How to cheat debt
The supersavers behind the Skint Dad blog share some of the cash-conserving tips and tricks featured in their new book
Alittle more than 10 years ago, ricky and Naomi Willis were more than £43,000 in debt. ricky had given up his full-time job to look after the youngest of their three children while Naomi carried on working. in 2014 they founded the skint dad blog, now one of the largest money blogs in the UK.
Naomi recalls that at one point they had £6.20, with only enough food to feed the family for three days and four nappies left for their baby.
They struggled through and Ricky wrote about it in his first blog post, which attracted hundreds of messages from people sharing their own money worries and tips.
It took them just over four years to pay off their debt. What they learnt along the way is recorded in Make Every Penny Count, a guide featuring tips and tricks on how to make, save and manage money.
1. TRACK YOUR CASH SPENDS
Work out your outgoings – not just your direct debits and standing orders but your cash spending, Naomi advised. “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.
“It’s harder to track because at least if you’ve got a banking app, you can look at the transactions. With cash, most people don’t keep receipts.”
2. MONITOR SUBSCRIPTION OFFERS
Subscription services can trip people up by offering free trials that they may forget to cancel.
“If you’re taking that free trial, diarise when you need to cancel it, putting a reminder into your calendar on your phone as soon as you sign up,” said Naomi.
3. CUT OUT POCKET MONEY
“One of the first things we cut was the kids’ pocket money,” the couple said. “If you don’t have enough money in your budget to pay your bills and keep a roof over your head, cut pocket money because it’s not necessary. It can always start back up again.”
4. PLAN MEALS
Make a list, stick to it and don’t buy what you don’t need, said Naomi. “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 I’ve got a buffer within how much I was predicting I was going to spend.”
5. TRY A 30-DAY NO EATING OUT CHALLENGE
Work out how often you buy food out and add it up. Put at least half of that amount into a savings pot and add the rest to your grocery shop for extra food you’ll eat at home this month.
Batch cook and freeze so that the takeaway urge doesn’t take over when you’re tired.
6. CREATE A SINKING FUND
Put a small amount aside throughout the year for unexpected costs and also things that you are likely to need each year, such as new glasses or school uniforms.
7. SEEK FREE ADVICE
If you are struggling with debt, talk to charities such as the National Debtline or StepChange. “They can help you put a plan in place and potentially help contact creditors to ask for some breathing space,” Naomi added.
Make Every Penny Count by Ricky and Naomi Willis (Piatkus, £12.99)