Sorry, this is a budgetting question and I know how these things can go so I am hiding behind a namechange but I just want to garner some opinions please.(29 Posts)
I would paddle along. It's a cliche but you really don't get that time back and you aren't on the breadline. Assuming you want to be with the baby (not everyone does) then I think the cut in pay would be worth it.
Why the pay cut. When is the baby due. Are you employed.
* Sits back with popcorn awaiting the hordes claiming how lucky you are and they have to live on tuppence ha'penny and maggoty bread every month*
if you are home with baby then you will have more time to cook from scratch using ingredients that are reduced (near closing time!) this will save a fortune especially if you can cook up batches and freeze
Assuming you want to be with the baby (not everyone does)
Start making the cuts in your spending now, that way you are used to the changes plus have a little saved for emergencies.
Argh! I was covering my arse. I would have killed to stay at home with dd but it wasn't financially possible. If I had assumed that the op wanted to not work then I would have got the angry hoardes telling me that some women need to work for their sanity etc.
Don't really think anyone here can advise on this as there is insufficient information about your circumstances. I would take proper consideration of the effect (if any) that this would have on my career in the longer term.
Have you discovered moneysavingexpert.com? I find it very helpful on how to manage your budget better.
You say you are faced with accepting the pay cut or finding more employment. What has brought this about? I assuming you are currently about to start ML as your baby is due within a couple of months. Are you referring to being on vastly reduced maternity pay by January? Or is your employer actually making cuts? (sorry I am trying to work out the situation through the timings you give!).
In terms of managing, well, as you say its do-able, though doesn't leave any room for unexpected bills, or saving anything, but yes, you could certainly live like that in terms of managing day to day costs. But it would be helpful to know the circumstances. If it is reduced pay as you will still be on ML then there's a clear end point so I wouldnt worry. If your employer is up to something dodgy while you're on ML then I would seek advice
why the berty?
it's a reasonable statement - not everyone enjoys being at home with a small baby.
I'd paddle along though personally, and having someone at home can save a lot of money, as cricketballs says. our outgoings would increase alot if I wasn't picking up reduced bits/charity shop bargains/cooking from scratch with leftovers/growing veg etc.
You have to really stick your neck out and list all your outgoings out of that projected 900 quid, then people will pick apart (and this can be helpful, actually) all the ways you could trim the margins. Do you have any savings, as well, in case of calamity?
It just depends what would make you happy. More money in long run would probably benefit your family, but might be too much stress in short run (was for me).
I'd give yourself a bit of time working 3 days, you can always advertise the pace after a few months break, it's not forever.
Even with the pay cut, you will be better off, because , as you say, your car loan and credit cards will be paid off. You will not have debt sucking away at your income.
I'd take the pay cut and have more time with the baby. £900 is plenty to live on. Bear in mind you will be saving money on work related expenses because you will be there less.
Everything in life is a risk. Sometimes you just have to make a decision based on what you would prefer. Increasing work hours also means increasing childcare costs, so work out if you really would be better off by working more.
Ah x posts there! You are your own employer! If you are thinking you might be struggling to manage another full time child, then I think you would be wrong to take on another tbh. The children you care for are as precious to their parents as your newborn will be to you-so its not fair to do it unless you are totally 100% convinced about the idea. If you start to feel pressured or resentful it will rub off on your mindees. I think wait until you feel 100% certain you want the work- otherwise you'll end up cutting corners.
Take the cut and be with baby. At least for the first 6 months. Save as much as you can now for a buffer and just make small changes to your lifestyle for a few months. It is, afterall, only a few months. When you feel less tired (!) you can advertise for more mindees.
we're in the same situation (in that DH will be made redundant in a couple of weeks). we've done the math and we think we can survive. This has factored in the £300ish that we'll save from him not driving/commuting; and reducing other costs, like shopping around etc. We also have savings and fingers crossed he'll find new work soon.
One of the best pieces of advice that I saw is to live now as though you are already on the lower income. You have until the end of the year - so not only would you have 5 months to see whether it is feasible, if you do it properly you should have 3500 pounds in a savings account to see you over any financial bumps once you have the baby!
In terms of outgoings, the best thing that I ever did was to meal plan. It was astonishing how much difference it made to our supermarket shop. You can also do the Martin Lewis drop-a-level challenge - if you normally buy taste the difference/finest, then you drop to brand name, or down to own brand, or to basics/smartprice. There are loads of threads about the quality of cheaper products, one about Sainsburys Basics is here.
Otherwise, it is difficult to advice without knowing what you spend your money on - newspapers/coffee/beauty products/toys/days out or whatever. The best thing to do is to keep a spending diary for a month. It's a real eye opener to find out exactly where all the evaporating money is going! My DH had a serious chocolate-vending-machine-at-work addiction. It's a bit of a faff, but works very well and I should be doing one right now.
if you cut back now and put some money away you caould have a decent emergency fund?
my shopping for 5 of us is £350-£400 a month obviously petrol depends on how far you need to go, dh works 5 mins away from home and only drives there because he comes home for his dinner and only gets half an hour
clothes dont need to be bought every month but i put a little away (i also have a little emergency fund stashed away) so i can buy shoes etc when needed
i also do meal plans and find shopping online easier and cheaper (mostly because i dont end up buying things that look nice)
erm... electric+gas meters mean you pay as you go and no massive bill arrives because someones left the heating on when you went out (dh is good at that)
cloth nappies and breastfeeding saves money
good luck its not that bad once you get used to it
We're a family of 5 and live comfortably on £500-600 disposable income a month. We are expecting again too.
I say totally doable.
Do a search and read the Food Budget threads. Have pulses and eggs in your diet. There are great recipes for pulses on budgeting threads or vegetarianism ones.
Go eco and don't buy several cleaning products. Vivegar and soda will do.
Switch your energy and phone suppliers.
I saved a lot when i was cutting my family's hair.
There is currently a thread about hosting foreign students, have you seen it. Maybe after your baby is 3 months or so?
Am I the only one thinking that £900 a month after bills is a fortune?! That's about what my husband brings home after tax a month, so we have bills and rent that comes put of that too. I'm currently out of work. And we're trying for a baby. I guess it depends what you're used to living on, but to me £900 would give a very good standard of living.
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