is this possible

cagneuk

Hi guys,

sorry if this is in the wrong area but I'm sure one of you will be able to tell me soon enough.
My wife and I are expecting our 2nd child together (my third) in october so we really need to save now for when her wages are reduced to smp in order to bring them back up to standard. Problem is we can't save very well and up til now we thought we've been treading water. all our debts are being paid thankfully and although I'd like to pay them off a bit quicker. the unsecured are with capquest and moorcroft so there's no interest to pay so we have decided that while they are ticking along we should use any money we can for new baby time.
I've sort of worked out an income and expenditure chart and was wondering if here was the right place to post it to get your views or if there was a nother thread not dfw that I should post in for beter responses. but before I do I must warn you it is long so will probably bore you to tears.

thanks

LilacPixie

post it here.

sammy115

Post away -you will get a wealth of experience to guide you on your way....

kimdegsidash

Morning cagneuk
Firstly, congratulations on the baby. Are we the first to know??
Secondly, well done for realising you need to take action now. I made the mistake of thinking I could survive on SMP, and have ended up in all sorts of trouble trying to live on £117 per week!
If you post your SOA on this forum everyone will try to help you make savings so that you can build up a pot for the lean times.

Wannabedebtfree

Good Morning

http://www.makesenseofcards.com/soacalc.html

If you fill in the SOA and post it on here, I'm sure we will be able to offer some help.

cagneuk

ok thanks, firstly a bit of a long story on how I've worked out what we need to save.
ready....

Last night I was talking to my wife about my challenges and goals I have set for the year and when I was talking about paying off the overdraft she made me look at it in a more realistic light. Yes we would both be happier if we didn't have the debt hanging over us. but there is no interest being applied and we are paying a set amount each month to slowly reduce it.
As we are expecting another child, she suggested rather than try and find the extra per month to pay for that we really should be thinking about when the baby is here and my wife has to take her maternity pay which will seriously reduce our financial income.

My DW has suggested, very sensibly, to save up now to compensate for the lack of earnings during maternity as 3 years ago when DD was born we lived off our credit cards and overdraft and that is the reason we have quite a bit of debt. we were running up best part of £1500 per month debt for 7 or 8 month. this time we have to have our heads screwed on.
So a bit of math:

after tax/ni and pension DW usual monthly net pay is £980 that's before any o/time or commission so that's what we will have to work on.
For the first 6 weeks of maternity DW will recieve full pay then 12 weeks of half pay then 21 weeks at smp.
My friend who can set up a payroll system is curently running all next years pay based on basic salary then smp through her system and should come back to me with a rough idea of what to expect in each month.
My net per month is usually around the 1290 mark so realistically we need to be bringing in 2270 each month.

her basic projected each month is
October 980 + 1290 = 2270
Nov 756.16 + 1290 = 2046.16 need 223.84
Dec 511.68 + 1290 = 1804.68 need 465.32
Jan 523.33 + 1290 = 1813.33 need 456.67
Feb 523.13 + 1290 = 1813.13 need 456.87
March 487.89 + 1290 = 1777.89 need 492.11
Predictions beyond this for April May and June will be subject to new paye and smp bands so are a little bit of guess work
April 506.08 + 1290 = 1796.08 need 473.92
May 520.93 + 1290 = 1810.93 need 459.07
June 506.08 + 1290 = 1796.08 need 473.92

Total need is 3501.72

So the 8 months pay between now and then is 437.72 per month we need to somehow find to give us the same wage during maternity as what we live on now at basic. OMG that is some challenge.

Action: Live on 2270 and anything over 2270 each month we need to put away so all bonus, commision, overtime, tax credit and child benefit. possibly could give us in the region of £150 per month. 80 child benefit, 36.57 tax credit. so 116.57. DW brings in average of 35 per month net in overtime and commission. that takes us to 150.
Action: Double edge is if we can somehow find a way to save even a further 150 per month out of the 2270 that would give us around 300 per month saving but it would also mean that we can actually live on 2120 so we wouldn't actually need the 3501.72. we would actually need 150 per month less. see on amended calcs below.

Yes, a solution is there if we can manage to live off 2120 per month and save everything over it.

October 980 + 1290 = 2270 if need 2120 gives 150 extra
Nov 756.16 + 1290 = 2046.16 on 2120 need 73.84
Dec 511.68 + 1290 = 1804.68 on 2120 need 315.32
Jan 523.33 + 1290 = 1813.33 on 2120 need 306.67
Feb 523.13 + 1290 = 1813.13 on 2120 need 306.87
March 487.89 + 1290 = 1777.89 on 2120 need 342.11
April 506.08 + 1290 = 1796.08 on 2120 need 323.92
May 520.93 + 1290 = 1810.93 on 2120 need 309.07
June 506.08 + 1290 = 1796.08 on 2120 need 323.92

Total need now 2301.72

We would then have 8 months (feb - sept) at 300 and one (oct) at 150 giving us 2550 savings. It would give us 249.28 more than needed so that can be used for christmas/birthdays etc. to pay for new baby christening etc.

Action: restructure expenditure to ensure each month we can survive on 2120.

So in addition to this I have arranged to reduce my pension from 8% to 2% from may to april next year which should free up around £90 per month
I have also reduced our sky package but decided to keep our internet, net bonus is 8.50 extra per month. sky saving 26.50 broadband 18. can't live without it.

Sorry if I've lost it with these figures. I did say in my first post I would bore you to tears as I tend to go off on one.

Addition: we have the following birthdays/ anniversarys during saving/maternity period

march 7th birthday party 50
march 9th close friend birthday 20
march 17th brother in laws girlfriend 20
march 28th friends birthday party 20
march 30th sister in laws birthday 35
April 12th close friends birthday in blackpool 70
may 9th brother in law birthday 35
June 5th my wife's birthday 35
June 13th my eldest daughters birthday 150
june 19th wedding anniversary 35
june 27th brother in law 35
july 13th my close friends 20
july 21st mother in laws birthday 35
july 26th inlaws wedding anniversary 50
july 29th my birthday 35
oct 1st BABY DUE . YEY
oct 10th my mam's birthday 35
nov 7th best friends little girls birthday 20
nov 16th my sisters 35
nov 18th my dads birthday 35
nov 22nd father in laws birthday 35
nov 23rd mam and dads wedding anniversary 30
dec 25th christmas 1000
feb 24th daughters birthday 100
march 7th birthday party 50
march 9th close friend leanne birthday 20
march 17th brother in laws girlfriend 20
march 28th friends birthday party 20
march 30th sister in laws birthday 35
April 12th close friends birthday in blackpool 70
may 9th brother in law birthday 35
June 5th my wife's birthday 35
June 13th my eldest daughters birthday 150
june 19th wedding anniversary 35
june 27th brother in law 35

So 35 events not including any weddings and other birthdays we get invited to which is about another 12 or so at least. the cost of the 35 come to 2440 lets say 20 for each of the other 12 so 2680 needed. over the next 17 months is 157.65 per month extra needed to be cut from the 2120. realistically we need to be able to survive on 1962.35.

This thing just gets harder....

SO THIS IS LEADING TO A FEW HOURS OF BRAINSTORMING AND TEARS
HERE'S MY SOA

INCOME

my wage 1290
dw wage 980 not inc bonus etc
child benefit 80 not inc increase when new baby is born
tax credit 36.57 not inc increase when new baby is born

Total 2395.35

Outgoings

Mortgage 473.39
Secured Loan 310.44
Water Rates 31.48
buildings & contents 28.21
telephone bt 22
broadband 18
tv license 11.95
council tax 100
child support 71.33
car insurance 76.68
sky tv 20.50
capquest 60
moorcroft 60
02 my mobile 30
02 dw mobile 40
bank transfer 81.37 (to cover mot/tax/dentist)
petrol 100
gas 137
electricity 90
h/keeping food 200 (this has had to take a big drop but hoping it will be enough)

total 1962.35

WAKE UP...
your thoughts greatly recieved.

Buffythedebtslayer

Its too early in the morning for me to do maths, but on first reading minus my cup of tea, its seems very good to me.

Highly impressive planning. blimey I wouldn't be organised enough to know what birthdays etc I have coming up.:o

and the more you read here the more ways you find to save and make money so that will add to your plan.

I am off to make breakfast bt i had to say how impressed I am ! and I love your signature

xxxx

cagneuk

thanks, I think the only thing I've missed off is clothes and hair cuts but hoping I can figure something else out when my head stops hurting

Damita

Agree well done for being sooo organised

SKIPPY

Firstly, congratulations on baby number 3.

From first glances, I would definately cut the amount you spend on birthdays etc. Personally I only buy for the children in the family and parents. Everyone else understands totally and we all do the same thing so does not cause any friction.

Looking at your outgoings - are you able to reduce your mobile contracts they look quite high and definately get rid of SKY, I cancelled my SKY and now just have the free channels. You get used to it honestly.

I'm sure someone else with more know-how than me will be along soon.

chevalier

First of all well done on the planning.

But don't forget there are other ways of upping your income that you can be doing now, online surveys, daily clicks (both of you for these).

Also please don't forget www.freecycle.org for baby stuff of all kinds. And for anything else as well. If you keep a watch on your local site you could pick up all sorts so as to save you having to buy them new.

As for the present list. WOW what a generous guy you are the amount of money to spend on your daughter £150 :eek: . I don't spend that on both my children for birthday and xmas. BUT I do buy bargains through out the year. So although i only spend about £50 each they get at least double that in value.

Also the other peoples presents, have a look at the special occasions board and the threads onthere. There are lots of ways of giving presents either home made, or cheapish that will save you a lot on this. Eg give the present of a bi monthly free babysit to a couple, will mean more than a physical present for example.

Finally good luck with the baby

chev