Harriet, a money-savvy woman, paid off £120,000 of debt using a straightforward £1 budgeting rule. She now shares her strategy on Instagram @thefreedomfinancecoach to help others escape financial stress.
The £1 Rule Explained
Harriet used a zero-based budget, giving every single pound a job. Even with only £800 to £1,000 a month, she assigned each pound a purpose. She said: "Use a zero based budget. Give every single pound a job."
Prioritising Survival
First, she covered essentials: food, housing, and electricity. Then she cut all non-essential spending. "That means no Netflix, no takeaways, no unnecessary subscriptions... You're in survival mode now," she explained. She stopped buying clothes for future goals, excess phone data, spontaneous Amazon purchases, and festive decorations.
Intentional Spending
Harriet emphasised that treats are only appropriate after debts are cleared. "Being debt-free is not about being cheap, it's about being intentional," she said. She noted that awareness is power, as most people bleed money without realising it.
Emergency Fund
She advises building a small emergency fund, even if it's just £100. Without it, any unexpected cost, like a flat tyre, can wipe out the entire budget. "It's not easy but it's possible because I did it," she added.
Viewer Reactions
Her advice resonated with many. One follower commented: "This is such great advice. It's the only way to change your situation." Another shared: "I'm doing this and I'm still barely making it. But, I'm nearly all out of it. Six months left and I'm fully debit clear." A third said: "Thank you for sharing and being honest about a subject most are embarrassed to acknowledge."
