Finances at Xmas

[Shannonlynn]

Hi, we are all set to start our adoption process early next year and up until now I have managed to prove affordability pretty well by always having money in our accounts. (Last 9 months or so) However despite saving for Xmas I seem to have gotten myself in trouble and my bank balance has rapidly declined. Much like all of yours I suppose. All money spent has been cash and not borrowed but I’m really worried that when they check our finances they will see this dramatic incline and worry about our finances. As well as Xmas, we have had some big expenses such as a new lap top for me to work from & my husbands back is bad so the money has gone on chiropractic help. Has anyone been in this situation? I was doing so well showing how well my manage our money until now, I’m starting to lose sleep about it. I don’t want my new year wishes to be smashed just because of Xmas & medical things. Thank you

Try not to worry but work out what you are going to do. You imply you haven't gone into debt but it sounds like you have been focusing on not spending money so you have money left over each month.
But maybe its time to think a bit longer term about your finances and how you build up some resiliance, reduce your outgoings, how will you manage unexpected expenses. How are you going to manage on adoption leave, what are your plans for work after adoption leave, what happens if you have reduced income?
Everyone has bad months, one half term my hoover blew up, the washing machine died and my glasses needed replacing ( and I don't have cheap glasses). You need to think about the bigger picture and plan for it.

Thank you for your reply Ted. I have thought about all of this and have a monthly budget which details absolutely everything savings and all, for those unexpected expenses. I have then taken this and deducted my wage down to adoption pay added on a little help from government & inflated most of my expenses by 5% to help cater for a child. I am currently shortfalling at around £100 a month which I didn’t think was to bad. I have always been responsible with my money & keep track on bills and liability like this all the time, even before thinking of adoption. Since September I have been keeping track of the balance in accounts at the end of each week to help prove that we’re financial stable. I have reduced outgoings by not renewing phone contracts etc, to help towards this. I sound like an absolute mad women but this is an area that I’m trying to keep from failing us. It’s not that I don’t spend money, we have a good amount of disposal income and I put money back for savings, car problems, Xmas/birthdays etc and our charity holiday next year. Maybe I am over worried about it all, maybe they would see it as Xmas hit us hard, we husband has four children to buy for. Thank you :)

I think xmas hits most people hard. To be honest they will only ask for 3 months statements (in my experience) so just show 3 good months.
I would however start saving. We thought we would be fine but didn't factor in that all 4 of us have a birthday leading up to xmas. That hit us hard and we struggled to recover for the rest of my adoption leave.

over a year a £100 a month shortfall is a £1200 overdraft though.

My biggest saving was re-mortgaging, I reduced my outgoings by over £250 a month on that alone.

I don't think the suggestion of just showing three good months is helpful. If you can't manage you need to sort it out, not try and hoodwink SWs

They’re not going to stop you adopting because you had two big expenses in a month, but they are going to want you to demonstrate that you can manage both whilst you’re on adoption leave and then longer term. (And you should be confident yourself that you would.)

I’m not sure what your 5% proves. You can feed and clothe an LO for not much money at all but if you’d need child care it can cost an arm and a leg.

You might be better to look more carefully at actual anticipated costs.

Good luck

I don’t mean managing all on your own either - if you’d be eligible for any benefits, totally include them in your budget.

(And remember former LAC get 15 free hours from 2. Or did, it may have been changed...)

Fatberg they still get the 15 free hours.