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And Baby Makes Three....

Good evening people in forum land
I've been a long term reader of these, and dabbled a little in the advice I've read. However, times have changed, and I need to look seriously at our finances.
We currently have a mortgage of £87k and have found out that a funlovinbabycriminal is en route to us in June.
We are currently remortgaging to rennovate our house, so we will be on a 2.59% fixed rate for three years, but the mortgage will be growing to £108k.
Now, what advice can people give me to reduce outgoings while still saving for baby, and increasing overpayments on the mortgage.
I realise this is a very difficult balancing act, but is it an impossible one?
FLC
Mortgage: 01/02/14 - £108k
Mortgage: Current - £97k
Mission: MF by 50
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Replies

  • FunLovinCriminalFunLovinCriminal Forumite
    451 Posts
    Tenth Anniversary 100 Posts
    Forumite
    So I've been on the computer till late last night and early this morning, and typed in my SOA. I realise this is subject to change with a baby on the way, but any hints and tips would be greatfully received.
    And if you think its impossible, tell me this too!!
    Statement of Accounts
    Wages £2300.00
    Savings £60.00
    TV Licence £12.12
    Council Tax £189.00
    Life & Critical Illness Cover £65.10
    Mortgage £655.00
    Eon £92.00
    Sky £80.00
    Car Loan £204.35
    Simply Health £33.00
    Gym £78.00
    Mobile Contracts £50.00
    Home & Contents Insurance £17.83
    Food (approx) £200.00
    Diesel (approx) £300.00
    Mortgage: 01/02/14 - £108k
    Mortgage: Current - £97k
    Mission: MF by 50
  • Hi FLC and big congratulations on baby FLC being on the way!

    Looking at your SOA the most obvious thing to cut out seems to be Sky and gym membership. .. I have a 16 month old DS and Trust me you will have no time to watch telly or go gyn when baby arrives haha :) seriously though, we switched to Freeview and honestly don't miss sky at all, and ive never been fitter just by taking DS out for long walks in his pram in the fresh air, no gym needed!

    Your food budget seems fairly low and will defo increase once you need to start including nappies and milk in there (obvs cloth nappies/breastfeeding alot cheaper but they aren't for everyone).

    Good luck and definitely stick around, this board is fab for hints and tips x

    Attempting to pay off our debts! Balances Jan 2018 -
    Family member £3,700 - Virgin CC £1,000 - MBNA £1,700 - Barclaycard £2,500 (was £2,700) - Halifax CC £1,280
    13
  • FunLovinCriminalFunLovinCriminal Forumite
    451 Posts
    Tenth Anniversary 100 Posts
    Forumite
    Good Morning GlitterJunkie and thanks
    Yeah I think you are right, I've got to be brutal. Sky is the bundle with the TV and broadband, and the sports package. Just by knocking off Sports I think would save £20+ per month. OH loves her sky though, so would need to negotiate, I can see your point with the gym too. Neither of us get there that often with baby on the way, and working overtime etc.
    As for the food bill, thats pretty accurate we both work for a supermarket chain and get 10% off, and always find a bargain or three at the end of our shift.
    I just popped our details in the mortgage calculator and just £50 extra a month would save us 1.5yrs on the mortgage. So, with every penny we get a step closer...
    FLC
    Mortgage: 01/02/14 - £108k
    Mortgage: Current - £97k
    Mission: MF by 50
  • gallygirlgallygirl Forumite
    17.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper Mortgage-free Glee!
    Forumite
    I would cancel the gym if you don't use it much. Is there another one which offers PAYG? You are in this for the long haul though so think about downgrading rather than cancelling Sky? Especially with a baby, you won't be going out much so may be worth keeping.

    Diesel is v high - will this reduce when babycriminal arrives?

    Things which are missing:
    Clothes
    Haircuts
    Dentician
    Holidays
    Birthdays/Xmas
    Car insurance, maintenance, MOT etc.
    House - repairs, replacements
    Car - saving for next one so you don't need a loan?

    Probably more, that's just off the top of my head. Basically, work out how much you spend on each every year, divide by 12 and save that every month in a separate account. I have a spreadsheet with each pot accounted for separately, but all the money is in one account. The idea is that at the end of a year (in my case March) the pots will all be empty (unless you have a 5 year car pot) but at various stages some of the pots will be 'overdrawn' and borrowing from others.

    Good luck :)
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    :) Mortgage Balance = £0 :)
    "Do what others won't early in life so you can do what others can't later in life"
  • FunLovinCriminalFunLovinCriminal Forumite
    451 Posts
    Tenth Anniversary 100 Posts
    Forumite
    Hi Gallygirl
    Thanks for your advice.
    I can live without sky sports - my hours have changed so I am not at home that often in the evenings to see muc football these days anyway, whereas Mrs FLC loves her Sky Atlantic and Living (!).
    I see what you mean, I tend to just add car insurance to the relevant months, but by saving a % of it each month will soften the blow.
    Diesel is high, we both travel approx 25 miles in opposite directions to work, that will reduce when Mrs FLC goes on maternity leave - she is taking nine months off, so that is a potential huge savings.
    Do you think this is too big a challenge? We are both 38, and have remortgaged to 17 years, to give us a little more per month while we find out how expensive baby FLC is going to be. Ideally I would love to be MF by 50, so need to shave 15yrs off while looking after a new born.
    Mortgage: 01/02/14 - £108k
    Mortgage: Current - £97k
    Mission: MF by 50
  • Don't forget to include child benefits as it sounds that you would be able to get those. You'll have to do the application once FLBC has arrived
    Mortgage Jan 2013 £116677
    Jan 2014 £102k
    Target Jan 2015 £95k
    2013 MFW no149 £10601/£10601 target reached
    2014 MFW no36 £2880.37/£3436 ahead of schedule
  • tootootootoo Forumite
    681 Posts
    Part of the Furniture 500 Posts
    Forumite
    Hi - congratulations!

    I can seem daunting on the finances to have a baby. My eldest is now 4 and I now wonder what on earth I did with a full time wage! You soon adapt. The biggest cost will be childcare if you both go back full time. Maybe you could try to find out an average cost local to you to help give you an idea?
    Only thing I would say is don't put too much pressure on yourselves, if you can make an OP this month, great, if not, you're still paying your mortgage. :)
    MFW.....Apr 33 Aim - Dec 26
  • ALIBOBSYALIBOBSY Forumite
    4.5K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Forumite
    Funny how different people see things, another poster thought you food budget was low where I looked at it and thought it was quite a lot for two people lol. There are 6 of us and most weeks I spend between around £40-£70. But I stock up of good offers/reductions when I can and cook most of our food from scratch and love to bake. Non of which I did much at all when I was full time.

    The one thing you do get is more time compared to being full time when on maternity. You get time to shop around for bargains-use sites like my supermarket and here to scout out the best offers and you have time to cook.

    Something I have learnt over the years is that the baby industry tries its craziest to convince new parents you need and must buy hundreds if not thousands of pounds worth of "things" for the baby and most of it is pointless/waste of money/hardly ever used.

    Don't be afraid of using second hand stuff if its in good condition and just cover the basics.

    Babies will, mostly only be in newborn stuff for a couple of weeks unless they are premature. I found it most useful to have vests and babygros for day and night the first few weeks, you can easily get carried away with little cute outfits that never get used. Don't get sucked in by pampers/huggies etc they are a rip off, both Lidl and Aldi do great nappies and baby wipes for a fraction of the price and even the own brand tesco/asda stuff is ok.

    Best money saver I had was breastfeeding, no bottles and no milk powder. Plus in the early hours when you have had little sleep it is SOOOOO much easier just to be able to feed instantly rather than have to troop downstairs and warm up a bottle. So definately give it a good go, so worth it if you can manage. BUT my the same token don't beat yourself up if you can't, micro sterilisers are pretty cheap and easy to use and you can buy a pack of bottles for not too much.

    I have four children aged 3 to 15 and life is busy and crazy at times but I wouldn't swap it to go back to full time work for a second.

    Good Luck

    Ali x
    "Overthinking every little thing
    Acknowledge the bell you cant unring"

  • SmlSaveSmlSave Forumite
    4.9K Posts
    Part of the Furniture Combo Breaker
    Well come to the board FLC and congratulations on your baby news.


    I agree totally with Ali, baby's cost whatever you want to spend :) If you let people know that you're open to hand-me-downs its amazing who and what people will give you! But again, if you want to spend on a new pram, have a fancy nursery etc then there is literally no limit to what you can spend. ;)


    A good way to save atm is to act as though Mrs FLC is already on mat pay IMO. We saved £6000 by putting the extra aside (then spent it on a new car :o )


    I think food of £200 is good for two people - its what we used to spend :D The arrival of DS didn't put it up for the first year as the money we used to spend on alcohol went instead on nappies etc. Can't advise on the cost of formula though as I managed to bf and we never bought puree etc when weaning as we went the BLW route.


    ......I'm sorry...have I started rambling?


    TillyTidies are a good way to save towards that £50 OP per month :)
    Currently studying for a Diploma - wish me luck :)

    Phase 1 - Emergency Fund - Complete :j
    Phase 2 - £20,000 Mortgage Fund - Underway
  • Former_E.ON_Company_Representative:_MalcFormer_E.ON_Company_Representative:_Malc Organisation Representatives - Private Messages may not be monitored
    6.6K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    So I've been on the computer till late last night and early this morning, and typed in my SOA. I realise this is subject to change with a baby on the way, but any hints and tips would be greatfully received.
    And if you think its impossible, tell me this too!!
    Statement of Accounts
    Wages £2300.00
    Savings £60.00
    TV Licence £12.12
    Council Tax £189.00
    Life & Critical Illness Cover £65.10
    Mortgage £655.00
    Eon £92.00
    Sky £80.00
    Car Loan £204.35
    Simply Health £33.00
    Gym £78.00
    Mobile Contracts £50.00
    Home & Contents Insurance £17.83
    Food (approx) £200.00
    Diesel (approx) £300.00

    Hi FLC

    Hope you don't mind me popping on here but thought I might be able to give you a bit of a heads up on your energy usage.

    Make sure you're using energy cost effectively. We can help with this. We've an Energy Efficiency team who specialise in helping people cut back.

    If you tell them about your property and appliances, they'll be happy to talk to you about ways you might be able to save.

    Check out our website, too. Particularly the Saving Energy Toolkit. More good tips there.

    Hope this is useful and congrats on the baby.

    Malc
    Official Company Representative
    I am an official company representative of E.ON. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to [email protected] This does NOT imply any form of approval of my company or its products by MSE"
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