Our income is falling advice please

Positive2

Hi, I hope this is the correct section.
We are a small family on a low income. My husband's wage will fall by 10% in October. I work part time and we claim tax credits.
We have no credit debt and are not in mortgage arrears.
We have some emergency savings, about half of our annual income saved. We try to save each month for large bills.
We are frugal and live within our means but this income drop will cut into much more than we currently save each month. It will be difficult to make up the shortfall without going into the emergency savings.
Changing work wd be difficult at present. Does anyone have suggestions for us going forward. Thank you:)

Browntoa

Take a look at the forum guide

https://www.moneysavingexpert.com/family/make-money?_ga=2.225682527.456363819.1516913433-1451357464.1516913432

Ignore any private messages you may get offering sign ups to things ...

culpepper

Maybe if we had some idea of how much the shortfall would be, then there might be things that could be suggested to fill the gap.
Sounds like there is plenty of time before the change of income anyway.

Positive2

Hi, OK my husband earns £1200 after tax a month. £146 of that is protected until October.
So he will earn £1054 a month.
I earn £220 a month.
We get £210 tax credit
We also get £86 child benefit.
Our monthly fixed bills are £900, eg mortgage, electric, council tax.
We spend around 350 on food, £100 on petrol a month.
Other bills such as car mot, the microwave blew up etc come out of what I save of any surplus currently but I'm not seeing any surplus down the line..
Any suggestions appreciated to try to prepare for October
Thanks

Browntoa

Read the guide in post 2

Smodlet

The guide is a very good place to start but online income (unless you are a professional poker player or the like) is not guaranteed and selling your stuff, assuming you have anything you do not need, is only a quick fix. There will be plenty of other ideas on there as well.

Forgive my ignorance, OP, but would the tax credits not increase to make up the shortfall? If not, since you earn only £220 per month, I assume you work part time; could you not get an additional part time job/increase your hours/look for a better paid one?

You are doing the right thing by planning ahead but, if your OH has to take a wage cut, I would consider suggesting he look for another job too. How do you know he will not be forced to take another cut down the line?

The only other thing I can suggest is that you post your SOA on the appropriate board and see if others can think of ways you might become even more frugal. HTH.

Mrs_Soup

The debt free wannabe and Old style forums might also have some good info in them about managing on a reduced income even if you don't have any actual debt.

Positive2

Thank you Smodlet for a good summing up, I'm thinking the same that a change workwise rather than quick fixes is the way forward long term.
Thanks too Mrs Soup, I'll have a look :-)