I was knee deep in debt with no money after paying bills – how I cut £600 a month on my food bill & the hacks I swear by
A WOMAN has revealed how she was knee deep in debt and struggling to make ends meet, but has since managed to turn her life around.
Savvy mum Gemma explained that just half an hour after being paid, when her direct debits had gone out, she would be left with no money.
As a result, Gemma knew that something needed to change – and put a variety of measures in place that would help her to cut costs.
Not only did she and her partner manage to save £600 on their monthly food shop, but she also now earns thousands of pounds, every single month, thanks to her side hustle.
Gemma took to social media to open up about her financial journey, leaving many open-mouthed.
She said: “How I went from being knee deep in debt to being debt free and purchasing a house with a cash deposit in eight months.
“Eight months ago, I posted a very, very late night, early morning video, laid in bed because it was just another night where I couldn’t sleep because it just turned payday at midnight and then literally half an hour later, all the direct debits came out, and there was just no money left to see us through the month for food and stuff like that.”
As a result, Gemma explained that she made a promise to herself that she would be accountable and frugal with her money.
The mother explained that she was able to cut costs on her groceries, as she added: “A lot of it was being wasted on the weekly food shop. We are a family of six and it was costing us anywhere up from £200 a month. That now is down to £80 to £100 pounds.”
Thanks to opting for more budget recipes, healthy meals and fakeaways, Gemma and her partner were able to save £150 a week, £600 a month, which they were then able to save, put aside, and put towards paying off their debt.
Not only this, but Gemma explained that her cash hack has helped her to cut costs.
She hailed cash as “king” and explained that on payday, she works out all the money that absolutely has to stay in her bank for her direct debits and anything else, she draws out in cash and splits it into binders.
The savvy saver revealed: “When it’s gone, it’s gone, because the biggest thing that was making things worse and worse in the snowball effect, is debit cards and contactless.”
Gemma explained that prior to her saving journey, she would regularly pop to the shops throughout the week to grab bits, and would pick up other items too, tapping her card “like it was monopoly money.”
As a result, Gemma is now a lot more mindful about what she is spending.
As well as this, Gemma explained that her partner has upped his hours at work and is working overtime most weekends.
In addition to this, Gemma, who has her own cleaning business, has been taking on more clients where possible.
Not only this, but Gemma also praised side hustles as a way of generating cash.
She continued: “Side hustles are amazing. I was a manager for The Body Shop at home, now I am a consultant for Temple Spa and every single bit of commission I’ve been getting from there has been going towards a cash deposit, and I have been averaging at about £800 to £1,000 a month expendable income before tax, just from that side hustle.”
Do I need to pay tax on my side hustle income?
MANY people feeling strapped for cash are boosting their bank balance with a side hustle.
The good news is, there are plenty of simple ways to earn some additional income – but you need to know the rules.
When you’re employed the company you work for takes the tax from your earnings and pays HMRC so you don’t have to.
But anyone earning extra cash, for example from selling things online or dog walking, may have to do it themselves.
Stephen Moor, head of employment at law firm Ashfords, said: “Caution should be taken if you’re earning an additional income, as this is likely to be taxable.
“The side hustle could be treated as taxable trading income, which can include providing services or selling products.”
You can make a gross income of up to £1,000 a year tax-free via the trading allowance, but over this and you’ll usually need to pay tax.
Stephen added: “You need to register for a self-assessment at HMRC to ensure you are paying the correct amount of tax.
“The applicable tax bands and the amount of tax you need to pay will depend on your income.”
If you fail to file a tax return you could end up with a surprise bill from HMRC later on asking you to pay the tax you owe – plus extra fees on top.
Gemma also earns cash through her social media profile.
She explained that she started her TikTok account with 200 followers and now has over 50,000.
As a result, she gets paid for the views on her videos and just last month, made £100.
In addition to this, Gemma has also cancelled direct debits that she and her partner “didn’t need” to cut costs, including Sky TV, as well as subscriptions that “weren’t essential.”
SOCIAL MEDIA USERS BEAM
The TikTok clip, which was posted under the username @savewithgem, has clearly left many open-mouthed, as it has quickly racked up 112,300 views in just five days.
Social media users were left stunned at Gemma’s clip and many took to the comments to express this.
You should be so proud
TikTok user
One person said: “Thanks for this I really need to budget as I have an operation soon so I need to get things in order…I need a side hustle!!!”
Another added: “I’ve said it 100 times before, but if this isn’t inspiration, I don’t know what is..”
A third commented: “Well done you. I’ve been watching from early on. You should be so proud.”
Meanwhile, someone else wrote: “Well done. You must be feeling over the moon.”
Fabulous will pay for your exclusive stories. Just email: fabulousdigital@the-sun.co.uk and pop EXCLUSIVE in the subject line.