Harriet has shared her simple ‘£1 rule’ which helped her to get out of £120,000 debt and become mortgage-free – and she’s on a mission to help others in the same situation
Struggling with debt can seem like an inescapable trap, but there are numerous strategies to enhance your financial health. One woman has demonstrated that a turnaround is indeed feasible. The savvy woman, named Harriet, revealed how she dug herself out of £120,000 of debt by adhering to a simple £1 rule.
This approach enabled her to pay off her mortgage while earning a modest income, so it is achievable for others too. With that being said, Harriet is committed to guiding others who find themselves in similar situations.
Via her TikTok account @thefreedomfinancecoach, Harriet shared: “No one teaches you this when you’re broke, but I will. If you’re barely making it through the month and your debt seems like it’s swallowing you whole, then this is for you.”
Harriet elaborated: “Here’s how to budget when your income is low – every pound matters.” Hence, she employs the £1 rule to ensure every penny spent is purposeful.
She said: “Use a zero based budget. Give every single pound a job. Even if you’ve only got £800 to £1,000 a month, you need to assign every pound a job.”
According to Harriet, “prioritising survival” should be at the top of your list – covering essentials such as food, housing, and electricity.
Then, to eradicate debt, she insists on cutting back mercilessly. She added: “That means no Netflix, no takeaways, no unnecessary subscriptions… You’re in survival mode now.”
Harriet has outlined that luxuries should only be on the shopping list once you’re free from debt, suggesting that’s the time for treats.
She’s given up purchasing clothes she hopes to slim into, as well as unnecessary phone data, impulse buys from Amazon, seasonal home decor, and other indulgences.
Harriet added: “Once I ditched them, the savings stacked up fast. Being debt-free is not about being cheap, it’s about being intentional.”
The economical TikToker emphasised the importance of tracking your finances closely, noting that understanding what comes in and out of your account is crucial for financial control.
She remarked: “Awareness is power because most people are bleeding money that they don’t even see.”
Harriet also recommends setting aside a modest emergency fund – “even if it’s £100” – explaining that without this safety net, any unexpected expense could derail your budget.
She added: “Because without it any emergency or just a flat tire can wipe out your entire budget. And listen, it’s not easy but it’s possible because I did it.”
Her insights have resonated with many, prompting users to express their appreciation in the comments section. One user praised: “This is such great advice. It’s the only way to change your situation. It’s really hard but possible.”
Another shared their personal journey: “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.”
And a third thanked her for her candour, gushing: “Thank you for sharing and being honest about a subject most are embarrassed to acknowledge.”