We very soon won’t be able to afford our life

[WhatsHoppening]

We have a high mortgage, high childcare costs which thankfully will reduce but still wraparound. With our mortgage term ending in December and the increase in gas and electric, food costs, petrol and the increase in mortgage when we remortgage on a higher rate we will not be able to afford to live. Our outgoings will outstrip our income. We are both professionals, I work part time (4 days) and there’s no hope of DC getting into after school club on my day off (and realistically after childcare I bring in less than £100 pcm per extra day worked after childcare). I feel sick. I keep getting told by my parents and grandparents we will get through it but how?! My grandparents were post war so it was hard but my gran could be a SAHM for 3 kids on a my grandads teacher salary. This is a pipe dream for us now and DH earns more than a NQ teacher. Just a rant- lots have it much worse. But I’m scared for the future.

Oh ok I was reading her previous thread where she said she works 22 hours.

do you have a spare room to accommodate a lodger?

@BoJoGoGo (love the user name) even if it was 22 hours a week - a daily rate of net £62 still would still equate to a full time gross salary of c£32,000. Maybe slightly more believable.....

But if she is working 22 hours a week then surely that does give a lot more scope for increasing her hours/days or earning some extra income some other way.....

To complain about income/lifestyle whilst working 22 hours...well...there is an obvious solution

You’ve had some really unhelpful replies, I presume from people who have paid off their mortgage or who have bought the government line that everyone is wasting their money on takeaway coffee, the gym and Netflix and it’s any hardship is caused by poor budgeting. I’d look at increasing mortgage term or going interest only temporarily. Hopefully the political situation might change to reduce tax evasion and loopholes so the rich are paying their share

35000 x 0.8% = £28,000
28,000 ÷ 260 (working days 365 - 104 weekends) x 0.8 = 208
28000/208 = 134.62 gross per day.
£134 x 30% (estimate for tax, ni and pension) = 40.38. 135 - 40.38 = 94.62 per day.

That would be 94.62 x 52 = 4920.24/12.
So £410.02 extra pcm less childcare.

Above are estimates re tax, ni and pension, etc.

The op doesn’t even have her masters yet!!

Top of the Lecturer scale is about £50k, 35 days holiday, plus bank Holidays and often two weeks at Christmas. Academics have always been able to work flexibly around their contact time and save on childcare. I know academics who have worked full-time and paid only for 3 days childcare pw catching up with research and marking when dc are in bed or at weekends. Many dual academic couples who have not paid any childcare!

Add in the Teachers' pensions contributions (or USS although institutions are withdrawing where they can), 6 months' full and 6 months 1/2 sick pay, much flexibility over school holidays and it isn't a bad wicket, even now.

"I’d look at increasing mortgage term or going interest only temporarily. Hopefully the political situation might change to reduce tax evasion and loopholes so the rich are paying their share"

I don't disagree with this but please, please get financial advice if you take this route. If you go onto IO you can still get a good rate but It will have to be paid back. It's not a bad option but make sure you have professional advice to support you

If your dh is a quantity surveyor and you are a university lecturer, and you are struggling, I hate to think how families with parents on NMW are managing to survive!!

This is absolutely right- £410 a month or so for that one day. Nursery works out as £250pcm (we use TFC but go over the threshold after 4 days so end up paying the full amount) for one child and then 60 or so after school club if she could get a place. So all in all maybe £100 or so in the pocket from the extra day.

@RosesAndHellebores im nearer the bottom of the Grade 7 scale so more like £40k

40k FT so 0.8 WTE currently

Can you go full time but consider how you manage your working at home time? The academic contract has always been flexible. There are plenty of lecturers who work at home several days a week with children, and whatever doesn't get done during the day gets done at night (and plenty who 'work at home' and do very little work at all).

If your dh is a quantity surveyor and you are a university lecturer, and you are struggling, I hate to think how families with parents on NMW are managing to survive!!

I hate to think how people on NMW manage too, but that doesn't mean the OP isn't having a hard time, or that people can't help the OP find their way through this instead of questioning whether they're telling the truth about their job or not.

For FS, swallow your pride, and make the two smallest kids share. Then rent the extra bedroom to a lodger. We need this kind of situation to happen routinely. My son needs a room in London he can afford in order to get started in the city as a TV camera operator's assistant. He will be paid union rates. When he's not working, he'd babysit for you.And cook, as he's cheffed in a five star hotel.

You can get referrals for food banks from your DC's school. You can get the type that give you a big load of food (think it is meant to be 3 days but I make it last longer) then you can get weekly food banks where you get a small amount weekly. The good thing with the weekly one is you might be lucky enough to get some fresh bread, fruit and vegetables. Good Luck x

If your dh is a quantity surveyor and you are a university lecturer, and you are struggling, I hate to think how families with parents on NMW are managing to survive!!

People on NMW don't usually over extend themselves with large mortgages to buy a large house with all the trimmings.

What's your combined income OP? Are you the squeezed middle? Ie above any help but not enough to be comfortable?

But surely even though childcare eats up a lot of your salary at the moment, the benefits of working full time still outweigh that fact. You would be better off in the here and now working 5 days rather than 4, and in terms of pension and career progression going forward, it's definitely adding value.

I don't understand your reluctance to work more hours when you're worried that you can't pay the bills.

Several of us keep pointing this out but it's nothing new. Dh and I took on extra weekend work, as well as working in professional roles, in the early 90s to pay the mortgage. We didn't think when we took out our mortgage at around 8% that within a few years the payments would almost double. But they did. So we worked more because we needed the money. The U.K. is heading into that territory again; well not mortgage rates so much because they're still incredibly low but even a 1% increase is tough if you've maxed out on borrowing - and of course fuel, food and other prices have gone through the roof. It's shit, I know, been there done that- but there's no point burying your head in the sand.

Make a bit more cash?

www.nerdwallet.com/article/finance/how-to-make-money

It's not a race to the bottom.

This is a good lesson in not over extending yourself for a home. Not helpful for the op but I have advice earlier. Essentially, if you can’t afford your home you will need either increase your income or sell and move to a cheaper property.