AIBU to think we can survive on £50k

[Hadenoughtoday01]

My DH lost his job the other day, Brexit (i.e sterling) related concerns to the internet start up he was working for. Others lost jobs there too too.
Now his income had pushed us above £100k (household income) which sounds like so much but actually (we both pay into company pensions) it wasn't. Now he has lost his job I'm quite concerned. Can we survive on my income - that amount above includes a bonus and freelance work I do.
The real killer for us is childcare - my youngest doesn't start school until September, however we have paid pre school fees up to the end of the summer term (we could get these back as DH salary only paid up to end of May) but she is thriving there. I'm just wondering what we can cut back on. We shop at Aldi, only buy the DCs new clothes when I make some extra freelancing (have to put half away in savings account for HMRC), my only luxury is highlights every six months and new trainers (I get free gym membership with my work). I
We owe £1,500 on credit cards and I'm paying a tax bill delayed from maternity leave. I feel like asking this might attract some negative comments, but I work in the City of London and we live in an expensive part of the South East...

[Cutesbabasmummy]

We live on under that in the South East. You just cut your cloth accordingly. DH and I both work full time too.

[pipsqueak25]

bad situation for you all round, can dh apply skills else where in his / or another company ?

[SecretNetter]

Impossible to answer really as it depends on your outgoings. For many people that would be plenty but if you have a £2.5k mortgage payment, £1k childcare fees etc then you're obviously going to struggle.

[Hadenoughtoday01]

Pip DH does have a hobby company = which he has made money from. He took this job back in November so I could go back to working freelance. There is a chance I may get promoted though - DH's hobby (foodie company) does well at summer festivals. Just he put it aside the last few months..

[sailorcherries]

I think it would depend on what your outgoings actually are, which you haven't really detailed.

For example, OH and I make roughly 48k between us per year (before tax and deductions). Our monthly outgoings average 24.5/25k per year leaving us with almost the same at the other side for spends. We could survive on 50k, as it would actually be more.

However, if our income dropped by half (which is what you suggested in your OP) then we would have enough to possible pay all bills and nothing else. We'd be able to survive but not live.

[AndNoneForGretchenWieners]

Apply to the school to see if they have a hardship fund? Ask your DH to get a temping job to contribute whilst looking for something more permanent.

My DH lost his job the day after our DS was born and I only had minimal maternity leave - we had £10k income, a mortgage we had just taken on and a load of debt from my previous relationship. And two teenage boys living with us full time. We made it work - he got a temping job and second job at weekends, I took on a second job and started my own company with my dad, and we scrimped and saved. Now we are much more comfortably off, and have joint income of around £60k - but I still have a second job because it's a useful fallback just in case our fortunes turn again.

[jay55]

If you can cover the mortgage and bills you will find a way to bump along until he gets something else.
You'll be saving on his commuting costs, lunches, dry cleaning etc.

[Babyroobs]

We have a joint income of around £50k, live in the midlands and have no childcare or mortgage to pay and still seem to only just make ends meet so I do wonder how you would manage ! We do have 4 expensive teenagers though, so I guess that makes a difference.

[Bluntness100]

Is he looking for another job op ? Hopefully surviving on your income would only be for a short period and he can also do other temp work whilst looking...

[SecretNetter]

£50k is just over £3k a month...so the only question you have to answer is whether your essential outgoings are more than that or not.

Our income is the same, around £3200 a month net. It's plenty for a decent standard of living for us mostly but we struggle with unexpected one off expenses (car that just failed the MOT and cost £600, I'm looking at you) as we don't have a huge amount in savings...so it's a choice between having a couple of really lean months or putting it on a credit card.

[Eatingcheeseontoast]

We are in same situation - I've put all our outgoings into a budgeting app and regular outgoings etc - so the stuff that has to be paid.

Then I've looked at what is left and allocated to food, social etc and we are cutting down.

We aren't in SE and have no debts - but aren't in a particularly cheap area either.

It's do-able.

[Hadenoughtoday01]

I get £2700 a month after tax. My outgoings - £418 a month travel, childcare is £600 a month (this includes after school club for both DCs and the pre school) rent (we have been trying to save to buy for ages) £995 - but we do have a four bed house - we can't downsize as we have a good deal for where we live (i.e landlady too broke to fix property) council tax is £150, energy (I overpay so we can take months off - £200 a month) broadband and phone £60, food is around £300 (but DH will have to stop popping to the shop to buy crisps pizza etc), DH did not pay commuting costs and his salary was used to buy a holiday - which we are going on in July. It was paid off just before he lost job. So the salary rise we got when he started was used to help us go on first holiday in a while; it did seem extravagant at the time. He wanted to do it. So we never really enjoyed the full benefit of having that two income thing.

[ihatetosay]

i get less than 20K and thrive - instead of borrowing up to the hilt because people can afford it they should think about what may happen if you lost your job or ended up in hospital and always have savings

[happypoobum]

I survive on that but my mortgage repayments are only £700. Income is irrelevant without an idea of your outgoings.

I wouldn't be happy with DH fannying around with his "hobby company" instead of getting a proper job. Encourage him to start over with anything remotely suitable and then apply for something he really wants to do later.

[hamandmustard]

won't they get 15 hours free anyway at pre-school. Can you do that over 2/2.5 days a week and stop the rest and get DH to look after child. If it is a pre-school receiving nursery grant then not sure that they can ask for fees a term in advance.

Summer so loads of free stuff for them to do on the other 2/3 days

Is it an independent school?

[EweAreHere]

DH lost his job 6 weeks after we closed on our first home.

It was stressful, but he's already been planning to look as he new he wasn't happy in that particular company and he didn't think it was viable long term the way it was going, and being laid off turned out to be a good thing. He found a better job within half a year, and he beat the flood of applicants in the area as the company that had laid him off let go 90% of their remaining work force (about 70 people!) 6 months later.

Money was tight. But we managed, and accepted we might have had to immediately sell the house, so we kept it neutral and spent nothing on it.

Perhaps your DH could find a part time job while he continues to look for a new career position. He doesn't have to put it on his CV, does he?

[gillybeanz]

I suppose it depends on your outgoings.
We have a good life on less than half of one of your salaries, but are in the NW with low outgoings.

I think if you can cover the basics so roof over head and mortgage then you will be fine for the short term.
I think you may have to cut back on everything else though until he finds a job.
Maybe he could devote some more time to his business, maybe do sandwich rounds at lunch time whilst he's looking for work.

[MovingOnUpMovingOnOut]

If he makes money on his hobby business in the summer that seems like a thing to focus on?

Instead of pulling your daughter out of pre-school could you reduce her hours? So you get some money back but she still gets the benefit?

If you have a 4 bed house and live in London could you Airbnb a room over the summer for extra cash?

[MovingOnUpMovingOnOut]

£60pm for phone and broadband is loads. Are you in a tied in contract? If you are not then move to a cheaper provider and then call existing to leave and they'll probably make you a better offer.

[MovingOnUpMovingOnOut]

Can you also save on your mobile contracts?

[TeacupDrama]

adding your figures up you spend £13 a month more than you earn , that's not that hard to save, most of your costs are fixed £200 is probably too much for energy take accurate reading get a refund immediately fr any overpayment as you will use much less in the summer.
£300 for food for 4 for a month is not bad but you could probably save £50
if you are on fixed contracts it maybe difficult to cut broadband phone costs
the £1500 on a credit card is not bad but you need to pay some off a month so if you can save £100 between food and energy that will help

[MatildaTheCat]

Either dh has to work at something which earns decent money or you'll need to pull out the childcare for a while. Are you now under the threshold for CB?

There isn't much scope otherwise for reducing your outgoings. You must be quite far from London to be renting that cheaply I'm guessing but I'm in SW London and there is plenty of work available, it's whether you want to do it that's the question.

[bluebelltippytoes]

You need to list all your outgoings and see where your money is going.

When I had a mortgage on my own, money was very tight and I had a spreadsheet broken down into months. It accounted for every penny and I had a budget for everything; mortgage, council tax, hair, going out, birthdays, Christmas.

Our mortgage is paid off, we have money in savings and we have quite nice holidays. Friend and husband have similar income but they have a mortgage, debts and never seem to manage a proper holiday. She isn't aware of our financial situation as it would probably be a kick in the teeth. The difference is, we are fairly careful and don't several Costa coffees every day. If DH lost his job it wouldn't be a disaster.

[MovingOnUpMovingOnOut]

Yy claim child benefit and see if you are eligible for anything else like child tax credits or housing benefit.

You may have to put your house buying ambitions on hold for a bit.

[Tabimux]

Agreed £60 per month for phone is crazy! I paid line rental up front which is always cheaper, was about £100 for the year and £3.99 a month broadband! Energy bills £200 sound like a lot per month, that's our quarterly bill! Change tariff get a better deal, ours is monthly direct debit which adjusts itself based on our pervious bill, its never more than £70 a month and at its lowest £45. We are almost always in credit and don't find ourselves having to think about it - everything goes out at the start of the month so we know where we stand for the remainder.

Get on to some comparison sites and see what you can switch and save on.

Similar to others we have less than half your previous combined salaries and we do ok with no spending on finance or credit (granted our mortgage is only £600pcm), manage the odd holiday, ski trip etc. Depends what you like to spend money on, we don't have flash vehicles, we never eat out, neither of us drink, and our daughter has second hand everything...we go for experiences rather than material and prioritise household expenses, if its not possible that month then its not possible!