We knew things had to change when we had £6 to last our family until payday – top 10 tips that helped clear £40k debt
WHEN they realised they only had £6.20 to last a week until pay day, Ricky and Naomi Willis knew something had to change.
The couple had maxed out their credit cards, reached their overdraft limits and scoured down the back of the sofa for every last penny — and they needed to buy food and nappies.
They had a young baby and two school-aged children from previous relationships.
Ricky had started writing a daddy blog and, much to Naomi’s annoyance, shared their financial predicament in a heartfelt post in 2013.
The blog post went viral and the couple were inundated with messages.
Ricky said: “In many ways, debt saved the Skint Family.
“It was only when we got into so much debt, all £40,000 of it, that we did something about it.
“We had to face how much we owed and make some serious lifestyle changes.”
The couple, from Hull, worked out that it would actually save money if Ricky gave up his job — at a printers in London — to stay at home to look after their youngest daughter, Chloe, while working on the blog.
The cost of rail travel and childcare was outstripping what he earned. Naomi kept her job in HR.
Ricky said: “When we got together in 2008, we had two children between us and pretty soon there was another on the way.
“There was us, our nine-year-old daughter Daniella and our one-year-old daughter Chloe living at home.
“Beth, our eldest, was living at her mum’s and I paid child maintenance for her.
“At one point we owed money to 25 different credit companies, catalogues and store cards, credit cards and loan companies.
“This was just to cover our rent and supermarket bills and keep the girls in nappies and school shoes.
“We weren’t living a lavish lifestyle or going on expensive holidays, we just couldn’t afford life. On the day I had £6.20 in my pocket and had to make it stretch as far as possible, I went to the shops with Chloe.
“The first item I looked at was nappies. We normally bought Pampers but I obviously couldn’t afford them so I grabbed the cheapest ones I could find.
“It was the shop’s own brand, 20 nappies for £1.41. I was concerned about the quality but what else could I do?
“Next on to the food. I had just under a fiver left so I headed straight for the pasta, which I knew would be reasonably cheap.
“Grabbing three bags of basic shapes for 29p per 500g I started to think we could do this.
“Pasta sauce next, two jars cost 39p per 440g and I could split the jars if I had to. I then headed to the frozen aisle where I picked up 20 frozen sausages for 91p and a 1kg bag of frozen veg for 75p.
“That left me just enough for two tins of new potatoes for 15p each, two tins of beans for 25p each and six bananas for the remaining 68p.
“When I arrived home I put the kettle on, sat Chloe in the lounge, laid all the food we had and what I had bought on the kitchen side. We had done it.
“We had enough food to last until more money came in the following week.”
From that moment, the couple decided to make some serious changes, drawing up a budget that showed exactly what was coming in and going out.
Ricky added: “We’ve learned that getting back on track isn’t only about reducing spending, getting a better-paid job or finding a savings account that works for you, it’s a combination of all of these things and loads more.
“We simply believe in making every single penny count, whether it’s your wages or 5p you found in a coat pocket.
“It’s all about thinking smarter so that you can do things you love and enjoy this precious life.
“Our message is simple: Being skint sucks, but with some sacrifices and changes in the way you do things, it is possible to live well and enjoy your life without the worry of debt hanging over you, or coasting along with nothing put away for a rainy day.”
In their first book, Make Every Penny Count, Ricky and Naomi reveal some of their budgeting tips and tricks designed to keep more money in your pocket.
Skint Dad’s top 10 tips for getting in control of finances
CREATE A BUDGET: BUDGETING means financial freedom, and it’s only by knowing exactly what you’ve got coming in and going out that you can get on top of your finances.
Find a way that works for you, whether that’s an Excel spreadsheet or pen and paper. Split your budget into categories.
The first category should be your income.
Write down everything you have coming in, no matter how small:
- Wages
- Benefits/tax credits
- Maintenance (if you get any)
- Side hustles
The next category should be all your fixed expenses. These can include:
- Mortgage/rent
- Household bills
- Council tax
- Debts (credit cards, loans)
- Transport (car, train, etc)
- Sinking fund
- Savings
TRY THE 1p CHALLENGE: YOU save 1p a day and increase it daily by 1p. So it’s 1p on day one, 2p on day two and you keep going until the last day of the year when you should be able to save £3.65.
By the end of the year, you will have saved £667.95 – a decent amount and all starting with just 1p. You could also do it in reverse, so you start by saving £3.65 on day one and save 1p less each day.
USE CASH WHEN YOU CAN: IT’S getting harder and harder to use cash, but real money is your friend when debts start to mount.
This simple habit can change your perception of purchasing and provide you with greater clarity over your finances.
Work out what you need for the week and hit the cashpoint.
SQUIRREL MONEY AWAY: AS soon as you get paid, ping money into your savings account. Restricted-access savings accounts can help if you want something that makes it difficult to get at your money.
AVOID GETTING INTO DEBT: IF you can avoid debt in the first place, you won’t have to deal with it. Practise saying no.
Whether it’s going out for dinner with friends or buying that magazine the kids want in the supermarket, be firm.
CASHBACK ON SHOPPING: SITES such as Quidco or TopCashback are free to join, and it won’t cost you any more to shop through them.
Find what you want, click through and check out as usual.
The cashback site tracks what you spent and pays you back a percentage or set amount. This can add up to hundreds of pounds in tax-free money over a year.
BORROW YOUR BAGGAGE: ASK friends and family if you can borrow items that you only use once or twice a year, including things like luggage or camping equipment. The app KitUp lets you rent outdoor gear from locals.
DON’T BUY NEW: INSTEAD of buying new toys, use a toy library. If your child wants a bike, look at renting one through bikeclub.com.
HELP TO SAVE: A HELP to Save account is a special type of savings account designed to help people on lower incomes save money.
If you qualify, for every £1 you put into the account, up to £50 a month, the Government will add a bonus 50p.
DITCH CHILDCARE COSTS: IF you want to stay at home with your child for longer and enjoy looking after other children, you could become a childminder.
You don’t need qualifications, but you go through a registration process that ensures the care you give is safe and that your home complies with regulations.
- Adapted by Natasha Harding from Make Every Penny Count, by Ricky and Naomi Willis (Piatkus, £12.99).