Harriet, a woman who once faced £120,000 in debt, has successfully paid off her mortgage and all debts using a straightforward £1 rule. She now shares her strategy on TikTok to help others in similar financial situations.
The £1 Rule Explained
Harriet, known on TikTok as @thefreedomfinancecoach, explained her method in a video: "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."
The rule involves zero-based budgeting, where every single pound is assigned a specific purpose. Harriet stated: "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."
Prioritising Survival
Harriet emphasised that the first step is "prioritising survival"—covering essentials like food, housing, and utilities. After that, she advocates for aggressive cutbacks to eliminate debt. She said: "That means no Netflix, no takeaways, no unnecessary subscriptions... You're in survival mode now."
According to Harriet, luxuries should remain off the list until all debts are cleared. She stopped buying clothes in aspirational sizes, extra phone data, impulse Amazon purchases, festive decorations, and other non-essentials. "Once I ditched them, the savings stacked up fast. Being debt-free is not about being cheap, it's about being intentional," she added.
Tracking and Emergency Fund
Harriet stressed the importance of meticulous financial tracking, noting that awareness of income and outgoings is crucial for control. She commented: "Awareness is power because most people are bleeding money that they don't even see."
She also advises building a small emergency fund—"even if it's £100"—to prevent unexpected expenses from derailing the budget. "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," she said.
Community Response
Her advice has resonated with many viewers. One follower commented: "This is such great advice. It's the only way to change your situation. It's really hard but possible." 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 praised her openness: "Thank you for sharing and being honest about a subject most are embarrassed to acknowledge."
