AIBU to not understand how any can afford to live?

[ploddingalong2023]

Firstly I get that everyone is in a different situation and we are fortunate to have a house.
however, I can’t help to feel that it’s really hard to understand how people can actually afford to live?

My partner and I earn around £3600 per month combined. Our mortgage is £1200 (which I appreciate isn’t bad and a lot less than a lot of renters)

Our outgoings are reasonable, mortgage, council tax, paying for 1 car, some credit card payments etc. literally nothing luxury! But in total our outgoings of just bills, without food, petrol etc. is £3200.

We don’t have things like Sky TV or fancy cars etc.

We are tight with our weekly shops, all own brand stuff, no big brands, maybe 1 takeaway a month.

Our weekends are mostly trips to the park, walks etc. we might get a coffee on a walk but nothing exciting. Our evening weekends treat as a couple are getting a bag of popcorn and a bag of sweets for a film evening, so again nothing “out there.”

We do have the odd social event, maybe one a month or a family birthday we need to budget for.

We don’t really go on holiday. We have a small 5 day break coming up, which is cheap as we have family accommodation so mainly flights and spending money.

We do have £700-£800 per month on childcare per month which really is the breaker for us but that is what it is.

but even with all of this, we tend to be in a minus every month, relying on credit cards for little things or the final shop of the month before payday.

I just don’t understand how even with us not living luxury, and a decent (I think decent?!) income are still relying on credit cards?!

I don’t know what I am expecting from this post, maybe just someone to say they are I the same situation and make me feel better 😂

Have you checked whether you would be eligible for any Universal credit ?

How on earth are your bills £3200 a month? Are you melting gold to heat your home?

Have you written everything down? How much is your debt, car payment etc - these can be the difference. It's tough but even taking into account your childcare costs and mortgage, your expenses are high compared to mine, we spend around £1000 (no mortgage or childcare, 4 adults at home, but they aren't contributing as very low income)

Looks like your car, credit cards and other household costs are £1,200.

How does that break down?

£2k in bills AFTER your mortgage sounds really high. Do you live in a big posh house (high council tax, high heating costs)? Are you on top of your credit card payments, because those can really mount up.

With an income of 3600 per month? I bloody hope not

So you spend £3200 every month on bills - not food, petrol or presumably any treats like takeaways birthdays trip away etc.

£1200 mortgage
£800 childcare
that’s £2k

Where is the other £1200 going? That’s a lot when it doesn’t include food or petrol or any fun money. How much of that is debt payments? How much is utilities, phone, broadband etc?

I have some shocking news for you, OP:

Some people earn more money than you do.

Income of £2200 being home. 1 adult dc and 1 dc at university. Always skint by week 3!

This thread is ever so familiar

Or have less outgoings.

Absolutely not!

rough guide;
1200 mortgage
260 council tax
car 190
life and house insurance 120
Nursery 800
car insurance 90
water / elec 200
mobiles / internet 100 that includes a Netflix/tv license/ phone contracts etc.
plus credit card payments and the odd extra payment.

definitely not a luxury lifestyle! Correct me if I am wrong?

we already cut back massively on sky TV, subscriptions, phone bills etc.

Ok well I just did a quick calculation and it showed entitlement to Uc of £170 a month assuming they don't have savings over 16k. I don't think people appreciate how high the thresholds are for claiming Uc especially when you have childcare costs.

Yea we are the same, just about scrape by each month even though technically dh earns quite well. It’s child care that does it! I’ve just started a second job so we’ll hopefully have some disposable income for Christmas etc. I’m already exhausted working with 3 young kids, but here we are!

Yep we do a budget every month.
with everything singled down so we know exactly what we have to spend on what

we tend to be in a minus every month, relying on credit cards for little things or the final shop of the month before payday

Honestly, if you are relying on credit cards to cover food at the end of the month, then you can’t afford the coffees, the takeaways, the trip away. OR maybe you can but only if you reduce spending elsewhere, maybe you can shop around on utilities for example to reduce that monthly £1200. Need to know where that £1200 is going. Lots of CC repayments perhaps?

I have looked into this before but it always shows no entitlement, I assume due to our income. We do have the 20% of childcare costs but it’s still £800 even with that!

You're spending loads on cars? The car insurance seems v high.

Check mobile and internet provider is cheapest.

But yeah money doesn't go anywhere especially when forking out £££ for childcare.

How come your car insurance is over 1k p/a - have you shopped around ? Mine is around £250 a year.
And yes the simple answer is some people earn more than you and/ or live in cheaper areas....

Thank you for actually making me feel like we are not the only ones! 😂Without childcare we would be comfortable! So frustrating

Op thas income 3200 after tax. I doubt she's eligible for UC when she's not paying rent etc

Op its your childcare. Millions of people pay less, they rely on family support, they cheat a bit and wfh with a toddler, they work part time/evenings/weekends and barely see a partner. It's not forever and once you're past it you'll be better off.

Make sure you're maximising on everything.

• Are you using tax free childcare for your childcare payments
• use cash back sites for anything you order *we use our employer discounts where we can and always check whether we can use it. It's a faff but it gets me a discount on the food shopping. *DH does random online surveys and earns a decent amount through them.
• I signed up as a mystery shopper and get paid for things like pub visits - can be used as your treats.
• apps like Too Good To Go

All little things that will only save a few quid here and there but it's a few quid less going on the CC at the end of the month.

Ok well my calculation is showing she could get Uc but if she's already getting 20% off childcare that may make a difference as I think you can't obviously access tax free childcare and Uc childcare element? happy to be corrected if anyone knows differently.

That does seem a lot for home and life insurance is that the best deal ? Everyone's situation is different we bring home less than you but have no childcare costs , no credit cards and no car on finance and a much smaller mortgage so we have more disposable income than you but earn less .

Yep you’re probably right. Unfortunately both of our jobs are on the phone a lot so we can’t wiggle through childcare at home.

I don’t have any family due to bereavements so we rely on childcare costs.

I am counting down the weeks to 30 free hours!
we would love another child but know we cannot afford it so will be at least 6+ years before we can even consider it. But with all the people, (on the same salary as me!) having 2nd babies it’s frustrating!

before anyone starts- I am aware this is a “1st world” problem!!