To consider getting into debt?

[MumApr18]

DC2 on the way and we either need to think about second jobs or consider getting into debt to get through the next 3 years until 30 hours free childcare kicks in for both. Right now we have a combined income of £3200 monthly. Minus £550 childcare, £500 mortgage, £150 council tax, £80 utilities, £35 tv and broadband, £20 home/contents insurance, £250 for husbands car/insurance (I have a company car), £200 to CMS for stepkids which leaves approx £1400 for groceries, days out etc.
Once I go on mat leave our income will drop to about £2500. Childcare costs will decrease but AIBU to think it's ok to take a loan or something to cover the period until both kids get their 30 hours free, or should I just quit work (or work a second job and never see kids)?

You just need to cut your cloth on mat leave. You can't live like you have been unless you've saved. It's silly to get a loan.

Right, then call your savings account “Keeping DC1 Nursery Place” ...

disappointingly DHs car is already just a small runaround - due to a messy divorce he has a terrible credit rating and this was the best deal we could get.

Cant you save something and buy one outright before you finish work. I bought a £1700 audi 2 years ago. Ita brilliant. And no worry about car finance.

Although I am assuming finance because £250 is a huge amount for insurance and tax.

@NoSquirrels I LOVE that idea, thank you so much! That's pretty inspiring. I'm just chatting with DH as I'm talking here and he has pointed out that I rarely buy "stuff" for myself - it's always little things for DC or the new house or for him. He's told me point blank that him and DC are fine for "stuff" now and the house is looking ok

@Flerkin - yeah it's roughly about £210 for the lease, and £40 for insurance. I'm sure because the car is basically a hairdryer the tax is negligible lol.
That's worth looking into though - I suppose the issue is that we don't have the cash upfront to buy anything outright right now. Could be an option for the future though.

If you haven't already signed up for online banking, do it now.

Check out all your spends over the last 3 months, minimum. Download into a spreadsheet and categorise.

Work out how much Amazon shit you've wittered away, and 'voila', problem solved!

Have a look at the YNAB software/app - it’s good for building up pots of savings dedicated to things you really want, stops impulse spending if you’re stealing from funds you know are needed in the future.

Either cut maternity short or pull dc1 from childcare or dh gets extra work on evenings and weekends. Do not take a loan

I used to buy 'little things for house and family'. Almost every day. First name terms with Amazon couriers.

Total waste of money. Knocked on head and bank balance far, far healthier.

Thanks @bbcessex - I think that's what I need to do! I've got online banking but too scared to look usually.

The terrible thing is that I've been a "poor" student, I've worked for min wage, I've been much worse off! I remember living on £100 for a whole month after bills and not feeling put out. I just need to adjust my mindset but I'm scared now that it's my DC that will suffer and not just myself.

Was this not something you thought of and planned for before conceiving?

I've considered that @Waveysnail but then the issue is 2x the childcare bill. Which practically wipes out my wages and we are worse off. I visited citizens advice on my last mat leave and went through a few scenarios and, with double the childcare bill, if I quit work completely we would only be about £100 a month worse off and I would get to spend time with my kids. Tricky decisions.

gawd OP i live on less than your low income on a mortgage, kid,hous, bills etc

i budget and im a tight arse. yes its not ideal with other kids and going out etc but such as life

i have no debt (yet!). meal plan, cook, dont buy starbucks or expensive meals out etc - its very doable!

as for days out, museums are free! parks are free!

@HaudYerWheeshtYaWeeBellend I was probably being naive but I have fertility issues and was breastfeeding, my periods hadn't returned so I hadn't even considered contraception yet. It took us 4 years to conceive DC1 (classic story of as soon as the fertility appt date is set, we conceive naturally). We had always planned a second, but hadn't figured it would happen so soon.

@carly2803 Teach me!! I love your attitude...I need to stop worrying so much about "keeping up appearances".

Jesus I think you might manage we have a joint monthly income the same amount as your disposable and have bills and rent and childcare to pay out of it and even though we have no disposable income really for treats holidays etc I wouldn't consider us poor either because we manage our bills and have food on table able to cloth the children etc but Jesus I would feel Rich in your scenario ! Just save !!!

Don’t forget if you give up work, you no longer have the company car and if you want your own car you also have the expensive of extra petrol/diesel tax and insurance as well as the cost of financing or buying a new car.

thanks @BitOfAKerfuffle. I can totally see it from your perspective but I suppose it's all relative and a case of having a bit of a fear of giving up the lifestyle we currently have. I know it's unfounded as I have lived on much less just myself, I'm just scared about doing it with kids and responsibilities.

@Spacerader Yeah, id thought of that - and we live semi rural so a car is an absolute necessity.

You've got plenty, you just need to budget.

If you lose your car, then your costs go up. So more than £100 month difference.

Personally I would start living on that disposable income now. The rest goes into savings for bits for the baby, you cant need all new stuff when your first is still so young. The rest of the savings for mat leave and replacing DHS car.

If you think you’ll struggle on £2500 per month for the household, how do you think DH’s ex is managing with £200 maintenance? I’m assuming she has to contribute a lot more than 50% of the cost of raising them.

@Hundredacrewoods oh she's better off than us - she has a rich husband and doesn't want for a thing. I think her and the stepkids are on their 3rd (or is it 4th?) holiday abroad next week! We are paupers by comparison!

I’m pretty sure if you work it out, you’ll find you’ll be OK. You might just need to change what you view as essential!

On the job issue, think long-term. Yes you’ll spend more time with DC if you give up work - but you’ll also sacrifice earning potential and need to live in a very strict budget for longer. Your DH has been divorced before and has DC from that marriage to support - if he’s sole earner in your family that is a big strain on him, and then possibly your marriage. Your pension will be less etc etc.

In reality although having two DC close together makes a few years very expensive, it’s a short time in your lives. Play the long game. If you can keep working PT while your DC are small and you have great childcare, which it sounds like you do as you love the nursery, then you’re in a great position.

It doesn't sound like you are going to need to get into debt, just be a bit more careful. £700 after all bills is perfectly doable once you start being aware of where your £ currently goes.
If you can slightly reduce the nursery time for DC1 that will help too, but agree that keeping the place open etc is important.