How bad do you think this financial situation is?

[Charcole]

I am very stressed about our financial situation at the moment and wanted some honest outside perspectives on how bad it is or how bad you would find it, as I keep switching from thinking that we are OK to waking up at night in a panic.

I am on maternity leave and get £620 maternity allowance each month. Whilst I was working I saved £9,000 to supplement my maternity pay. DH has been made redundant and is looking for another role. He has about £10k in savings.

Our monthly bills are relatively low as we have quite small rent to pay, so bills come to about £1,200 PCM this is not including food or any unexpected expenses/ living expenses.

What's worrying me is that we obviously don't know how long it's going to be until DH finds another role, his usual salary is about £50k but he may not get offered anything at this level.

How bad do you think this is?

So you'll spend about £2k a month including food and everything meaning you've enough in savings for 9 months

Sounds like plenty of time, try not to worry - that's what savings are for

Do you have a job you can go back to eventually?

If neither of you are working, are you claiming any benefits you’re eligible for? Check the entitledto website.

You will probably be ok for up to a year. Surely it won’t take that long for him to find a job?

Your savings will last 9 months or so, and DH (or you) will likely be back in employment by then. The savings will be depleted, but I'd be happy in your financial position.

It won't hurt to cut back as much as possible though. Can you do anything about your regular outgoings?

Could yougo back to work now while dh is looking?

Sounds fine. Babies can cost very little.

I wouldn't be losing sleep in your position although I understand that uncertainty can be unsettling.
With your maternity allowance you probably need to find £1,200 per month which means your savings should last a year with a cushion for emergencies.
Do you have a job to go back to?

Thanks for the reassurance. I think we really need to cut back because you're right we could get by on £2,000 a month but because we are used to having more, I think we spend more like £3,000 a month at the moment.

I am freelance so don't have a job to go back to as such, but am planning to go back to work in about 10 months- it will be tricky to balance as childcare costs mean I won't be bringing loads in.

DH is really trying to find a new job but has only been looking a week and at this time of year I'm worried it's not a great time to look.

Is he getting any redundancy pay?

Whereabouts are you and what does DH do?

Could you go back to work while he looks for work? Part time even?

That sounds like quite an enviable situation, to be honest. You can enjoy your baby together while planning your next career moves. If your dh doesn't get a highly paid job immediately you should still be able to get work between you that will cover the bills.

Agree between you how low you would let the savings go before he takes any job that comes up/ agency work or you return to work early, and relax until then.

Could you get back to work earlier while DH looks after your DC? You could go back part time leaving him time to look for a job. How old is your DC now?

I wouldn’t even start to think about this until thd New Year. You’ve got a good 6-9 months of money there. If your DH is still struggling go find work in 3-4 months time then you’ll need to rethink but you’re fine for the minute.

DC is only a couple of weeks old so no way I could back to work yet. We are in London.

I'd go back to work now and let your DH stay home whilst he finds work and look after the baby.

Those savings won't last long at the rate you are spending and if you have the means to start earning again it would be daft not to take it.

Well not immoderately, but in 3-4 months or so?

*immediately!

Also if you’re in the UK and renting you’ll be able to claim HB and other benefits once your savings have run down in the very unlikely event that neither of you find work. Even in the worst of situations you’ll be fine.

I would be worried, but that's because I'm big on security and it's the uncertainty of when will he get a job and what job will it be that would do it for me. Your bills are nice and low, but definitely get cutting back as much as you can. I find I spend so much more than I think I do!

I can understand being worried, it's the not knowing isn't it? This happened to us soon after our first was born. DHs employer made loads of people redundant and as he'd only been there a few years the redundancy payment was feck all. We hadn't a lot in savings as we'd only just finished a house extension! There were very few jobs available in his industry at that time so DH started his own business and I went back to work after 6 months. Earlier than planned but I was on a decent salary and we needed it.

I know it's worrying but the money saved buys you a bit of breathing space so you shouldn't panic. Is it possible for you to get back to work a bit sooner? Has DH approached agencies, does he have contacts in his industry?

The thing that would worry me with your DH on that sort of salary and how long the application process is. My DH is on similar and from application to starting it can be 3 months or more. I’d definitely be cutting down to essentials until he’s got something confirmed.

If you have debt get the interest frozen. Cut back, enjoy some family time. You will be ok. Mortgage can go on interest only for a while.

Ive heard a lot worse,,try not to worry.