SOA, help please!

EssexHebridean · 13 June 2019 at 9:43AM

To put the entertainment stuff into perspective in a way that might shock your husband, OP, if you add up the cost of the Virgin and the other bits, then those are costing your household more every year than he earns in an entire month. I know you've already said that the Virgin contract is going, but it's certainly a useful figure for it's sheer impact value at this point, no?

We have a basic Sky package which is being offered to all currently for £33 a month - that gives us more than enough channels to watch. I also use the free version of spotify, and we listen to various DAB radio stations via apps on my phone - again all FOC. Annual cost £396 compared to your household's £1270. (And for further perspective, we have no debt, and have paid off our mortgage early too so we could afford more if we wanted to - it's purely that we don't feel all the "added bells and whistles" are worth what is charged for them).

Onemanandtwolittleladies · 13 June 2019 at 11:06AM

You’ll surely be entitled to tax credits with you both working (assume over 16 hrs per week) and with childcare costs.

You need to look into this ASAP.

System · 13 June 2019 at 11:53AM

stuart1975 wrote: »

Is there a reason he won't budge on Spotify?

Hunt out a three month trial on Google Music, or Apple Music.

I used to subscribe to Deezer, and everytime I cancelled, they would come back within a week or so with an offer of 3 months at 99p a month.

There are definitely alternatives out there...

I downloaded Dolphin browser...it allows you to listen to YouTube with the phone locked. Saves me a tenner a month.

stinabean · 14 June 2019 at 8:51AM

Thank you for all your helpful comments, I'll try and explain some more and I will definitely to a more thorough SOA!

Ok Clothes - for LO I only buy from primark or 2nd hand from fb marketplace, but honestly it's rare as the doting grandparents generally cover this. I know that I have to take a look and see what I spend - I will do this. For me, I'm wearing the same clothes I've had for about 6 years. OH has bought some new work shirts recently, will go through our bank accounts properly.

Salary can't really be increased where we are. My annual is 20550 pro rata which works out at 19728, but am currently paying work back £100 a month for a maternity loan.
OH at 1250 take home is the basic minimum. He does earn some commission, but it varies so I try not to include it in my head in case it doesn't happen one month. It's not something I want to rely on.

Benefits - we're in a universal credit area and we are entitled to NOTHING. It's horrendous. I thought we'd get childcare help but no, we earn too much. The £80 is rounded, it's usually £82, this is child benefit.

Council tax is likely 10 months, will change to 12.

Electric has just gone down to £40 a month instead of £60! I don't know how they work it out, it's far too much a DD. Will talk to them.

Phones - these are new sims. Mine is £9 and his is £20, we were paying almost £40 each.

Food - 100% will shrink it. I need time to sit and plan and stick to it. Our downfall is being lazy in the evening and wanting takeaway or simple freezer food (chips, pizza), which is fine, but not the cheapest way to go about things.

Virgin - already called them and they confirmed to call back in July, so that the 30 days will mean it properly ends at the end in August. Looking at alternatives, all we need is the internet as we rarely watch "normal" TV, it's all catch up or netflix.

Spotify - talking to OH tonight
PSN - told him to stop the monthly, and just buy a year as it saves £48!
Netflix - keeping, but can probably downgrade.
Vets - this is a monthly fee with our vet which pays for flea treatment etc and a consultation.
Childcare - yup. tell me about it.

EssexHebridean wrote: »

First thing I'm going to say is go to the link in my signature (or in the sticky post at the top of the board) and fill in the SOA calculator that we recommend from Stoozing.com - it means there's less risk of things getting missed and more requirement for getting fine detail in - which again makes you think more about where money is actually going.

I'll comment in red as usual on your post below but I suspect the full SOA might be more practical use to you, going forwards.

OK - so the task to start with is to pick up on the expenses you've missed, many of which have already been mentioned, and then to work out where you can save on those you know about.

Cutting back to a basic Phone/internet package and changing the deal regularly could gain you £590 a month. Get your OH to choose between the entertainment stuff - Netflix OR spotify (but tell him that it's easier to keep small people quiet with netflix - just saying) that ticks the entertainment box as yes, you do BOTH need some entertainment.

Budgeting for stuff like car repairs etc will help you in the long term so use some of the money you save from cutting the groceries spend down for that. Use some more to start an emergency fund.

I assume your housing cost is mortgage as you're paying life insurance and the home insurance cost suggests building & contents, plus the spends for windows/boiler. That makes an emergency fund a necessity for you, so definitely focus on starting that. Similarly unless you don't mark christmas at all (or any other festivity in its place), you do need to set aside at least enough to cover the basics that you ARE going to spend. It's coming, it'll always be coming, and you may as well work with it rather than it hitting you in the pocket at the time. As children get older not doing christmas also becomes less of an option, remember.

Increasing income is the best way out of this, without wishing to be rude, why are you both on quite such low incomes? is there any way you can improve on this - ie working less than full time hours an increase to F/T for example? You've said you're looking for a second job but what about your OH? His earnings are currently lower than yours - is there anything he can do to increase his contribution? As someone else says it's by far the easiest way to make an impact on your debts and in the longer term, improve your quality of life.

Don't be too despairing - your situation is definitely not the worst we've seen and IS fixable, with some work and a few sacrifices. :beer:

Thank you

stinabean · 14 June 2019 at 8:55AM

chelseablue wrote: »

If you work from home full time why spend £700 a month on childcare? Could you reduce it a bit?

I work from home but it's proper office hours, in fact longer hours as I've squished as much as I can in to longer days to have a day off in the week, so not having to pay for childcare.
I work 8.15-5.45 every day bar thursday, I can't have the LO at home with me as I'd not get any work done. Sadly it's something work won't budge on.

stinabean · 14 June 2019 at 8:58AM

Clouds88 wrote: »

Why would you spend £700 on childcare when you only earn £1250? Even if you got an evening job working part time around your partner you would only need to earn £550 a month, roughly 16 hours a week that would be at minimum wage and you would get more
Time with your child.

I have never paid for childcare, I couldn’t bare the thought of my babies being looked after by other people except my family and it makes my eyes water what people pay! Also with that income you should get universal credit to cover child care if you do want to pay that much and work full time? Have you looked into it at all? Have a look on entitled to website.

i also hated the thought of sending him to nursery, especially at such a young age, but we needed both incomes for mortgage etc. Now, he absolutely loves it there and it really has helped him be confident and independent. I'd hate to take that away from him.
We don't have any family local so get no help there, and we're not entitled to any help gov wise.

wishingthemortgaheaway · 14 June 2019 at 9:00AM

If you aren't entitled to help with childcare via tax credits uc, the. You should be able to use a tax free childcare account.
You pay in £80, government tops it up to 100. Look on the childcare choices website.
There are 7 different schemes available for childcare costs, so you should be covered by at least 1 of them.

Also, once little one reaches the term after they are three you should be entitled to the 30 hours free childcare scheme. You can use both 30hours and tax free childcare together. Be very careful with you nursery bill though, some are very sneaky with extra charges that should, technically be voluntary. In September, when mine starts I will go from paying £375 a month into the tax free childcare account to £100 a month

stinabean · 14 June 2019 at 10:06AM

wishingthemortgaheaway wrote: »

If you aren't entitled to help with childcare via tax credits uc, the. You should be able to use a tax free childcare account.
You pay in £80, government tops it up to 100. Look on the childcare choices website.
There are 7 different schemes available for childcare costs, so you should be covered by at least 1 of them.

Also, once little one reaches the term after they are three you should be entitled to the 30 hours free childcare scheme. You can use both 30hours and tax free childcare together. Be very careful with you nursery bill though, some are very sneaky with extra charges that should, technically be voluntary. In September, when mine starts I will go from paying £375 a month into the tax free childcare account to £100 a month

That's what I was applying for under UC but they said I'm not entitled to anything, and that everything (bar child benefit) goes through them now.

stinabean · 14 June 2019 at 10:41AM

wishingthemortgaheaway wrote: »

If you aren't entitled to help with childcare via tax credits uc, the. You should be able to use a tax free childcare account.
You pay in £80, government tops it up to 100. Look on the childcare choices website.
There are 7 different schemes available for childcare costs, so you should be covered by at least 1 of them.

Also, once little one reaches the term after they are three you should be entitled to the 30 hours free childcare scheme. You can use both 30hours and tax free childcare together. Be very careful with you nursery bill though, some are very sneaky with extra charges that should, technically be voluntary. In September, when mine starts I will go from paying £375 a month into the tax free childcare account to £100 a month

Just want to say, YOU are a LEGEND.

Universal Credit have been on and on at me that I'm not entitled to anything, and that the tax free childcare is only through them. I've been arguing that the calculators say I am entitled, round and round it goes.

Just signed up via the childcare choices and I'm eligible. Obviously my SOA still needs sorting, but this should be some help

Candyapple · 14 June 2019 at 10:52AM

Sounds like you are between a rock and a hard place then.

Cut back on the things you said you were going to and revise your budget then use the snowball calculator on your other thread I linked you to to pay your debts off, and try and balance everything for say the next year when hopefully you should be entitled to (some?) free hours of childcare and also be able to apply for new 0% cards. Hopefully then that should take some of the pressure off but for now seems like you are going to be in the trenches for a while.

SOA, help please!

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