Before I start, please note I know DP and I VERY fortunate to have the income and lifestyle that we have, especially in these hard times. This post is not a stealth boast, it is a genuine plea for help to see whether I have correctly worked out my maths before I jump on the TTC bus. Money worries scare the life out of me and I won't come off the pill untill I have proven to myself that we can afford it.
We are aiming to TTC Dec 2012. I am a bit clueless about Child Benefit, tax credits, etc and how much a baby might cost on top of normal living costs for a couple, and just wondered whether you could check my maths and let me know whether I?m massively out.
Note ? I am hoping to take 12 months off work, and before leaving work DP & I will have saved £5000 to supplement my lost income during mat leave, plus an additional £3000 will have been put aside to cover pram, nursery furniture, car seat, all other new stuff needed for baby.
Estimated Household Income During 12mth Mat Leave
DP monthly take home pay £1500/mth x 12 mths = £18,000 per year
Me 6 wks 90% of take home salary = £2327
Stat. Mat. Pay £124/wk*33wks = £4092
Child benefit £20/wk (??) x 52 weeks = £1040
Savings to supplement income = £5000
My total annual income = £12,456
Total income (me + DP): £30,456 per year or £2538 per month
Estimated Household Outgoings
Current take-home salary (mine + DP) required to cover current existence (all bills, mortgage, credit card payments, loans, socialising, food, luxuries like SkyHD, takeaways, clothes etc): £3267
But if on mat leave I wouldn?t spend:
£200/mth on petrol for work (I actually spend £280/mth but would prob need a bit of fuel to potter around whilst off work)
£200/mth paying off credit cards (they will be satisfied by end of 2012)
£500/mth in wedding savings account (we actually put in £800 between us, if possible I?d like to try to maintain putting about £300/mth into savings as good habit)
So, £3267-£900 = £2367 monthly take home pay needed to sustain current existence (without cutting back on all those luxuries mentioned above)
Lets assume that I need to spend £100/mth extra on food shop/baby stuff like nappies.
Also gas and electric might go up by say £30/mth due to being at home all day.
Total outgoings £2367+£130 = £2497 required for us to live exactly as we are but with new baby
By my calculation I think we can afford for me to take 12 months off work, assuming I don't get made redundant we can save £8000 before I leave work and I clear my credit cards before we start TTC. We could also sacrifice certain ?luxuries? like SkyHD (would save £40/mth), takeaways (maybe £50/mth), reduce meals out (£40/mth). We have also been overpaying our mortgage for 2 years so could probably ask to go on interest only repayments if needed too.
Am I right or have I really underestimated (or misunderstood) how much extra living with a baby 0-12mths will cost????
Sorry for long post?.