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How will we survive on low salary? Please help what to do? London!

(64 Posts)
bumbleandbumble Thu 11-Dec-14 14:57:58

My husband earns 30K. At the moment I am not working and we are living with family paying a very low rent...we barely scrape by. Now we are being evicted and looking for a place to rent. I have the possibility of a job also for 30K...still in round 3 of interviews...

But even if I get the job, how will we survive? All my earnings will go to childcare (2 kids under 5) and his will cover rent...but no money for food/bills!!! How do you survive in London with these incomes?

writtenguarantee Thu 11-Dec-14 15:04:45

you shouldn't be spending all of your income on childcare. Keep in mind, however, childcare only lasts until 4 when state schooling kicks in. So, while you will be scraping by now, your income will go up from both experience and less childcare costs in two years time. You should look at local nurseries and schools. if you child is over 3, you should get 15 hours free. Oh, and maximise your childcare vouchers.

but 60K might be a struggle. if you want a 2-3 bed place, it will cost a lot in zone 1-2, even zone 3. Have you found any housing that's affordable?

Dolallytats Thu 11-Dec-14 15:08:46

What zone will you be living in? This makes a huge difference to your costs.

specialsubject Thu 11-Dec-14 15:20:07

it is a balance between further in and higher rents, and further out and higher commuting costs.

how has it worked up to now - no childcare, low rent but just one income. Have you looked at all your outgoings? Now add in the new salary and childcare costs and see where you stand.

GwenStacy Thu 11-Dec-14 15:24:52

We moved out to Harrow, which has excellent transport links and managed on £26k with me looking after the baby.

(Then we left london and have a giant house for less that a one bed flat in London and it's only 30minutes on the train to euston…)

Boomtownsurprise Thu 11-Dec-14 15:49:43

You can get some hours once they are 2. Would you qualify?

Then once 3.

Do you have friends/family around or is it just you?

writtenguarantee Thu 11-Dec-14 15:59:55

(Then we left london and have a giant house for less that a one bed flat in London and it's only 30minutes on the train to euston…)

indeed. Transport here is great. If you have a job you don't have to go to daily that will help too. but lots of places are 'close' (not physically, but by the clock).

StillWearingOddSocks Thu 11-Dec-14 16:00:42

Hi there - we are in london & also on low income (ie a good income 4 anywhere else in the uk!).

Short answer is that it can be done. Yes most of your money will be spent on rent but lots of free stuff to do. Explore all avenues for flexible working & home working you can - you can then widen the time frame one of you is at home with the kids

Things always look bad - I was like you, had no idea how we would do it as we moved from Yorkshire.

Sorry my advice isn't more practical

undertherain Fri 12-Dec-14 18:45:51

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elephantspoo Fri 12-Dec-14 20:58:57

So, you're worried about running a family on £60K a year?!
If only life was that stressful for a lot of families in the UK.
I can understand the you stressing about raising a family of £30K. That would put your family decidedly better off than about half of UK families, but at £60K a year, you need a reality check.

iloveshortshorts Fri 12-Dec-14 21:04:26

I know you are worried OP but raising a family on 30K would be fine maybe tight but 60K? unless you have huge debts I think you will be fine.

writtenguarantee Fri 12-Dec-14 21:21:10

in central london, two kids in nursery (without any discounts) can cost 2k a month, so you have just eaten up a salary. 2k/month in rent quite easily. so that brings you up to 48k.

you can skimp on nursery by only going for 4 days, but that will eat into your salary.

newname12 Fri 12-Dec-14 21:28:06

We're in London on a low budget. Under 20k. Kids aren't at nursery but otherwise we manage.

We bought a flat for as big a mortgage as we could get. Pay interest only, which is under £500 a month, way cheaper than rent, and any gains are ours when we move (currently valued at 20k more than we paid). It's small, but manageable for now.

That is our big saving, so we have enough left for rent/bills/hobbies. I make the most of interest free offers on purchases and credit cards, and shop smart.

elephantspoo Fri 12-Dec-14 21:39:06

Why would anyone pay £2K a month to a nursery when you can employ a decent nanny for two thirds of that?

And why would anyone in rented accommodation restrict themselves to a hand-to-mouth existence in London when there is an entire world out there?

elephantspoo Fri 12-Dec-14 21:44:16

Newname12 - Seems like you have your head screwed on right and are doing really well in London on £20K. Could you imagine having to find somewhere to spend another £40K a year less tax?

GoodKingQuintless Fri 12-Dec-14 21:49:46

Where in London will you find a live out nanny on an 18k salary, elephantspoo? They earn around 30-35k....

undertherain Sat 13-Dec-14 01:20:42

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PausingFlatly Sat 13-Dec-14 01:25:58

I've reported the spammer.

writtenguarantee Sat 13-Dec-14 17:29:01

if you know of any who will work for 16k a year in London, I am sure the OP will appreciate the reference.

1000/child is quite normal. you might be able to get it to 800-900, but that's still over 20k a year.

writtenguarantee Sat 13-Dec-14 17:34:28

We bought a flat for as big a mortgage as we could get. Pay interest only, which is under £500 a month, way cheaper than rent, and any gains are ours when we move (currently valued at 20k more than we paid). It's small, but manageable for now.

interesting. it's a risk I guess. it's like renting, but of course you are responsible for repairs, and of course you have tenure. what seems risky about this is the only advantage you have over renting is price rises (which, in London, STILL seems likely).

interesting move. I am not sure it's for everyone though. btw does that get you something central?

avocadotoast Sat 13-Dec-14 17:52:17

It's incredibly hard to get an interest only mortgage unless you can show how you'll be able to repay the capital though...

elephantspoo Sat 13-Dec-14 21:24:52

I think we will likely see that change in the future. I'm sure it won't be long before the 110% mortgages, the interest only mortgages, and the 'liars loans' are back. Roll on the sub-prime housing boom.

sleepdodger Sat 13-Dec-14 21:32:37

Move to less obvious commuter places- rugby is 50 min into euston
You can buy a 3 bed new build for £200k

Legodino Sat 13-Dec-14 21:51:09

Can you leave London?

newname12 Sat 13-Dec-14 23:05:30

I'm in zone 2.

I see my mortgage pretty much as renting off the bank. Even if we do have to pay repairs, and/or prices decrease, we'll still be better off than if we rent. How much money would we have paid in rent-an extra 1k a month? It's a no brainer, saving 12k a year.

As to how I got an interest free mortgage. I wrote a very detailed proposal, researched the area, and sent the bank projected house prices in the area for the next 20 years, covered estimated savings on rent, possible work we could do to increase value. Also evidenced the area was increasing in value, and included tfl plans for tube and cross rail access. In short, pretty much showed we were little to no risk and they'd get their money back.

As it is we plan to sell up and move north in 5-10 years, and we'll have a hefty deposit for a proper family home, rather than trying to get on the propert ladder when we should be thinking of retiring...

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