One salary, maternity pay run out - hints and tips please!

[spewgloriousspew]

Hello,

So, having a bit of a money stress and looking for people in a similar boat to borrow ideas from.

Here's the deal: SMP ran out in Feb so now reliant on husband's salary. At home, there's me, an almost 1-year old and my husband. And a cat. I do the weekly shop at Aldi, don't go out much, neither of us drink alcohol so don't spend on that and generally try to scrimp and save when we can.

Until yesterday, we put £300/month into savings (see that as important for our future as a family) but have cut that to £150. I pay £69/month into a private pension.

Childcare is prohibitively expensive and my parents aren't in a position to look after our son while I work. So I do a bit of freelance work when I can, but given that I'm looking after our son full-time, that's very limited.

We only go to free/very low cost baby groups and I buy as many of his clothes as I can from ebay, charity shops etc.

Oh, and we're trying for another baby (bloody hormones, please don't call me irresponsible).

Anyone else in a similar situation with any amazing money-saving tips?

Depending on how much you have in savings, I'd just stop contributing to that, or reduce it even further. You say you don't drink, you already shop carefully and save where you can.

Make sure all your bills/broadband/tarriffs are the lowest you can find. How many cars do you have - if you have two, do you really need both of them? Can you save any money on car insurance for example?

check entitledto.org to make sure you're claiming all you can in WT, and maybe look at the childcare element to see if you're entitled to anything there that could help with childcare in the future.

Thanks, Jareth.

I'm going to see how we go on reduced savings contributions, but I'm reluctant to stop completely unless we absolutely have to.

I've checked out energy tariffs and can't find anything cheaper than we have at present.

We do have two cars, and this is a tricky one. I don't need my car (husband commutes by car, so needs his) but it does make life a hell of a lot easier. I'm very careful when using it - I will only fill up the tank once/month, less if possible. We have a multicar insurance policy, £700ish for both of us on two cars. That usually comes out of savings. I am toying with the idea of selling it when it's time to renew the insurance in January.

Our tax credits have just stopped as they consider we earn too much. Despite me earning a lot less now that SMP is over and I'm not back at work.

Can your husband get childcare vouchers from work? Then you might be able to do some work. Would your salary be less than childcare? Or is it borderline? Can you get childcare vouchers too? Because if it works out that you earn a bit more then I'd work.

What are your savings like? There's no point saving if you cant meet your outgoings.

Are you due to remortgage? Can you get a better deal?

I'd ditch the car. You can live without especially as the weather gets better. I didn't drive until ds was 18 months and even now with dd (4 months), I rarely use it.

Might be worth speaking to the tax credits people again and telling them of your change in circumstances if you're below the threashold.

Is your reluctance to use childcare based just on cost or are you wanting to be a SAHM? Childminders can be cheaper than nurseries (certainly are in my area) and could possibly be more flexible with hours too.

Childcare is just too damn expensive round here - even childminders. All the ones that had vacancies really weren't flexible with hours. I also do want to be at home with our son, and when we have another one I really can't see being able to afford care for two children. My salary from old job wouldn't have covered childcare costs, so I didn't go back. I admit that I am now reluctant to go back as I really love being at home with our son.

I do the odd bit of freelance, so am technically registered as self-employed, but rarely earn more than £50/month.

Iggly, we can just about manage, I think, now that we've reduced our savings. But I'd like ideas on how not to end up stressing by the end of the month! Or just to hear from others in the same boat.

We're by no means destitute and I realise that we are fortunate, and that there are many worse off. But we could do with cutting down on our outgoings and I'd like to hear how other SAHMs manage.

Off out now, but will check in later. Really appreciate the replies .

We were in this position in 2010. I used Martin Lewis's website a lot to get all my bills down and we got rid of Sky (much to DP's disgust!).
I also use Quidco and do a few paid survey sites to get a few quid here and there. I ebay everything that isn't nailed down.

We both started using Childcare vouchers recently through work which have really made a massive difference, we each save about £60 a month in tax. I work part time now and DD goes to nursery 3 days a week (which is £439/month but the vouchers bring it down).

We are well above the threshold for tax credits but we did qualify for the Child Element in that year when i was on mat leave, (took a few phone calls and proof of our P60s) and got a one-off payment of £500-odd.

We both used to put aside £150 each into savings but we have just stopped this for a couple of years while things are tight. We have a bit of equity in our house so hoping to be ok in the future.

D is 2 now and we'd love another baby but waiting til next year when we can get the 15 hours govt funded childcare so our nursery bill will come down, otherwise we'd really be super skint.

Could you use cloth nappies for your lo, or some people have said that the supermarkets basic nappies are just as good.

Also some councils still give you a cashback of £25ish if your HV signs a form to say your dc have cloth nappies. Cloths nappies go really cheaply on eBay and you dont have to have the reciept to get the cashback.

If your trying for another dc I imagine nappies are not cheap.

I would get rid of the car too. (sorry!).

Fluffy, I use washable nappies already! Will look into that form though, no-one's mentioned it to me (certainly not HV, who seems to think I'm making life even harder for myself...). We have enough for two in nappies (planned ahead!).

stressheaderic, thanks for your reply. I think I will give the tax credits people a call. I also think we might need to stop savings, if not now, then def when we have two. I, too, use Quidco and do some surveys. Seems like I'm doing everything already!

can you get a night job? You wouldn't have the childcare costs? Or maybe an evening one?

I do some freelance work already in the evenings, but not too much as I'm shattered after a day running around after the boy.

I'm not looking to get another job really, just for tips on frugal family living with preschoolers.

do you have a garden? Can you grow some veg and fruit in it? Now is a good time to be planting seeds I believe...
And also do you meal plan/ freeze left overs? I'd cut down the amount of meat and add breadcrumbs/ lentils etc to things like chili, bolognese etc to make it go further.
Would you look at selling something like phoenix trading or usborne books? You can fit them in around you and your dc I believe?

Ninja, I'm actually vegetarian and so don't cook much meat (a bit for my husband and son, but only once or twice per month). Lentils are my friend!

I'm looking into Usborne books at the mo, but thanks for the reminder!

Yes, we meal plan and freeze. But could plant a lot more in our garden. Didn't do much last year as baby was newborn, but not got that excuse this year.

Good suggestions, thanks.

why are you thinking about having another baby when you are finding things financially hard with 1 DC ?

this country...

She is simply looking for advice on how to lower outgoings with only one wage coming in.

OP is not planning to find work outside the home at the moment as childcare costs are too high, So having another child is irrelevant.

Or should only the wealthy have children stilldazed?

It kind of is relevant as she says she wont be looking for work in the future as childcare cost would be to high. so this isn't a temporary situation.

she is looking for help as she is finding it hard to get by on one salary but looking to prolong this situation and actively make it worse by adding another child to the family.

i am not saying only the rich should have kids, just that other people in a similar situation might choose to improve there current situation, either by saving some more, going back to work for a bit,whatever...not actively looking to increase the family.

I have lived in various countries and the UK is the only one I know of where someone would be planning another child whilst they have money difficulties.

Oh FFS..

She has savings and a modest freelance income. I wouldn't say the OP has money difficulties as such.

I think you have missed the point of her thread, She wants to be a SAHM and as such makes more financial sense to have the children close together. (Using same baby equipment, clothes etc) If the OP plans to breastfeed a second child should not cost that much more in the way of outgoings.

Also you may want to consider the fact that it is probably better for the OP to have second child sooner rather than start a new job and take another maternity leave which could be damaging to her career.

I feel your post was unjustified and rude.

Sorry, wasn't ignoring you all. Just had a very busy couple of days.

Thanks, Terra and Jareth, you have understood exactly what I am asking.

Stilldazed, I'm sorry that my post seems to have offended you in some way. As the others have pointed out, we don't have major financial difficulties but money is tighter than it has been. That said, we're still a lot better of in terms of savings than others. All I was asking for tips on making a little go a long way. There's no harm in asking and it could equally apply to those better of than me that also want to make their money go further.

We have been doing a similar exercise as our income has just gone down by a significant chunk due to DH having to replace his car (essential to his job, old car was economically not viable), and planning ahead to when we lose our child benefit next year - in total this means we are now £300 worse off per month.

Go down your monthly expenditure and really question everything - Sky Sports was the first thing to cut for us (DH had held onto this for as long as poss!). Search Moneysavingexpert.com for mobile phones - there is a tool on there to analyse your bills and find the cheapest tariff based on your usage. I saved £20 per month. Do you have any magazine subscriptions? I just buy the Sainsbury's magazine once a month if that now. Use the library more, for you and your son.

When your house insurance is up for renewal, do the quotes online (again MSE tells you the best comparison sites) but then phone your existing insurer - mine met the lowest quote and sent me £45 M&S vouchers. Same for car insurance.

Plan, plan, plan - try to make the most of any cheap deals on food by incorporating this week's offers into your meals. Make up stuff for the freezer (we love Butternut Squash soup and one squash is big enough to make 2 batches for the 5 of us)

Your decision to have another child sooner rather than later is irrelevant to this discussion. Extra expenses will be negligible, even less if they are the same sex! (And some clothing is unisex, more so as you have a boy already - DD3 looked v cute in her orange spiders and bugs sleepsuits!) Also, a close age gap means that you will be able to go back to work, if you choose, sooner.

We don't pay into a savings account, but over-pay on our mortgage instead (or will for as long as we can) - if things get tight we know that we can go back to paying the original amount (or possibly even less and still be on the original term). Whilst you don't have a pool of money, it is comforting to know that you are reducing your debt and also that you are effectively earning 4% or more depending on your rate. Perhaps split your savings between rainy day funds and overpayments?

Hi

I too did this a few years ago when my second was born. Mainly as my DH was self-employed and lost his main contract. Thankfully he got a job fairly quickly and that covered it. However it did make me think. We are not poor either but at this present time I quite agree that there is no point in wasting money.

Go and check every single bill you pay and phone them and see what you can reduce. Even phoning your elctricyt and gas provider even if there the cheapest might result in £20 being taken off your DDM a month. Regular meter readings save loads. I did this with our water meter aswell. I have gone from £40 to £26 a month now. plus got £117 back.

Your car insurance sounds really high, we pay £500 for our 2 cars seperatly. See what you could get not being on the same policy as insurers will take your lack of miles driving, the fact that your cars at home nearly all day every day as a massivly recuced rate.

Check these every other month and you will be amazed at what you can save.

I wouldnt stop your savings as you never know when you will need them. I think thats one of the important things we pay into. I would reduce it and also look at reducing your pension payments for the moment or freeze them for a year. This depends on your age etc.

I also agree having a second child makes no difference to your finances. One child costs vastly more than 2 do, even if its a difference sex. You never quite spend the amount on the second, plus you actually know what you need instead of what twinkles in the shop.

Good luck x

Just one thought. If you are available for very irregular (couple of times a year) work, it may be worth contacting councils around you to see if you can be employed by them as a poll clerk whenever elections come up. I will be doing this in a couple of weeks & will earn £125 for 1 day's work (long day, though 6.30am-10pm, but very easy work). I was also a poll clerk when the general elections took place a couple of years ago & earned nearly £200 for a day as the rate is increased & I had to attend a 1 hour training session, too.

If you live in a city, get rid of your cars and join a car club. We belong to City Car Club and are fortunate that there's a car parked a block away and 5 door!

I am in a similar situation I think but we are not able to save anything at the moment... and I am pregnant with DC 2! We have just gone from 2 cars to 1 and it is making quite a difference in cost and though it is taking me twice as long to get to work the reduced stress has definitely been worth it. Sounds like you are doing all the right things though.....I too am looking for any ideas so thanks everyone who has posted.

If you're on Facebook, have a look and see if there are local selling boards for your area. There is bound to be at least one. And then sell any old clothes/toys/baby equipment/furniture/books/anything on there. You'll be amazed at what will sell. No Ebay fees or paypal fees or traipsing to the post office. I sell lots of my DCs outgrown clothes on my local one. It might only be 3 quid here and 5 quid there but it all adds up. The groups are also a good place to pick up bundles of baby and toddler clothes for next to nothing. I've had brand new with tags Joules jeans for my DS from my local one for £2.50!

Also, whilst your child is still young, ask relatives for money for him for birthdays and Xmas and use it for practical things such as clothes and shoes.

Is there any way you can increase your freelance work at all? If it fits in well with your family life then I would perhaps try to build on this to do in the evenings when your DS is in bed.