Baby Costs - !!!!!
Discussion
ClaphamGT3 said:
It's a shame that the OP thread has been hijacked by the Monty Python 'Yorkshiremen' thread.
I think the OP would like advice, not jealousy
My advice, as someone who has a combined household income of around £110k, was to point out to the OP that he must be spending loads of money. I think the OP would like advice, not jealousy
DoubleSix said:
You editted out the bit where I said I wasn't complaining... Why is that?
..because I wasn't commenting on your lack of complaining, I was commenting that surely only on Pistonheads could someone include propping up a couple of by-to-lets as part of normal monthly expenditure.I'm sorry but anybody earning over £100k and saying they struggle is in f
king la la land. Adjust your spending if its that tight... £6.5k per month should easily cover all outgoings, even in fantastic bloody london! There are a hell of a lot of people out there who manage on a quarter of that combined (granted its probably in the north but still). OP needs a frickin reality check. Yes youve worked hard and deserve the pay you get, but to suggest you struggle is just plain retarded.
king la la land. Adjust your spending if its that tight... £6.5k per month should easily cover all outgoings, even in fantastic bloody london! There are a hell of a lot of people out there who manage on a quarter of that combined (granted its probably in the north but still). OP needs a frickin reality check. Yes youve worked hard and deserve the pay you get, but to suggest you struggle is just plain retarded. Sheepshanks said:
DoubleSix said:
You editted out the bit where I said I wasn't complaining... Why is that?
..because I wasn't commenting on your lack of complaining, I was commenting that surely only on Pistonheads could someone include propping up a couple of by-to-lets as part of normal monthly expenditure.
Perhaps..But it could just easily be school fees or small business costs. Things that aren't easily just pared-back at short notice.
DoubleSix said:
But it could just easily be school fees or small business costs.
You just can't stop. He only earns £65K gross - school fees? Give over.He says he can cover their fixed costs on his salary. So they can't be that high. His missus is going to spend pretty well all her income on child care.
So that's easy. Ideally she should pack up work and go back some time in the future (that's what my wife did) or, if she wants to keep working or it's a job where she needs to stay involved, then she should do that and just suck it up.
The twins will be at pre-school in the blink of an eye.
Lotus82 said:
DoubleSix said:
Defcon5 said:
Lotus82 said:
I'm glad there are other people in a similar position.
I feel like I am being targeted. If we both earned £49,999 a year we would get £'000's in handouts,
Really?I feel like I am being targeted. If we both earned £49,999 a year we would get £'000's in handouts,
My partner an I earn £35000 between us, and receive £80 a month in child benefit. That's all. Could you enlighten me on what other handouts I should be getting, as a few extra thousands would come in quite useful
I earn 150k+ and still dont have money to throw around. Some people will never appreciate the fixed costs element.
There is an old saying that having kids will change your life for ever. This is particularly true financially.
It's a long time since we had our kids but my wife gave up work to look after them, then found part time work at evenings and weekends until they were school age, then a job in a school full time so that she had the holidays off.
She went back full time when they reached secondary school to just pay the school fee's.
Thing's are hard for a few years for everyone when kids arrive, you just have to cut your cloth accordingly. That may mean just getting rid of luxuries or it may mean moving to a cheaper area to downscale your fixed costs.
What will work for one won't necessarily work for another.
It's a long time since we had our kids but my wife gave up work to look after them, then found part time work at evenings and weekends until they were school age, then a job in a school full time so that she had the holidays off.
She went back full time when they reached secondary school to just pay the school fee's.
Thing's are hard for a few years for everyone when kids arrive, you just have to cut your cloth accordingly. That may mean just getting rid of luxuries or it may mean moving to a cheaper area to downscale your fixed costs.
What will work for one won't necessarily work for another.
Op you have it easy, wait until they are older
Just been given a quote for first year student accommodation in the new halls at a UK university
Studio apartment, space for single bed, tiny ensuite shower, kitchenette, desk and wardrobe £248 per week, or one with space for a double bed £328 per week. That looks like £9500 pa, before any other living expenses for the smallest one if he doesn't have use of it over the easter hols. To spend £9500 I have to earn nearly £20k
Just been given a quote for first year student accommodation in the new halls at a UK university
Studio apartment, space for single bed, tiny ensuite shower, kitchenette, desk and wardrobe £248 per week, or one with space for a double bed £328 per week. That looks like £9500 pa, before any other living expenses for the smallest one if he doesn't have use of it over the easter hols. To spend £9500 I have to earn nearly £20k
Sheepshanks said:
The current rates are £20.50 + £13.55 = £1770 per year.
It reduces by 1% of the Child Benefit received for every £100 that your individual income is over £50,000. So at £60K it's all gone.
Earning high 50s is a depressing place to be. If I get a £1000 bonus, I pay 40% tax on it and then repay £177 of my wife's child benefit. It reduces by 1% of the Child Benefit received for every £100 that your individual income is over £50,000. So at £60K it's all gone.
That is a tax rate of 57%.
alock said:
Earning high 50s is a depressing place to be. If I get a £1000 bonus, I pay 40% tax on it and then repay £177 of my wife's child benefit.
That is a tax rate of 57%.
Thank God you're not unfortunate enough to be earning £100K-£120K then.That is a tax rate of 57%.
How on earth would you deal with your marginal rate being 60% between those figures?
Childcare is massively expensive luckily my wife works 4 days a week we only have the one child and my parents have him twice a week 2 at nursery 5 days a week is going to cost!
OP can't you or the wife drop a day? Better quality of life? You don't both need to work full time on those salaries.
OP can't you or the wife drop a day? Better quality of life? You don't both need to work full time on those salaries.
OP, people on £20-50k (combined) salaries cut out things like Sky and shop at Aldi to save money. I can't believe that is your only solution at £110k besides the flash cars. I guess you have some very high other outgoings that you need to address first (mortgage and childcare) that is where your solution will lay. Downgrade your house or something if you want to continue your lifestyle. Get an estate agent in to value it and see what else is available further out from London for a chunk less.
Some great comments, thanks everyone.
We are not 'struggling'. My post never said we were. We are adjusting to a new financial reality and that requires change. My post was intended to find out what others in a similar situation have done and see if I was missing anything.
I admit I was being naive in terms of state support and on that front I will shut my mouth.
I am not going to outline my financial situation. Well aware not sharing these figures may annoy some but I fear it will only stoke the fire.
Thanks to those who sympathise and everyone for contributing.
We are not 'struggling'. My post never said we were. We are adjusting to a new financial reality and that requires change. My post was intended to find out what others in a similar situation have done and see if I was missing anything.
I admit I was being naive in terms of state support and on that front I will shut my mouth.
I am not going to outline my financial situation. Well aware not sharing these figures may annoy some but I fear it will only stoke the fire.
Thanks to those who sympathise and everyone for contributing.
Set your priorities. If it's to be mortgage free then max out ISA allowances. If it's to retire with a decent pension, use pension allowances to reduce highest marginal tax rates etc. If you want to set up your own business be prepared for a few years of potential hardship and little family time.
Most important is to manage your own expectations. There will always be people who don't seem to have to budget for anything, but it doesn't mean they're having more fun. The best family times are often the cheapest.
Most important is to manage your own expectations. There will always be people who don't seem to have to budget for anything, but it doesn't mean they're having more fun. The best family times are often the cheapest.
Hi
We have two kids.
My wife has recently given up work because child care costs were so high (she did not earn anywhere near £45k though). We also have no relatives nearby to help out.
I have also taken a new job with a much lower salary so we needed to cut costs. This is what we have done:
1) Cancelled cleaner (how very middle class)
2) rearranged mortgage (did not shorten term, but got a better deal)
3) new energy supplier
4) reduced amount going into ISAs
5) stopped going out for meal x3 per weekend to x1
6) Only have cars which are bought and paid for (obviously required some capital to start...plus my thermostat housing recently failed so can have pitfalls (but that cost far less than one months PCP payments though)
7) We still use Tesco, but wife now has time to cook. Consequently, some food has become cheaper. Buy some everyday (blue stripe) stuff where we can stomach it. Usually cereals and tinned stuff.
8) SIM only phone contracts with phones bought outright from amazon/ ebay. Still have nice phones but not paying (£400+ per annum for the privilege) No more rip-off Apple products.....
9) We tend to do stuff that costs less (local playgrounds, cycling, kite flying etc.) but I actually find more rewarding. My interest in photography has come back (free again, as long as I don't buy anymore kit!)
10) Birthdays are also a time to get stuff you need rather than what the kids want. (clothes, shoes etc.). My wife also charity shops and helps run the local NCT branch which sell off a lot of our old toys/ clothes with 30% going to charity.
11) Holidays are cheap deals now (Sun holidays for example!)- although a week in luxury in Devon is some reward in August. We have a camper van so will use this frequently through the summer for 'cheap' weekends away.
12) cancelled sky subscription. Do not miss it at all.
It really has not made much difference to our lives. In fairness, it has made our lives better. My wife is not as stressed (running around after the kids whilst holding down a job).
I reckon we are probably saving in excess of £1000 / month, with relatively few changes to our lifestyle. Why we did not do it before having kids I don't know?
Mike
We have two kids.
My wife has recently given up work because child care costs were so high (she did not earn anywhere near £45k though). We also have no relatives nearby to help out.
I have also taken a new job with a much lower salary so we needed to cut costs. This is what we have done:
1) Cancelled cleaner (how very middle class)
2) rearranged mortgage (did not shorten term, but got a better deal)
3) new energy supplier
4) reduced amount going into ISAs
5) stopped going out for meal x3 per weekend to x1
6) Only have cars which are bought and paid for (obviously required some capital to start...plus my thermostat housing recently failed so can have pitfalls (but that cost far less than one months PCP payments though)
7) We still use Tesco, but wife now has time to cook. Consequently, some food has become cheaper. Buy some everyday (blue stripe) stuff where we can stomach it. Usually cereals and tinned stuff.
8) SIM only phone contracts with phones bought outright from amazon/ ebay. Still have nice phones but not paying (£400+ per annum for the privilege) No more rip-off Apple products.....
9) We tend to do stuff that costs less (local playgrounds, cycling, kite flying etc.) but I actually find more rewarding. My interest in photography has come back (free again, as long as I don't buy anymore kit!)
10) Birthdays are also a time to get stuff you need rather than what the kids want. (clothes, shoes etc.). My wife also charity shops and helps run the local NCT branch which sell off a lot of our old toys/ clothes with 30% going to charity.
11) Holidays are cheap deals now (Sun holidays for example!)- although a week in luxury in Devon is some reward in August. We have a camper van so will use this frequently through the summer for 'cheap' weekends away.
12) cancelled sky subscription. Do not miss it at all.
It really has not made much difference to our lives. In fairness, it has made our lives better. My wife is not as stressed (running around after the kids whilst holding down a job).
I reckon we are probably saving in excess of £1000 / month, with relatively few changes to our lifestyle. Why we did not do it before having kids I don't know?
Mike
Edited by mike9009 on Sunday 29th March 16:57
Edited by mike9009 on Sunday 29th March 17:55
DoubleSix said:
ClaphamGT3 said:
£5.5k monthly net. Mortgage on 3 bed house in reasonable area £2k (prob more if still renting) child care £2k, everything else out of the remaining £1.5k.
Doesn't sound very champagne charlie to me......
Exactly.Doesn't sound very champagne charlie to me......
Add in health ins, pension, saving for kids uni, a couple of buy-to-lets that need propping up and it's soon soaked up.
I'm certainly not complaining at my own situation but I can definitely sympathise with the OP
Those items alone will leave you thousands per year better off!
Lotus82 said:
I earn £65k and wife earns £45k pa.
My wage covers all of our costs (mortgage, utilities, food etc). Wife wage will go on childcare, more or less all of it!!
Do I just have to suck it up and accept things will be tight for the next few years
Nurseries here are all about £50 a day - so about £1000 a month full time. X2 would be very expensive. Does your wife have to go back to work? Or even just part time? Seems a shame to have them in nursery full time if you aren't benefitting much financially. Either way, the answer to the second bit is yes!My wage covers all of our costs (mortgage, utilities, food etc). Wife wage will go on childcare, more or less all of it!!
Do I just have to suck it up and accept things will be tight for the next few years
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