Budget planning for SAHM next year(10 Posts)
On maternity leave at the moment and drawing MLA as well as CB. I contribute towards the food bills, plus my own expenses (toiletries etc.). CB is earmarked for kids clothes, nappies and anything else they need. DH covers the rest of the household bills.
We are both starting to think how to adapt our finances when MLA stops in January. Unfortunately, childcare for a toddler and baby costs more than my normal working wage would bring in, so we have agreed I should stay at home until DC1 goes to school.
My question is; how do you manage the household budget? One account, two cards? A separate bank account for food? How do you negotiate on day - to - day expenses, such as petrol for the car, or foundation and lipstick?
DH openly shares all financial info with me and would transfer money across instantly if I needed it. I have simply never been in this position of financial dependency - TBH, I am worried it's going to be humiliating after earning my own cash for over a decade.
Any tips welcome!
We have a joint account, each month enough of dh's wage is transferred into this account to cover all bills, mortgage, food shopping, fuel. Child benefit also paid into this account. Some is also transferred into savings for car insurance/repairs/emergencies. An amount from dh wage is also transferred into my account as my "wage", as I currently do all domestic jobs and childcare. I draw this money and our food shopping budget out in cash each month, it allows me to keep a track of my spending much better, and when its gone, its gone!
Been a SAHM for over 11 years.
Joint account for all direct debits for mortgage, council tax, water, gas, electricity etc. Sole accounts still active, mine has child benefit paid into it Dh puts a bit of cash in his as we both use these accounts as cash withdrawal accounts for every day bits and bobs.
Joint credit card for everything else (earn points on it) it is paid in full by automatic direct debit every month.
Any large purchases are talked about before hand, but we have been together 20 years so we know neither of us is likely to go crazy with spending.
Once a year we review what we have spent.
Dh does something that pulls all the stuff from the credit card onto a spreadsheet so we can look at where we spent money and how much. No accusations or belittling behaviour just a we spent X on clothing from X shop.
We talk about where we feel we might want to cut back or whether we are just fine with everything.
We are fortunate that we aren't knife edge with money, we used to be when I worked and we paid childcare but that was a long time ago.
It basically comes down to trust and communication.
I sort out the bills and the budget, I let DH how much needs to go into the bills account each month and he sends it, I warn him in advance if it is going to be a particularly spendy month. The stuff that I need/want is factored into the budget and I make sure that the amount needed for the bills account won't leave him short, so lots of trust and communication here as well.
I'm not particularly worried that he pays for everything as it's been the other way around in the past and it's only while the DC's are small, who knows what things will be like in the future. He is enjoying being able to focus 100% on his career right now so it's a win win IMO.
We have a joint account. I still have my current account (i'm only recently a sahm) and cb goes into that account. I tend to use that for odds and ends for dd.
All direct debits are from joint account including a small sum into a private pension for me. We don't have 'spends' as such, we can both spend what we want although we discuss large purchases. We keep an eye on the account and know what our fixed outgoings are. Your example of make up is a relevant one for me. It's not something I'd spend money on a regular basis but it was clinique bonus time this month and I needed some new make up so I told DP in advance that i'd be spending quite a bit in Boots this week but I probably won't buy any make up for the rest of the year now and probably won't buy anything else for myself either this month apart from the occasional lunch/coffee.
We each have a help to buy ISA.
Joint account we use only for food, bills and rent. OH pays for petrol as he drives to work. He has £40 leftover each month that he spends as he pleases, for me it varies a bit but I certainly can't afford any makeup!!
Thanks all. Definitely food for thought and more discussion needed! It looks like a joint account for bills, plus a set aside for personal spend is the way to go.
We have one account that dp's salary and cb goes into, all bills/ direct debits/spending come out of, both have equal access to it. We discuss big spends such as white goods but don't bother for smaller amounts.
We have one account, two cards. We also use the app 'good budget' and enter ever single expenditure into it down to a €2 ice cream for example. It helps us keep track of our spending because you allocate money ahead of time. We each get €170 a month that is ours to spend how we choose ie: clothes, drinks out (haha!) or save. I never ask for money, last month I spent more than my €170 because I bought loads of clothes so this month I start with €120. Great app, seriously.
I thought hubby sharing money with me would be humiliating too (I'm on MLA until April) but when you have a child together all that sort of financial thing just changes. You were the one who gave birth after all! I fancied a little "hobby" if you like on the side but something where I could earn money too so I've started up my own business! It gives me that few extra hundred pounds so I can still get what we need and I don't feel like I'm borrowing! another bonus is because you meet new people all the time you're getting more of a social life at the same time! If you're interested I'd be more then happy to go through it with you! x
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