How We Saved £129k in 17 Months While in £458k Debt
A thrifty couple has shared how they managed to cut down their debt by making some drastic sacrifices in life.
Shannon and her spouse are looking for ways to clear their debt and live a debt-free life. Some of the debt-clearing techniques Shannon’s family have resorted to are selling their furniture, moving to a smaller house and slashing meal expenses.
The family has five members, and every member is doing their best to see that the debt is cleared as soon as possible. Sharing their journey on TikTok, Shannon’s family has made frugal fun and have gained a significant number of followers over a short time.
When writing this, the couple has managed to reduce their debt from £458k to £130k.
The Sacrifices Made
Shannon, through their website, has revealed that they’re looking forward to keeping their grocery under £72 a week. She added that they always wait for a killer sale before buying luxuries.
The couple tried several budgeting strategies, such as Dave Ramsey’s Financial Peace University. After that, Shannon turned to her mom’s personal finance blog to help her track their expenses.
In just two years, the family has managed to pay three-quarters of their debt and are not hesitant to share the success story with their social media followers.
One of Shannon’s hacks to track their debt level is a printout chart for recording the amount of debts cleared. Furthermore, Shannon keeps her printout in the kitchen fridge for accessibility and serves as a visual reminder of why they make the sacrifices.
Transitioning to a Debt-Free Life
In one of the videos posted online, Shannon shared the five WEID things the family did at the beginning stages of their journey to being debt-free.
The first bold move that the couples made was moving from their rental house measuring 3000-square feet to one measuring 1000-square feet—saving them £849 a month.
The family also sold their ‘new’ car and bought an old car with cash, saving them around an additional £563 a month.
The third resolution was cooking their meals instead of ordering takeaways or going out for dinner, which helped them budget their weekly shop. They’ve reported that this strategy saves them about £578 monthly.
To save on childcare costs, Shannon started a part-time job. This helped the family save a staggering £1535 a month and confirms that it took them about seven months to implement these lifestyle changes fully.
The family also uses cash envelopes to manage their money since having a planned amount of cash to spend in a section helps them not go over budget. And to cut down the family’s food costs, Shannon sets aside £72 each week to feed her family of five.
While the family uses cash envelopes to spread the money out, they countercheck their monthly meal plan and pantry to check what they need to buy before shopping.
The family also conducts their shopping online to precisely determine the amount of cash they’ll need for shopping.
Besides all the efforts, Shannon added that eating leftovers has had a significant impact on their budget.
And now that the family is just a quarter away from completely clearing their debt, Shannon has reported that the family is planning to start saving for a new home.
They Finally Did It and You Can Too
Both Shannon and her husband are podiatrists and have racked up a considerable amount of their debt through students loans. The family’s journey is very inspiring, and tons of their followers on social media has learnt a lot from their posts. Clearing debt is all about discipline—develop a plan and stick to it.
Denzil is an experienced writer and a procurement graduate on a mission to eliminate poor regurgitated content while advocating for top-notch digital content. When he’s not writing, Denzil joins the rest of the world watching the English Premier League games.