If you own your house

[rainbowbaby2]

If you owned your house outright but struggled with daily cash flow, what would you do?

One of you has to get a full time job that reliably pays enough to support you all. That's the norm and there's generally no way round it.
Figure out how to use Excel so you can build a spreadsheet with a budget on it, reconcile past spending (so you can see where the money goes) and project forward future spending (so you may even be able to save for a holiday or whatever). It's easy once you start.

I didnt learn till later in life, i actually few years back asked on here and there were loads of useful tips, habits, like penny savers and ones they used, how they budget, examples, free apps for it etc.

Career options, routes.

I had two babies at the time.

Their advice has worked for me few years down the line.

Never too late to learn hacks and get new habits.

Else you can downsize, but if spending doesnt adapt you will be in the same situation again. 😁

Feels like a) business should be completely separate b) as others have said you need a proper budget c) is your husband no good with money? If so maybe someone can advise him re his business- there seem to be a lot of outgoings - surely there must be a way to rationalise these? Is there anyone who can help there.

Agree with the above. Monzo / YNAB / spreadsheet. A spreadsheet can be downloaded and you can edit categories. Mine has been running since 2021 so I just duplicate and edit tabs each year. Track every bill, every purchase, every potential bill put in there too.

I’d hope it’s a limited company but if not, agree with negotiate ending lease early. Or perhaps there’s an option to sub-let? Wind it up and move on.

Once the kids are at school I don’t think there’s anything stopping you getting a job. Even better if you can make it work now. It is tough when they’re small but the spreadsheet will show how much you need to bring in.

Then there’s the frugality aspect. Start it now. If you don’t already go for cashback / discount codes / change suppliers regularly then it’s a no brainer. The MSE forum is very helpful with how to get yourself out of a financial hole.

Double posted- see below - sorry

I just wanted to say @rainbowbaby2 that you WILL be able to get a grip on this. Cash isn't available at the moment but you are rich in resources - a mortgage free home and two healthy adults able to work. You need to take a breath, get your facts in order with a full and honest financial assessment of the situation, and then this is a real opportunity to build a pretty bomb-proof - and good! - life together based on the security you have worked towards so far . Please don't take another 6 years to sort this, but there is no mad rush - time to get kids back to school and nursery in September first, and then book in a good few hours together to lay it all out on paper, applt for benefits you might be entitled to, think about working patterns. You can start collating stuff now, like finding out roughly how much you ACTUALLY need a month without the business costs, because it definitely won't be as low as £1000. Good luck!

It might be hard, but you can do hard things!

Why didn't you? It's the most obvious solution surely?

Thank you for the helpful and supportive advice.
As for the others just saying things like ‘how do you even own your house that young’ and ‘get a job’
that’s not helpful and has made me feel a bit stupid and crap. Maybe a me problem though.

You have said 4k pcm goes out, all in.
You haven't said how much comes in. The annual amount divided by 12.
Without knowing the shortfall, it's impossible to advise.

Are you in an exoensive part of the UK? Could you relocate? What skills do each of you have?

When you've done your budget, go through it thoroughly and cut anything that's not essential, eg tv subscriptions, hobbies, club memberships. Have a few weeks of buying essentials only, you'll be surprised how much it saves.

Do you have decent cars? If you have two, get rid of one. If you could sell the other and buy something cheaper, the money left over would give you a bit of breathing space.

I’d make sure both adults worked full time in proper jobs

Really depends. I might down size, ideally to somewhere kids would still all have their own rooms but tbh I kind of think room sharing depends on the kids. Me and my sister shared and it was hell on earth, but my brothers liked sharing and I know others who weren’t bothered.

Ideally I would avoid moving though because I hate hate hate moving house with a passion. I’d probably work more, but as a back up plan I would consider downsizing.

You need to completely separate business and home finances.

If the business can't cover its costs then it's insolvent. He needs to talk to his accountant about winding up the business. As it is insolvent then there are rules about what bills to pay, including rent but this is from the business account.

Then you say domestic costs are about £1000 a month, this is fortunately really low. So you get a job, any job, even part time minimum way to cover the bills.

He then looks after the children whilst winding down the business. Then when all that is completed he gets a full time job, and you collectively decide what to do about childcare.

But you need to close a loss making business urgently

I’d find a way to make more money or cut down my outgoings. I would absolutely never sell my house or release equity.

In your case, it sounds like you both need to be employed with a reliable income until you sort yourselves out unless your business is doing very well (though if you’re only bringing in £1000 a month?).

When ours were little, Dh went self employed and I worked PT to FT depending on the needs of the project I was on. My salary at the time just covered nursery costs with £200 left over. So me working nearly FT got us £200 better off every month. BUT you are playing the long game here.

Because I banked that time, a few years later, my salary had doubled. Dh went from earning £18k a year to having a business with a monthly turnover of around £60-70k. Our household income was probably £35k and now it’s probably £150k. Because we paid for childcare when we needed it, one of us worked in a salaried role and progressed up the pay scales and the other had time to grow the business. During COVID, my guaranteed salary meant dh could keep the business alive (we’re a supplier to the restaurant and catering industries) and pivot to grow in other areas. Do not underestimate the value of investing in childcare to increase your financial security.

PLEASE apply for Universal Credit! Do it today!

You can still receive it as a self employed person, and as someone with house equity.

Put your whole situation into ChatGPT and ask it to write a prompt which will enable you to simply run your finances. You can upload statements, allow it to access emails if you like and will pull e retrying together and then help you see where you are. It takes away the overwhelming feeling.

Id consider sub letting the business premises too.

You’re going to have to learn not to be rubbish with money.

I used to wing it a lot at your age (no kids then though) but now I keep an eye on my money every day. It’s just become a habit.

I have a ‘Kakeibo’ notebook and I record all my spending in that. I also have a date order list of my monthly dd’s and their amounts on my phone, with the date they come out and I tick them (green tick emoji) each time they have been paid and check each against my bank account. At the last one for the month I remove all ticks, ready to start the new month. It’s become so second nature to monitor my money I don’t get any nasty surprises when I check my balance. It also enabled me too see what DD’s could be cancelled or reduced (eg subscriptions). I also divide my online bank account into sub accounts, house stuff, food, DD’s etc.

I really wish I had been better with money and budgeting year’s ago, but I’m so glad I am now, it feels the same as decluttering a messy house. All of this only takes a minute or two a day to monitor.

Maybe obvious in the grand scheme of things but like I said I’m at home with 3 young children. Only 1 at school who isn’t starting until next week. I’m not entitled to childcare hours yet. I don’t think, I will look into it though.
it’s just working out how to do it without much family support around us. I have applied for a few part time jobs but haven’t heard back.
I refuse to go to work ridiculous hours and send my littles to nursery all day.
I want to be at home with them and make the most of the time. Even if that means struggling a bit for a while.
The budgeting/outgoings are a great place to start so I’ll try that first.

Well yes obviously. If it’s not making money why would you continue.

You could take out a small mortgage on your home. It would allow you to wind up business paying off closing debts. Your DH needs to get a full time job with an employer so he knows what is coming on each month. He can operate his business as a side hustle. Use free childcare of 30 hours.

It’s a shame but it isn’t working out so you have to change and that means at least one of you getting a job because you have 3 children to provide for and they come above feelings and wishes

If he’s so amazing, why is he running a business that is making so little money?

Like many others here I think one or other of you needs to recognise that a stable employed income is the answer. I know to many that’s not as attractive as being your own boss, but if the latter is not working for you both then you need to bite the bullet and look for a job working for others as an employee, with all the benefits that gives you (relative job security , pension etc).

Sorry but hes not amazing at work. If he were, either business would be thriving or he’d be doing something else to support the family (likewise you).

i think you’d also be talking about money in a different way; businesses should remain separate entirely to be viable while providing incomes, not blurring the expenses discussion - even saying that means it’s not working. You’re shoring up the failing business by selling personal belongings.
its not working; someone needs to get a job.

if you really can’t let go yet then explore local business mentoring and council enterprise support to get someone to give advice on what else you could be doing, give yourself a three month target to turn it around and then say goodbye

Is there any need to be so rude? 🥲

Ffs, read the original post before you go on full anti man mode...

Staying at home with the kids is a luxury it doesn't sound like you can afford tbh. You're an adult, the least you can do is a budget surely? It's not difficult, just mildly tedious.