Finance...

[OnNaturesCourse]

Weighing up being a SAHP or getting a part time job. Currently unemployed and living off partners income and my savings.

Partner earns approx 21000 pa.

We're living comfortably just now but only thanks to my savings paying for over half our outgoings. (approx. 1350 pcm) Partner also covers food, clothes, petrol, leisure activities etc, I don't contribute to these at all.

Should I stay at home we're looking at being very tight each month, but should I go back to work we're not going to be much better off after childcare.

We've tried to cut our outgoings but it's not easy as a lot of things we are tied into (car finance etc)

I looked at benefits etc too to see our entitlement but there is none other than child benefit. I tried to get more help with looking into these but got told I'd need to work it out myself with online calculators (which are a headache)

I guess my question is how do people actually afford anything after children, and where do you make cuts? If you're a SAHP do you enjoy it and feel financially secure, did you need to make cuts / get help?

Surely all of your savings will run out eventually? Would you be able to maintain your savings with the pt job?

Yes. The savings will be gone by end of the year, the plan was always for me to look for work over the summer but we really underestimated childcare costs.

I’d get a job rather than live off your savings, especially as if you aren’t earning much or will be difficult to build them back up. I’m a sahm, but it was our long term plan for me to do this. We bought our house before we were married and only used my husbands salary for the multiplier so the mortgage and bills have always been manageable without my income. We are fortunate that he is a relatively high earner so although we’d certainly like to move to a bigger house etc we are comfortable on his salary and don’t want for anything. In your shoes I would be working.

Your partners salary is well below the threshold for tax credits etc isn’t it? I’d investigate that further too

I don't know what the threshold is, but all the calculations show we aren't entitled. It's very confusing.

We could live off DP wages but it would mean no activities, no takeaways, less birthday / Christmas things etc

Childcare costs are short lived in grand scheme of things. For every year you remain out of the workforce your earning potential stagnates imo.

Please don’t take this wrong way but £21k is on the lower end of a household income. You are already spending your savings to supplement this which suggests your household earning capacity needs to be increased.

I agree wholeheartedly.

21000pa is NET so its what he is bringing home. Approx 25000 gross.

I would definitely look into child tax credits, working tax credits and housing benefit (if you rent). At 25k, I'll be very surprised if you're not entitled to something.