Going PartTime vs Chunks off Debt...??

Shortie

Hi all

I'm after some friendly advise / perspective please....

I live with DH and DS1 and an expecting baby 2 at end of Aug. Until recently I've been happy working full time (DH also works full time).

Last October DS1 was diagnosed with Type 1 Diabetes and my mind set dramaically changed. I was all prepared for quitting work altogether etc but didn't as the childcare we had at the time still worked out fine to this day. I have no qualms about the level of care he gets.

After finding out I was pregnant again, I've started very seriously thinking about going back to work 3 days a week if I can afford it. I've worked out my PT salary, and if we got Disability Living Allowance and Carers Allowance, Ithink we can afford for the overall salary drop. BUT....

I'm basically left with £109 spare a month at best. Okay, so it may seem, but my Dad was helping me go over my finances this evening and pointed out my budget didn't include car insurance or tax. If really needed I could get rid of my car, but then I'd have the expense of public transport instead, loss of flexibility of travel, blah, blah, blah... But even if I did get rid o my car, as he pointd out, what if my boiler blew up, and I haven't accounted for DS1's school uniform, or anyones clothing.

So I'm left thinking of other ways to reduce outgoings (I'm already frequently on the OS board so attacking the shopping spends etc...) and possibly extending the term of my mortgage from 20 to 30 yars in August when it's due for renewal.

But... I'm now wondering if I should give up onthe idea as maybe it's really not meant to be, and instead I should go back full time and plough the spare money I have into paying off my loan, and then into my mortgage. I've tried to do an SOA on the DFW board before but I seem to be no good at them so don't seem to get very far with them

However, if it's the best solution all round, why am I feeling so sad about not being able to do part time and be there a bit more for my children?

Oh man, I always think about things toooooo much and was hoping you lovely peeps could help put som perspective on this for me?

*zippy*

Hi Shortie

I think you have to be accurate in this situation and make sure you include all your expenses when working out your budget. Remember to include things the new baby will need.

I think I would post a fresh SOA on the DFW board, hopefully they will be able to help you achieve your goal. They always come up with great ideas!

Good luck with it

Little_Miss_Winner

Hi,

I think the only way to do it would be to draw up and soa now, with you working fulltime, then an soa with you working part-time.

Surely if you only work part-time you wont be paying out for as much childcare, petrol, expenses at work, such as lunches etc.........

Who will be minding the new baby, and how old is your little boy, do you pay for childcare at the moment?

How much wages per month will you be losing, and what is the difference between that and what you will be saving in other areas?

Hugs it's hard this parent, and working thing isn't it?;)

pot

Shortie

Hi

Thanks, maybe I'll have another shot at an SOA on the DFW board, but not till Sunday now as we're out all day tomorrow

DS1 is 4 and with a childminder 4 days and his Nan 1 day a week. If I did part time, I'd be reducing the childcare days from 4 to 2, but doubling it with a second child, so no change there.

The new amounts I worked out at home include drops in petrol, and with *plans* to take lunches always.


My current take home is £2166 and I'd be dropping to about £1349, so about
£817 odd drop a pretty hefty chunk especially as I am the main wage earner (as I say DH works full time too but not paid as well. He's waiting to lose the needed amount of weight to join another job but I'm not counting my chickens till their hatched so not accounting for this as a pay increase)

I don't know if staying at home will save in other areas (apart from £20 a month petrol, and some train travel to work for 3 days instead of 5 - still need to find out th cost differencs in this...) Maybe there's something else pretty major (good or bad) that I've not thought of...

I still have all of DS1's clothes, and provided I have another boy we should be fine for clothes for quite a while but then I still need to buy for DS1. For a while Milk and Nappies will be okay too as I have about £90 boots vouchers and points to spend.

I just have a creeping feeling that I'm being waaaaay to naive about the real impact of this

Dumyat

that is quite a drop there.

personally, as a mum, I would say stay at home with your kids because they are only little for such a short time but financially that would be very tight on your budget. tough one.

smitty2702

it does sound a difficult situation. I worked in between my 2 but did find childcare too expensive after having no. 2.

In terms of childcare, Childminders will often charge slightly less for a sibling, Day nurseries and pre-schools are worth looking into for DS1 as he will be partially funded at 3. he could go to childminder before pre-school and after perhaps!

I dont regret for one second the decision we took for me to stay home after DS2, money is tight, I dont have a car but I feel so much more involved! I cook more from scratch and have reduced the food shopping, Ive also started growing my own veggies too.

As an alternative, could you perhaps work 3 days a week but do extra long days? or could you negotiate to do any of the work from home?

If you do decide to go P/T is there any other things you could do to maximise your income? Partyplan? Ebay? car boot sales? Pigsback? Homeworking?

I do hope you can work it out one way or another and good luck with the new baby.

Claire

TraceyB_2

It really is a hard decision to make.

I worked full time until I had my DD - now 16 months. I went back 3 days a week and to be honest have managed quite well financially - probably due to MSE more than anything else!

Whether it was because I went from having no money at the end of my maternity leave (had a year off) to some part time money that I was able to cope but I can honestly say the drop in wages (about £800) hasnt been too bad.

We dont have the luxuries we used to have and I do have to scrimp and save LOADS more than I used to - but its a challenge and I get to spend more time at home with my DD as well as getting the chance to get out of the house and speak to grown ups!

I think only you will be able to make the decision based on how well you can cut back and do without. You are going along the right lines looking at ways to save with new baby - look on freecycle too - the stuff you get on there is amazing.

Good luck and I hope that whatever you decide works well for you - and good luck with the new baby!

Spendless

When will your eldest be at f-time school? Will this reduce your childcare costs?

mintymoneysaver

As the last poster pointed out you would only be paying childcare for two for a very short while. If you stayed full time what will you do about pick ups etc when ds1 starts school?
I went part time when I had dd1, and I now earn the sort of salary you are talking about. DH earns the same as me for full time so in theory I should work full time and him part time but there was no way i was going to work full time with children.
We manage, we don't have much spare, but I don't regret my decision for a minute.

dawnybabes

If DS is 4 now - he will be starting school in Sept/Jan so should be reduced costs then ? Can you claim DLA / Carers for diabetes ?

Could you not work from home a couple of days ?

I gave up a high paid job and its been a huge learning curve but dont regret a minute.

Justie

Is your job the kind of thing you could do at home? If so could you work 2 evenings a week instead of one day and do the same work? Or find something that makes this possible - that would cut down on the childcare costs at least.

Personally I would try not to increase the mortgage term - you may gain now but as your children get older and cost you more money you'll still be paying off the mortgage instead of being able to send them to university etc... Plus you pay so much more long term.

As for baby costs - if you register on your local freecycle there are usually toys, clothes etc advertised or buy bundles from ebay which are cheaper. Don't forget you're now entitled to 9 months SMP and 3 months unpaid maternity leave so you could be off work for 1 year if you wanted to which would mean you won't have childcare for that period (but you'll have a drop in wages) and by then your eldest would be at school. You may be able to breastfeed and so save money. If you want to then cloth nappies work out cheaper than disposable too and if you buy them second hand then they're not that expensive.