.
Be polite but firm. Tell them you have found a cheaper deal elsewhere (use comparison sites like Uswitch to find a real offer) and ask if they can match it. Often, they will slash your bill to keep you. If they save you £15 a month, you have just found £180 a year for a 15-minute phone call.
Reduce the Weekly Shop Leaks
Groceries have gone up massively, but you can still find wiggle room. Try downshifting your brands. Have a go at swapping your usual premium brands for supermarket own brands, or drop down to the basics range for items like chopped tomatoes, pasta, or cleaning supplies. Most of the time, manufactured goods taste identical, but the price difference can save you £10 to £20 on your weekly shop.
Step B: Bank the Difference Automatically
Here is where most people fail. Let’s say you haggle your broadband down, cancel a Netflix account, and save £20 on groceries. You now have £50 extra a month.
If you leave that £50 in your main current account, it will inevitably disappear. You will buy an extra takeaway, a couple of coffees, or a round at the pub, and at the end of the month, you will still feel broke. You must take the savings and physically separate them from your spending money.
The Power of Micro-Saving Apps
If manually moving money feels like a faff, use technology to do it for you. Apps like Plum or Cleo link to your bank account using Open Banking. They analyse your spending patterns and automatically siphon off small, affordable amounts into a separate digital pot every few days.
Because the amounts are small—maybe £2 here or £5 there—you rarely notice the money leaving your account. But check back in a few months, and you will usually find a very healthy balance waiting for you.
Set Up a Dedicated ‘Side Hustle Pot’
If you are using modern banking apps like Monzo, Starling, or Chase UK, take advantage of their sub-accounts or “spaces”. Create a dedicated pot and literally name it “Side Hustle Seed Money” or “Extra Cash Fund”.
Every time you cancel a £10 subscription, immediately set up a standing order to send £10 into that pot on payday. You have already proven you can live without that money, so redirect it with purpose. Mental accounting is a powerful thing; once you name a pot, you are far less likely to raid it for frivolous spending.
Use Easy-Access High-Yield Accounts
Once your side hustle pot starts growing past a few hundred pounds, make sure it is actually working for you. Do not leave it sitting in a 0% interest account.
Move your accumulated cash to a high-yield, easy-access savings account. UK interest rates fluctuate, but you can normally find accounts offering reasonable returns. Use sites like MoneySavingExpert to find the current best buy tables. Earning a few quid in interest might not sound thrilling, but it is literal free money added directly to your bottom line.
Step C: Cash-In Through Rewards and Side Hustles
Now that you have stopped the leaks and secured your savings, it is time to multiply your cash. This is where you transition from saving money to actively making extra money.
Maximising Cashback on Everyday Spending
If you are buying anything online without going through a cashback site, you are leaving money on the table. It is as simple as that. Before you buy a train ticket, order a takeaway, or renew car insurance, log into TopCashback or Quidco.
Search for the retailer you want, click their tracked link, and shop as normal. The retailer pays the cashback site a commission for sending you there, and the site splits that commission with you. It takes about ten extra seconds per purchase.
To make it foolproof, download their browser extensions. Whenever you visit a site that offers cashback, a little pop-up will remind you to claim it. Over a year of normal household spending, it is entirely realistic to earn £150 to £300 just by doing this.
The Bank Switching Bribes (Quick Wins)
One of the most lucrative “side hustles” in the UK is taking advantage of bank switching offers. Banks are desperate for your everyday business, and they regularly offer between £150 and £200 in cold, hard cash if you switch your current account to them.
You do this via the Current Account Switch Service (CASS). It is completely automated; the banks transfer all your direct debits and standing orders for you.
A great tactic is to set up a “dummy” bank account—a second current account you keep just for switching. Set up two small direct debits (like a £1 charity donation) to meet the switch criteria, and start bouncing this account from bank to bank to collect the bonuses. It is legal, tax-free cash, though be aware that multiple applications can temporarily dip your credit score, so avoid this if you are applying for a mortgage within the next six months.
Turning Freed-Up Cash into Side Hustle Capital
Now you have a war chest funded by your ABC savings, it is time to start an actual side hustle. You don’t need much.
With £50, you can head to a local charity shop or car boot sale, buy underpriced clothing or electronics, and flip them on eBay or Vinted. Because you used your “free” money to buy the stock, there is zero stress if an item takes a few weeks to sell.
Alternatively, you could use £20 to buy a domain name and basic hosting to start a blog, or pay for a short online course to learn a freelance skill like copywriting or basic graphic design. Your audited savings have become your business startup capital.
Common Mistakes to Avoid When Freeing Up Cash
While the ABC method is straightforward, human nature often gets in the way. If you want this to work, watch out for these very common traps.
Falling for the Lifestyle Creep Trap
Lifestyle creep happens when your income goes up (or your expenses go down), and your spending naturally expands to swallow the extra cash. You haggle your bills down by £50 a month, feel rich, and immediately start buying more expensive coffee or taking extra Ubers.
If you do this, you will never build your side hustle fund. You must be disciplined about Step B (Banking the difference). Move the money immediately, out of sight and out of mind.
Spending Just to Save
Cashback is wonderful, but only if you were going to buy the item anyway. Do not fall into the trap of spending £100 on a pair of shoes you don’t need just because there is 10% cashback available. You haven’t “saved” £10; you have wasted £90. Stick strictly to your normal shopping list.
Forgetting the HMRC Tax Rules
When you move from saving to making extra money via a side hustle (like selling on eBay or freelancing), you need to be aware of UK tax rules.
The good news is that the UK government gives you a £1,000 Trading Allowance per tax year. This means you can earn up to £1,000 in gross income from a side hustle entirely tax-free, and you don’t even need to declare it to HMRC. However, once your side hustle gross income (not just profit) crosses that £1,000 threshold, you must register for Self Assessment. Don’t ignore this, as HMRC penalties can wipe out your hard work.
Frequently Asked Questions (FAQ)
How quickly can I see results from the ABC method?
You will see results almost instantly. A quick audit of your direct debits and a few phone calls to providers can free up cash on your very next payday. Bank switching bonuses normally hit your account within 14 to 30 days of completing the switch.
Do I need a lot of money to start a side hustle?
Not at all. Some of the best side hustles require more time than money. Freelancing your existing skills on sites like Fiverr or Upwork costs nothing to start. Selling unwanted items around your house on Vinted is completely free and requires zero initial capital.
Are cashback sites actually worth the effort?
Yes, absolutely, provided you manage your expectations. Cashback is rarely a quick payout; it can sometimes take weeks or even months for the transaction to be validated and the cash to become withdrawable. Treat it as a long-term savings pot rather than money you need for rent next week.
Will bank switching ruin my credit score?
A single switch will cause a minor, temporary dip in your credit profile because the new bank will perform a “hard check”. This usually recovers within a few months. However, if you do three or four switches in rapid succession, lenders may view you as desperate for credit, which looks bad. Space your switches out and avoid them entirely if you need major credit soon.
Summary: Your Next Steps to Extra Cash
Making extra money doesn’t always mean working 80 hours a week or chasing unrealistic internet schemes. By applying the ABC secret savings framework, you take back control of the money you already earn.
Start by auditing your outgoings today. Cancel the ghost subscriptions and get on the phone with your broadband provider. Next, make sure you bank those savings into a separate pot so they don’t accidentally get spent. Finally, make your spending work for you by cashing in on rewards, cashback apps, and perhaps a few simple bank switches.
Once that dedicated pot has a few quid in it, you are in the perfect position to launch a side hustle without risking your essential rent or grocery money. Getting your finances in order isn’t always glamorous, but it is the foolproof, realistic foundation that every successful side hustle is built upon. Grab your bank statements, find a highlighter, and get started.
FAQs
What is the ABC Secret Savings?
The ABC Secret Savings is a savings strategy that involves using a combination of budgeting, smart spending, and strategic saving techniques to build up a significant amount of savings over time.
How does the ABC Secret Savings work?
The ABC Secret Savings works by encouraging individuals to allocate a portion of their income towards savings, while also being mindful of their spending habits and finding ways to cut costs and save money.
What are the benefits of using the ABC Secret Savings strategy?
The benefits of using the ABC Secret Savings strategy include building up a substantial savings fund, being better prepared for unexpected expenses, and having the financial freedom to pursue long-term goals and aspirations.
Are there any specific steps to follow when implementing the ABC Secret Savings?
Yes, the ABC Secret Savings strategy typically involves creating a budget, identifying areas where expenses can be reduced, setting savings goals, and regularly monitoring progress towards those goals.
Is the ABC Secret Savings suitable for everyone?
The ABC Secret Savings strategy can be beneficial for individuals of all income levels and financial situations, as it promotes responsible money management and encourages the habit of saving for the future.
