Guys, I would be so grateful for some starting tips, now on mat leave about to have our first newborn but so stressed about money as I’m already having pay deducted. Going to apply for UC later but as we both work doubt we’ll receive any help, really need to start budgeting and saving as I don’t want to spend the first few months of baby’s life worrying about money
Ok deep breath.
Step1: Take the uncertainty out of it.
Go through your bank statements and bills and get an idea of where your money goes.
Categories I would suggest are:
- monthly expenses
- quarterly expenses
- yearly expenses
Now label them:
- rent/mortage and all bills concerning the home (gas, leccy, insurance, ...)
- groceries & personal care
- clothing and gifts
- entertainment
- transport
- everything else
Extend as needed but don't get bogged down with being super exact. It's more important to get an accurate view of what you spend than have perfect categories. This should include all debt payments such as mortgages, car payments, credit cards. Don't forget those one off expenses such as MOTs, new tyres, services for boilers, etc. Doesn't need to be exact, guesses are fine. Those go into the yearly total expenses.
For the quarterly and yearly expenses divide by 4 or 12 and add that to the monthly total expenses.
Now you should have a good overview of your monthly cost.
Next, get your income down on paper. How much do both of you earn? If you don't know how much your maternity pay is going to be, get that info as soon as possible.
Third, savings. Do you have any? Give it a purpose. Emergency savings should come first. If you have 3 to 6 months expenses saved, then you can look at other savings goals like house down payment, etc. Or even a new bag or a holiday, whatever you fancy!
Then you can balance your totals and see if you come out in the black or red.
If you have money left over, congrats, that's awesome. Stick that in a savings account and enjoy
If you are in the red or you're cutting it too close for comfort, start looking at your bills and figure out if there is room for reductions.
Food bills are a good way to save. Shop at Aldis or Lidl. Use a shopping list and only buy that. Avoid prepacked meals and snacks.
If you can and are comfortable with it, breastfeeding can save you money. But don't feel you have too, if bottles are the way for you, then that is a non negotiable expense. Same goes for diapers - cloth diapers can help with expenses and when done, can be resold on ebay for good money. But it is also a lot of work and something you shouldn't feel like you have to do just because of money! Being a mum is hard enough as it is.
Second hand for baby is fine for a lot of stuff except car seats. It isn't recommended to use them second hand. They also have a best by date.
TV and Internet - call them up and say you're thinking of cancelling. They will most likely offer you a rebate. How often do you use the Streaming services you pay for? Can you cut one of those?
Heating and electricity: heavy curtains will help keep the warmth in. Make it a habit to turn off the lights. Unplug electric devices you aren't using as they can still leech money. Turn down the thermostat if possible. 1 degree cooler can lead to savings of up to 5% on energy cost. A cooler bedroom also leads to better sleep, but please talk to your pediatrician on the best temperature for baby to be healthy.
For the future, you could try the money Jars system by Gail Vaz-Oxlade.
Sorry for the massive info dump, wishing you all the best love! You can do this!
x
