Worried about finances?

TonyInch

My wife will be going on maternity at the beginning of April.
Wondering how people make ends meat?
We’re on same wage so we take home roughly €3600 monthly and are juggling mortgage repayments,car maintenace, credit union, credit cards and household bills as it is. I know my wife will get benefit of €262 a week and there will be childrens allowance when the baby comes but that’s still a massive reduction to our household income.Any tips on how you do it?

happydayz8

Hi Tony
It is hard to tell where the problem actually lies. We'd need to know what is left after the fixed costs. However, I manage on less money and am going on leave in August. Are you worried about general bills or cost of the baby.
A baby is only as expensive as you want it to be.

We are trying to buy pretty much every thing second hand. If you can wash it / sterilise it I don't see an issue with second hand.

Can you make savings on your grocery bills by buying in Aldi / Lidl? I'd say I'm saving approximately EUR 40 a week by doing this (I buy all school lunches / work lunches there too).

Are you with the cheapest provider for all utilities, insurance...

Lastly, can you speak to your wife to see how you can budget better and make her aware of your worries?

How Strange

Is it possible to go interest only on your mortgage while your wife is on maternity leave?

Can you talk to the credit union about reducing your monthly payments for a while?

I know it's stressful to have to worry about finances at a time when you should be excited but I'd recommend looking at reducing any outgoings you can for a few months.

After that, as already suggested, start shopping in lidl/aldi if you don't already. You'd be amazed at how much you'd save weekly.

Also don't go crazy buying things for the baby that you won't need for months. A newborn needs very little so keep your spending to a minimum and seriously consider all offers of second hand equipment, clothes etc. They only need these things for such a short space of time.

Fri.Day

I read an article lately on how previous generations lived on 1 wage so had a second look at my outgoings.
I realised we only need 1 car, plan weekly meals and lunches, cancelled 2of4 internet subs, change electric to cheapest supplier etc
You'd be amazed on how generous friends and family are when baby is born.
Aldi/lidl di cheap nappies roughly €5/6 for 80+

Hunter Mahan

I had similar concerns, but as someone said previously a baby is only as expensive as you make it. You don't even need to concentrate on second hand stuff, although they help, shop around, there is always some baby store or online shop with items greatly reduced.

You'll also be surprised about the money you save by just having to stay at home with your newborn.

It's going to be like a military operation for a while trying to organise meals, rest, work etc etc

So try not to worry too much and enjoy your new arrival as much as you can, worry about money when they are in their teens, that's when they become really expensive I'd imagine.

TonyInch

Thanks guys just feel a little pressurised it feels like theres nothing left to give our luxuries ae basic sky package,the monthly dvd/takeaway and wifi.

I should’ve been clearer, like most couples we have already made all those changes (long ago) - shopping in lidl/aldi, switched electric &gas providers,we shop around for insurance, my car is 15+yrs & off the road I cycle to work etc. The place I worked closed and luckily I go another job but salary is 25% less than I was on.

I was mostly wondering about how benefical people found taking your partners tax credits? Then hopefully reduce repayments when I know the exact wage I will be on?

Nead21

When i started working part time my husband took some of my tax credits which increased his wages. We found the revenue very helpful as we were unsure of the benefits. They told us the best adjustment for us and what we could if our circumstances changed, ie if i went back full time. It's definity worth looking into.

As others have said babies are as expensive as you make them. Some stuff is crazily priced as often not necessary. We just bought basics and got stuff second hand. There is great deals on adverts.ie too.

julyjane

It's a worrying time facing a drop in income, I lost a good job 3 years ago and was out of work for 18 months. Was only there 2.5 years and got statutory redunancy so once I filled the oil tank and got new tyres on the car there wasn't a whole lot of change left. Before drawing the dole I wondered how we'd cope financially but somehow, we did. Other half's income was also dropping at the time. Rather than think about what we didn't have we just stretched what we did have as far as we could.

I was saving €300 a month but put it down to €100 just so things like car insurance/unforseen expenses would still be covered. There were times when the €100 came back out of the savings as soon as it had gone in. Meals and weekly shopping were planned down to the finest detail. It was no bed of roses but we survived, looking back I don't know how I didn't crack under the pressure. Some nights I lay awake thinking about bills that had to be paid but when I spent long enough thinking about it some kind of a plan would form.

Make the most out of things that are free - trips to museums, libraries, parks with the children so you still feel like you're living a bit.

pwurple

The tax credits make a difference.
Use a tax calculator to find out the difference here... Put one in as current situation, and one in without your wifes income.
The tax paid will be less without hers.

http://www.deloitte.ie/tc/Default.aspx

Babies cost as much as you want. Don't buy things. Just don't. you can reuse other peoples stuff, and use free things where available. Sky, dvd rentals and takeaways sounds like huge indulgences to me. We are on more money than that and we don't have any of those. Internet I would keep alright... but reduce to a cheap package, or use the free wifi nearby if you are really stuck. Libraries have dvds for free, i don't think I even know anyone who rented a dvd since the 90's! They can all easily go without any impact to your quality of life. The basic sky package is 400 quid a year, and a monthly dvd and a takeaway is what... 40 quid a month? Another 450 there. There you go, nearly 1k saved for ya. Most of a mortgage repayment?


You will be spending less with one less person going to work. Less transport costs, less makeup, cheaper food. It's not too bad as long as you can cover the mortgage on one wage.

Childcare costs when your wife goes back to work is much harder than maternity leave.

Tootle

Hi,
My wage is the only one coming in and I went from pretty much what your combined take home is to the €262 per month. We survived! I took a shorter maternity leave and we used some savings to make sure the mortgage was covered. As someone mentioned we pretty much got everything 2nd hand and in perfect condition. You'll just think more carefully about what you spend. This time around I've been saving a bit longer so hopefully can take all my mat leave. I've been paying extra into my gas and electricity so I'm in credit. Its all down to budgeting. The best thing about an April baby (like our last one) is that you'll have the summer to spend outside. Go to parks, the beach, free festivals. There's plenty going on that is free eg the first Wed of every month had (not sure if its still) free entry to national heritage sites. We had a great day out at Newgrange for free. You'll manage and it won't be as bad as you think. Also your wife will be due tax back so you'll have a nice little sum to look forward to.