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?

You are in London. He can walk into a £10 an hour job in catering today. Will he do that?

Charcole
Take your maternity leave if you want it. Yes some people rush back to work and that’s fine but if you don’t want to you don’t have to.
You are not in financial dire straits. Yes you’ll have to use your savings but this is what savings are for.

I agree with NotContent I would be going back to work early, even if it was part-time.
Your DPcan share the childminding.

Well done for being savers, you prepared for exactly this situation. You are doing great - but you need to look after each other and not stress each other out. You are both doing the right thing. Just agree to sit down and reevaluate finances once a month or more.

It's a quiet time of year to be job hunting. Vacancies tend to hit the market in late Jan - early Feb, because of new year resolutions to change roles/career and general itchy feet.

He needs to keep an eye out in the meantime, and talk to a couple of really good recruiters about what he wants and his skill-set, so that he's front and centre when they start to get enquiries from firms. If he doesn't have it already (and depending on the industry he's in), it may also be worth going 'premium' on LinkedIn so that he can job search there, as it's increasingly popular with firms who want to recruit directly.

justcsome things to consider: it is december now. very few companies hire higher paid roles in december/january because of budget unclarities and internal efford required. so don’t be discouraged if nothing turns up in the next 2 months. from march on it should get a lot better.
it also means you will likely have to bridge 4 -6 months (roles in that salary range usually have a couple of rounds of interviews etc). so working parttime in about 3-4 months might make sense to give you more financial freedom. but with these options you will be fine

I don't think you have anything to worry about. I found that when I'm not working, I spend much less cos I'm eating home cooked meals instead of expensive pret every lunch time .

Also, can your husband look at temping work while he's looking for a new permanent job? If he's really worried that is! Asomeone else said, there are jobs he can walk into tomorrow if he's willing to earn a bit less.

When I was made redundant it helped me to split things down rather than thinking of the future stretching away uncertainly before me.

Now -look at your finances properly. Work out what your essential bills are. Of the non-essential ones are there any you can cut? As said upthread, be frugal on a day to day basis. No big purchases/spends at all, unless absolutely critical.

I'd then make a note to review in January (I suspect between now and Christmas is not a great time on the job market).
At that point, if no job for DH in the offing, review finances to see if anything else can be cut. Agree at what point you will start to work if nothing comes up. Also agree the point at which DH stops looking for his"usual" type of work and just tries for anything.

There’s no way I would be going back to work early with savings etc. There will be other jobs and the potential to earn more, a baby is only a baby once. No way would I miss out on that special time by going back to work early.

Could he look at seasonal retail work for now?

erinwinspear yep...that’ll be the answer to their problems 😂

I agree with pp. Could your dh get some Christmas work in retail? It won’t be a £50k salary but it would be something for a few treats over Christmas x

@Fairylea you are. ot in london, are you? matrnity leave on a budget in london can be desperately lonely. around purs, baby classes are around £8 a session. The free ones are £3 donation plus a more or less obligatory drink -> 5. there is one (yes, one) truly free one per month. there are meetups - in starbucks etc, so again at least £4. otherwise you beed to travel, which costs money (and tube and busses with a buggy aren’t great - i use a sling so don’t mind, but its still expensive). flats/houses are often small, so having more tgan one person round can be tricky. and savings in london are gone quickly...

I lived in London for 27 years and raised my daughter there as a single mum. I went back to work when she was 3 months old, getting two buses to work everyday and to her nursery. I realise circumstances are such that sometimes these things need to be done. However, I wouldn’t do it in the ops situation. You don’t need to spend money going to all those baby classes etc- I didnt; but then I accept I am less social than a lot of people!

I should add I had another child ten years after my dd and made the decision to stay at home despite being on a very low income for a number of reasons, so I guess that is shaping my answers. I think every situation is different but with a dh that should find another job if he applies for lots of things and savings I wouldn’t be concerned at this point if I was op.

@Xenia
What if OP had csection or is breastfeeding going back to work at 6 weeks is not possible for lots of mothers.

I think you’re ok for now. I would try and enjoy the next free weeks and then really think in January. In the meantime think about ways to boost income - I do two eBay clearouts a year and even selling small cheap things normally rack up £100 a time. It’s nothing but equally a good way to fund things you need to buy. So for instance I basically eBay one of my child’s coats to buy a new one from eBay - it’s like a carosel of coats! And each coat is very cheap as a result!

@TheBigBangRocks
Some women are the own worst enemy
Maternity leave is not the same as paternity leave.
Women have mat leave to recover from childbirth and establish breastfeeding theirs a huge shift in hormones and lots of women feel anxious if parted from their newborn.
Telling OP to go back to work is cruel.

Gh, of course although I must say looking after my baby and 1 year old was some of my hardest physical work and I would get on the tube and then sit at a desk all day for a rest! however we don't know what this poster's freelance work is and if she is ill.

I had the c-section etc. and I was back at my desk at 2 months with my first (difficult baby and recovery), and 2 weeks with my second (easy baby and recovery) - BUT that desk was in my spare room and I was working very part time around the babies. For me, the idea of a dedicated maternity for months on end sounds horrendous, but I know this isn't for everyone.

OP can't do that.

In OP's situation, I'd be tightening the belt a bit, on the assumption that nothing's going to turn up until after Christmas, settle back, and enjoy the time as a family.

Then after Christmas, I would re-assess - and consider taking on some work while DP was searching.

@Yura there are lots of free classes at children’s centres no donation is expected just google local council.

@Fairylea i didn’t go anywhere either but i’m happy with my own company. some of my friends fell into a deep black hole though and deeply regret going into savings for that.
my sil lives up north, she can’t understand why maternity leave is expensive or lonely - loads of free classes around, pay for ones are around £4. she’s on a very good salary, so thoughly enjoying herself. it can be very different, depending on location and personality

I think 'how bad' it is depends on your general stance on savings. I have 3 pots of savings; house, leisure and 'if I was made redundant'. I aim to have £10k in the 'if I was made redundant' pot just to make me feel safe.

It seems you can live for 9 months tk a year on what you have but then you are starting those savings again from scratch.

@Yura there are lots of free classes at children’s centres no donation is expected just google local council

If you have a children’s centre, our three closest ones closed down due to the budget cuts. The 4th nearest has one baby group a week and it’s not free as it’s run externally... £4.50

@ghanagirl IF you have one close. my closest one costs me £7 in public transport fees to get to and has 1 class per month. yes, 1. and its first come first serve so you
might get in or not.