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)?

Also I actually find online shopping for groceries better as I can see what I'm spending and adjust accordingly. Plus I use the Tesco points as a voucher every few months. If I go into a supermarket. Especially with kids I come out with loads of stuff we don't need but want. And they are too young to say use a calculator as I go round to keep check.

At that age the park is enough fun, duck pond? Walks. Does your local cinema do kids screenings?
Ours do. I took the kids to see Dumbo the other day. Cost me and 3 kids and 1 baby £11

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What costs will you have for the new baby? You’ve just had one so presumably you’ve got clothes, toys, cot, pram, etc already.

In addition to dropping the childcare costs, there's time to shop more frugally, no lunches bought, no travel expenses, no new work wardrobe etc

Yup, cut back a little and budget. YABU to plan to get into debt on those figures, and you'll certainly regret it later.

I've got to say I think you are crazy even considering getting into debt simply to have more money to waste each month. After bills and groceries (which I budget a max of £280 a month for two adults, a toddler in nappies and two cats) I have approx £100 left. If I had 1400 I'd be in a dream land and going on holiday every three months (so perhaps your step kids parents are just not wasting money as you are) with 700 I'd still be extremely happy!!!

If you want transparency on what you’re spending switch your current account to a Monzo account. It’s eye opening. I did that before maternity leave and it let me see where I was spending the extras and highlighted where I could cut back. It’s also great for budgeting those extras and forecasting what you’ve got left. Before getting it I was constantly in my overdraft, I’ve had it a year and I’ve not used it once. In the second month I spent £900 less than normal!

Are you paying for nursery currently through a childcare vouchers scheme? Do you get SMP? Because if you only get SMP and not any enhanced amount then any salary sacrifice arrangement has to be honoured so you effectively get the childcare vouchers applied to your account free of charge. So that could deal with continuing to pay for nursery. Also I find it useful to set personal spending budgets, so you’re not say no ‘stuff’ for you, the house, the DC’s & DH but a limit so you have to choose carefully what you spend your allocation on.

That’s a massive amount of spare money. I’m sure you’ll manage
I have £1700pm before bills and rent are paid and still manage days out, then occasional holiday and meal out.

If you have relatives that are likely to buy you baby gifts, maybe ask instead if they would contribute to an annual pass for a soft play / farm Park etc.

An Aldi shop doesn't need to take a few hours.. You are bring a bit wet here.. Come on, stop blathering about keeping up appearances. You say your husbands car is a 'hairdryer' but you can get deals for about £170 pm for small cars so I bet its not as rubbish as you think and I agree that if you could scrape together even 2k to buy something old and cheap to see you through this tough period it would be better overall. After fixed bills, I have about £450 a month for food, fuel, clothes, days out etc. For me and two kids it's v tough but you have to get some financial discipline. Personally I find using cash rather than contact less helps hugely as its much more visible.

£80 for utilities sounds amazing, we must be paying an excessive amount .

I'm also expecting a second child a bit sooner than planned and worrying about maternity leave costs... Quite frankly, you don't!
Our combined monthly income is around £1900 and will drop to £1500 when I'm on ML. Our mortgage is more than yours but childcare is less and we have low car costs as we both work locally and own one car outright. Our bills are around £1100 monthly. That still leaves me with £400 a month, I spend £200ish in Aldi, still 200 left for days out and other bits and bobs. It's fine. I've never really thought we were on a low income before this thread.

What are the costs of a new baby anyway? I hope to breastfeed again, we cloth nappy and have everything we need already, and have neutral clothes for the first 6 months as we didn't find out the sex last time. Without trying to be too rude, it sounds like if you took a loan out you would likely spend it on unnecessary 'stuff' anyway.

Some more helpful ideas... We have a couple of year passes for local attractions/petting farm places (and will ask for more for Christmas). I get all my first DCs child's clothes at nearly new sales (nct or other ones). Library is a great free rainy morning out, and most have baby and toddler sing along sessions.
If you really start to struggle, go back to work a little earlier than planned. I'm going back after 3months to a Saturday morning job I have when DC can be looked after by DH and no childcare costs.

So I sat down and wrote a budget this morning for when I'm on the lower part of mat leave. This is scary. Looks like I'm definitely going to have to give up DCs amazing nursery place. I'm gutted for him.

I've got online banking but too scared to look usually

This! You need to change this!!

I have a banking app and I make myself look every day. It’s just a quick reminder of what you spent and what you have left so you adjust accordingly.

I also plan ahead - example June pay went on school bags PE kit July pay went on school uniform skirts shirts etc August will be school shoes - one does driving lessons and I paid for two this month. September we have a weekend away and that will pay the hotel. October car tax, Christmas stockings.

This way you spread it out and still have some money left over.

DC don’t need stuff, cardboard boxes, paint and glue make a fun afternoon. Play dates and play groups are cheap and fun. We did a few parties outside with rolls of wallpaper and paint - mums bring a plate so no one pays all the food.
Parks, library, swimming, Ikea even a walk to the shops keeps them out in the fresh air and entertained. We used to sometimes get the bus into town as they loved it.

I’m currently on mat leave for second child. I had a financial overhaul. Go through all your DD and see if you’re paying for anything that realistically you don’t use and probably wouldn’t miss, I saved us £75pm doing this. I also meal prep a month in advance, online shop and don’t do top up shops, as honestly this is where I spent 95% of our food budget and it was on crap we didn’t need! We have national trust memberships and take advantage of other free days out a lot. We only use one car. I have all of our renewal dates written down and make sure to shop around rather than letting them renew at possibly bad prices. Honestly I think you’ll be fine but it’s always scary when you lose a big chunk of money so just write everything down and you’ll start to see the light at the end of the tunnel. Good luck! :)

Also maternity pay is £594! And if you’ve been working previously you’re more than likely to get tax back every month - although I wouldn’t budget for this just in case!

Looks like I'm definitely going to have to give up DCs amazing nursery place. I'm gutted for him.

Well, how long is the lower paid part of your ML? If it’s 3 months you’ll just have a tight 3 months, and you can save in advance to offset this.

Don’t panic, think logically.

You’ve also missed off child benefit for the baby - per month you should get £137 for 2 children.

The issue is, if your son goes to nursery and you are off work and hurting for money.

It's a luxury. He doesnt NEED to go.

And if you do give up work (not saying you should) he wont need to go back into nursery anyway.

Nursery, when 1 parent is at home, is a luxury and temporarily, you need to give up luxuries

Your husband only pays £200 pm cms for his kids, so from that I assume more than one. I wonder if his ex has £700 a month to pay for extras.

@YouDoYou18 unfortunately as I have a company car (and an underpayment on previous years) I'm still taxed quite heavily so my mat pay will only be about £500.

@NoSquirrels - the lower part will be the 33 weeks after the initial 13 weeks at 90%. I was hoping to be able to take the full 52 weeks and have the last 3 months unpaid but that's not looking like an option now! I had forgotten about child benefit for the new baby, thanks, I'll update - every little helps!

@Dontsweatthelittlestuff - no that's £200 for one. Read the thread - there are a few replies regarding cms further down.

@Flerkin Yes I get what you're saying but I feel like it's HIS luxury and I'm taking it from him. He's got fab little pals, loves the nursery staff and is so settled there and has a great time there so I'm really loathed to give up his place. I dug out the handbook and if I cut his days in half and sent him 3 mornings a week it would be about £350 a month instead which is more doable.

I live on £800 per month including bills. Cut your cloth accordingly

Do you use tax free childcare account? Have you counted Child Benefit in your income?