Family of four save £43,000 after living on £1 a day
A family of four have been forced to live on less than £1 a day after they both lost their jobs within months.
Ricky and Naomi Willis struggled to afford even basic items after racking up debt on payday loans and credit cards.
Now they want to help others.
READ MORE: Martin Lewis gives advice if you can’t pay energy bills after ‘depressing’ hike
Their troubles began when Ricky lost his job as a machine operator at a printing company and the following year Naomi lost her insurance job.
With no money coming in, they quickly racked up £43,000 in payday loan, credit card and catalog debt, the express reports.
When their car and fridge-freezer broke down in the same week, their remaining savings were wiped out and their debt load increased further.
Ricky said: “We knew the refunds would devour everything, but we had no choice. It just kept spiraling from there.
The family of four hit rock bottom when Ricky realized they had to live on less than a pound a day.
He continued: “We made a list and feeding our two daughters Daniella and Chloe was top notch, then nappies as Chloe was still a baby.
“We eat third. I felt like I let my family down.”
Ricky and Naomi, 37, began their return to solvency by ruthlessly going through their bank statements to cut back on all non-essential expenses.
New research from low-cost broadband provider Plusnet shows the average household is paying £299 a year on their mortgage rating, £222 on fuel bills, £156 on broadband and £132 on TV packages .
They also spend £162 on car insurance and £84 on pet insurance when cheaper alternatives were available.
Naomi says, “We made sure we didn’t spend a dime on products or services we didn’t absolutely need. This has saved us thousands of pounds a year.
They set up individual payment plans with creditors, used money-saving apps like Freecycle, sold goods and stuck to cheap meal plans.
Thanks to their frugal lifestyle, they became debt free in just four years.
Ricky and Naomi set up the Daddy Skint blog in 2013 to help others get their finances back on track. Now their money-saving tips are helping hundreds of thousands of followers as the cost of living soars.
Naomi said: “It will be a really difficult year for many households. It may seem impossible to weather the storm, but there are things you can do to ease the pressure.
Here are their top 12 money-saving tips.
Be energy efficient
Even simple measures can save money. Block drafts from doors, windows, and even an unused fireplace, lower thermostats on radiators in unused rooms, and turn off appliances and lights when not in use.
Choose the right broadband provider
Ricky said: “We pay £18.95 a month with Plusnet with no unnecessary bells and whistles.”
Earn cashback when shopping online
Use sites like TopCashback or Quidco. Airtime Rewards allows you to double your cashback.
Check your bank account regularly
Check direct debits and standing orders and reduce what you don’t need.
Watch out for TV subscriptions
The costs add up quickly.
Ricky said, “Do you watch a lot of shows or movies on each service? If not, cancel and save,” Ricky says.
Save on fuel
Check local gas station prices online before filling up or use loyalty programs.
Use a meal plan
Planning weekly meals for your family will reduce the money you spend at the supermarket and reduce food waste.
Use a slow cooker
This makes cheaper cuts of meat delicious and tender and uses less energy than an oven.
Benefit from all the tax advantages
Turn2us.org.uk allows you to verify that you are claiming all state benefits available to you.
Select the right mobile operator
You can pay as little as £7 a month on a SIM-only deal and often keep your old number.
Consider a side business
From online tutoring to party planning to carpooling, this could be a great way to earn some extra cash.
Deal with all debts
Contact StepChange Debt Charity or National Debtline for free, unbiased debt advice.
Joanna Carman, Director of Plusnet, said: “Simple tips for buying sensibly and avoiding complicated deals can be a big help at times like these.”
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