To think we can live on this amount of money?

[Quackquack100]

Baby no. 2 is on the way. Bit of a surprise (well, as much as it can be) but lovely all the same. Finance-wise, we are going to have to tighten up a little bit. We ought to be okay over maternity leave, the real killer will be when I go back to work and have two sets of nursery fees to pay. DC1 ought to be eligible for the 30 hours free (term time) as he will have just turned 3 but we have calculated and after paying all bills and both sets of nursery fees (as the kids will have to go full time i.e more than 30 hours a week and not just term time) we will be left with about £200 surplus.

When I say "all bills" I do mean everything including groceries etc so I suppose the sorts of things this surplus £200 would need to stretch to cover are birthdays, Christmas, holidays (although I get they are probably out of the question) trips out, hair cuts, clothes, other treats and luxuries. I think we are going to be cutting it fine but it is only for two years as DC2 will then be eligible for his 30 hours free which should help out massively.

AIBU to think we can survive on this amount of money? We do usually have quite a bit more surplus than that although we aren't particularly frugal so I'm hoping if we tighten up the extra £200 should cover us?

£200 a week? A month? A year?

A month, sorry! Knew I would have missed something out!

It's doable for the few years you'll need to do it. For 10 months it cost us £20 a month for us both to go to work - but it was an investment in both our careers (both pretty niche fields). As the years go by, your childcare bill should only go down, and your salary will only go up. Ish.

Can you save up emergency funds now? That's all that would worry me, but to be fair appliance break downs and new shoes can be put on credit cards.

My guess is maybe? I know I wouldn't be able to, but I'm not known to be frugal in the slightest

£200 is fine, but what if the boiler breaks or you have a problem with the car?
Do you have a contingency fund?

It's doable on paper but it only takes a couple of car repairs, domesric repairs and of course, Christmas to throw it out. Join your local Credit Union. You can save small amounts and get low interest loans in times of emergency

Can you cut down more on grocery costs, to give a bit more slack? More home cooking, freezing some extra portions, less takeaways perhaps?

30 hours free is term after 3rd birthday works out at 22 hours a week. But you need the code before the end of the previous term so you need to be back in work by then. If not you will have to wait until the following term.

You are eligible for 30 hours whilst on maternity leave.

www.gov.uk/government/uploads/system/uploads/attachment_data/file/615804/30_hours_free_childcare.pdf

Best in mind that, if I've understood you correctly, as DC2 becomes eligible for free child care, DC1 will be starting school and you will need to factor in costs around before and after school, and the school holidays.

What's the alternative? You'll cope because you have no alternative. Get yourself an emergency cheap interest rate credit card whilst you can (and a second interest free transfer one if you need to use the first one!).

Congratulations!

Of course it will be fine, it's only temporary and you know for sure there is a light at the end of the tunnel. We had 2 in nursery at the same time, we were broke for 2 years, but once the eldest started school we felt like we'd won the lottery.

Also, during these two years one of you may get a pay rise. Unexpected expenses can go on a credit card /small bank loan. It's hard but it's perfectly doable for a short time.

So doable. We are in a similar situation at the moment. DS1 gets his 30 free hours in September which will be good and DS2 in about 18 months. We are skint at the end of each month having to dip sometimes into savings but we know it's not for ever and our three dc are worth the struggle now. Congratulations on the baby

Yes but it'll be a struggle. If you have a finite date you can have a credit card for when you're really stuck or even a loan. Its hard penny pinching, but you don't really have a choice. Check out that your children are eligible for the 15/30 hours when you think they are (e.g. its the term after they turn 3 so only starts in Sept / Jan / April) and that the nursery they attend offers it. They're not supposed to charge for extras and it may have changed since I had children at nursery but they could dictate when they offered it (eg some nurseries offered the 15 hours on 1-4 each day and then you'd have to pay for the wraparound hours). Also factor in as a pp has said before / after school and holiday clubs.

It's doable so long as you are strict about your budget especially if you want to put money aside for Christmas/birthdays/holidays. Don't fritter away on minor spendings. Also I'd hope that at 3 your child isn't brand aware/have big expectations so you can have a cheaper Christmas (still big in fun) or holiday from home or go for a cheaper holiday.

You likely can, it won't be pretty but people do. If you're not very frugal at the moment that suggests you have plenty of slack. You could start now. Have you gone through all utilities, phones etc recently to ensure you're on the cheapest possible deal?