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Dropping income- scared

15 replies

opalescent · 11/02/2021 19:45

I'm going from a very high pressured full time job, to a less senior role in a job I know I will love. It's a life style decision in every way- I've practically lost all my teeth through stress grinding with this job!!
In every way it will be better- the team are my close existing work friends, the post is fewer hours (30) so will work better around my kids.

I'm dropping £700 a month income to do so 😳.
In fairness, this job was a huge jump up income wise- so I'm only really going back to what I was paid a year ago.

I am frightened though.

My husband and I have worked out that after bills, we will have a combined £1450 between us. This is disposable income, plus food and fuel money, birthdays, clothes, everything else basically.
I will meal plan and buy from Aldi for around £80 a week. I spend next to nothing on fuel at the mo, and my husband maybe £30 a week?

Somehow we were always skint on my old pay. I am a bit sad about going back to it. The nice thing about my current pay is that although we weren't exactly loaded, I never had to worry about bills, birthday presents etc.

Any key starting points for careful and clever budgeting? This will be fine won't it.

OP posts:
DarlingCoffee · 12/02/2021 04:37

Spreadsheets are your friend! List your income and all your outgoings, which is so easy to do now if you have mobile banking and can see your statements. Also, is £80 per week for food just for the two of you? That’s quite a lot, what are you buying? Do you have pets or DC? Good luck with your new job! Being happy in work is priceless IMO

DarlingCoffee · 12/02/2021 04:39

Apologies, I see you do have DC. I still think you can probably trim your food budget. Also highly recommend Monzo bank as a way to save each month as you can create ‘pots’ for saving so a birthday pot, holiday pot etc.

NoSquirrels · 12/02/2021 04:48

It will be absolutely fine! You just need to be a bit more specific and strict about budgets for things and try to smooth out ‘lumpy’ expenses -like car tax/insurance/Christmas etc -by saving monthly for them rather than just letting them happen out of that month’s disposable income.

I’m a massive fan of YNAB budgeting system, I’d highly recommend checking it out.

Monty27 · 12/02/2021 05:23

If it's the same employer they'll be calling on your expertise even on your lower grade I would fear.
If that's not the case enjoy your life. It's not all about money 👍🏻

SandysMam · 12/02/2021 06:09

You have £1450 spare cash a month and are asking if you will be ok? Jesus!! Yes OP I think you will be fine Hmm

ANP88 · 12/02/2021 08:08

Hi OP

You will be fine! I reduced my hours right down for the same reason, so I know it can be hard, but it’s taught me to budget better.

Get onto the money expert forums for some tips.

Most savings websites recommend getting a second account for bills/food and make sure to actively manage your money.

Also, make a budget, listing everything you spend and make it realistic. Don’t put £80 on food if in fact you spend £100 once you’ve added on extra trips to the shop/takeout.

Once you know what you spend on, review it and see what you could cut back on.

You need to have savings, so get any debt cleared ASAP and get saving!

Make the most of lockdown to save on expensive trips out. Always make your own lunch/picnics and cut back on treats. This is a great time to stop spending on clothes etc. Buy whatever you can second hand and sell stuff on eBay.

A friend of mine has always done this and despite a low income, she has loads of savings.

Saving can become as addictive as spending, so try and get into that mindset. If you have savings, the pressure of financial worries will be less.

There will be tons of things you can’t always budget for, like replacing phones/white goods, kids school shoes, mot etc. So this is where your savings help.

Maybe take a spending detox for one month and see how much you can save by not buying any non-essentials. I did this for three months and is was amazing how much I saved.

Clear your direct debits too, and spend your spare time searching for better deals on phones, gas, electric etc.

Even if you don’t do all this, you already know you can manage on the lower salary, so try not to let it become a stress for you. The reason you’re cutting back is to relieve job stress, so try not to become anxious about this.

ANP88 · 12/02/2021 08:14

Also, totally agree with Sandysmam. This is definitely enough income, you just need a period of adjustment, which I get can be daunting.

Snog · 12/02/2021 08:18

This really is a lot of money each month after bills. You should be able to manage relatively easily OP although it's tricky that you are used to having a lot more.

Create a budget using money spending expert and have a monthly review meeting with DH.

Affor · 12/02/2021 08:25

So £120 a month on fuel, and £360 a month on mood.

You'll still have almost £1000 just for clothes and fun! You'll be fine!

And if you're worried, you could easily cut that £80 on food down if it's just the two of you?

Equimum · 12/02/2021 09:19

You’ll be fine. It always feels hard when there’s a drop in household income, but we have a similar amount left after bills etc, and manage quite comfortably. It sounds like more than enough, as long as you are sensible with purchases and treats.

opalescent · 12/02/2021 15:53

Thank you all for such helpful responses, I really do appreciate it. Some fab tips, I'm definitely going to have a spending detox next month and see how the land lies!

OP posts:
SandysMam · 12/02/2021 16:34

Sorry OP, mine was a bit sarky, it is all relative! You are doing the right thing going for a job you love over money, that is priceless!!

opalescent · 12/02/2021 19:45

No I understand sandysmam, and when I initially read my post back I felt a bit embarrassed. The 'disposable' isn't actually all disposable though, it's for basically everything in life outside of bills. Birthdays/clothes/fuel/food/Christmas/holiday etc etc. Still doable though I fully appreciate.

OP posts:
happyjack12 · 23/02/2021 14:41

this is a good tool too opalescent

www.lemonfool.co.uk/financecalculators/soa.php

Happierwithouthim · 16/03/2021 14:27

Also a fan of YNAB budgeting Here's a free trial using my referal code

Do a budget overview this is a good one

Join us over on Frugaleers thread lots of people various incomes making the most of what they have

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