I was in £27k of debt last year – here's how I've shaved £10k off it and STILL managed to save

I was in £27k of debt last year – here's how I've shaved £10k off it and STILL managed to save


WHETHER it's a coat all the fashion influencers are wearing or kitchen utensils our favourite mummy bloggers are raving about, we've ALL bought somethingjust because we've seen it on Instagram before.

And impulse buying online is something mum Clare Seal – who has written the money-saving manual Real Life Money: An Honest Guide to Taking Control of Your Finances -knows all about.

The 30-year-old mum-of-two found herself in £27,000 in debt after 10 years of ad-hoc spending and throwing the Instagram-perfect wedding.

Sharing her money-saving tips with Glamour, Clare revealed how she has managed to shave £10k off her personal debt in a year while also managing to save too.

Consider every purchase and resist the urge to splurge

Now we're in lockdown again, it's only natural to want to treat yourself to some new loungewear or maybe even some new baking tools to make us feel like we're "succeeding".

  • Real Life Money: An Honest Guide to Taking Control of Your Finances, £10.19 from Amazon – buy now

Instead of spending money just out of boredom, the author recommends thinking of what you could put that sum towards in a few months' time.

Clare wrote: "Sleep on it, if you need to – you may find that with a bit of distance, you realise that that £30 would be better saved for a rainy day than spent on a temporary fix."

Transfer travel, childcare or socialising costs into savings

If you're lucky enough to be able to work from home, Clare recommends putting the money you'd normally spend on travel straight into your savings.

The same goes for childcare or socialising expenses if you can stretch to it – but the mum also recommends making a budget for higher food and utility bills.

Put money into savings on pay day

In her book, Clare stresses how important it is to make a note of exactly what day you'll get paid.

She explained: "Being able to do this successfully relies on having a budget that works – i.e. knowing what’s coming in, what’s going out and what’s left over afterwards – but it’s the best way to make sure that any money left over after bills doesn’t just disappear on nothing."

The mum says it's important to transfer money into your savings account on that day so you get used to seeing it as just another expense.

Track spending on saving app

We might have every intention of putting money in our savings account – but that willpower goes straight out the window when we step foot into a B&M or Home Bargains.

In order to stay on track, Claire urges people download money-saving apps like Plum or Chip – which will automatically transfer small amounts into your savings every other day.

She wrote: "Their clever algorithms calculate what you can afford to save, and you can also do savings challenges, which can be more motivating as they make the process ‘fun’.

"The popular ’52 Week Challenge’ – where you save £1 the first week, £2 the second and so on – will result in £1,378 saved over the course of a year."

Save a little where you can – even if you still have a debt

It's only natural to want to concentrate on paying off your debt – but Clare says it's worth building up some savings too, especially during the coronavirus crisis.

She wrote: "If you just have a little debt, it’s probably best to focus on paying it off quickly, but if you have a significant amount, it’s worth saving a small amount alongside.

"If you do have the opportunity to save at the moment, make sure you do – no matter what happens next, you’ll definitely be grateful for the cash later on."

If you have a large amount of debt, Clare stressed how it keeps you in a positive mindset to pay for things with cash rather than putting everything on credit.

For more money-saving tips, this mum revealed how she buys £300 worth of Tesco food for just £40 every week- here’s how you can too.

And this student shared exactly how she lived on just £5 for five days – here’s how you can too.

Plus this McDonald’s fan revealed how to make ‘secret menu’ burger & people are calling it the ‘ultimate hangover cure’.

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