I am not very good with money

[turquoiseamethyst]

There's my confession. I ignore matters pertaining to money because it scares me. I am reckless. I do not budget. I do not know HOW to budget.

I need to because I am now a single parent; soon to be ex-wife of a profligate earner and I need to tighten my belt.

So:

I have approximately £800 p/m in income from properties I let out.
On top of this I have CB for two, soon to be three, children.
And I have £800 from STBXH.

That should be more than enough. Here are the essentials:

CT - don't know how much this is. Need to check.
Other bills - same
Car insurance, when I've bought a car, petrol.
Food (obviously)
My 8 year old has music lessons, these cost £50 a week
We have animals. Lots of animals. 2 cats, 4 rabbits, chickens, a sheep and 3 ponies. Oh and fish.

I suppose I'm looking for hand-holding as I HATE HATE HATE dealing with money and finances but know I need to.

But you have to contact the council and apply for it, they wont know, ifyswim.

Thanks.

I was told no, yes ... I think because if I was to sell the properties that would obviously amount to a substantial income. But this may not be correct.

I didn't say piano (actually he does learn it but those lessons are free - I teach him.)

Selling the ponies is only an option if, well, I think I'd take STBX back over that. They were saved as "meat" couldn't do that to them. Same with the sheep.

Property income could technically be maximised but then I'd run the risk of the tenants moving out if you see what I mean!

Not really re the property income - if tenants move out, you'd re advertise it and more would move in. Are you renting something at market rate? Is it in good condition and what do you need to budget to maintain it in good condition?

I think you'll struggle. If you're entitled to tax credits under the present system then claim. Most people would. You need to sit down and write out every single outgoing you have from council tax to pet food. And then take it from there. If you don't do that anything else is a waste of time. Also you could consider looking after other pets whilst owners are on holiday to get extra income if you have the space.

Well not necessarily Gen - even one month without tenants would be a real struggle at this stage.

Yes, both properties are in good condition.

Viv - at the moment, it doesn't look as if I am entitled to anything other than CB.

I think you need to know where you are right now. Rather than looking at the what ifs.

So take a pen and go through your bank account online and write down every single thing that has gone out via direct debit in the last month.

Then deduct this from your "income". What does that leave you?

I think maybe find out what all of tor current outgoings actually are would the the first thing to do. Until you've done that you won't know where to nip and tuck.

Xpost

Rental income £800 PCM
Maintenance £800 PCM
child benefit £204 PCM
child tax credits £689 PCM ( based on income of £800 am month with maintenance ignored)
TOTAL £2493 PCM

Yes I hadn't thought about maintenance etc for the rental properties - I'm guessing you've included that in the figure of rental income you've stated? just for example only, rent £500 pcm but you have say 100 costs involved in letting the property so you only see £400 of it? Or have you got to allow for maintaining the property out of that

I'm not entitled to CTC which is where the bulk of that total is coming from Soon - I did say this.

There have never been any issues with property maintenance particularly.

Yes I can see that but equally, you need to include a plan to make sure you're getting a close to market rent - you can't work right now so maximising the return from your assets is going to be important. But yes of course, gauged against the difficulty of finding other tenants.

Are you sure the ex only has to pay £800 a month for three kids?

Tax credits are not affected by the amount of savings but if you earn over £300 in interest they count that.

Are you self employed? If you are that £800 would be income so you would get working and child tax credits on that basis. I don't see that selling property would amount to income unless it is capital gains?

That's what the CSA calculator says although I'm hopeful that ultimately it will be more - I just don't want to assume, if you see what I mean. :)

Op are you sure you aren't entitled to tax credits. All the info you have given here means you would be entitled. Please don't take the word of the helpline, you should apply.

I'll try soon it's just like I say I don't want to assume?

I expect the animals are going to need some reconsideration. i dont think you can afford the farmyard pets, and should seriously consider not replacing any indor pets as they pass on. Would the children's dad consider sharing or taking over their upkeep on behalf of the children? maybe it could happen for you to handle the costs of the in-house pets, and he pay for the board and keep of the farmyard pets? Even if you must do the physical care, him paying their food/vet and board (if not with you) so as not to deprive the children seems fair.

If he won't, consider asking the grandparents.

After that, well, it is a big and unnnecesary expense.

Hire a solicitor and get more child maintenance.

Ok that's a relief, I just meant maintaining the property in terms of buildings insurance, what if the boiler breaks and you as landlord are expected to fix it etc, that kind of thing (however I haven't ever let a property so you likely know far more about that than I do!)

I'd be appealing the tax credits decision wherever possible - I don't understand how they can tell you that you're not able to claim anything, yet on the tax credits website there is a calculator which says you would be entitled to about £500pcm with 2 children, and £700pcm with 3 children, if your income from other sources was £9600pa (that's the 800 rent x 12) They've misunderstood your income or situation or something, something has definitely gone wrong, they cant have a calculator on their website telling people they can claim a substantial amount of child tax credit per month and then actually say well no you cant have anything at all

Are you claiming maintenance using Child Maintenance Options or just taking what he says you are entitled to?

You may also be able to argue for spousal maintenance if you are not in a position to earn an income short term and perhaps haven't for a while.

Yes I'm hopeful for that (split v recent) :) thank you x