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How to cope wth drop in income when having dc?

(10 Posts)
saltedcaramelicious Thu 15-Jan-15 08:39:01

DP and I both both work full-time, we're privately renting and like a lot of people, the money that comes in goes straight out again.
We are planning to have a baby together so I've started thinking about finances. If I worked 24 hours a week over 3 days once had baby and returned to work, I'd bring in �330 less than if I continued to work full-time at 37.5 hours.
�330 is a LOT of money a month for us to lose, and I have no idea how we'd manage without it confused
We wouldn't qualify for tax credits or any other benefits except child benefit.
How do others do it?

Rockchick1984 Thu 15-Jan-15 09:55:01

Would you have childcare costs to pay also? Work out your basic income and expenditure - what can't you change (rent, council tax etc), what can you cut down (sky, food shopping, clothes, socialising), and if there's any big changes you could make (get rid of car, move to cheaper rental property). For me it worked out better financially to stop work and be a SAHM as I could make more savings that way but obviously it's not right for everyone!

saltedcaramelicious Thu 15-Jan-15 10:24:19

I would have childcare as well, for up to 2 of the days. My mum is happy to have baby on her day off. Thinking about that actually, it's barely worth me working, as childminder for a day would be nearly my take home for a day. What a minefield it all is, at least I'm giving myself plenty of time to work all this out before even ttc!

SnowWhiteAteTheApple Thu 15-Jan-15 18:07:00

You don't have to drop down but anybody cutting their hours usually takes a drop in pay. Nobody knows if you can do it as they don't know your outgoings etc.

Remember childcare eventually stops and remaining in work means the chance of raises, promotions etc. It can be hard to get back into the workplace after years out. Its also wise to retain financial independence as nobody knows what the future holds.

LIZS Thu 15-Jan-15 18:43:21

Now is a good time to see if you can manage without that amount each month and save by setting up an account specifically and transferring your "loss" into it. With respect if you wouldn't get tax credits, between you you must earn a reasonable amount. You need to be ruthless in cutting back unnecessary expenditure. Could you move to a cheaper area, reevaluate how you spend your money currently.Bear in mind your travel costs etc will also be lower if you cut back working days.

NoArmaniNoPunani Thu 15-Jan-15 18:52:32

Is the £330 a weekly or monthly difference?

saltedcaramelicious Thu 15-Jan-15 19:02:45

Armani that'd be a monthly difference. I have just checked tax credits site and it does actually look like we'd be entitled to about £20 a week so that would definitely help.

Good idea about moving the money we'd be down on into savings and seeing if we could manage plus gives us a head start on saving for maternity leave etc.

CogitoErgoSometimes Thu 15-Jan-15 21:01:26

Save up. Babies are like any other big expense, Save up beforehand, cut your spending, budget carefully and your new habits will stand you in good stead when your income has to go a lot further

didireallysaythat Thu 15-Jan-15 22:38:43

Don't forget you might be entitled to child benefit.

LIZS Fri 16-Jan-15 07:56:21

Bear in mind things like tax credits are being pared back , so what applies now may not in 18 months time, probably depending on the outcome of the next election. Also by then it would almost certainly be under Universal credit.

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