Nicole had been renting since she left school, living paycheque to paycheque with no savings, £1,200 in her overdraft and a maxed out credit card. A year later, she has savings pots, paid down debt, ditched Klarna and an emergency fund that’s already done its job. Here’s her story.
Tell us a bit about where you were with money before you found Financielle
I’d always been paycheque to paycheque. Last year I had no savings, £1,200 into an overdraft and a maxed out £700 credit card. I was trying to figure out how I was ever going to buy a house with my then boyfriend, now fiancé, while just trying to get by day to day.
I was lucky that he received a substantial amount of money which meant we were able to buy a house together, but I really wanted to sort my own finances out properly. I’d rented all my life since leaving school and felt like I could never get on top of it. I was constantly worrying about everything to do with money. Financielle came up on my TikTok and the rest is history.
You mentioned feeling more financially secure than you have since 201, what happened back then?
In 2011 I was 18 and going to university for the first time. It was the first time I’d lived independently, having been at boarding school since I was 13. Suddenly I had all these living expenses and not enough to cover them. I worked every holiday and still ended up crying to my parents and grandparents that I had no money.
That’s when the overdraft started. They tell you there’s no interest as a student so it feels like free money. But it’s not free — you have to pay it back. And I hadn’t managed to get out of it since.
You’ve tackled savings, debt and spending habits all at once, how did you decide where to start?
I read the Playbook and it said to tackle a small emergency fund first. So I started a 1p challenge through Monzo to quietly build that fund while paying off my smallest debt using the snowball method.
It was really hard at first. I’d dip into my savings and feel like I had nothing to show for it. But I kept going with the 1p challenge and then suddenly I had an emergency fund — only £500, but more than I’d ever had.
Moving in with my fiancé freed up a bit more money through sharing the load, but I always made sure I was focusing on my own finances and my own journey. I’m on minimum wage so I’m not saving huge amounts, but I try to stick to my rules. I paid off my Studio bill and my Klarna bill by adding £20 to them each month until they were gone.
The thing that helped most was sinking funds. I move money into separate pots at the start of the month and put £50 towards my credit card now. It’s about being able to still afford your life while chipping away at debt quietly. Even if it’s £10, it’s more than when you started.
You’ve quit Klarna and now only pay if you can pay outright, what made you make that change?
It was hard because sometimes I’d want something but could only afford it by splitting the payments. I decided to quit after reading a blog on here, and because I realised it’s still debt at the end of the day.
I thought about it like this — if I was in a shop and couldn’t afford something in one go, I wouldn’t buy it. So why was I doing that online? I haven’t used Klarna in over six months now and I’m not suffering because of it.
What’s the next milestone you’re working toward?
Getting my emergency fund back up to £500 after using some of it to buy a washing machine. I’d never felt happier than being able to afford that without touching my monthly pay.
I’m also doing a 4p challenge through Monzo to save around £2,700 for my wedding next year without having to think too hard about it. And I’m planning to clear my credit card by the end of January.
What would you say to someone who feels like they’ve got no excess and no way to get started?
I’ve been in that position. No excess, no savings, no idea where to start. Sometimes you genuinely don’t have excess and that’s okay, we all start somewhere.
It’s not about having the biggest savings. It’s about what you yourself have managed to save. Put 10p into a pot every week. That’s 40p a month and maybe £5 by the end of the year. It doesn’t matter how small it is. Just start, and be consistent. I’d really recommend a savings challenge through Monzo too, it grows for you and you earn interest on it. Start small and see what you can do.
This content is for general information only and does not constitute financial advice. If you need advice tailored to your personal circumstances, please speak to an authorised financial adviser.