Barely getting by on £75k, what's wrong?

[MariaDingbat]

We are two professionals in the civil service on a total income of £75k and we're barely making it to the end of the month at the moment. I could really use some tips on what we can do to save money and get an emergency fund together.

The past 4 years have been busy financially, we bought a house and had 2 kids, so all our savings are gone between house and two mat leaves. We planned financially in 2020 and had a lot of wiggle room predicted but between childcare and mortgage increases, fuel, energy and food costs going up we're close to £0 at the end of each month with no savings. Our take home is £4050 p/m (after pensions, tax, ni, student loans). What small amount there is left gets eaten up in fixing the roof or servicing the car or something else unexpected.

Our outgoings per month are:
Childcare - £1220 (3 days x 2 kids)
Mortgage - £830
Rates - £170
House insurance - £85
Car insurance - £65
Road tax - £15
Petrol - £200
Gas - £200
Electricity - £100
Food - £500
TV licence - £13.50
Parking - £75
Car payment - £210
Kids essentials - £50 (clothes, toiletries etc)

We're in NI so there's no free childcare hours so this is the childcare bill for at least the next two years. Any help or advice would be very welcome.

Thank you, I hope so.

It's an average of the gas and electric for each month so we're not caught by the big winter bills. We had a gas bill for £1150 for 3 months early last year and it really shook me, that was with the £400 help from the government too. We only have one gas supplier and no price cap in NI so we're at their mercy. Our electricity averages about £100 p/m the past year but I'm hoping that might go down.

Looks like food is the only thing you can trim back right now. Where do you shop? I'd switch to Aldi/Lidl if you haven't already especially for nappies and wipes which are insanely cheaper than other supermarkets.

Cut down on meat and alcohol for a while, do some batch cooking and freeze so you have some spare meals during really tight months.

I forgot to say that is for 3 days in childcare, I take a days leave a week (I had a lot left from mat leave) and their grandparents take them one day too. If we were to have them in full time it would be almost £2000 even with the tax top up.

They're wonderful and I'm so glad someone is fighting for the childcare mess too be sorted. It seems so unfair, if I was in England my childcare bill would have dropped to £650 p/m in January which would have given us some breathing room.

It's crazy isn't it. I can't see all that much that you could change, I agree with other posters that this is the cost of the pre school years. It will get better.

I'm sorry so many of you have had similar situations with childcare costs, it's soul destroying. Also, thank you to everyone who says it will pass, it feels so big and hopeless at the moment so it's nice to be reminded it isn't forever.

Right, I'm off to sell some more stuff on Facebook, find some new veggie batch cook recipes and see what free kids events are on this month.

Do you need to buy formula? You can move onto cows milk when child is 1, there is no nutritional benefit to formula.

as others said your insurances are very high.

I did see the Northern executive was granting some money to give public service workers a raise so hopefully both of you will get a raise soon. Just keeping your head above water until your children are in school is an achievement in the meantime.

Kids clothes and toys I buy nearly everything on vinted now. Have you tried that?
You can save a lot.

You've got two children under 5.

It's going to be very tight until one of them goes to school and the childcare eases.

I would suggest: keeping a diary of all expenditure for two weeks, keep all receipts and note other expenses.
Are you paying insurance and car tax monthly - paying in one go might be cheaper?
Does your department/departments offer and discounts? Mine has a company it works with, I just got 20% of ferry tickets.
Does your union offer discounts?
Can you be more frugal on food? Slow cooker, dried pulses, bulk cook etc.