Ricky & Naomi Willis
Ricky and Naomi Willis, creators of the Skint Dad blog, offer valuable advice on how to keep more money in your pocket in Make Every Penny Count
Just over 10 years ago, Ricky and Naomi Williams were more than £43,000 in debt and owed money to 25 credit card companies. They met in 2008, each with a child of their own before having one together. And when childcare costs and commuting into London proved too expensive, Ricky gave up his full-time job at a printer’s business to look after the youngest, while Naomi carried on working locally.
Naomi recalls that at one point they had £6.20 in the bank when it was a week until payday, with only enough food in the cupboard to feed the family for three days and only four nappies left for their one-year-old.
They struggled through that week, with the money going on super economy pasta and sauce, frozen sausages and own-brand cheap nappies. Not the best situation, but they managed.
And when Ricky wrote about it in his earliest blog post, it attracted hundreds of messages from people sharing their own money worries and tips. This set them on the road to sorting out their finances and sharing their experiences, founding the Skint Dad blog in 2014, now one of the largest UK money blogs.
It took them just over four years to pay off their debt – and now what they have learned along the way has been recorded in Make Every Penny Count, an easy-to-follow guide featuring budget tips and tricks on how to make, save and manage money. Here are some of their tips...
1. TRACK YOUR CASH SPENDS
Work out your outgoings and incomings – not just your direct debits and standing orders, but your cash spending, Naomi advises. “If you take £20 out at the start of the week and pop to the shop, or to get yourself a coffee or pick up some sweets for the kids, those little cash spends will add up,” she says.
“It’s harder to track because at least if you have a banking app, you can look at the transactions to get a grip on what you’re doing. With cash, most people don’t keep receipts.”
Do you really need to buy coffee when you can make it at home? Are you strapped for time and buying those sweets because you find it hard to say no to your children? These are all questions Naomi poses.
2. KEEP AN EYE ON SUBSCRIPTION OFFERS
Subscription services in which you’re offered a free trial can trip people up as there’s a danger you’ll forget to cancel it, warns Naomi. “If you’re taking that free trial, note in your diary when you need to cancel it. Put a reminder in your phone so you get a notification three days before that trial comes to an end.” She suggests if you really want that subscription and you use it, whether it be a gym membership or Netflix, consider whether you might get a service cheaper elsewhere.
3. CUT OUT KIDS’ POCKET MONEY
“It was one of the first things we cut. If you don’t have enough to pay your bills and keep a roof over your head, the kids’ pocket money is not necessary. They might be annoyed, but it can always start up again when you’re in a better place financially.”
4. PLAN MEALS
Check what you have in cupboards, the freezer and in the fridge. Plan your meals for the week, make a list, stick to it and don’t buy what you don’t need, Naomi advises. “Avoid end aisles with the sparkly offers saying, ‘This is reduced’. If it’s not on the list don’t get it. When I make a list and work out how much to spend, I try to round everything up. If I’m going to buy onions, I’ll price them at £1 even though they might be less. So, at the end I’ve got a buffer within how much I was predicting I’d spend.”
She suggests meal plans for three or four days at a time rather than doing a whole week, otherwise it can become boring. And look at the best offers each week, shopping at the best value supermarket at the time which may mean going to different supermarkets on a weekly basis.
5. TRY A 30-DAY NO EATING OUT CHALLENGE
Go over bank statements and receipts from the previous month to find out how often you buy food out and add it up. Put at least half in a savings pot and the rest you can add to your grocery shop for extra food you’ll eat at home this month.
Set the scene for a special occasion at home, master some super speedy dishes, or batch cook and freeze to avoid the takeaway urge when you’re tired. Get the family involved, discussing the meal plan, and put special occasion meals in the diary, so you have something to look forward to even if eating at home.
6. CREATE A SINKING FUND
This is for unexpected costs. such as a car breaking down or a school trip. and also things you might need each year, like new glasses or a school uniform. Put a small amount aside throughout the year for these irregular costs, so when they come round the cash is there. Don’t dip into it for everyday costs because it’s there for when you are sinking, says Naomi.
6. SEEK FREE ADVICE
If struggling with debt, get free impartial advice from charities such as the National Debtline or Stepchange, she suggests.
“They can help you work through it and put a plan in place so you can look at how to pay off the debt. They can also potentially help you contact creditors to ask for breathing space,” Naomi notes. “The worse thing we did when in debt was that we didn’t do anything. We stopped opening letters. We ignored it. It was the most stupid thing we did.
“Open the letter, contact the creditor and say, ‘I’m struggling’. Things have changed. Now, you can ask for breathing space or a break in payments and creditors have to help you more than they did previously.” ■■Make Every Penny Count by Ricky and Naomi Willis is published by Piatkus. Available now