Can anyone advise on this?

MrsSippi

We are expecting our 2nd child in a couple of months (already have a 4 year old). I currently work part time while daughter is in nursery (she starts school in Sept) but unfortunately will have to give up once the baby arrives as the cost of childcare for 2 kids means we would be worse off if I continued working. I'm not thrilled about this but will return to work as soon as second starts school.

Anyway, money is going to be very tight for a few years but I would appreciate an outsiders point of view as to whether I have over/underestimated anything in our incomings/outgoings (or just clean forgotten something!).

Incomings (per month): £2, 059(oh's wages, child benefit and tax credits)

Outgoings (per month): £2,060

Xmas/b'days (I hope to save this every month for ALL presents for ALL family to spread the cost): £100

Food shopping: £260 - this is to include all toiletries, food, nappies/formula (will try and bf but this didn't work out with daughter last time). I would like this to be a bit higher (about £300 but we may have to manage)

Gas/electric: £90 (we are on prepayment meters which work best for us - obviously we actually use less during the warmer months but still spend the same so there is plenty on there for winter and we don't have to worry)

Mortgage: £900 (we are currently on a fixed rate until March 2016 which is £680 but due to taking a maternity holiday for six months this will increase and I also want to get a head start before our fixed rate ends and the payments shoot up to about £800 pm)

Car (tax/repairs/insurance): £80
TV licence: £20
Life assurance £55
Trust Fund: £20
Water: £60
Council tax: £150
Petrol: £160
Home insurance: £25
Phones: £40
Emergency fund/clothes/days out etc: £100 (not much I know but can't be helped)

Any money that we DO manage to save/accrue (even if its only a couple of pounds here and there) I will put in our savings account which is currently empty.

I would have liked to avoid taking the maternity break on the mortgage at all but I have already worked out how to spend the money - i.e. clear a credit card, get a new boiler (currently got an old back boiler) and bathroom (nothing fancy but both I feel we NEED to do before the baby arrives)

Thanks for any advice/suggestions Like I've said I am aware it's not the best situation to be in so don't need this pointed out but equally I do believe that we will manage.

lazer-zxr

Hello MrsSippi,

I have just done my SOA, and so the numbers are fresh in my mind. Your gas and electric appear very high for an average annual, we are on around £65 per month with First Utility, but maybe this is because of the pre pay meter, I don't know.

Other observation is your water bill is £60, where mine for a family of 4, with a washing machine on daily is around £39 on meter.

Also, your mobile phones at £40 seem expesive. We are with GiffGaff, for £10 + £7.50 respectively.

Your home insurance seems high, we got an annual quote of £93 from Churchill, and a quidco cash back on that of £20 .... so only £73 per year (house value 180k)

I am impressed with your grocery bill, I will need to address my own. How do you manage this? we shop at Asda for a family of four, and a small cat, and we're spending £550.

Please take a look at my SOA, and comment where appropriate. Thanks.

Chris.

McKneff

Here, do a proper SOA


http://www.stoozing.com/calculator/soa.php

andyfromotley

yes, do a proper SOA,

Tv licence is £12.12 pm

£100 on gifts £1200 per year? No No NOOOO!!! Water looks high as does home insurance.

On_my_way

Hi

It is wise to start planning as soon as possible so well done on that.

Do you have any family that could help you at all so that you can continue working or get a part time job that you can work around your husband's work at all?

MrsSippi

Thanks for the replies. Just got home and can revise some of the figures (instead of doing them from memory). Our actual incomings will be £ 2,097 (£2, 059 once stopped claiming maternity pay) and our total outgoings are £ 2, 060 so slightly better than I said originally.

My water bill is higher than anyone else I know - this seems to be something to do eith the fact that we have 2 bills instead of one - one for our waste water and one for drinking water. May also have over allowed for tv licence (think I did this just to cover ourselves). Thanks for the comments on home insurance, didn't realise this was high so may look into getting a better quote.

I don't think we use a lot of gas and electric (try and keep the heating off when poss etc) but we do live in a detached house which may explain why it gets so cold and we need the heating on more.

The £100 for xmas/bdays is only an estimate and I'm hoping to spend a lot less - this will be the first time I've had to budget monthly for gifts so may have hugely overestimated. We have got 2 kods and lots of family so all the birthday and xmas presents soon add up (do set a max of £30 per gift depending on who it's for but it's still expensive)

MrsSippi

On_my_way wrote: »

Hi

It is wise to start planning as soon as possible so well done on that.

Do you have any family that could help you at all so that you can continue working or get a part time job that you can work around your husband's work at all?

Unfortunately not . I would love to continue working, either part or full time but we just don't have anyone to help with childcare, even for a couple of hours. I have been on the lookout for evening jobs too but there just doesn't seem to be anything apart from shop work which I would do quite happily but they all ask for retail experience etc which I don't have.

Bublin1

£30 per gift is alot.
For example at the weekend my neice said she wanted perfume for her birthday....i went to The Prefume Shop and they had Lady Gaga perfume/lotion set on discount from £19.99 down to £12.99. Bought a card for 75p in The Card Shop and i got a gift bag from my stash of recycled ones. She was thrilled.

For my bf I bought a lovely Body Shop gift set. Normal price £35. I bought for £15 with Voucher Cloud App.
I also purchased a 30yr anniversary World Cup book (or whatever its called) for £5 from the Book People lady who comes to my work place. Again, very happy bf.

The only people I would spend more than £30 on a gift for are my 2 kids.

lazer-zxr

From memory, we get one water bill with both drainage and drinking water itemised. This is £39 for family of 4.
Maybe your gas and electric is normal for a detached house, we are in a terraced house at £65 per month

nearlyrich

Your gas and electricity is high we live in a 4 bed detached with dual fuel we pay £66 per month..we don't have heating on all the time and we turn off radiators in rooms we are not using. We also switch off lights TVs etc when not in use

mum2one

Think this may be the time to curb presents
Eg - buy sister, hubby and 2 kids - bday - buy kids set budget £10, Xmas £10 and if u are worried bout adults buy a bottle wine between them.

Friends with kids - again just go for the kids unless there very gd friends

Work place - suggest a secret Santa

As for presents I shop as much as I can in the jan sales esp boots 75% sale.

If I need anymore presents - argos always a sale sometimes a clearance, book people, perfume shop,

It's worth doing a list and budget, for myself I aim to bring in the actual presents for less than half the budget.

For me the only person who I don't skimp on is my daughters, she's 12, but when she was younger there was a smaller budget xx