Finances once bub is born?
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Category: Pregnant
Forum Name: Pregnancy
Forum Description: Pregnant! Wanting to chat to other mums-to-be (or dads-to-be)? Share your thoughts, experiences, and ideas... This is that place!
URL: https://www.ohbaby.co.nz/forum/forum_posts.asp?TID=19603
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Topic: Finances once bub is born?
Posted By: amykt
Subject: Finances once bub is born?
Date Posted: 29 July 2008 at 6:13pm
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Hi Everyone,
We're in the planning stages of having a baby at the moment and are trying to sort out our finances and time off work etc. I'm interested to see what everyone else is doing. With our mortgage, we'll probably only have enough savings to have 6 months off and then I'd have to go back to work at least part-time - probably 30 hrs/week. I'd love to be a stay at home mum, like my mum was for me, but it doesn't seem feasible these days - not for us at least. How much time are you all planning to have off before returning to work (if at all!). And will you be putting your bub in daycare? Thanks! |
Replies:
Posted By: caliandjack
Date Posted: 29 July 2008 at 6:27pm
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Hello amykt
I am in a very similar situation to you, in the planning stages and spending time in the waiting to TTC thread. With DH's salary we will have enough to cover the mortgage without mine, however at the moment I have a loan to clear before I can take any time off. I worked out on WFF that if I earn nothing we get $70 per week, and if I earn over 21k per year we get nothing. Daycare is approx $5 an hour , so returning to work needs to be enough $$ to make it worth while. With PPL, AL and some savings we can probably manage up to the 7-8 months mark. It actually seems easier to work less, once they're 3 and qualify for the 20 hours ------------- http://lilypie.com" rel="nofollow">   [/url] Angel June 2012 |
Posted By: ElfsMum
Date Posted: 29 July 2008 at 6:52pm
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fleury lots of places don't do 20 free hours.. :(
I'm a SAHM and we rent...and it's really tight financially but we are lucky that I can stay home.. if I end up having to work he will be going to an at home carer (like PORSE) ------------- Mum to two amazing boys! |
Posted By: mummy_becks
Date Posted: 29 July 2008 at 6:54pm
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Almost all the places in Palmy and the area around do do the 20 hours free. See your banka nd see if you can hav a mortgage holiday for a few months, that will help you and get you at home for a few extra months. ------------- I was a puree feeder, forward facing, cot sleeping, pram pushing kind of Mum... and my kids survived! |
Posted By: kebakat
Date Posted: 29 July 2008 at 6:55pm
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I didn't think I'd be able to stay home past a year but I'm still at home and am going to be at home likely for the next 5 years, I'm studying at home part time while Daniel is here and planning #2
If you make up a really good budget and get some of your costs lower (like food) you could possibly stay at home longer. There's also a mortgage holiday you could consider where you don't pay your mortgage for 3 months. |
Posted By: FionaO
Date Posted: 29 July 2008 at 7:00pm
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Planning for finances is kind of tricky. We started to put money aside when we were ttc, but as per usual things just come along that start to eat it up, we started overpaying the mortgage instead as you can pull back at any stage and that seems to have done well. I am going to take 6 months off in total, possibly a month or two longer as the daycare we are after doesn't have a space until later (fyi book in to your chosen daycare early) We have also been buying things as we go along so whilst we have two incomes, things like nappies and so on, so that we don't have to squish that into the weekly shop once we are on one income. ------------- 
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Posted By: Roksana
Date Posted: 29 July 2008 at 7:01pm
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I am taking 6 months off as I earn more than DH and it will be hard to pay bills and mortgage on his wages. We are going to get Mortgage holiday for 3 months and what ever we save by doing that plus some small savings should see us thru for 6 months with out probs. I am also planning to work from home after 14 weeks but only 15 -20 hours a week and that should give us the extra $$ for other things. DD will be 3 in Oct so we will pay half the fees for her...and then this one will be added but we are prepared.
I have a budget on excel that I try and follow and have updated it will all the diff scenarios. ------------- http://lilypie.com"> 
http://lilypie.com"> 
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Posted By: RunningT
Date Posted: 29 July 2008 at 7:37pm
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YAY finances... this is a really stressful subject.
DH and I have increased our mortgage repayments whilst we still have two incomes. It makes it tight but this will be something we need to get used to whilst on one income and we are saving some huge money in interest. Our plans are that when we go down to one income for a short period we will reduce our repayments back to the minimum. This will be less than the usual minimum repayments as we will be ahead on the mortgage if that makes sense. Mortgage holidays are a great idea but make sure you are aware of how a holiday will affect you in the future. The big issue is that the interest on your mortgage continues to build up during your repayment holiday. This means that if you have not paid any extra previously on your loan you will have no room to extend the term of your loan (ie further thant the 25 or 30 years you signed up for) Therefore you need to make up the holiday and in most cases this means that your repayments afterwards will slightly increase. This of course isn't an issue if you are going back onto two incomes. Taking a mortgage holiday is a great way to reduce expenses for a short period of time however it is important to find out all the details. There is sometimes more to mortgage holidays than what appears on the surface. Going interest only is another option because your loan doesn't grow like with a mortgage holiday. HOWEVER it may not reduce your repayments a great detail. You can discuss all these options with your banker to see what options are available. Wow what a novel... boring financial stressful stuff.  ------------- 
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Posted By: Maya
Date Posted: 29 July 2008 at 7:40pm
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I'm taking 6 months off, more coz I miss work than for financial reasons, but I'm lucky that I work from home so will still be able to b/feed etc. and that I already have a nanny for the gremlins so don't have to set up childcare arrangements. -------------  Maya Grace (28/02/03)
 (02/01/06)
The Gremlins:Sienna Marie & Mercedes Kailah (14/10/06)
Lil miss:Chiara Louise Chloe (09/07/08)
Her ladyship:Rosalia Sophie Anais (18/06/12)
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Posted By: busymum
Date Posted: 29 July 2008 at 8:11pm
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I'm pg with our fourth child but as of late last year, I'm the primary earner while DH is SAHD. Not our original plan but it does seem to work. Anyway, we are looking at getting a boarder in from now until when baby is due, to help us with some extra savings. I looked into a mortgage holiday but because the interest would keep accumulating, it would cost us quite a bit. So I went to our Bank and asked them to compare it with a personal loan or overdraft. It seems that an overdraft (for the amount of 3mos payments) will actually work better for us but the catch is that we'd have to pay it off much earlier than if we had a mtg holiday.
Anyway, I'll have PPL for 3mos but IMO that isn't quite enough time to settle a baby in (as solids are introduced at around 4mos and that's when the sleeping settles down) so we are aiming for 6mos off in total - maybe 5mos if things settle down better than I'm expecting - noting of course that I won't really be able to go back to work until DH is ready for 4. But I think 5-6mos will work fine. We're saving as hard as poss from now until then but if we run short, we'll utilise the overdraft facility. ------------- |
Posted By: caliandjack
Date Posted: 29 July 2008 at 8:38pm
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RunningT we have been doing something similar, we're currently paying $200 over our minimum repayments, so rather than take a mortgage holiday we'll be simply reduce our repayments to the minimum whilst I'm on ML.
For me its more the balance between daycare / work as I need to earn more than the cost of day care to make it viable. I am hoping to go back to work part-time rather than full time. As I want to be able to enjoy my children when they're little. They don't stay babies for very long. My mum always worked when I was young sometimes it was cleaning jobs or working nights, so for me being a working mum is normal. ------------- http://lilypie.com" rel="nofollow"> [/url] Angel June 2012 |
Posted By: yummymummy
Date Posted: 29 July 2008 at 8:59pm
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I returned to work when Gina was 3 months old but was lucky that my gran could look after her. She started going to daycare for 2 days a week when she turned 1 and now goes full time - and loves it.
I returned at 80% or 32 hours a week - part of that time I work from home so it works out great. I'm returning to work next week - Emma is nearly 5 months old - and will be working at 80% again. ------------- http://lilypie.com">  http://lilypie.com">
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Posted By: caliandjack
Date Posted: 29 July 2008 at 9:03pm
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Your lucky, that you've got help from your family.
We don't live in the same town as our parents so we wont get any parental help. I do however have the advantage of being one of the last of my friends and family to have children, so there is a world supply of baby gear available either free or second hand. Which will make life easier on the finances. ------------- http://lilypie.com" rel="nofollow"> [/url] Angel June 2012 |
Posted By: Danaj
Date Posted: 29 July 2008 at 9:04pm
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I finish at Xmas and am due 26 Jan. Go back to work 4th May and DH is home for 6 weeks. Then bubs needs to go into full time care. $1000.00 per month. Ouch but still more economical to work. ------------- http://www.TickerFactory.com/weight-loss/wyI1oWn/"> 
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Posted By: cuppatea
Date Posted: 29 July 2008 at 10:19pm
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I planned and saved for 6 months as we believed that we couldn't afford me to not work but as it turns out we can (god knows what we use to spend a whole other income on!!!). I have worked casually on and off but not usually bringing home more than $100 a week on average but have now stopped completely.
You might be surprised once you are off work how much you can actually live on. When not working there is less petrol to pay for, you don't need to buy work clothes, you dont' accidently spend $50 bucks a week on coffees and lunches/snacks. Plus you have extra time to shop around for bargains and you start being a bit more savvy with your money. That's what i've found anyway, I have definitely become less wasteful, instead of binning the shampoo as soon as it appears empty, the bottle now sits upside down so I can get every last drop out, etc. ------------- 
 
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Posted By: Peanut
Date Posted: 30 July 2008 at 8:04am
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We lived on one income while I was pregnant so in effect we should have "saved" the other....not too sure where that went!
My wee boy is 8 months today and we are starting to find it tight but that has only been in the last 2 -3 weeks. In fairness, I am working 6 hours a week and we are using that money to pay for a overseas holiday in Sept. I am a teacher and don't want to disrupt the kids so am waiting to start back in the new year so DS will be going into full time day care at 14 months. The decision was made for me to go back full time for 2-3 terms while pregnant with #2. That way we can afford for me to be off work for 2 years. -------------  
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Posted By: peanut butter
Date Posted: 30 July 2008 at 9:22am
| Cuppatea is right....it seems to be easier to live on less once bubs is here. It makes me wonder what we did before. I have managed to take 6 months off and then work part tme the last 6 months (although my pat time is v good pay). However we might be moving soon and then I will probably have to stop and wont get PPL this time round and I am wary of WFF. We were going to use a mortgage holiday but so far havent had to...god knows how we have continued to pay our mortgage but we have. We refix in October and at this point it seems "safer" for us to keep pur lump sum savings and use that to make pur repayments than to put it on the loan and reduce principal....who'd have thought....I guess its a cashflow thing. |
Posted By: ohanlon82
Date Posted: 30 July 2008 at 9:34am
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yeah we will be in the same boat when we have a baby... I will probably only get to have 6 months off max.. but that is life i suppose
we are trying to save at the moment and pay off all our little debts so just leaves the mortgage to pay ------------- http://lb2f.lilypie.com/TikiPic.php/RPaODBg.jpg |
Posted By: Natalie_G
Date Posted: 30 July 2008 at 9:51am
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I am going hard paying off our debts, I will finish paying them off before I finish work which is great.
I want a year off will have to apply for WFF, but wont get much from that to help, I just have no idea what I am going to do, daycare will cost around $200 a week, thats pretty much all my wages after rent so not sure if its worth it, have to sort it out on DH income (when he finds a new job, its tough out there) ------------- http://lilypie.com">  
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Posted By: Roksana
Date Posted: 30 July 2008 at 11:45am
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I am paying extra on mortgage at the moment too so the principal is paid off faster and once off the mortgage holiday we will be paying extra to reduce the interest. I know that this is not ideal but I am confident that we can catch up so not too woriied about it. But yah pays to know what you are in for! ------------- http://lilypie.com">
http://lilypie.com">
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Posted By: caliandjack
Date Posted: 30 July 2008 at 7:08pm
See I thought about this cause I'd be in a similar situation, but if I stayed home I wouldn't contribute anything to the mortgage, and we'd have to find an extra $250 a week from somewhere. ------------- http://lilypie.com" rel="nofollow"> [/url] Angel June 2012 |
Dagster wrote:Posted By: emz
Date Posted: 30 July 2008 at 8:46pm
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Fleury - just a thought, wouldn't it make more sense to pay off your car loan (seeing as it will be higher interest) than make bigger repayments on your mortgage?
If you can take a mortgage holiday, I think it's a great idea. Even if you have to pay back more interest in the long run, those first few months you will never get back. We have a mortgage, DH doesn't earn big bucks (and 1/4 of his pay goes on compulsory super so even though the IRD says we have an OK income we actually don't) and I work 2 part-time jobs to get by. But you do what you have to do for your kids, and I would much rather prefer to work at jobs I don't like so that I can come home to my job that I love. I make all of Jack's food, clean my sisters house to pay for Jack's formula (hadn't factored in needing it), use cloth nappies and only buy disposables for daycare on sale. I cut my own hair or go to Just Cuts instead of my normal hairdresser, buy my clothes on sale, only make trips out when I have 2 or more things to do etc etc. You can also put money onto your utilities bills so that you are in credit when bubs arrives, or arrange for an AP to pay automatically at a set amount so you don't get to the end of the month and freak out about a huge bill. I know that some people want to go back to work after a few months, and some people have to, but you never know you may really enjoy being a SAHM so it's best to try and prepare yourself for a year so you don't live with regrets. Like I said, you will never get that time back and seriously what is a year of struggling in a whole lifetime? I sometimes think that we make rods for our own backs with HP's, 'having' to have new stuff etc. My parents lived on the bones of their bums bringing us up and it doesn't matter. Kids will not remember how poor they were, only the memories of the fun things their parents did with them and the time spent with them. Anyway, I don't know if this helps at all lol but my2cents anyway! |
Posted By: caliandjack
Date Posted: 31 July 2008 at 7:28am
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Thanks for the suggestion Emz, we consolidated the car loan and our credit card debt onto the mortgage 4 months ago, so the interest rate is the same, so no worries there. I am however making the same repayment so the car gets paid off in the same time as it would have with the finance company.
Emz I didn't think compulsory super was considered taxable income? That's what my DH said. Cause with that included it looks like DH earns over 60k when its actually only 46k, without the Airforce's contribution. Big difference. ------------- http://lilypie.com" rel="nofollow"> [/url] Angel June 2012 |
Posted By: ohanlon82
Date Posted: 31 July 2008 at 10:26am
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good suggestions emz - thanks for that
DH and i could probably live on 1 wage - MAYBE LOL ------------- http://lb2f.lilypie.com/TikiPic.php/RPaODBg.jpg |
Posted By: mummy_becks
Date Posted: 31 July 2008 at 10:42am
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Seriously Fleur as I am the same as Emz and 25% we don't see at the moment (will do in a about 20 years thou ------------- I was a puree feeder, forward facing, cot sleeping, pram pushing kind of Mum... and my kids survived! |
). At the moment we get next to nothing (so hanging out for the 28th of November) so are struggling big time.Posted By: emz
Date Posted: 31 July 2008 at 11:59am
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The 17.92% that NZDF is supposed to contribute isn't taxable, but the 7% that you pay is. Apparently you can cancel your super and get the 17.92 + the 7% on your pay which is what we are looking at. Would be an extra $300 a fortnight before tax which is a huge difference.
That's a good idea about consolidating onto your mortgage. I often forget about stuff like that. |
Posted By: ohanlon82
Date Posted: 31 July 2008 at 12:03pm
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we have a car loan but got same rate as mortgage so that is good and paid off in 3 years (1 1/2 gone now.. over half way mark)
I would love to me a SAHM but not sure if will be able to.. DH really wants me too but we will see :) ------------- http://lb2f.lilypie.com/TikiPic.php/RPaODBg.jpg |
Posted By: caliandjack
Date Posted: 31 July 2008 at 6:20pm
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emz and mummybecks not sure what scheme your Dhs are in, but mine is trying to get out of his.
He's in the old one and been in 12 years now so is getting all of the 17.9% contribution the defence force puts in. But they're trying to close that one and shift everyone on to kiwisaver. They (DH and his collegues) are trying to see if they can get part or all of their own contribution out before their 20 years is up. We get the accommodation supplement cause we have our own home, which is tax deductable and goes on WFF ------------- http://lilypie.com" rel="nofollow"> [/url] Angel June 2012 |
Posted By: Snappy
Date Posted: 31 July 2008 at 6:58pm
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I never thought in a million years that I would be able to stay at home after the 3 month PPL was up. have no idea where my income went either! We get WFF (Lucky DS was born in the first month of the financial year) plus accomodation supplement. Taking everything like daycare for both children, transport, food etc it only worked out we were $100 better off if i worked. I decided that $100 was not worth missing out on the first few months of my sons life (work gave me no choice but to take the 12 months anyway) so we've just made small changes. We make our own bread, have casseroles and soups and generally stretch our money as far as it can go. We have $50 spending money a week and even that we havent needed any more than that at all. You really can make it work like the others have said. ------------- Mummy to two beauties... Formerly Kaiz. |
Posted By: mummy_becks
Date Posted: 31 July 2008 at 7:02pm
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We don't get the accom as we are in army housing, but get the WINZ accom as we still own our house in Palmy. I know the one Nigel is on he can't get out of for at least 6 years. ------------- I was a puree feeder, forward facing, cot sleeping, pram pushing kind of Mum... and my kids survived! |